(Hess, 27.Apr.2022) — Hess Corporation (NYSE: HES) reported net income of $417mn, or $1.34 per share, in the first quarter of 2022, compared with net income of $252mn, or $0.82 per share, in the first quarter of 2021. On an adjusted basis, the corporation reported net income of $404mn, or $1.30 per share, in the first quarter of 2022. The improvement in adjusted after-tax earnings compared with the prior-year period was primarily due to higher realized selling prices in the first quarter of 2022, partially offset by lower sales volumes.
CEO John Hess said: “Our differentiated portfolio is uniquely positioned to deliver industry leading cash flow growth and financial returns in the coming years. As our portfolio becomes increasingly free cash flow positive, we commit to prioritizing the return of capital to our shareholders through further dividend increases and share repurchases.”
In April 2022, Hess announced it had made the final investment decision to proceed with the Yellowtail development on the Stabroek Block after the development plan received approval from the government of Guyana. Yellowtail, the largest development thus far on the Block, will utilize the ONE GUYANA FPSO, which will develop an estimated gross resource base of approximately 925 million barrels of oil. The ONE GUYANA FPSO is expected to have a capacity of up to 250,000 gross bopd, with first production expected in 2025. Six drill centers are planned with up to 26 production wells and 25 injection wells. Excluding pre-sanction costs and FPSO purchase cost, the Corporation’s net share of development costs is forecast to be approximately $2.3bn, of which approximately $210mn is expected in 2022, $430mn in 2023, $585mn in 2024, $390mn in 2025 and $295mn in 2026.