Hess Corporation Reports Significant Financial Growth and Merger Agreement with Chevron

Hess Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net income attributable to the company rising to $2.769 billion, compared to $1.382 billion in 2023. This translates to a diluted earnings per share of $8.98, up from $4.49 the previous year. The company’s total revenues reached $12.896 billion, a notable increase from $10.511 billion in 2023, driven primarily by higher production volumes and improved crude oil prices, which averaged $77.28 per barrel in 2024 compared to $75.97 in 2023.

Hess's production operations saw a marked increase, with net production averaging 481,000 barrels of oil equivalent per day (boepd) in 2024, up from 394,000 boepd in 2023. This growth was largely attributed to the successful startup of the Payara development in Guyana, which commenced production in November 2023, and increased drilling activity in the Bakken shale play in North Dakota. The company also reported total proved reserves of 1.438 billion barrels of oil equivalent at the end of 2024, an increase from 1.370 billion barrels in 2023.

Strategically, Hess entered into a merger agreement with Chevron Corporation on October 22, 2023, which is expected to enhance its operational capabilities and market position. Under the terms of the agreement, Hess shareholders will receive 1.025 shares of Chevron common stock for each share of Hess common stock upon completion of the merger. The merger is currently subject to various conditions, including ongoing arbitration regarding a right of first refusal related to Hess's operations in the Stabroek Block, with a decision expected in May 2025.

Operationally, Hess has continued to expand its footprint, particularly in Guyana, where it plans to increase production capacity significantly. The company currently operates three floating production, storage, and offloading (FPSO) units and aims to have eight FPSOs producing by the end of 2030, with an expected aggregate production capacity of approximately 1.7 million gross bopd. In addition, Hess's Midstream segment, which provides fee-based services, reported revenues of $1.495 billion, reflecting increased throughput volumes.

Looking ahead, Hess anticipates capital and exploratory expenditures of approximately $4.5 billion in 2025, down from $4.9 billion in 2024, as it continues to focus on optimizing its operations and managing costs. The company remains committed to its sustainability goals, including a target to reduce greenhouse gas emissions intensity by 50% by 2025, and is actively engaged in initiatives to support environmental sustainability in its operations.