Hess Corp (HES) revenue jumps 54% as sales improve in Q3

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Hess Corp (HES) revenue jumps 54% as sales improve in Q3

 Hess Corp (HES) revenue jumps 54% as sales improve in Q3
Image source: bluebay,Shutterstock

Highlights

  • Hess Corporation’s (NYSE: HES) third-quarter revenue increased by 54% YoY to US$1.81 billion.

  • Its total oil and gas production was 265,000 barrels of oil equivalent per day, excluding Libya. 

  • The Hess stock gained 187% in one year. Its dividend yield is 1.13%. 

Hess Corporation (NYSE: HES) on Wednesday reported a third-quarter net income of US$115 million as sales and production activities picked up in the quarter.

The stock traded at US$85.7939, down 3.79%, at 1:57 pm ET. 

Third-Quarter Performance

Hess Corporation 

Hess’ revenue rose to US$1.81 billion from US$1.17 billion in the quarter, up 54% YoY.

Its net income was US$115 million in the quarter compared to a net loss of US$243 million.

The earnings per common share were US$0.37 against a net loss of US$0.80 per share a year ago. The jump in net income was due to higher realized selling prices in the latest quarter.

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Its adjusted net income was US$86 million, or US$0.28 per common share, compared to the adjusted net loss of US$216 million, or US$0.71 per common share, in Q3 2020.

The exploration and production (E&P) segment's net income was US$178 million. The midstream segment’s net income was US$61 million, up by US$5.0 million from Q3 from the previous year, driven by higher revenue from minimum volume commitments and tariff rates. 

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 Hess’ revenue rose to US$1.81 billion from US$1.17 billion in the quarter, up 54% YoY.

Source – Pixabay

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The net cash from operating activities was US$615 million versus US$136 million in the September quarter of 2020. Hess Corp's cash and cash equivalents were US$2.41 billion. The Midstream segment had cash and cash equivalents of US$5 million as of September 30, 2021.

Its total oil and gas net production was 265,000 boepd, excluding Libya. 

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The E&P capital and exploratory expenditures were US$498 million in the quarter compared to US$331 million in the same period of 2020.

Hess Corporation is based in New York. Its current market capitalization is US$26 billion. Its dividend yield is 1.13%, with an annualized yield of US$1.00.

The stock gained 187% in one year based on the closing price of US$89.17 on Oct 26, 2021.

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Bottomline

The Hess stock has been gaining traction in recent weeks after a dip in August this year. The company has been making significant strides in oil and gas production this year. However, investors should exercise due diligence before investing in the stock market.

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