Hess Corporation Reports Q1 2025 Financial Results with $430 Million Net Income

Hess Corporation reported its financial results for the first quarter of 2025, revealing a net income of $430 million, a significant decrease from $972 million in the same period of 2024. The company's earnings per share fell to $1.40 from $3.17 year-over-year. Total revenues and non-operating income for the quarter were $2.938 billion, down from $3.341 billion in the prior year, primarily due to lower realized oil prices and sales volumes. The average realized crude oil selling price decreased to $71.22 per barrel from $80.06 per barrel in the first quarter of 2024.

In terms of operational performance, Hess's Exploration and Production (E&P) segment generated a net income of $434 million, down from $997 million in the previous year. The company maintained a total net production of 476,000 barrels of oil equivalent per day (boepd), consistent with the first quarter of 2024. However, production from the Stabroek Block in Guyana decreased slightly to 183,000 bopd from 190,000 bopd, attributed to lower tax barrels. The company plans to continue its drilling activities in North Dakota, with expectations to increase production to between 210,000 and 215,000 bopd in the second quarter of 2025.

Hess Corporation's balance sheet showed total assets of $27.138 billion as of March 31, 2025, an increase from $26.551 billion at the end of 2024. The company reported total liabilities of $14.753 billion, up from $14.548 billion, while stockholders' equity rose to $11.521 billion from $11.216 billion. Cash and cash equivalents increased to $1.324 billion from $1.171 billion, reflecting improved cash flow from operating activities, which totaled $1.401 billion for the quarter, compared to $885 million in the prior year.

Strategically, Hess is in the process of merging with Chevron Corporation, a move that has been approved by a majority of Hess's shareholders. The merger is subject to various conditions, including ongoing arbitration regarding rights related to the Stabroek Block. The arbitration hearing is scheduled for May 2025, with a decision expected in the third quarter. The company continues to focus on its development projects in Guyana, with plans for multiple floating production, storage, and offloading vessels (FPSOs) to enhance production capacity.

Looking ahead, Hess anticipates that its capital and exploratory expenditures will be approximately $4.5 billion for 2025. The company expects cash flow from operating activities to be sufficient to fund its capital investment and return programs. However, it remains cautious about market conditions and potential impacts on its financial performance, including fluctuations in commodity prices and regulatory developments related to the merger with Chevron.