Hess Corporation

ticker: HES step: 01 generated: 2026-05-12 source: quick-research

Hess Corporation (HES) — Business Overview

Note: Hess Corporation was acquired by Chevron Corporation on July 18, 2025 (all-stock transaction, 1.025 CVX shares per HES share, ~$53B deal value). HES no longer trades as an independent public company. This profile reflects Hess as an independent company through the merger close.

Business Description

Hess Corporation was a leading independent oil and gas exploration and production company, widely regarded as one of the highest-quality E&P investments of the 2020s due to its 30% stake in the Guyana Stabroek Block — the largest deepwater oil discovery of the 21st century. Founded in 1919 and headquartered in New York City, Hess generated ~$13B in revenue in FY2024 across two segments: E&P (exploration and production of crude oil and natural gas) and Midstream (North Dakota gathering, processing, and transportation). Chevron acquired Hess in July 2025 primarily to access the Guyana asset, which analysts described as a "once-in-several-lifetimes" resource with 11 billion BOE of discovered recoverable resource and breakeven costs as low as $25–30/barrel.

Revenue Model

Hess generated revenue through the sale of crude oil, natural gas liquids, and natural gas from its E&P portfolio, with prices largely set by global commodity markets (WTI/Brent benchmarks). Key operating assets: (1) Guyana Stabroek Block (30% WI): Premium ultra-deepwater oil with low production costs; three FPSOs producing by early 2025 (Liza I, Liza II, Payara) with the fourth (Yellowtail/ONE GUYANA, 250,000 bopd) starting Q3 2025; (2) Bakken (North Dakota, ~100% WI in operated wells): ~195,000 boepd in Q1 2025; tier-1 U.S. shale with steady growth trajectory; (3) Gulf of Mexico: Deepwater operated and non-operated positions; (4) Midstream (HESM): 33% stake in Hess Midstream Partners, providing transportation and processing infrastructure in North Dakota.

Products & Services

• Crude Oil Production: Guyana (Brent-linked, ultra-low cost), Bakken (WTI-linked)
• Natural Gas / NGLs: Associated production from Bakken and Gulf of Mexico
• Midstream Services: Hess Midstream Partners (HESM) — gathering, processing, compression, storage, terminaling in North Dakota
• Exploration: Sustained exploration program focused on Guyana basin extension and deepwater Gulf of Mexico

Customer Base & Go-to-Market

Hess sold crude oil and natural gas primarily to commodity traders, refiners, and integrated oil companies at market prices. The Guyana crude (Liza Light) trades at a premium to Brent due to its low sulfur content and is highly sought by refiners.

Competitive Position

Hess was unique among independent E&Ps for its tier-1 position in Guyana — a multi-decade, low-cost production growth asset with the quality of a supermajor's reserve base inside a mid-size company's structure. The Stabroek Block's 11 billion BOE resource supports decades of production growth at $25–30/barrel breakeven — among the lowest-cost deepwater in the world. The Bakken position is also tier-1 with decades of remaining inventory.

Key Facts

• Founded: 1919
• Headquarters: New York City, New York
• Employees: ~1,700 (as of acquisition)
• Exchange: NYSE (delisted July 2025)
• Sector / Industry: Energy / Oil & Gas Exploration & Production
• Fiscal Year End: December 31
• Acquired by Chevron: July 18, 2025 ($53B all-stock, 1.025 CVX/HES)

ticker: HES step: 04 generated: 2026-05-12 source: quick-research

Hess Corporation (HES) — Financial Snapshot

Note: Hess was acquired by Chevron on July 18, 2025. Financials reflect Hess as an independent public company.

Income Statement Summary

Revenue and earnings are highly sensitive to oil price (WTI/Brent). FY2023 decline reflects lower oil prices. FY2024 recovery driven by higher production from Guyana and Bakken plus oil price recovery. Q1 2025 operating cash flow (before working capital changes): $1.315B (~$5.3B annualized run-rate).

Cash Flow & Balance Sheet (FY2024)

Hess was in a high-capex investment phase through the Guyana development (Yellowtail FPSO, $4.5B+ annual capex); the payoff was projected to be massive FCF growth as Guyana reached plateau production.

Key Ratios (approximate, pre-acquisition)

• EV/EBITDA: ~8–10x (E&P sector) | FCF Yield: Low during capex phase, expanding post-Yellowtail
• Net Production: ~476,000 boepd (Q1 2025) | Guyana: ~183,000 bopd (Q1 2025)
• Bakken: ~195,000 boepd (Q1 2025) | 2025 full-year guidance: ~490,000 boepd

Growth Profile

Hess was a growth story driven almost entirely by Guyana. The Stabroek Block (30% WI, operated by ExxonMobil with 45%; CNOOC 25%) was in production expansion mode: Liza I (120,000 bopd), Liza II (220,000 bopd), Payara (220,000 bopd), and Yellowtail (250,000 bopd starting Q3 2025) — reaching ~810,000 bopd gross (Hess net ~243,000 bopd) by 2027. The full Stabroek Block production was projected to reach 1.3 million bopd by 2027, making it one of the most valuable oil development programs in the world. After Yellowtail ramp-up, Hess's FCF was expected to inflect sharply as capex normalized.

Forward Estimates (standalone, pre-acquisition)

• Post-Yellowtail FCF: ~$3–4B+ annually at $70–80/barrel Brent, an extraordinary FCF inflection
• Guyana production: 30% share of 1.3M bopd = ~390,000 bopd net by 2027 (from ~183,000 in Q1 2025)
• Chevron acquisition value: ~$53B ($171/share at announcement); all-stock deal at 1.025 CVX/HES