The **Marketing cost** was elevated in **Q4 2023** primarily due to **higher throughput volumes and increased tariff rates**. Additionally, it appears that **lower prices paid for purchased volumes** in 2023 compared to 2022 also contributed to the higher expenses, even though the specific quarterly drivers are not detailed in the documents.  **[0001628280-24-002641_q42023hesscorporationex991.htm:7]** **[0001628280-24-006845_hes-20231231.htm:60]** 

Why was Marketing cost so high in Q4 2023?

The sharp increase in **income before taxes** in Q1 2024 was driven by multiple factors. **Higher production volumes** played a key role, with net production increasing by **27%** to **476,000 boepd**—largely due to a **70% jump in Guyana production** and a **17% increase in Bakken production** compared to Q1 2023.  **[0001628280-24-017828_q12024hesscorporationex991.htm:0]**  Additionally, **higher realized crude oil prices** (rising from **$74.23 per barrel to $80.06 per barrel**) and **lower cash operating costs** (decreasing from **$12.96 to $10.79 per boe**) improved margins significantly.  **[0001628280-24-017828_q12024hesscorporationex991.htm:0]**  The company also benefited from **increased revenues** (rising from **$2,423 million to $3,314 million**) and **lower exploration expenses** (falling from **$66 million to $42 million**), all of which contributed to the substantial rise in income before income taxes.  **[0001628280-24-021077_hes-20240331.htm:24]** **[0001628280-24-021077_hes-20240331.htm:20]** **[0001628280-24-017828_q12024hesscorporationex991.htm:0]** 

What drove the sharp increase in income before taxes in Q1 2024?

The substantial jump in net income in Q1 2024 was driven by several key factors: **higher production volumes**—with overall production increasing from **374,000 boepd** to **476,000 boepd** (notably, Guyana production climbed from **112,000 bopd** to **190,000 bopd** and Bakken production from **163,000 boepd** to **190,000 boepd**)  **[0001628280-24-017828_q12024hesscorporationex991.htm:0]** **[0001628280-24-021077_hes-20240331.htm:18]** ; **higher realized crude oil selling prices**, which rose from **$74.23 per barrel** to **$80.06 per barrel**  **[0001628280-24-017828_q12024hesscorporationex991.htm:0]** **[0001628280-24-021077_hes-20240331.htm:18]** ; **lower cash operating costs**, declining from **$12.96 to $10.79 per barrel of oil equivalent** due to increased volumes  **[0001628280-24-017828_q12024hesscorporationex991.htm:0]** ; **improved segment performance**, where the Exploration and Production division's net income surged from **$405 million** to **$997 million** and midstream net income also increased modestly  **[0001628280-24-017828_q12024hesscorporationex991.htm:0]** **[0001628280-24-021077_hes-20240331.htm:18]** ; and the impact of **tax barrels in Guyana**, where production of tax barrels increased from **15,000 bopd** to **33,000 bopd**, further contributing to enhanced revenues.  **[0001628280-24-017828_q12024hesscorporationex991.htm:2]** 

What factors contributed to the substantial jump in net income in Q1 2024?

The spike in Q2 2024 exploration expenses was mainly driven by **increased exploratory dry hole costs**. These costs rose to **$63 million in Q2 2024**, compared to **$62 million in Q2 2023**, primarily due to the expenditures associated with the **Trumpetfish-1 exploration well** at the Stabroek Block offshore Guyana. Additionally, there was a modest increase in **geological and geophysical expenses and exploration overhead** in Q2 2024, which also contributed to the overall expense increase.  **[0001628280-24-036142_hes-20240630.htm:29]** 

Why did exploration expenses spike in Q2 2024?

2691375d85d94aa5c19560b01a404caec28a57e2c412bbfa6c12daf97889deb9

The significant drop in cash and cash equivalents in Q1 2024 was mainly due to a combination of lower operating cash flow, higher capital expenditures, and financing outflows. Although net cash provided by operating activities was **$885 million**, changes in operating assets and liabilities—including increased accounts receivable related to Guyana oil liftings and a decrease in accrued liabilities—reduced cash by **$844 million**. Additionally, investing activities consumed **$958 million** in cash, driven by **$902 million** in capital expenditures for Exploration & Production and **$55 million** for the Midstream segment. Financing activities also contributed with a net outflow of **$177 million**, which included **$137 million** in common stock dividends and **$151 million** in outflows related to noncontrolling interests. These combined factors led to the overall decline in cash during Q1 2024.  **[0001628280-24-017828_q12024hesscorporationex991.htm:2]** **[0001628280-24-021077_hes-20240331.htm:27]** **[0001628280-24-017828_q12024hesscorporationex991.htm:7]** 

Why did cash and cash equivalents drop so significantly in Q1 2024?

The surge in **cash and cash equivalents** for Q2 2024 was primarily driven by a significant increase in **net cash provided by operating activities**, which jumped to **$1,893 million** due to higher production volumes and improved realized selling prices.  **[0001628280-24-033628_q22024hesscorporationex991.htm:3]** **[0001628280-24-033628_q22024hesscorporationex991.htm:10]**  Although there were offsetting factors, such as increased **investing outflows** (with **$1,152 million** spent on property, plant, and equipment) and higher **financing outflows** (a net outflow of **$154 million**), the robust operating cash flows resulted in an overall rise of **$587 million** in cash and cash equivalents.  **[0001628280-24-033628_q22024hesscorporationex991.htm:3]** **[0001628280-24-033628_q22024hesscorporationex991.htm:10]** 

What contributed to the surge in cash and cash equivalents in Q2 2024?

The drastic reduction in the **current portion of long-term debt** in Q3 2024 was primarily due to Hess Corporation repaying a **$300 million principal amount** of senior unsecured notes during that quarter, which significantly lowered the debt from **$311 million (as of December 31, 2023)** to **$20 million (as of September 30, 2024)**.  **[0001628280-24-044190_q32024hesscorporationex991.htm:9]** **[0001628280-24-045716_hes-20240930.htm:2]** **[0001628280-24-044190_q32024hesscorporationex991.htm:3]** 

What led to the drastic reduction in the current portion of long-term debt in Q3 2024?

In Q3 2024, **Hess Corporation’s** total assets grew significantly due to several key factors. The primary drivers were:

- An increase in **property, plant, and equipment (net)** from **$17,432 million** to **$18,963 million**, reflecting ongoing capital and exploratory expenditures—particularly in **Guyana and North Dakota**.  **[0001628280-24-045716_hes-20240930.htm:2]** **[0001628280-24-044190_q32024hesscorporationex991.htm:12]**   
- A rise in **cash and cash equivalents** from **$1,688 million** to **$1,864 million**, bolstered by strong operating cash flows of **$1,510 million** in the quarter.  **[0001628280-24-045716_hes-20240930.htm:2]** **[0001628280-24-044190_q32024hesscorporationex991.htm:3]** **[0001628280-24-044190_q32024hesscorporationex991.htm:10]**   
- Substantial gains in **deferred income tax assets** (increasing from **$320 million to $607 million**) and in **other long-term assets** (from **$952 million to $1,193 million**), further contributing to the asset growth.  **[0001628280-24-045716_hes-20240930.htm:2]** 

These factors combined to drive the marked increase in total assets observed in Q3 2024.

What factors drove the significant growth in total assets in Q3 2024?

571230dd53664ae6912ba5b3b0131996ad5594988f532ed6851624e565fe7ce1

The significant jump in Q2 2024 operating cash flow was driven by **higher production volumes and improved selling prices**, **changes in operating assets and liabilities** (which added approximately **$301 million** to cash flow), and **increased non-cash adjustments** such as the rise in **depreciation, depletion, and amortization expenses**.  **[0001628280-24-033628_q22024hesscorporationex991.htm:3]** **[0001628280-24-033628_q22024hesscorporationex991.htm:10]** 

What drove the significant jump in Operating Cash Flow in Q2 2024?

Operating Cash Flow dropped from **$1,344 million** in Q4 2023 to **$885 million** in Q1 2024 mainly because the first quarter experienced significant negative impacts from changes in operating assets and liabilities. In Q1 2024, these changes reduced cash flow by **$844 million**, driven particularly by an increase in accounts receivable related to Guyana oil liftings and a decrease in accrued liabilities due to a legal settlement payment concerning the former downstream business. These factors collectively outweighed the positive effects from higher production volumes ( **[0001628280-24-006845_hes-20231231.htm:90]** **[0001628280-24-021077_hes-20240331.htm:3]** **[0001628280-24-021077_hes-20240331.htm:27]** **[0001628280-24-017828_q12024hesscorporationex991.htm:2]** **[0001628280-24-017828_q12024hesscorporationex991.htm:7]** ).

Why did Operating Cash Flow drop from Q4 2023 to Q1 2024?

The sharp increase in E&P capital expenditures in Q4 2023 was driven by **development activities in Guyana** and **higher drilling activity in the Bakken region**.  **[0001628280-24-002641_q42023hesscorporationex991.htm:9]** **[0001628280-24-006845_hes-20231231.htm:66]** 

What caused the sharp increase in E&P capital expenditures in Q4 2023?

2edea6806d47ad70b61ea71763a1baba138befa878ce1115cf4357fab986ed83

66379bf0837607aff54be0f615650c5f747afbdcbf4c4268b1264b45c3a8e153

af7543c8908a76c85dbcb66071e9c32a66a0db9d49ddfe876b3fd7d2d7e38274

Sales and other operating revenues (USD, millions)

Gains on asset sales, net (USD, millions)

Other, net (USD, millions)

Total revenues and non-operating income (USD, millions)

Marketing, including purchased oil and gas (USD, millions)

Operating costs and expenses (USD, millions)

Production and severance taxes (USD, millions)

Exploration expenses, including dry holes and lease impairment (USD, millions)

General and administrative expenses (USD, millions)

Interest expense (USD, millions)

Depreciation, depletion and amortization (USD, millions)

Impairment and other (USD, millions)

Total costs and expenses (USD, millions)

Income Before Income Taxes (USD, millions)

Provision for income taxes (USD, millions)

Net Income (USD, millions)

Less: Net income attributable to noncontrolling interests (USD, millions)

Net Income Attributable to Hess Corporation (USD, millions)

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c269d402b3fe3d842d7a4f9ea54af0402ea9825244588af5c65000df12838326

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

9ed1a99b4d87707b1398a63b5b3c599e40e76c9e3540cf5c53f1a6874aa394e6

c31d78583c5ac5894aac4010505323869b2fc91e8ebb1b3a879040cc113d1ca0

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5ae5876ba0fca61a520880bd304ac24949b9b54347e79136914acccc7852ef74

HESS (HES)

Financials