Hess net worth has been a point of interest for many financial enthusiasts. In 2024, Hess showed remarkable financial growth, enhancing its market cap and overall performance.
Join me, Ando Money, as I break down Hess Corporation’s financial journey, from their quarterly revenue breakdowns to exploration and production impacts.
Quick Facts
| Fact | Detail |
|---|---|
| Name | Hess Corporation |
| Full Name | Hess Corporation |
| Website | www.hess.com |
| Industry | Energy (Oil & Gas) |
| Traded as | NYSE: HES |
| ISIN | N/A |
| Founded | December 11, 1919 |
| Founders | Leon Hess |
| Country/Territory | United States |
| Headquarters | New York, NY |
| Chief Executive Officer | John B. Hess |
| Number of Employees | 1,756 |
| Market Cap | $43.22 Billion (October 2024) |
| Total Assets | $25.81 Billion (June 30, 2024) |
| Total Equity | $10.65 Billion (June 30, 2024) |
| Revenue | $6.60 Billion (First 6 months of 2024) |
| Net Income | $757 Million (Q2 2024) |
What is the Net Worth/Market Cap Of Hess in 2024?
Hess Corporation’s net worth, often referred to as its market cap, stood at $43.22 Billion in October 2024. This valuation places Hess among the world’s prominent energy corporations.
The company’s financial performance has shown growth, especially when compared to its peers. Some close entities in the same sector include:
- ExxonMobil
- Chevron
- ConocoPhillips
- BP
- Shell
- TotalEnergies
- Marathon Oil
- EOG Resources
- Occidental Petroleum
- Devon Energy
This market cap highlights Hess’s standing among the most valuable corporations.
To explore more about other major players, check out this page about the world’s richest companies.
Hess Financial Performance Overview
Quarterly and Annual Revenue Breakdown
In Q2 2024, Hess generated $3.26 Billion in total revenues, showing significant growth compared to the $2.32 Billion recorded in Q2 2023.
The first six months of 2024 saw a cumulative revenue of $6.60 Billion, which was a sharp increase from the same period in 2023.
This rise was largely driven by increased production volumes, as well as higher realized selling prices.
Exploration and Production (E&P) Segment Contributions
The Exploration and Production (E&P) segment is a key contributor to Hess’s revenue.
In Q2 2024, Hess’s net production reached 494,000 barrels of oil equivalent per day (boepd), a 28% jump from Q2 2023.
The main regions propelling this growth were Guyana, with 192,000 bopd, and the Bakken in North Dakota, which accounted for 212,000 boepd. Notably, Guyana’s net production was up by a staggering 75% year-on-year.
This increase in E&P was essential to the company’s financial growth.
Capital and Exploratory Expenditures
Capital expenditures are crucial for driving future growth. Hess allocated around $1.15 Billion to E&P capital and exploratory expenses in Q2 2024.
The investments focused mainly on enhancing operations in Guyana, followed by higher drilling activities in the Gulf of Mexico and Bakken regions.
The company aims to continue its development projects, with Q3 2024 expenditures expected to be approximately $1.125 Billion.
Cash Flow and Liquidity Analysis
A vital aspect of Hess’s financial health is its cash flow.
In Q2 2024, the net cash generated from operating activities was $1.89 Billion, a substantial improvement from $974 Million in the same quarter of 2023.
Excluding changes in operating assets and liabilities, the net cash stood at $1.59 Billion.
This cash flow supports the company’s ongoing operations, enabling them to fund capital expenditures and maintain liquidity.
Profitability and Net Income Performance
The company’s profitability improved significantly in Q2 2024, with a net income of $757 Million, compared to $119 Million in Q2 2023.
The adjusted net income rose to $809 Million. Most of this profit derived from the E&P segment, contributing approximately $817 Million.
Moreover, the Midstream segment added a net income of $66 Million, highlighting the balanced income sources for Hess.
Cost Management and Operating Efficiency
Hess has managed to maintain efficiency in its operations, with cash operating costs declining to $11.69 per barrel of oil equivalent (boe) in Q2 2024, down from $13.97 per boe in the previous year’s quarter.
This cost reduction is primarily due to increased production volumes, which positively impacts profit margins.
Midstream Segment Financials
Hess Midstream, responsible for infrastructure and transportation, achieved a net income of $66 Million in Q2 2024
. Additionally, a notable transaction during this period was the repurchase of around 2.7 million HESM Opco Class B units, indicating the company’s focus on optimizing its financial structure.
Oil Price Realization and Market Impact
The company’s financial health is also influenced by the price realization of oil.
In Q2 2024, the average selling price for crude oil worldwide was $80.29 per barrel, up from $71.13 in Q2 2023.
Key regions like North Dakota, Guyana, and Malaysia contributed significantly to these prices, which favorably impacted the overall revenue.
Debt, Capitalization, and Financial Health
Hess’s total debt as of June 30, 2024, stood at $8.87 Billion. The company maintained a debt-to-capitalization ratio of 44.6%, signaling sound financial management.
This balanced structure enables Hess to invest in growth opportunities while maintaining financial stability.
Future Financial Outlook
Looking forward, Hess plans to optimize its production and enhance its financial strength. Production is expected to stabilize between 460,000 boepd to 470,000 boepd in Q3 2024.
The company’s financial strategies focus on boosting profitability and maintaining robust capital expenditure plans to drive future revenue growth.
FAQs About Hess Corporation
What Drives Hess’s Revenue Growth?
The primary factors include increased oil production, especially from key areas like Guyana and the Bakken, along with higher realized oil prices.
How Did Hess’s Capital Expenditures Change in 2024?
In Q2 2024, Hess’s capital and exploratory expenditures rose to $1.15 Billion, mainly due to development projects in Guyana and the Gulf of Mexico.
What Is Hess’s Debt Status?
As of June 30, 2024, Hess had a total debt of $8.87 Billion, with a debt-to-capitalization ratio of 44.6%.
How Does Hess Midstream Contribute to the Company’s Finances?
Hess Midstream plays a supportive role by generating $66 Million in net income for Q2 2024 and managing essential infrastructure for the company’s operations.
How Efficient Is Hess in Managing Costs?
Hess managed to lower its cash operating costs to $11.69 per boe in Q2 2024, enhancing profitability through increased production volumes.
Conclusion
In exploring Hess’s financial performance, I hope this analysis provides a comprehensive look into their growth and strategies. For more insights or to share your thoughts, visit Ando Money.
