Hess faces commodity price volatility (crude oil, natural gas, NGLs), reduced demand for oil and gas, exploration/production failures, changes in laws/regulations (environmental, tax), operational disruptions (weather, accidents), counterparty risks, capital access limitations, environmental liabilities (lawsuits, MTBE, Superfund sites), and risks associated with the proposed merger with Chevron (regulatory approvals, delays, integration issues, potential litigation, tax treatment, and third-party contract issues).
Financial Upside
Hess anticipates higher production volumes from Guyana (Payara FPSO start-up, additional FPSOs), North Dakota, and the Gulf of Mexico (Pickerel well). Increased sales volumes and higher realized selling prices (in some periods) are also expected. Midstream segment throughput volumes are projected to increase. The company expects sufficient cash flow to fund capital investments and returns in 2025.
