Hess Corporation revealed a strong third quarter driven by expanded production in Guyana’s offshore Stabroek Block. The company reported net income of US$498 million, or US$1.62 per share, with adjusted earnings up to US$660 million, largely due to heightened output from Guyana, despite lower oil prices.
In Q3, net production from Guyana rose to 170,000 barrels per day (b/d), a significant increase from 108,000 b/d in the same period last year. This growth is attributed to the Payara development, which began producing in late 2023 and has since bolstered Hess’s operations in the region. Looking forward, Guyana’s fourth-quarter net output is expected to reach 185,000 to 190,000 b/d, as production recovers from scheduled downtime in Q3.
Hess is heavily invested in future developments in Guyana, with three additional projects sanctioned. Yellowtail, Uaru, and Whiptail are set to come online in 2025, 2026, and 2027, respectively, each with a capacity of around 250,000 b/d. The company is also progressing toward the seventh project, Hammerhead, which awaits environmental clearance and aims to add between 120,000 and 180,000 b/d once approved.
Despite a slight dip in U.S. oil prices to an average of US$77.06 per barrel in Q3, Hess’s investment in Guyana positions it to capitalize on high-output, cost-efficient resources. Operational costs averaged US$13.84 per barrel of oil equivalent (boe) for Q3, slightly down from US$14.04 per boe last year, demonstrating continued efficiency gains.
Hess holds a 30% stake in the Stabroek Block, alongside operator ExxonMobil and CNOOC.
