Hess (HES) EBIT

: $2,949 Mil (TTM As of Dec. 2023)

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Hess's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $801 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $2,949 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hess's annualized ROC % for the quarter that ended in Dec. 2023 was 10.93%. Hess's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 18.17%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Hess's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 5.40%.

Hess EBIT Historical Data

The historical data trend for Hess's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hess Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

601.00

-2,382.00

1,971.00

4,039.00

2,949.00

Hess Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
EBIT																998.00	727.00	487.00	934.00	801.00

Competitive Comparison

For the Oil & Gas E&P subindustry, Hess's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Hess EV-to-EBIT Distribution

For the Oil & Gas industry and Energy sector, Hess's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Hess's EV-to-EBIT falls into.

Hess EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,949 Mil.

Hess (NYSE:HES) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Hess's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	3108 * ( 1 - 26.57% )	/	( (20166	+	21611)	/ 2 )
=	2282.2044	/	20888.5
=	10.93 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	23201	-	2115	-	( 2018	-	max(0, 2996	-	3916	+	2018	))
=	20166

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	24007	-	2236	-	( 1688	-	max(0, 3270	-	3430	+	1688	))
=	21611

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Hess's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	3204	/	( ( (17015 + max(-591, 0))	+	(18260 + max(-847, 0)) )	/	2 )
=	3204	/	( ( 17015	+	18260 )	/	2 )
=	3204	/	17637.5
=	18.17 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1460	+	333	+	105)	-	(2115	+	0	+	374)
=	-591

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1330	+	304	+	108)	-	(2236	+	0	+	353)
=	-847

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Hess's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	2949	/	54624.517
	=	5.40 %

Hess EBIT Related Terms

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Hess (HES) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Hess Corp (NYSE:HES) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

AHC:Germany AHC:Germany HES:Austria

Address

1185 Avenue of the Americas, New York, NY, USA, 10036

Website

https://www.hess.com

Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2022, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 344 thousand barrels of oil equivalent per day in 2022, at a ratio of 72% oil and natural gas liquids and 28% natural gas.

Executives

Barbara J Lowery-yilmaz	officer: Senior Vice President	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Andrew P Slentz	officer: Senior Vice President	1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Gregory P. Hill	officer: Executive Vice President	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John P Rielly	officer: Senior Vice President	1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Richard D. Lynch	officer: Senior Vice President	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Timothy B. Goodell	director, officer: Executive Vice President	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Geurt G Schoonman	officer: Senior Vice President	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John B Hess	director, 10 percent owner, officer: Chairman of the Board and CEO	C/O HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Lisa Glatch	director	EVOQUA WATER TECHNOLOGIES CORP., 210 SIXTH AVENUE, PITTSBURGH PA 15222
Raymond J Mcguire	director	5 GIRALDA FARMS, MADISON NJ 07940
Marc S Lipschultz	director	C/O BLUE OWL CAPITAL INC., 399 PARK AVENUE, 37TH FLOOR, NEW YORK NY 10022
Karyn F. Ovelmen	director	STATIONSPLEIN 45, ROTTERDAM P7 3013AK
Michael R Turner	officer: Senior Vice President	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Terrence J. Checki	director	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Edith E Holiday	director	FRANKLIN RESOURCES INC, 901 MARINERS ISLAND BLVD 6TH FL, SAN MATEO CA 94404