Hess beats Q3 earnings estimates on robust Guyana output

UP-DATES:

Hess Corporation reported impressive third-quarter earnings, exceeding analysts’ expectations primarily due to robust production levels from its operations in Guyana. The company’s performance underscores the strategic significance of its Guyana assets, which have become a cornerstone of its growth strategy.

---

For the third quarter, Hess reported earnings of $1.40 per share, surpassing the consensus estimate of $1.30. This performance reflects a significant year-over-year increase, fueled by a surge in oil production from the Stabroek Block, where Hess is a key partner in a consortium led by ExxonMobil. The Stabroek Block has proven to be a prolific source of oil, with multiple discoveries and a strong production trajectory. Hess’s average daily production from this block was approximately 400,000 barrels of oil equivalent (BOE) during the quarter, contributing significantly to the company’s overall output.

The strong performance in Guyana is attributed to several factors, including the successful ramp-up of production from the Liza Phase 1 and Liza Phase 2 projects. Both projects have delivered high output levels, and with further developments planned, such as the Payara project, Hess is well-positioned for continued growth in the region. The company expects total production from the Stabroek Block to exceed 1 million barrels of oil per day by 2027, showcasing the long-term potential of its Guyana operations.

In addition to the strong output, Hess’s overall financial health was bolstered by higher crude oil prices. The average realized price for crude oil during the quarter was around $93 per barrel, contributing positively to revenue. Hess also reported a significant increase in free cash flow, allowing the company to return capital to shareholders while also investing in growth initiatives.

Hess’s strong quarterly performance reaffirms its commitment to enhancing shareholder value through disciplined capital management and strategic investments. The company plans to continue focusing on its exploration and production activities in Guyana while maintaining a balanced approach to its portfolio.

---

Looking ahead, Hess remains optimistic about the long-term outlook for oil markets and its growth prospects in Guyana. With ongoing investment in infrastructure and exploration, the company is well-equipped to capitalize on its strategic position in one of the world’s most promising oil regions. As the energy landscape continues to evolve, Hess’s strong operational performance sets a solid foundation for future success.