Executive Summary

Q1 2025 revenue was $2.938B and diluted EPS was $1.39; adjusted EPS was $1.81, with lower YoY earnings primarily from softer realized oil prices and lower sales volumes; sequential trends reflect typical seasonal/maintenance impacts .
Net production was 476 kboepd (flat YoY; down vs 495 kboepd in Q4 2024); realized crude price fell YoY to $71.22/bbl from $80.06/bbl, pressuring margins; net income margin was ~14.6% vs ~29.1% in Q1 2024 (computed from cited figures) .
Guidance signals a sequential production lift in Q2 (E&P 480–490 kboepd; Bakken 210–215 kboepd) but cash operating costs are expected to be higher due to workovers in GoM and SE Asia .
The key operational surprise: Yellowtail first oil was pulled forward to Q3 2025 (from Q4 2025) as the ONE GUYANA FPSO arrived April 15; this is a material timing benefit for Guyana growth and a potential stock catalyst on execution milestones .
No earnings call was held due to the pending Chevron merger; thus no incremental call-driven disclosures or Q&A updates this quarter .

What Went Well and What Went Wrong

What Went Well
- Yellowtail development advanced faster than expected: “Yellowtail is on track to start up in the third quarter of 2025… initial gross capacity ~250,000 bopd… ONE GUYANA FPSO arrived offshore Guyana on April 15” .
- Q2 production outlook improved: Company E&P 480–490 kboepd; Bakken 210–215 kboepd; Guyana ~180 kbopd net with 15 cargos expected, pointing to sequential volume lift .
- Liquidity/CF: Operating cash flow was $1.401B vs $0.885B YoY (benefited by WC), and Hess Midstream refinanced $800M notes due 2026 and repurchased Opco units ($38M to HES), supporting capital flexibility .
What Went Wrong
- YoY price and volume headwinds: Realized oil price declined to $71.22/bbl (from $80.06) and sales volumes fell to 462 kboe/d (from 481), pressuring YoY earnings and margins .
- Higher costs: Cash operating costs rose to $12.27/boe (from $10.79) on higher ND maintenance and are expected to be higher in Q2 due to GoM and SE Asia workovers .
- Non‑recurring legal accrual: $129M after‑tax charge for anticipated settlement of North Dakota gathering/processing/transport claims impacted reported E&P results .

Metric	Q1 2024	Q4 2024	Q1 2025
Total revenues and non‑operating income ($B)	$3.341	$3.225	$2.938
Net income attributable to Hess ($B)	$0.972	$0.542	$0.430
Diluted EPS ($)	$3.16	$1.76	$1.39
Adjusted net income ($B)	$0.972	$0.542	$0.559
Adjusted EPS ($)	$3.16	$1.76	$1.81
Net cash provided by operating activities ($B)	$0.885	$1.312	$1.401
Net income margin (%)	29.1% (computed from )	16.8% (computed from )	14.6% (computed from )

KPI trends

KPI	Q1 2024	Q4 2024	Q1 2025
Net production (kboepd)	476	495	476
Sales volumes (kboe/d)	481	500	462
Realized crude price – Worldwide ($/bbl)	$80.06	$72.10	$71.22
Cash operating costs ($/boe)	$10.79	$12.95	$12.27
E&P capital & exploratory ($MM)	$927	$1,677	$1,085

Segment and regional results

Metric ($MM)	Q1 2024	Q4 2024	Q1 2025
E&P net income (GAAP)	997	529	434
E&P adjusted net income	997	529	563
Midstream net income	67	74	70
Corporate, interest & other	(92)	(61)	(74)
E&P net income – United States	15	(231)	(236)
E&P net income – International	982	760	670

Note: Net income margin is computed as Net income attributable to Hess / Total revenues and non‑operating income using cited values .

Metric	Period	Previous Guidance	Current Guidance	Change
E&P net production (kboepd)	Q2 2025	n/a	480–490	New
Bakken net production (kboepd)	Q2 2025	n/a	210–215	New
Guyana net production (kbopd)	Q2 2025	n/a	~180; 15 cargos expected	New
Cash operating costs	Q2 2025	—	Higher vs Q1 2025	Raised sequentially
FY25 E&P capex	FY 2025	~ $4.5B (Q4 release)	~ $4.5B	Maintained
Yellowtail first oil timing	Project	Q4 2025	Q3 2025 (FPSO arrived Apr 15)	Pulled forward
Dividend per share	Q1 2025	—	$0.50/sh (payable Mar 31, 2025)	No change indicated

No earnings call was held due to the pending Chevron transaction . Themes below compare recent disclosures.

Topic	Previous Mentions (Q3 & Q4 2024)	Current Period (Q1 2025)	Trend
Guyana project timing	Q4: Yellowtail 4Q25; Uaru 2026; Whiptail 2027	Yellowtail now 3Q25; Hammerhead FDP submitted (target ~150 kbopd; first oil 2029 pending approvals)	Schedule pulled forward; pipeline maturing
Production guidance	Q4: guided Q1 2025 to 465–475 kboepd	Q2 2025 guided to 480–490 kboepd; Bakken 210–215	Sequentially higher
Costs	Q4: cash op costs $12.95/boe	Q1: $12.27/boe; Q2 to be higher on GoM/SE Asia workovers	Near‑term uptick
Legal/regulatory/one‑offs	Q3: Vancouver well non‑commercial; impairments	$129M after‑tax legal accrual ND gathering/processing/transport	One‑time charge this quarter
Macro/prices	Q3: worldwide oil $77.06/bbl ; Q4: $72.10/bbl	Q1: $71.22/bbl	Lower YoY; stable sequential

“Yellowtail is on track to start up in the third quarter of 2025 with an initial gross production capacity of approximately 250,000 bopd utilizing the ONE GUYANA FPSO, which arrived offshore Guyana on April 15” (press release/8‑K) .
“Cash operating costs… were $12.27/boe… expected to be higher in Q2 2025, reflecting increased workover activity in the Gulf of America and Southeast Asia” .
“Full year 2025 E&P capital and exploratory expenditures are expected to be approximately $4.5 billion” .
“Due to the pending merger with Chevron Corporation… [Hess] will not host a conference call to review its first quarter 2025 results” .

No Q&A this quarter as the company did not host a call due to the pending Chevron merger .

We attempted to retrieve Wall Street consensus (S&P Global/Capital IQ) for Q1 2025 EPS and revenue; data were unavailable due to a mapping issue for HES. As a result, we cannot determine beat/miss versus S&P Global consensus this quarter (S&P Global consensus unavailable).

Q1 print was largely in line with internal operational expectations, with YoY earnings pressure from lower realized oil prices and volumes; sequentially, volumes and cash flow remain solid with a planned Q2 production step‑up .
The schedule pull‑forward at Yellowtail to 3Q25 is a meaningful positive; execution on commissioning and ramp will be key near‑term stock catalysts as Guyana volumes grow .
Sequential cost headwinds (cash operating costs higher in Q2) are transitory, tied to workovers; monitor for normalization in 2H as activity moderates .
Legal accrual ($129M after‑tax) is a one‑time drag; adjusted earnings better reflect underlying operations this quarter .
Liquidity and capital flexibility remain sound: $1.401B CFO in Q1; HESM refinanced 2026 notes and executed unit repurchases; FY25 E&P capex reiterated at ~$4.5B .
Dividend support continues with a $0.50/sh payout declared for March 31, 2025—aligned with ongoing cash generation and Guyana ramp .
With no call and the Chevron merger pending, narrative focus shifts to project execution (Yellowtail start-up) and regulatory milestones in Guyana; absence of Q&A limits near‑term estimate recalibration catalysts .

Sources: Hess Q1 2025 8‑K and press release, Q4 2024 press release, dividend press release .