Key Development:

• The fourth and largest oil development on the Stabroek Block to date, Yellowtail, is on track to start up in the third quarter of 2025 with an initial gross production capacity of  approximately 250,000 barrels of oil per day (bopd) utilizing the ONE GUYANA floating production, storage and offloading vessel (FPSO), which arrived offshore Guyana on April 15th

First Quarter Financial and Operational Highlights:

• Net income was $430 million, or $1.39 per share, compared with $972 million, or $3.16 per  share, in the first quarter of 2024; adjusted net income(1) in the first quarter of 2025 was $559 million, or $1.81 per share
• Oil and gas net production was 476,000 barrels of oil equivalent per day (boepd) in the first quarter of both 2025 and 2024
• E&P capital and exploratory expenditures were $1,085 million, compared with $927 million in the prior-year quarter

Hess Corporation today reported net income of $430 million, or $1.39 per share, in the first quarter of 2025, compared with net income of $972 million, or $3.16 per share, in the first quarter of 2024.  On an adjusted basis, the Corporation reported net income of $559 million, or $1.81 per share, in the first quarter of 2025.  The decrease in adjusted after-tax earnings compared with the prior-year quarter primarily reflects lower realized oil selling prices and sales volumes in the first quarter of 2025.

Exploration and Production: 

E&P net income was $434 million in the first quarter of 2025, compared with $997 million in the first quarter of 2024. On an adjusted basis, E&P first quarter 2025 net income was $563 million. The Corporation’s average realized crude oil selling price was $71.22 per barrel in the first quarter of 2025, compared with $80.06 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the first quarter of 2025 was $24.08 per barrel, compared with $22.97 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.89 per mcf, compared with $4.62 per mcf in the first quarter of 2024.

Net production was 476,000 boepd in the first quarter of both 2025 and 2024. In the second quarter of 2025, E&P net production is expected to be in the range of 480,000 boepd to 490,000 boepd.

Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $12.27 per barrel of oil equivalent (boe) excluding items affecting comparability of earnings between periods in the first quarter of 2025, compared with $10.79 per boe in the prior-year quarter, primarily due to increased maintenance activity in North Dakota. Cash operating costs in the second quarter of 2025, are expected to be 2 higher compared to the first quarter of 2025, reflecting increased workover activity in the Gulf of America and Southeast Asia.

Operational Highlights for the First Quarter of 2025:

Bakken (Onshore U.S.): Net production from the Bakken was 195,000 boepd in the first quarter of 2025, compared with 190,000 boepd in the prior-year quarter, primarily reflecting increased drilling and completion activity partially offset by the impact of winter weather in the first quarter of 2025. NGL and natural gas volumes received under percentage of proceeds contracts were 19,000 boepd in the first quarter of both 2025 and 2024. During the first quarter of 2025, the Corporation operated four rigs and drilled 28 wells, completed 36 wells, and brought 32 new wells online. The Corporation plans to continue operating four drilling rigs in 2025. Bakken net production is forecasted to be in the range of 210,000 boepd to 215,000 boepd in the second quarter of 2025. 

Gulf of America (Offshore U.S.): Net production from the Gulf of America in the first quarter of 2025 was 41,000 boepd, compared with 31,000 boepd in the prior-year quarter, primarily due to start-up of the Pickerel well (Hess – 100%) that achieved first production in June 2024 as a tieback to the Tubular Bells production facility.

Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production totaled 183,000 bopd(2) in the first quarter of 2025, compared with 190,000 bopd(2) in the prior-year quarter, due to tax barrels being lower by 13,000 bopd(2) in the first quarter of 2025 compared to the prior-year quarter. Guyana net production is forecasted to be approximately 180,000 bopd2 in the second quarter of 2025. In the first quarter of 2025, 14 cargos of crude oil were sold from Guyana, compared with 15 cargos in the prior-year quarter. In the second quarter of 2025, 15 cargos of crude oil are expected to be sold. 

The fourth and largest oil development on the block to date, Yellowtail, is on track to start up in the third quarter of 2025 with an initial gross production capacity of approximately 250,000 bopd utilizing the ONE GUYANA FPSO, which arrived offshore Guyana on April 15, 2025. The fifth development, Uaru, was sanctioned in April 2023 with a gross production capacity of approximately 250,000 bopd and first production expected in 2026. The sixth development, Whiptail, was sanctioned in April 2024 with a gross production capacity of approximately 250,000 bopd and first production expected in 2027. A field development plan for the seventh development, Hammerhead, was submitted to the Government of Guyana in March 2025. Pending government and regulatory approval and project sanctioning, the development is anticipated to have a gross production capacity of approximately 150,000 bopd and first production expected in 2029.

Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 57,000 boepd in the first quarter of 2025, compared with 65,000 boepd in the prior-year quarter.

Midstream: The Midstream segment had net income of $70 million in the first quarter of 2025, compared with net income of $67 million in the prior-year quarter. 

In January 2025, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP (HESM), repurchased approximately 2.6 million HESM Opco Class B units held by Hess Corporation and Global Infrastructure Partners for $100 million, of which the Corporation received $38 million. The Corporation continues to own approximately 37.8% of HESM on a consolidated basis. 

Corporate, Interest and Other: After-tax expense for Corporate, Interest and Other was $74 million in the first quarter of 2025, compared with $92 million in the first quarter of 2024, reflecting higher capitalized interest. 

Capital and Exploratory Expenditures: E&P capital and exploratory expenditures were $1,085 million in the first quarter of 2025, compared with $927 million in the prior-year quarter, primarily due to higher development activities in Guyana. Full year 2025 E&P capital and exploratory expenditures are expected to be approximately $4.5 billion. 

Midstream capital expenditures were $50 million in the first quarter of 2025 and $35 million in the prior-year quarter.

(1) “Adjusted net income” is a non-GAAP financial measure.
(2) Net production from Guyana included 20,000 bopd of tax barrels in the first quarter of 2025 and 33,000 bopd of tax barrels in the first quarter of 2024. Net production guidance for Guyana for the second quarter of 2025 includes tax barrels of approximately 20,000 bopd.

KeyFacts Energy: Hess US country profile

If you would like to discover more about KeyFacts Energy, contact us today and we can arrange a 15-minute online meeting to review our database of over 2,600 continually updated 'country-specific' oil and gas and renewable energy profiles from a selection of 144 countries. Find out how you can instantly identify companies with operational activity in your chosen country, 'fine-tune' your news or company selection based on industry category, energy type or regional location and additionally benefit from one to one contact with us to ensure maximum online and social media exposure for your company.