Hess reports new Guyana oil discovery

Hess earnings report

Key Developments:

• Continued exploration success in 2023 on the Stabroek Block, offshore Guyana, with a significant new oil discovery at the Fangtooth SE-1 well located approximately 8 miles southeast of the original Fangtooth-1 discovery

• The Fangtooth SE-1 well encountered approximately 200 feet of oil bearing sandstone reservoirs

• Fangtooth adds to the block’s gross discovered recoverable resource estimate of more than 11 billion barrels of oil equivalent (boe) and has the potential to underpin a future oil development

• The development plan for Uaru, the fifth development on the Stabroek Block, was submitted to the Government of Guyana for approval in the fourth quarter; the project is expected to have a capacity of approximately 250,000 gross barrels of oil per day (bopd) with first oil anticipated at the end of 2026

• Entered into an agreement with the Government of Guyana for the purchase of high quality REDD+ carbon credits for a minimum of $750 million from 2022 through 2032; the longterm strategic partnership with the Government of Guyana aims to prevent deforestation and support sustainable development in Guyana

• Completed the sale of the Corporation's interest in Libya for net proceeds of $150 million 

• Total cash returned to stockholders was $405 million in the quarter through dividends and share repurchases of $310 million

Fourth Quarter Financial and Operational Highlights:

• Net income was $624 million, or $2.03 per common share, compared with net income of $265 million, or $0.85 per common share, in the fourth quarter of 2021; adjusted net income1 was $548 million, or $1.78 per common share, in the fourth quarter of 2022

• Oil and gas net production, excluding Libya, was 376,000 barrels of oil equivalent per day (boepd), up 27 percent from 295,000 boepd in the fourth quarter of 2021

• E&P capital and exploratory expenditures were $818 million compared with $593 million in the prior-year quarter

• Cash and cash equivalents, excluding Midstream, were $2.48 billion at December 31, 2022

• Year-end proved reserves are estimated to be 1.26 billion boe; organic reserve replacement was 144 percent at a finding and development cost of approximately $14.80 per boe

2023 Guidance:

• Net production is forecast to be in the range of 355,000 boepd to 365,000 boepd, which is an approximate 10 percent increase from 2022, proforma for assets sold

• E&P capital and exploratory expenditures are expected to be approximately $3.7 billion, of which more than 80 percent will be allocated to Guyana and the Bakken

The full report is available here.