Executive Summary

Q2 2024 delivered strong operational and financial performance: net income was $757M ($2.46 diluted EPS) versus $119M ($0.39) in Q2 2023; adjusted net income was $809M ($2.62) versus $201M ($0.65) YoY, driven by higher production volumes and realized prices .
Oil and gas net production rose 28% YoY to 494k boepd, with Bakken at 212k boepd (+17% YoY) and Guyana at 192k bopd (+75% YoY); cash operating costs fell to $11.69/boe from $13.97/boe YoY .
Guidance points to lower Q3 volumes due to planned downtime: E&P net production 460–470k boepd; Bakken 200–205k boepd; Guyana 170–175k bopd; Q3 E&P capex ~$1,125M .
No earnings call was held due to the pending Chevron merger, limiting typical qualitative/disclosure dynamics and removing call-driven catalysts .

What Went Well and What Went Wrong

What Went Well

Material YoY earnings expansion: adjusted net income rose to $809M ($2.62/share) from $201M ($0.65/share), primarily on higher volumes and realized prices; GAAP net income rose to $757M ($2.46/share) from $119M ($0.39/share) .
Production strength across core basins: Bakken production reached 212k boepd (+17% YoY) with four rigs operating; Guyana hit 192k bopd (+75% YoY) with Payara at ~220k gross bopd capacity reached in January .
Improved unit costs: cash operating costs decreased to $11.69/boe vs $13.97/boe YoY, reflecting scale efficiencies from higher production .

What Went Wrong

JDA charges in Southeast Asia: Q2 included E&P charges tied to the regulator’s notification that PSC Block A-18 will not be re-awarded post-2029, contributing to $52M after-tax items affecting comparability .
Gulf of Mexico volumes dipped: Q2 GoM production was 24k boepd vs 32k boepd YoY due to planned maintenance at Conger and Tubular Bells .
Q3 production to be lower: guidance embeds planned downtime in Guyana and Southeast Asia, with E&P net production expected at 460–470k boepd, Bakken 200–205k boepd, Guyana 170–175k bopd .

Financial Results

Income Statement and EPS vs Prior Periods and Prior Year

Metric	Q4 2023	Q1 2024	Q2 2024
Sales and other operating revenues ($MM)	$3,011	$3,309	$3,202
Other, net ($MM)	$24	$32	$53
Total revenues & non-operating income ($MM)	$3,035	$3,341	$3,255
Net income attributable to Hess ($MM)	$413	$972	$757
Diluted EPS (GAAP) ($)	$1.34	$3.16	$2.46
Adjusted net income ($MM)	$501	N/A	$809
Adjusted diluted EPS ($)	$1.63	N/A	$2.62
Net income margin (%)	13.6%	29.1%	23.3%

Notes: Net income margin calculated as Net income attributable to Hess / Total revenues & non-operating income using cited figures.

Segment Earnings and Mix

Segment metric ($MM)	Q4 2023	Q1 2024	Q2 2024
E&P net income (GAAP)	$512	$997	$765
E&P adjusted net income	$531	N/A	$817
Midstream net income	$63	$67	$66
Corporate, Interest & Other (after-tax)	$(162)	$(92)	$(74)

Production, Realized Prices, Unit Costs

KPI	Q4 2023	Q1 2024	Q2 2024
Net production (boepd)	418,000	476,000	494,000
Bakken production (boepd)	194,000	190,000	212,000
Guyana production (bopd)	128,000	190,000	192,000
Cash operating costs ($/boe)	$13.29	$10.79	$11.69
Realized oil price worldwide ($/bbl, incl. hedging)	$76.63	$80.06	$80.29
Realized NGL price worldwide ($/bbl)	$20.92	$22.97	$20.07
Realized gas price worldwide ($/mcf)	$4.51	$4.62	$4.22

Cash Flow and Capex

Metric	Q4 2023	Q1 2024	Q2 2024
CFO (GAAP) ($MM)	$1,344	$885	$1,893
CFO before WC ($MM, non-GAAP)	$1,239	$1,729	$1,592
E&P capex ($MM)	$1,480	$927	$1,151
Midstream capex ($MM)	$72	$35	$73

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
E&P net production (boepd)	Q3 2024	N/A	460,000–470,000	New
Bakken net production (boepd)	Q3 2024	N/A	200,000–205,000	New
Guyana net production (bopd)	Q3 2024	N/A	170,000–175,000; expected 14 crude cargos	New
E&P capital & exploratory expenditures ($MM)	Q3 2024	N/A	~$1,125	New
Conference call	Q2 2024	Typically held	Not held due to pending Chevron merger	Suspended

Earnings Call Themes & Trends

Note: No Q2 2024 conference call/transcript due to the pending Chevron merger .

Topic	Q4 2023 (Prev-2)	Q1 2024 (Prev-1)	Q2 2024 (Current)	Trend
Guyana development cadence	Payara commenced; Yellowtail 2025; Uaru 2026; Whiptail FDP submitted	Payara at ~220k gross bopd; Whiptail sanctioned; Bluefin-1 discovery	Payara at capacity; Whiptail sanctioned; Hammerhead permit filed (future)	Execution on multi-FPSO program progressing
Bakken drilling program	4 rigs; 33 drilled/30 completed/33 online in Q4	4 rigs; 31 drilled/21 completed/34 online in Q1	4 rigs; 38 drilled/37 completed/31 online in Q2	Stable four-rig program; throughput variance
Unit costs	Cash operating costs $13.29/boe	$10.79/boe	$11.69/boe	Improved YoY; slight QoQ uptick
Regulatory/legal	HONX litigation charges in Q4 corporate	HONX payment affected WC in Q1	JDA PSC not re-awarded in 2029; charges recorded	Continuing legal/regulatory items
Gulf of Mexico	Lease bids, 30k boepd	31k boepd	24k boepd due to maintenance; Pickerel-1 first oil	Maintenance-driven volatility

Management Commentary

“Due to the pending merger with Chevron Corporation (Chevron), the Corporation will not host a conference call to review its second quarter 2024 results.” – Hess Corporation press release .
Hess Midstream LP: “We continue to execute unit repurchase transactions… we will have returned $1.75 billion to shareholders… Following this unit repurchase… we expect to continue to have more than $1.25 billion of financial flexibility through 2026…” – Jonathan Stein, CFO, Hess Midstream . While midstream, this highlights capital return cadence and balance sheet posture relevant to consolidated stakeholders.

Q&A Highlights

Not applicable; the company did not hold an earnings call for Q2 2024 due to the pending Chevron merger .

Estimates Context

Wall Street consensus (S&P Global) for Q2 2024 EPS and revenue was unavailable due to mapping limitations; therefore, we cannot quantify a beat/miss versus SPGI consensus this quarter. If required, we can supplement with third-party sources, but per methodology we default to S&P Global and note unavailability.

Key Takeaways for Investors

Volume-driven earnings expansion: broad-based production increases and higher realized prices drove robust YoY EBITDA/earnings conversion; unit costs improved YoY reinforcing operating leverage .
Guyana continues to anchor the growth story: Payara at capacity, continued development pipeline (Yellowtail 2025, Uaru 2026, Whiptail 2027) sustains multi-year visibility; Q3 downtime is transitory (Gas to Energy hook-up, optimization) .
Bakken remains a reliable cash engine: steady four-rig program and throughput strength; Q3 guidance implies modest pullback from Q2 levels on maintenance and percentage-of-proceeds volume dynamics .
Near-term headwinds: Q3 production guidance points lower on planned downtime (Guyana, Southeast Asia) and Bakken maintenance—expect softer volumes QoQ; position sizing should consider this cadence .
Corporate/regulatory watch items: JDA PSC non-reaward post-2029 drove charges and underscores regional regulatory risk considerations; monitor further disclosures and any Chevron-merger impacts .
Liquidity and leverage: cash and cash equivalents $2.025B; consolidated debt $8.865B; Hess Corporation debt-to-capitalization per covenants at 30.8%, down from 33.6% at year-end, reflecting improved balance sheet metrics .
Event risk and disclosure cadence: no call and pending merger reduce typical narrative catalysts; trading focus should shift to operational prints (cargo timing, downtime resolution) and merger milestones .

Appendix: Selected Additional Data

Net cash provided by operating activities: $1,893M in Q2 vs $974M YoY; CFO before WC $1,592M vs $974M YoY; WC added $301M in Q2 .
Segment sales (E&P): US sales $1,540M, International $1,655M in Q2; total $3,195M .
Average realized crude price worldwide: $80.29/bbl in Q2 vs $71.13/bbl YoY and $80.06/bbl in Q1 .

Citations: All figures and statements are sourced from Hess Corporation press releases and Form 8‑K filings as cited above.

HESS CORP (HES)·Q2 2024 Earnings Summary