Hess(HES)2023-02-24 21:18Production Capacity and Reserves - Hess Corporation plans to have six Floating Production Storage and Offloading (FPSO) units with an aggregate expected production capacity of over 1.2 million gross barrels of oil per day (bopd) on the Stabroek Block by 2027[31]. - The company has a 30% interest in the Stabroek Block offshore Guyana, where significant resource discoveries have been made, with potential for up to ten FPSOs to develop the current discovered recoverable resource base[31]. - Proved reserves at December 31, 2022, totaled 1,256 million barrels of oil equivalent (boe), a decrease from 1,309 million boe in 2021[33]. - Proved undeveloped reserves accounted for 43% of total proved reserves on a boe basis as of December 31, 2022, up from 41% in 2021[34]. - The Stabroek Block in Guyana is expected to support up to ten Floating Production Storage and Offloading (FPSO) units, with first production from the Payara development anticipated by the end of 2023[41][43]. - The Liza Phase 1 development reached an expanded production capacity of over 140,000 gross barrels of oil per day (bopd) in June 2022[42]. - The Liza Phase 2 development in Guyana reached its expected production capacity of 220,000 gross bopd in July 2022[42]. - The Payara development project in Guyana is expected to have a production capacity of approximately 220,000 gross bopd, with first production anticipated by the end of 2023[43]. Exploration and Development Activities - In 2023, the company plans to operate four rigs in the Bakken, drilling approximately 110 wells and bringing the same number on production[39]. - The company drilled a total of ten successful exploration and appraisal wells in Guyana in 2022, with plans for six drillships to drill approximately ten exploration and appraisal wells in 2023[46][47]. - The company holds a 33% non-operated interest in Block 42 offshore Suriname, where an exploration well encountered oil pay in 2022[50]. - The company holds a 25% non-operated participating interest in two exploration licenses offshore Newfoundland, with plans to drill one exploration well in 2023[51]. - In 2023, Hess Corporation plans to drill approximately eight development wells in the Malaysia/Thailand Joint Development Area[48]. Production and Pricing - Worldwide crude oil production in 2022 was 70,676 thousand barrels, an increase from 59,602 thousand barrels in 2021[36]. - Average selling prices for crude oil per barrel in the United States increased from 81.14 in 2022, representing a 43.4% increase[55]. - Average production costs per barrel of oil equivalent in the United States rose from 28.16 in 2022, an increase of 21.0%[55]. - The average selling price for natural gas in the United States increased from 5.66 per Mcf in 2022, a rise of 48.3%[55]. Midstream Operations - Hess Corporation holds approximately 41% consolidated ownership interest in Hess Midstream LP, providing fee-based services in the Bakken shale play[32]. - Hess Midstream's public shareholders owned approximately 18% of the consolidated entity, while Hess and GIP each owned about 41% as of December 31, 2022[70]. - The natural gas gathering and compression system in North Dakota has a capacity of approximately 590 mmcfd, with 85 mmcfd of compression capacity added in 2022[71]. - Hess Midstream has long-term, fee-based commercial agreements with Hess subsidiaries, effective January 1, 2014, with an initial ten-year term[72]. - The Tioga Gas Plant's total processing capacity is approximately 400 mmcfd, with an NGL fractionation capacity of about 60,000 boepd[74]. - In 2022, the total processing capacity of the Tioga Gas Plant became available, following an expansion from 250 mmcfd to 400 mmcfd[74]. - Hess Midstream LP owns a 50% interest in the Little Missouri 4 natural gas processing plant, which has a processing capacity of approximately 200 mmcfd[74]. Environmental and Social Responsibility - The company spent approximately $23 million in 2022 for environmental remediation[85]. - The total percentage of women in the workforce remained at 27% in 2022, while minorities constituted 25% of U.S. based employees[93]. - The DEI Council at Hess drives progress in diversity, equity, and inclusion, with a focus on fostering a sustainable culture of inclusion[91]. - Hess's strategic focus on DEI has led to maintained or improved diversity across most workforce levels in 2022[92]. - The company has implemented a hybrid work schedule to adapt to changing work environments and prioritize employee well-being[89]. Leadership and Governance - The Corporation's Chief Executive Officer, John B. Hess, has over 45 years of experience in the oil and gas industry, having been with the Corporation since 1977 and serving as CEO since 1995[95]. - Gregory P. Hill has been the President and Chief Operating Officer since 2014, with a total of 25 years of experience at Royal Dutch Shell prior to joining the Corporation in 2009[95]. - The Corporation's Chief Financial Officer, John P. Rielly, has been in this role since 2004 and has a background as a Partner at Ernst & Young, LLP for 17 years[95]. - The Corporation's executive officers have extensive experience, with most having been employed in managerial and executive roles for over five years[96]. - The Corporation's governance documents, including the Code of Business Conduct and Ethics, are available on its website, promoting corporate governance standards[97]. Financial Transparency and Risk Management - The Corporation provides free access to its annual report on Form 10-K and quarterly reports on Form 10-Q through its website, ensuring transparency and compliance with SEC regulations[97]. - The Corporation's forward-looking statements include projections about future financial and operational results, which are subject to various risks and uncertainties[10]. - Key risks affecting the Corporation's operations include fluctuations in market prices of crude oil and natural gas, reduced demand for products, and potential regulatory changes[11]. - The Corporation emphasizes the importance of sustainability goals and initiatives in its business strategy, addressing environmental concerns and climate change[11]. - The Corporation's operational strategies are influenced by market conditions, including competition in the oil and gas exploration and production industry[11].