Hess (HES) Goldman Sachs Energy, CleanTech & Utilities Conference 2025 summary

Operational performance and asset highlights

• Achieved or exceeded 2024 production and financial targets across all key assets, with Bakken reaching 200,000 barrels/day a year ahead of schedule due to efficiency gains.

• Gulf of Mexico production increased from 28,000 to 38,000 barrels/day, driven by successful tiebacks like Pickerel.

• Guyana's three FPSOs are producing 660,000 barrels/day gross, outperforming sanctioned capacity due to prolific reservoirs.

• Malaysia operations continue to provide stable returns, supporting overall portfolio strength.

• Lean manufacturing and operational efficiency have enabled increased well counts and reduced drilling times in the Bakken.

Guyana development and outlook

• Six FPSOs are planned to be operational by 2027, targeting 1.3 million barrels/day, with eight FPSOs by 2030 aiming for 1.7 million barrels/day.

• Current production is exceeding nameplate capacity, and management expects future ships to outperform conservative estimates.

• Yellowtail FPSO (250,000 barrels/day) is 95% complete, set to start production in Q4 2025.

• Hammerhead (150,000 barrels/day) and Longtail (240,000 barrels/day) are next in the pipeline, with sanctions expected in 2024 and 2025, respectively.

• Exploration and appraisal activities continue, with resource estimates expected to rise above the current 11 billion barrels equivalent.

Socioeconomic and political context in Guyana

• Guyana's GDP per capita now exceeds Mexico and Brazil, with oil wealth driving rapid economic transformation.

• Ongoing healthcare modernization partnership aims to improve outcomes for 150,000 young people, with a five-year plan forthcoming.

• $750 million carbon credit deal supports forest protection and environmental goals.

• Political and fiscal risks are considered low, with bipartisan support for oil contracts and stability following recent elections.

• Venezuela border tensions have eased, with U.S. and Brazil backing Guyana's sovereignty.