Executive Summary

Q4 2024 delivered solid operational growth: net income $542M and diluted EPS $1.76, with total revenues and non‑operating income of $3.225B; production rose 18% YoY to 495k boepd, driven by Guyana and Bakken .
Guyana net production increased 52% YoY to 195k bopd; 16 cargos sold in Q4 with 14 expected in Q1 2025; Q1 2025 E&P production guided to 465–475k boepd given planned maintenance and Bakken winter weather .
Cash operating costs improved to $12.95/boe vs $13.29/boe YoY; year‑end proved reserves now ~1.44B boe with 138% organic reserve replacement at $19.67/boe F&D .
No earnings call due to pending Chevron merger; arbitration on Stabroek ROFR expected hearing in May per Jan 7 Goldman Sachs Q&A; management remains confident on closing .

What Went Well and What Went Wrong

What Went Well
- Strong production growth: 495k boepd (+18% YoY); Guyana 195k bopd (+52% YoY) and Bakken 208k boepd (+7% YoY) .
- Cost discipline: cash operating costs $12.95/boe vs $13.29/boe YoY .
- Resource depth: proved reserves ~1.44B boe; 138% organic reserve replacement at $19.67/boe F&D .
- Management confidence on Guyana capacity: “the first 3 FPSOs are producing in excess of sanctioned capacity… I’ll take the over on 1.3M and say closer to 1.7M in 2030” .
What Went Wrong
- Lower realized crude prices YoY: $72.10/bbl vs $76.63/bbl; natural gas price $4.10/mcf vs $4.51/mcf .
- Exploration expense impact: $92M related to Vancouver well (non‑commercial) in GoM .
- Q1 2025 production guide implies sequential dip (465–475k boepd) due to maintenance at Payara and winter weather in Bakken; Guyana tax barrels higher (~20k bopd in Q1 vs 29k in Q4) .

Metric	Q4 2023	Q3 2024	Q4 2024
Total revenues and non-operating income ($USD Billions)	$3.035	$3.197	$3.225
Net income attributable to Hess ($USD Millions)	$413	$498	$542
Diluted EPS ($USD)	$1.34	N/A (not disclosed)	$1.76
Cash operating costs ($/boe)	$13.29	N/A	$12.95

Segment earnings (net income attributable to HES):

Operating and production KPIs:

KPI	Q4 2023	Q3 2024	Q4 2024
Net production (boepd)	418,000	461,000	495,000
Bakken net production (boepd)	194,000	N/A	208,000
Guyana net production (bopd)	128,000	170,000	195,000
GoM net production (boepd)	30,000	30,000	30,000
Guyana cargos sold (#)	10	N/A	16
Avg realized crude price (worldwide, $/bbl incl. hedging)	$76.63	$77.06	$72.10
Avg realized gas price (worldwide, $/mcf)	$4.51	$3.81	$4.10
Net cash from operating activities ($M)	$1,344	$1,510	$1,312

Metric	Period	Previous Guidance	Current Guidance	Change
E&P net production (boepd)	Q1 2025	N/A	465,000–475,000	N/A
Guyana net production (bopd)	Q1 2025	N/A	180,000–185,000 (≈20k tax barrels)	N/A
Bakken net production (boepd)	Q1 2025	N/A	195,000–200,000 (winter impact)	N/A
E&P capital & exploratory spend ($)	FY 2025	N/A	≈$4.5B (incl. ≈$240M capitalized interest)	N/A
Dividend per share ($)	Q4 2024	$0.50 prior quarter	$0.50 payable Dec 31, 2024	Maintained

Notes: The company did not host a Q4 call and did not provide revenue or margin guidance; segment‑specific volume guidance was provided for Q1 2025 .

(Company did not host a Q4 earnings call; management commentary drawn from Jan 7, 2025 Goldman Sachs Q&A and prior releases.)

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Guyana development capacity	Yellowtail/Uaru/Whiptail sanctioned; strong volumes; cargos increasing	Continued FPSO ramp; Q3 tax barrels 25k; planned downtime in Q3	195k bopd; 16 cargos; Q1 maintenance; bullish long‑term capacity vs Exxon conservative view	Strengthening
Bakken execution/efficiency	212k boepd (+17% YoY)	Plateauing around ~200k boepd; steady operations	208k boepd; 4‑rig program; Q1 winter impact guidance	Stable
Gulf of Mexico exploration	Activity and tie‑backs; Pickerel noted earlier	Vancouver hub‑class drilling ongoing	Vancouver non‑commercial; $92M exploration expense	Mixed
Regulatory/legal (Chevron merger & ROFR arbitration)	No call; merger pending	FTC clearance announced Sept 30	No Q4 call; arbitration hearing expected May; confident outcome	Progressing
Macro/AI power needs	Noted balanced oil outlook in Q2 release	Limited disclosure Q3 (no call)	CEO advocates natural gas underpinning AI data centers; SPR refill; pragmatic energy policy	Emerging narrative

“Net income was $542 million, or $1.76 per share… Oil and gas net production was 495,000 boepd, up 18% from 418,000 boepd in the fourth quarter of 2023” .
“Cash operating costs… were $12.95 per boe in the fourth quarter of 2024, compared with $13.29 per boe in the prior‑year quarter” .
“Oil and gas proved reserves… were 1.44 billion boe… organic reserve replacement was 138% at a finding and development cost of $19.67 per boe” .
“We have every reason to believe… the next 3 ships are going to produce in excess… I’ll take the over… closer to 1.7 million barrels a day in 2030” (John Hess, Goldman Sachs Q&A) .
“Hammerhead… ~150k bpd… field development plan… sanction by April; Longtail ~240k bpd… sanction about a year from now” .

Guyana capacity outlook: Management disputes conservative external estimates; expects sanctioned 1.7M bpd by 2030 and believes actual production can exceed nameplate based on reservoir quality and operating efficiency .
Project timelines: Yellowtail construction ~95% complete with sail‑out end‑March, first oil Q4 2025; Uaru (2026) and Whiptail (2027) on track .
Arbitration/merger: English law “words on paper” support no ROFR; hearing in May, decision ~90 days later; expects deal closure thereafter .
Bakken operations: Lean manufacturing drive; spud‑to‑spud time down to 10 days; 4‑rig program with long laterals sustaining ~200k boepd plateau .
Macro and AI: Advocates natural gas as near‑term backbone for AI power; longer‑term push for nuclear “Manhattan projects”; policy recommendations on EV rules, SPR refill .

Wall Street consensus (S&P Global) estimates for Q4 2024 EPS, revenue, and EBITDA were unavailable due to a Capital IQ mapping issue for HES at the time of retrieval. As a result, estimate comparisons cannot be provided. Values would otherwise be retrieved from S&P Global.

Q4 fundamentals were resilient despite lower realized crude prices: higher volumes from Guyana and Bakken supported net income and cash generation; costs per boe improved YoY .
Near‑term production to dip in Q1 2025 (465–475k boepd) due to planned maintenance and winter weather; Guyana tax barrels also higher, tempering sequential results .
Guyana remains the long‑term growth engine: multiple FPSOs sanctioned through 2027 and management expects capacity outcomes to exceed nameplate over time .
Exploration risk surfaced in GoM (Vancouver non‑commercial; $92M expense), but portfolio balance and Midstream earnings provided cushion .
Strong reserve replacement (138%) at attractive F&D cost underscores resource depth; supports medium‑term cash flow growth trajectory .
Merger process advanced (FTC clearance); arbitration timeline set with management confidence—closure would be a key catalyst for valuation and portfolio re‑rating .
Dividend maintained at $0.50/share in Q4; liquidity and leverage metrics stable with Hess Corp debt to cap ratio at 28.3% (covenant definition) .