Hess Corporation HES has reported third-quarter 2022 earnings per share of $1.89, beating the Zacks Consensus Estimate by a penny. The bottom line improved from the year-ago quarter’s 28 cents per share.
Total quarterly revenues increased to $3,157 million from $1,811 million a year ago. The top line also beat the Zacks Consensus Estimate of $2,939 million.
The strong quarterly results have been driven by higher realizations of commodity prices and increased hydrocarbon production.
Hess Corporation Price, Consensus and EPS Surprise
Hess Corporation Price, Consensus and EPS Surprise
Hess Corporation price-consensus-eps-surprise-chart | Hess Corporation Quote
Exploration and Production:
For the quarter under review, the Exploration and Production business reported adjusted earnings of $626 million, improving from $149 million a year ago. The business was favored by higher realized commodity prices.
Quarterly hydrocarbon production was 368 thousand barrels of oil equivalent per day (MBoe/d), up from 284 MBoe/d in the year-ago period, primarily due to higher production in Guyana.
Crude oil production increased from 153 thousand barrels per day (MBbls/d) in third-quarter 2021 to 217 MBbls/d. Natural gas liquid production totaled 60 MBbls/d, up from 47 MBbls/d in the prior-year quarter. Natural gas output was 547 thousand cubic feet per day (Mcf/d), up from 503 Mcf/d a year ago.
Worldwide crude oil realization per barrel of $93.95 (excluding the impacts of hedging) significantly improved from $67.88 in the year-ago period. Also, worldwide natural gas prices rose to $5.85 per Mcf from the year-ago figure of $4.71. The average worldwide natural gas liquids’ selling price increased to $35.44 per barrel from $32.88 a year ago.
Total costs and expenses increased to $2,269 million for the quarter from $1,483 million a year ago.
Financials
Net cash provided by operating activities was $1,339 million for the third quarter. Hess’ capital expenditure for exploration and production activities totaled $701 million.
As of Sept 30, 2022, the company had $2,384 million in cash and cash equivalents. Its long-term debt was $8,303 million at the third-quarter end.
Guidance
For 2022, Hess has revised its net production guidance (excluding Libya) upward to 325,000 barrels of oil equivalent per day (Boe/d) from the prior stated 320,000 Boe/d. For the fourth quarter, net production (excluding Libya) is projected to be 370,000 Boe/d.
The company has reiterated its capital and exploratory expenditure guidance of $2.7 billion.
Midstream:
From the midstream business, the company generated adjusted net earnings of $68 million, up from $61 million a year ago.
Operating Expenses
Operating expenses for the third quarter totaled $398 million versus the year-ago level of $333 million. Marketing costs increased to $982 million from $522 million a year ago. Also, exploration expenses increased to $58 million from $36 million in the year-ago period.
