Hess Corporation stock (US42809H1077): Chevron takeover plans keep spotlight on oil producer

Hess Corporation is drawing attention from investors as the planned acquisition by Chevron advances, following shareholder approval of the transaction while regulatory reviews continue in key jurisdictions, according to Hess investor relations as of 05/28/2024 and subsequent updates reported by Reuters as of 08/27/2024.

As of: 22.05.2026

By the editorial team – specialized in equity coverage.

Hess Corporation: core business model

Hess Corporation is an independent energy company focused on exploration and production of crude oil and natural gas, with a portfolio that includes offshore projects and onshore shale assets. The company has transformed itself over the last decade by exiting downstream refining and marketing to concentrate on upstream operations, according to the company’s strategy statements in its annual filings published in February 2024 for the 2023 financial year, as reported by Hess investor relations as of 02/26/2024.

A central pillar of the business model is the partnership in Guyana, where Hess holds a 30% interest in the Stabroek Block operated by ExxonMobil, with CNOOC also as a partner. Multiple large oil discoveries have been made in the block since 2015, and phased developments such as Liza, Payara and Yellowtail are ramping up production, which has turned Guyana into one of the fastest-growing offshore oil provinces in the world, according to project updates released in April 2024 by ExxonMobil as of 04/16/2024.

In addition to Guyana, Hess operates significant shale oil and gas activities in the Bakken formation in North Dakota. The company has invested in drilling and completion technologies to improve well productivity, while also focusing on infrastructure to reduce flaring and lower emissions. These onshore assets provide short-cycle barrels that can respond more quickly to market conditions compared with multi-year offshore developments, according to operational commentary in the first-quarter 2024 results press release issued by Hess investor relations as of 04/25/2024.

The business model is strongly leveraged to global oil prices, with realized prices for crude and condensate playing a central role in cash flow generation. Hedging activities are used selectively to manage price risk, but the company generally remains exposed to market swings that can influence capital spending and project economics. At the same time, long-term contracts and joint venture structures in Guyana offer some visibility on development costs and production profiles, balancing the shorter-term volatility of the Bakken operations.

Main revenue and product drivers for Hess Corporation

The combination of offshore Guyana and US shale plays is the key engine behind Hess Corporation’s revenue and production growth. For the first quarter of 2024, the company reported net production of 476,000 barrels of oil equivalent per day, up from 374,000 barrels of oil equivalent per day in the same quarter of 2023, with roughly half of the increase attributed to higher output from the Stabroek Block in Guyana, according to the earnings release by Hess investor relations as of 04/25/2024.

In terms of financial performance, Hess reported first-quarter 2024 net income of 972 million USD compared with 346 million USD in the prior-year period, supported by higher production and favorable liquids pricing. Exploration and production segment net income accounted for the majority of earnings, highlighting the importance of upstream operations as the primary revenue generator. Capital and exploratory expenditures were focused on developing sanctioned projects in Guyana and maintaining a multi-rig program in the Bakken, as detailed in the same first-quarter 2024 disclosure from Hess investor relations as of 04/25/2024.

Guyana projects like Liza Phase 1 and Phase 2, Payara and Yellowtail are designed with floating production, storage and offloading vessels that collectively target more than one million barrels of oil per day of gross capacity later this decade. Hess benefits from its working interest share of this output, which is expected to significantly increase the company’s long-term production profile and cash generation if development continues as planned. These volumes are primarily crude oil, typically sold into international markets, making Hess sensitive to global benchmarks such as Brent crude.

The Bakken shale, by contrast, provides a mix of crude oil, natural gas liquids and natural gas, with associated midstream infrastructure supporting gathering and processing. While decline rates are higher than in conventional offshore projects, the ability to add or pause rigs gives Hess some flexibility to adjust to price cycles. Revenue from these onshore operations can also be influenced by regional price differentials and pipeline capacity, adding another layer of commercial considerations beyond the global oil price benchmarks.

Natural gas production from assets in Southeast Asia and other regions adds diversification, although oil remains the dominant driver of revenue. Contracts linked to regional gas markets can provide more stable cash flows, especially where sales are tied to long-term supply agreements or domestic energy demand. However, these projects typically contribute a smaller portion of total company earnings compared with the flagship oil developments in Guyana and the US shale portfolio.

For US investors, the combination of high-growth offshore assets and flexible shale operations creates a production profile that is both opportunity-rich and exposed to commodity cycles. The performance of Hess stock on the New York Stock Exchange is therefore closely tied to expectations around project execution in Guyana, drilling productivity in the Bakken and the outlook for global oil demand and pricing, as reflected in trading data published by major US exchanges and market platforms in early 2025 and 2026, including updates from NYSE as of 03/15/2025.

Why Hess Corporation matters for US investors

For US investors, Hess Corporation represents exposure to some of the most prominent oil developments in the Western Hemisphere, while shares remain traded and regulated in the United States. The primary listing on the New York Stock Exchange under the ticker HES means the stock is accessible through standard US brokerage accounts, and it is included in several energy and broad-market indices followed by institutional investors, according to index composition information updated by major providers such as S&P Dow Jones Indices in 2024 and 2025, as referenced by S&P Dow Jones Indices as of 03/01/2025.

The pending takeover by Chevron adds an additional layer of relevance, because it could reshape the competitive landscape of US-based integrated and independent oil producers. If completed, the deal would bring Hess’s Guyana and Bakken assets under the control of a supermajor, potentially affecting future capital allocation, dividend policies and index weights. Regulatory reviews by US and international authorities, including antitrust and foreign investment bodies, therefore play an important role for investors monitoring both companies, as highlighted in coverage by Bloomberg as of 10/18/2024.

Beyond corporate strategy, Hess is also engaged in environmental, social and governance initiatives, including efforts to reduce greenhouse gas emissions intensity and support community programs in its operating regions. The company set targets for methane and flaring reductions and reports progress through annual sustainability reports, which are used by ESG-focused investors in their assessment of energy sector holdings. These disclosures are summarized in Hess’s sustainability report for 2023, published in May 2024, as noted by Hess sustainability reporting as of 05/20/2024.

Conclusion

Hess Corporation occupies a strategic position in the global energy market, combining high-growth offshore oil developments in Guyana with established US shale production, all accessed via a New York–listed stock that is familiar to US investors. The company’s first-quarter 2024 results highlighted how rising production, especially from the Stabroek Block, can translate into higher earnings when supported by favorable oil prices, as documented in its April 2024 earnings release. At the same time, exposure to commodity cycles, project execution risks and regulatory scrutiny linked to the planned Chevron acquisition remain important factors in the investment case. How these elements evolve in the coming quarters, including regulatory decisions on the merger and further project milestones in Guyana and the Bakken, will likely shape market perceptions of Hess Corporation and its role within the broader US and global energy sector.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.