HES Financial Analysis

Analysis Date: 1/30/2025

Business Model

Hess Corporation generates revenue primarily through oil and gas exploration and production operations, along with midstream services

Revenue Sources

• Oil and gas production sales (primary revenue source)
• Midstream operations through Hess Midstream

Revenue Distribution by Channel

• E&P revenue: $3,188 million
• Midstream revenue: $395 million

Income Statement Analysis

• Revenue increased 6.3% YoY driven by higher production volumes
• Operating costs rose 12.5% due to higher production activity
• Net income improved 31.2% YoY to $542 million

Balance Sheet Analysis

• Cash position decreased by 30.6% to $1.17B
• Total assets grew 10.6% to $26.6B

Cash Flow Analysis

• Operating cash flow decreased slightly by 2.4% to $1.31B

Capital Allocation

2025 E&P capital expenditure guidance of $4.5B focused on Guyana developments and Bakken operations. Regular dividend payments continuing.

Management Commentary

Strong operational performance with production up 18% YoY

Successful startup of Payara development in Guyana

Overall Sentiment: Positive with focus on executing growth strategy in Guyana

Recommendation

Rating: Hold

Reason for Rating: Given pending merger with Chevron Corporation

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/30/2025, 4:05:57 AM