Hess Surpasses Q2 Estimates, Raises FY23 Production Outlook

Hess Corp HES reported Q2 revenues of $2.32 billion, beating the consensus of $2.09 billion. 

Oil and gas net production rose 28% Y/Y to 387,000 barrels of oil equivalent per day (boepd), proforma for asset sold.

Net production at Bakken increased 29% Y/Y to 181,000 boepd, and at Guyana rose to 110,000 bopd from 67,000 bopd in the prior-year quarter.

E&P capital and exploratory expenditures increased to $933 million vs. $622 million a year ago on development activities in Guyana and higher drilling activity in the Bakken. 

Adjusted EPS of $0.65, down from $2.15, surpassed the consensus of $0.50. 

The Y/Y decline in adjusted EPS reflects lower realized selling prices, partially negated by higher production volumes in Q2 2023.

Operating cash flow came in at $974 million in Q2, vs $1.509 billion a year ago.

As of June 30, 2023, Hess had cash and equivalents of $2.2 billion.

2023 Guidance: The company raised the net production outlook to 385,000-390,000 boepd from 365,000-375,000 boepd on strong operational performance and the expected startup of the Payara development early in Q4.

Price Action: HES shares are trading lower by 0.29% at $146.92 on the last check Wednesday.