Hess Corporation (HES) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

January 25, 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 Fourth Quarter 2022 Hess Corporation Conference Call. My name is Kevin and I will be your operator for today. As a remainder, 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 fourth 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 and 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’ 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 will now turn the call over to John Hess.

John Hess - CEO

Thank you, Jay. Good morning and welcome to our fourth quarter conference call. Today, I will share some thoughts about the oil markets and then discuss our continued progress in executing our strategy. Greg Hill will then cover our operations and John Rielly will review our financial results.

Oil and gas will be needed for decades to come and are fundamental to ensure an affordable just and secure energy transition. The world faces a massive dual challenge. We will require approximately 20% more energy globally by 2050. And over the same period, we need to reach net zero emissions. At the end of last year, the International Energy Agency, or IEA, published its latest World Energy Outlook that offers three scenarios and they are scenarios not forecast for how to meet this dual challenge.

In all three of the IEA scenarios, the world is facing a structural deficit in energy supply and significantly more investment is required both in oil and gas and also in clean energies. According to the IEA, a reasonable estimate for the global oil and gas investment required to meet demand growth is approximately $500 billion each year for the next 10 years as compared with approximately $300 billion to $400 billion invested annually in the last 5 years.