Hess Corporation reported a notable increase in net income for the second quarter of 2024, reaching $757 million or $2.46 per share.
This is a substantial rise from the net income of $119 million or $0.39 per share recorded in the same period of 2023. This increase is largely attributed to higher production levels in key regions.
Production Highlights
Net production for Hess was 494,000 boepd in Q2 2024, compared to 387,000 boepd in Q2 2023. The boost in production is primarily due to enhanced output from Guyana and the Bakken fields.
For Q3 2024, the company anticipates E&P net production to range between 460,000 boepd and 470,000 boepd, factoring in planned downtimes in Guyana and Southeast Asia.
Guyana (Offshore)
At the Stabroek Block (Hess – 30%), net production reached 192,000 bopd in Q2 2024, up from 110,000 bopd in the previous year’s quarter.
The Payara development, which began production in November 2023, achieved its initial capacity of approximately 220,000 gross bopd in January 2024.
Guyana’s net production is forecasted to be between 170,000 bopd and 175,000 bopd in Q3, affected by downtime related to the Liza Destiny and Liza Unity floating production, storage, and offloading vessels, as well as ongoing optimization work.
In Q2 2024, Hess sold 14 cargos of crude oil from Guyana, up from nine cargos in Q2 2023. For Q3 2024, the company expects to sell the same number of cargos.
Upcoming developments include the Yellowtail project (expected to produce 250,000 gross bopd by 2025), Uaru (expected to produce 250,000 gross bopd by 2026), and Whiptail (expected to add 250,000 gross bopd by late 2027). The Hammerhead project’s environmental permit application has been filed, with anticipated production ranging from 120,000 gross bopd to 180,000 gross bopd by 2029.
Bakken (Onshore U.S.)
In the Bakken region, net production was 212,000 boepd in Q2 2024, up from 181,000 boepd in the prior year. This increase reflects enhanced drilling and completion activities.
NGL and natural gas volumes under percentage of proceeds contracts were 26,000 boepd in Q2 2024, up from 22,000 boepd in Q2 2023.
Hess operated four rigs during the quarter, drilling 38 wells, completing 37, and bringing 31 new wells online.
The company plans to maintain this level of drilling activity throughout 2024. Bakken production is forecasted to range between 200,000 boepd and 205,000 boepd in Q3, considering lower anticipated volumes from percentage of proceeds contracts and planned maintenance.
Gulf of Mexico (Offshore U.S.)
Hess’s net production in the Gulf of Mexico was 24,000 boepd in Q2 2024, down from 32,000 boepd in the same period last year, due to planned maintenance at the Conger and Tubular Bells fields.
The Pickerel-1 oil discovery (Hess – 100%), located in Mississippi Canyon Block 727, achieved first production in late June as a tieback to Tubular Bells facilities.
Additionally, an exploration well was spudded in June at the Vancouver prospect (Hess – 40%) in Green Canyon Block 287, with results expected in Q3.
Southeast Asia (Offshore)
In Southeast Asia, net production at North Malay Basin and JDA was 66,000 boepd in Q2 2024, a slight increase from 64,000 boepd in the previous year’s quarter.