Hess Corporation, which holds a 30% working interest in the Stabroek Block, is positioned to experience one of the fastest growth rates of any large oil company through 2026. Highlighting this was an analysis published by Seeking Alpha, a crowd-sourced content service for financial markets for the past 18 years.
Specifically, the Value Portfolio said Hess will have free cash flow (FCF) that is expected to grow incredibly quickly, moving towards an 8% increase in 2026 and growing from there.
All oil companies should be at forefront of making positive impacts in Guyana, says Hess | OilNOW
It stated that the company’s Guyana asset is not only responsible for such metrics but is no doubt, Hess’ crown jewel. It noted that Guyana is blessed with both incredible reserves and industry-leading production rates at low costs too. The Value Portfolio said also that Hess has consistently increased its reserves in Guyana and the asset is now 11 billion barrels, with additional growth potential on the horizon.
It was keen to note that Hess expects this year to be its first FCF positive year on account of Guyana which now has two floating oil platforms in operation.
Guyana is a “phenomenal province” with “excellent returns” – Hess | OilNOW
Additionally, the analysis outlined that Hess Corporation has dramatically improved its financial metrics across the board. It said, “The company’s production by 2026 is expected to be more than 500,000 barrels/day and, by the 2030s, we expect that to go past 700,000 barrels/day. The company expects cash costs to drop to a mere US$9/barrel with an overall $45/barrel breakeven.”
In conclusion, it said Hess Corporation can drive substantial shareholder returns. It should be noted that Hess Corporation increased its dividend by 50% on March 1, 2022, and the company is planning ongoing dividend increases. Also, the company plans to return 75% of annual FCF to shareholders indicating high single-digit direct shareholder returns in 2026. Furthermore, the company plans to repurchase 2% of its common stock in 2022. The Value Portfolio said it would love to see that figure grow.
Hess pumps over US$600M into Guyana, other key global assets for 2022 second quarter | OilNOW
Taking the foregoing into consideration, the Seeking Alpha contributor concluded that Hess Corporation is guaranteed to be one of the fastest-growing larger crude oil companies on the market.
