Hess Corporation (HES) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 26, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, ladies and gentlemen, and welcome to the First Quarter 2023 Hess Corporation Conference Call. My name is Kevin and I'll be your operator for today. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the conference over to Jay Wilson, Vice President of Investor Relations. Please proceed.

Jay Wilson - VP, IR

Thank you, Kevin. Good morning, everyone, and thank you for participating in our first quarter earnings conference call. Our earnings release was issued this morning and appears on our website, www.hess.com.

Today's conference call contains projections and other forward-looking statements within the meaning of the federal securities laws. These statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in such statements. These risks include those set forth in the Risk Factors section of Hess's annual and quarterly reports filed with the SEC.

Also, on today's conference call, we may discuss certain non-GAAP financial measures. A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable GAAP financial measures can be found in the supplemental information provided on our website.

On the line with me today are John Hess, Chief Executive Officer; Greg Hill, Chief Operating Officer; and John Rielly, Chief Financial Officer.

I'll now turn the call over to John Hess.

John Hess - CEO

Thank you, Jay. Good morning and welcome to our first quarter conference call. Today, I will discuss our continued progress in executing our strategy. Greg Hill will then cover our operations, and John Rielly will review our financial results.

We believe that Hess offers a unique value proposition for investors. Our strategy is to deliver high-return resource growth, a low cost of supply, and industry-leading cash flow growth, and at the same time, maintain our industry leadership in environmental, social, and governance performance and disclosure.

In terms of resource growth with multiple phases of Guyana developments coming online, and our robust inventory of high-return drilling locations in the Bakken, we can deliver highly profitable production growth of more than 10% annually through 2027.

On the Stabroek Block in Guyana, we currently have line of sight to six floating production, storage and all floating vessels, or FPSOs, in 2027 with a gross production capacity of more than 1.2 million barrels of oil per day.