Hess Corporation has reported solid financial performance for the third quarter of 2024, with net income reaching US$498 million, or US$1.62 per share, slightly lower than the US$504 million, or US$1.64 per share, earned during the same period in 2023.
However, on an adjusted basis, Hess saw a significant increase, reporting net income of US$660 million, or US$2.14 per share, primarily due to higher production volumes in Guyana, which offset lower selling prices.
The Stabroek Block, where Hess holds a 30% stake, has been a pivotal factor in this performance. Net production from Guyana surged to 170,000 barrels of oil per day (bopd) for Hess in Q3 2024, up from 108,000 bopd in Q3 2023. This increase was largely attributed to the November 2023 start-up of the Payara development, the third in the block.
Hess expects even further production growth in the fourth quarter of 2024, projecting between 185,000 and 190,000 bopd from Guyana as production rebounds from planned downtime.
Sales from Guyanese oil also saw an uptick, with 14 cargos sold in the third quarter compared to nine in the same period last year. The company expects this upward trend to continue, projecting 15 cargos for the fourth quarter.
Looking ahead, Hess is banking on additional production from Stabroek as multiple large-scale projects progress. The fourth development, Yellowtail, approved in April 2022, is expected to add 250,000 gross bopd upon its 2025 start-up. Uaru, the fifth project, is on track for a 2026 production start with similar capacity. Whiptail, the sixth sanctioned development, is set to bring another 250,000 gross bopd by 2027.
Hess also has its sights on Hammerhead, the anticipated seventh development. An application for its environmental permit has been submitted to Guyana’s Environmental Protection Agency, with production targets between 120,000 and 180,000 gross bopd and a projected start date in 2029, pending regulatory approval.
Through these developments, Guyana continues to be a significant revenue driver for Hess, underlining the strategic importance of the Stabroek Block in the company’s global portfolio and its growth trajectory for the coming years.
