Hess(HES)2025-02-27 21:41Production and Reserves - Hess Corporation has discovered a significant resource base at the Stabroek Block, with plans to increase production capacity to approximately 1.7 million gross barrels of oil per day (bopd) by the end of 2030[31]. - The company currently operates three Floating Production Storage and Offloading (FPSO) units and aims to have eight FPSOs producing by 2030[31]. - Hess holds a 30% interest in the Stabroek Block, which is expected to support the potential for up to ten FPSOs based on discovered resources[31]. - Proved reserves as of December 31, 2024, included 891 million barrels of crude oil and condensate, 292 million barrels of natural gas liquids, and 1,528 million cubic feet of natural gas, totaling 1,438 million barrels of oil equivalent (boe)[34]. - Proved undeveloped reserves accounted for 42% of total proved reserves on a boe basis as of December 31, 2024, up from 41% in 2023[35]. - Worldwide crude oil production in 2024 was 111,519 thousand barrels, a significant increase from 81,941 thousand barrels in 2023[36]. - Net production from Guyana averaged 186,000 barrels of oil per day (bopd) in 2024, with plans to increase production capacity to approximately 1.7 million gross bopd by the end of 2030[42][41]. - The production from Guyana increased to 68,136 thousand barrels in 2024, up from 41,831 thousand barrels in 2023[36]. Financial Performance and Risks - Hess Corporation's future financial and operational results are subject to various risks, including regulatory approvals and market price fluctuations[10]. - The anticipated benefits and synergies from the proposed merger with Chevron Corporation may not be realized within the expected timeframe[11]. - The average selling price of crude oil per barrel in the United States increased to 70.80 in 2023, a rise of 2%[56]. - Average production costs per barrel of oil equivalent in the United States decreased to 27.61 in 2023, a decline of 1.8%[58]. - The average crude oil price used for determining proved reserves at December 31, 2024, was 17 million in 2024, down from 23 million in 2022[86]. - The company is involved in several industry-wide task forces to improve oil spill prevention and response methods[79]. Human Capital and Corporate Culture - As of December 31, 2024, the company had a total of 1,797 employees globally[88]. - The company maintains a total workforce diversity rate of 26% for women and 26% for minorities in 2024, showing stability compared to previous years[95]. - The company’s human capital strategy focuses on professional development and employee engagement, with a commitment to fostering an inclusive workplace culture[87][91]. - The company emphasizes safety and well-being through various programs designed to ensure employees return home safely every day[90]. - The company has six employee resource groups that contribute to sustaining an inclusive environment and partnering with diverse organizations[93]. Merger and Acquisition Activities - The company entered into a Merger Agreement with Chevron, where stockholders will receive 1.025 shares of Chevron common stock for each share of Hess common stock if the Merger is completed[33]. - The arbitration regarding the applicability of a right of first refusal related to the Merger is scheduled for May 2025, with a decision expected in Q3 2025[33]. - The proposed merger with Chevron Corporation is expected to provide anticipated economic benefits, although it faces regulatory approval risks[10].