Hess Corporation (Hess) is a global exploration and production (E&P) company engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids, and natural gas with production operations located in the United States (U.S.), Guyana, the Malaysia/Thailand Joint Development Area (JDA) and Malaysia.
The company conducts exploration activities primarily offshore Guyana, in the U.S. Gulf of America, and offshore Suriname. At the Stabroek Block (Hess...
Hess Corporation (Hess) is a global exploration and production (E&P) company engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids, and natural gas with production operations located in the United States (U.S.), Guyana, the Malaysia/Thailand Joint Development Area (JDA) and Malaysia.
The company conducts exploration activities primarily offshore Guyana, in the U.S. Gulf of America, and offshore Suriname. At the Stabroek Block (Hess 30%), offshore Guyana, the company and its partners have discovered a significant resource base and are executing a multi-phased development of the block. The company has three FPSOs producing, and plans to have eight FPSOs producing by the end of 2030 with an aggregate expected production capacity of approximately 1.7 million gross bopd.
The company’s Midstream operating segment, which is consisted of the company’s approximate 38% consolidated ownership interest in Hess Midstream LP at December 31, 2024, provides fee-based services, including gathering, compressing and processing natural gas and fractionating NGL; gathering, terminaling, loading and transporting crude oil and NGL; storing and terminaling propane, and water handling services primarily in the Bakken shale play in the Williston Basin area of North Dakota.
E&P Operations
As of December 31, 2024, the company’s significant E&P assets included the following:
The United States
The company’s production in the U.S. was from the Bakken shale play in the Williston Basin of North Dakota (Bakken) and from offshore properties in the Gulf of America.
North Dakota:
Bakken: At December 31, 2024, the company held approximately 463,000 net acres in the Bakken. Net production averaged 204,000 boepd in 2024. During 2024, the company operated four rigs. During 2025, the company plans to continue operating four drilling rigs.
Offshore:
Gulf of America: At December 31, 2024, the company held approximately 46,000 net developed acres, with the company’s production operations principally at the Baldpate (Hess 50%), Conger (Hess 38%), Llano (Hess 50%), Penn State (Hess 50%), Stampede (Hess 25%) and Tubular Bells (Hess 57%) Fields. At December 31, 2024, the company held approximately 304,000 net undeveloped acres, of which leases covering approximately 75,000 net acres are due to expire in the next three years. In March 2024, the company was awarded 20 leases in the U.S. Department of Interior’s Lease Sale 261. The Pickerel-1 oil discovery (Hess 100%) located in Mississippi Canyon Block 727 achieved first production in June 2024 as a tieback to the Tubular Bells production facilities. In late December 2024, the company completed drilling at the Vancouver-1 exploration well (Hess 40%) located in Green Canyon Block 287 which did not encounter commercial quantities of hydrocarbons. In the second quarter of 2025, the company plans to bring online the Hess operated Black Pearl development well (Hess 25%) as a tieback to the Stampede production facilities. In 2025, the company also plans to participate in three wells.
Guyana
Stabroek Block: The Stabroek Block (Hess 30%), offshore Guyana, covers approximately 6.6 million acres. The operator, ExxonMobil Guyana Ltd, has made more than 30 discoveries since 2015, with the discovered resources to date on the block expected to underpin the potential for up to ten FPSOs. The company has three FPSOs producing, and plans to have eight FPSOs producing by the end of 2030 with an aggregate expected production capacity of approximately 1.7 million gross bopd.
The Liza Phase 1 development began producing oil in December 2019 utilizing the Liza Destiny FPSO, the Liza Phase 2 development began producing oil in February 2022 from the Liza Unity FPSO, and the third development, Payara, began producing oil in November 2023 from the Prosperity FPSO. Net production from Guyana averaged 186,000 bopd in 2024.
A fourth development, Yellowtail, was sanctioned in April 2022 and will utilize the ONE GUYANA FPSO with a production capacity of approximately 250,000 gross bopd, with first production expected in the fourth quarter of 2025. Six drill centers are planned with production and injection wells.
A fifth development, Uaru, was sanctioned in April 2023 and will utilize the Errea Wittu FPSO with a production capacity of approximately 250,000 gross bopd, with first production expected in 2026. Ten drill centers are planned with production and injection wells.
A sixth development, Whiptail, was sanctioned in April 2024 and will utilize the Jaguar FPSO with a production capacity of approximately 250,000 gross bopd, with first production expected in 2027. Ten drill centers are planned with production and injection wells.
The application for the environmental permit for the seventh development, Hammerhead, has been filed with Guyana’s Environmental Protection Agency. Pending government and regulatory approval and project sanctioning, the development is expected to have a production capacity of approximately 150,000 gross bopd, with first production anticipated in 2029.
In 2024, ExxonMobil Guyana Ltd. completed construction of a 130-mile pipeline in order to transport approximately 50 million standard cubic feet of natural gas per day from the Liza Field to a 300 megawatt onshore power plant (Gas to Energy Project), which will be constructed and operated by the Government of Guyana.
In 2024, the operator drilled a total of eight successful exploration and appraisal wells that encountered hydrocarbons and one unsuccessful exploration well for which the well costs were expensed. In 2025, the operator plans to utilize five drillships to continue to perform exploration, appraisal, and development activities.
Malaysia and JDA
Malaysia/Thailand Joint Development Area (JDA): Production comes from the Carigali Hess operated Block A-18 in the Malaysia/Thailand joint development area in the Gulf of Thailand (Hess 50%). In June 2024, the regulator provided notification that the current PSC for JDA Block A-18 will not be re-awarded to the existing PSC contractors upon its expiration in 2029. In 2025, the operator plans to drill some development wells.
Malaysia: The company’s production in Malaysia comes from the company’s operated interests in Block PM302 (Hess 50%) and Block PM325 (Hess 50%) located in the North Malay Basin (NMB), offshore Peninsular Malaysia and Block PM301 (Hess 50%), which is adjacent to and is unitized with Block A-18 of the JDA. In 2025, the company plans to continue development activities at NMB.
Other
Suriname: In offshore Suriname, the company holds a 33% non-operated participating interest in Block 42 and a 100% participating interest in Block 59, where the company assumed operatorship in 2024. Exploration and appraisal activities are ongoing.
Sales Commitments
The company has certain long-term contracts with fixed minimum sales volume commitments for natural gas and NGL production. At the JDA in the Gulf of Thailand, the company has annual minimum net sales commitments of approximately 70 billion cubic feet of natural gas per year in 2025 and approximately 30 billion cubic feet per year in 2026 and 2027. At the North Malay Basin development project, offshore Peninsular Malaysia, the company has annual minimum net sales commitments of approximately 50 billion cubic feet of natural gas per year in 2025, approximately 40 billion cubic feet per year in 2026 and 2027, approximately 30 billion cubic feet per year in 2028 and approximately 15 billion cubic feet per year from 2029 through 2033. At the Liza Phase 1 and Phase 2 development projects at the Stabroek Block, offshore Guyana, the company has annual minimum net sales commitments of approximately 2.6 billion cubic feet of natural gas per year following the commissioning period of the Gas to Energy Project. The estimated total volume of natural gas subject to these sales commitments is approximately 420 billion cubic feet. The company also has multiple minimum delivery commitments in the Bakken for natural gas and NGL with various end dates through 2037, with total commitments of approximately 115 million boe over the remaining life of the contracts.
Midstream
Prior to December 16, 2019, the Midstream segment was primarily consisted of Hess Infrastructure Partners LP (HIP), a 50/50 joint venture between Hess Corporation and Global Infrastructure Partners (GIP), formed to own, operate, develop and acquire a diverse set of midstream assets to provide fee-based services to Hess and third-party customers. HIP was initially formed on May 21, 2015, with Hess selling 50% of HIP to GIP on July 1, 2015.
On December 16, 2019, Hess Midstream Partners LP acquired HIP, including HIP’s 80% interest in Hess Midstream Partners LP’s oil and gas midstream assets, HIP’s water services business and the outstanding economic general partner interest and incentive distribution rights in Hess Midstream Partners LP. In addition, Hess Midstream Partners LP’s organizational structure converted from a master limited partnership into an ‘Up-C’ structure in which Hess Midstream Partners LP’s public unitholders received newly issued Class A shares in a new public entity named Hess Midstream LP, which is taxed as a corporation for the U.S. federal and state income tax purposes. Hess Midstream Partners LP changed its name to ‘Hess Midstream Operations LP’ (HESM Opco) and became a consolidated subsidiary of Hess Midstream LP, the new publicly listed entity.
At December 31, 2024, Midstream assets included the following:
Natural Gas Gathering and Compression: A natural gas gathering and compression system located primarily in McKenzie, Williams and Mountrail counties, North Dakota connecting Hess and third-party owned or operated wells to the Tioga Gas Plant, LM4, and third-party pipeline facilities. This gathering system consists of approximately 1,415 miles of high and low pressure natural gas and NGL gathering pipelines with a current capacity of up to approximately 675 mmcfd. The system has an aggregate compression capacity of approximately 530 mmcfd, including approximately 50 mmcfd of net compression capacity added in 2024.
Crude Oil Gathering: A crude oil gathering system located primarily in McKenzie, Williams and Mountrail counties, North Dakota, connecting Hess and third-party owned or operated wells to the Ramberg Terminal Facility, the Tioga Rail Terminal and the Johnson’s Corner Header System. The crude oil gathering system consists of approximately 590 miles of crude oil gathering pipelines with a current capacity of up to approximately 290,000 bopd.
Produced Water Gathering and Disposal: A produced water gathering system located primarily in Williams and Mountrail counties, North Dakota, that transports produced water from the well site by approximately 330 miles of pipeline in gathering systems or by third-party trucking to water handling facilities for disposal.
Tioga Gas Plant: A natural gas processing and fractionation plant located in Tioga, North Dakota, with a current total processing capacity of approximately 400 mmcfd, an NGL fractionation capacity of approximately 60,000 boepd and y-grade NGL stabilization capacity of approximately 25,000 boepd.
LM4: A natural gas processing plant in McKenzie County, North Dakota, with processing capacity of approximately 200 mmcfd, which was placed in service during 2019 and is operated by Targa Resources Corp. Hess Midstream LP owns a 50% interest in LM4 through a joint venture with Targa Resources Corp. and is entitled to half of the plant’s processing capacity.
Mentor Storage Terminal: A propane storage cavern and rail and truck loading and unloading facility located in Mentor, Minnesota, with approximately 330,000 boe of working storage capacity.
Ramberg Terminal Facility: A crude oil pipeline and truck receipt terminal located in Williams County, North Dakota with a delivery capacity of up to approximately 285,000 bopd of crude oil into an interconnecting pipeline for transportation to the Tioga Rail Terminal, Dakota Access Pipeline (DAPL) and other third-party pipelines and storage facilities.
Tioga Rail Terminal: A 140,000 bopd crude oil and 30,000 boepd NGL rail loading terminal in Tioga, North Dakota that is connected to the Tioga Gas Plant, the Ramberg Terminal Facility and the company’s crude oil gathering system.
Crude Oil Rail Cars: A total of 550 crude oil rail cars, which are operated as unit trains consisting of approximately 100 to 110 crude oil rail cars. These crude oil rail cars have been constructed to DOT-117 standards.
Johnson’s Corner Header System: A crude oil pipeline header system located in McKenzie County, North Dakota that receives crude oil by pipeline from Hess and third parties and delivers crude oil to DAPL and other third-party interstate pipeline systems. The facility has a delivery capacity of approximately 100,000 bopd of crude oil.
Other DAPL Connections: Various connections into DAPL, which are crude oil delivery points within the terminal system located in Williams and Mountrail counties, North Dakota that receive crude oil by pipeline from the crude oil gathering system for delivery into DAPL. The facility has a delivery capacity of approximately 120,000 bopd of crude oil.
The Midstream segment earns substantially all of its revenues by charging fees for gathering, compressing and processing natural gas and fractionating NGLs; gathering, terminaling, loading and transporting crude oil and NGLs; storing and terminaling propane; and gathering and disposing produced water. Effective January 1, 2014, certain subsidiaries of Hess Midstream LP entered into (i) gas gathering, (ii) crude oil gathering, (iii) gas processing and fractionation, (iv) storage services and (v) terminaling and export services commercial agreements with certain subsidiaries of Hess, each generally with an initial ten-year term which could be extended for an additional ten-year term at the unilateral right of the Hess Midstream LP subsidiaries. The Hess Midstream LP subsidiaries exercised their right to extend the terms of each of these commercial agreements for the secondary term effective January 1, 2024 through December 31, 2033. Effective January 1, 2019, a subsidiary of Hess Midstream LP entered into water gathering and disposal services agreements with a subsidiary of Hess. These agreements also provide Hess Midstream LP the capacity to provide concurrent use of these services directly to third parties.
History
Hess Corporation, a Delaware corporation, was incorporated in 1920.
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