Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| And then when you think about Hess Midstream, it has a very strong credit position and continues to generate free cash flow growth |
| So subsurface going great, continue to see further upside in the subsurface as we kind of produce the wells |
| Our strategy is to deliver high-return resource growth, a low cost of supply, and industry-leading cash flow growth, and at the same time, maintain our industry leadership in environmental, social, and governance performance and disclosure |
| In closing, our execution continues to be strong |
| In Guyana, where Hess has a 30% interest in the Stabroek Block, the operator ExxonMobil continues to deliver outstanding facilities reliability and project execution success |
| The Deepwater Gulf of Mexico remains an important cash engine for the company as well as a platform for growth |
| In terms of cash flow growth, we have an industry-leading rate of change story and an industry-leading duration story, providing a highly differentiated value proposition |
| Our Gulf of Mexico and Southeast Asia assets have active drilling programs and we continue to advance our major projects and further delineate the enormous upside in Guyana, all of which position us to deliver industry-leading performance and significant shareholder value for years to come |
| And our balance sheet will also continue to strengthen with our most recent debt-to-EBITDAX ratio at approximately one-time |
| Successful execution of our strategy has uniquely positioned our company to deliver significant value to shareholders for years to come, both by growing intrinsic value and by growing cash returns |
| And so buying our shares basically in advance of those as we get -- as Payara comes on, generates that $1 billion and gets in front of Yellowtail and Uaru, obviously, will be, I think, be able to deliver significant value to shareholders just following this framework that we have |
| So, first of all, the wells have been performing extremely well above expectations |
| We demonstrated strong operational performance across our portfolio in the first quarter |
| As we execute our company strategy, we will continue to be guided by our long-standing commitment to sustainability and are proud to be an industry leader in this area |
| So steady cash flow generator for the company |
| It adds differentiated value to our E&P assets up there in the Bakken with us maintaining that operational and marketing control so we get provides takeaway optionality to high-value markets |
| In terms of resource growth with multiple phases of Guyana developments coming online, and our robust inventory of high-return drilling locations in the Bakken, we can deliver highly profitable production growth of more than 10% annually through 2027 |
| In summary, we continue to successfully execute our strategy, which offers a unique value proposition for our industry by growing both our intrinsic value and our cash returns, with multiple phases of low-cost oil developments coming online in Guyana and our robust inventory of high-return drilling locations in the Bakken |
| Again, we're in a good position with that |
| And then in addition, ExxonMobil is just doing a fantastic job of mitigating kind of inflation effects through their outstanding execution and performance using that design one, build many strategy, which is sort of like lean manufacturing in the offshore |
| And then, as I mentioned in my opening remarks, Exxon Mobil and SBM are just doing an outstanding job of topsides reliability and also the debottlenecking side |
| Our portfolio is positioned to become increasingly free cash flow positive and as it does, we will continue to prioritize the return of capital to our shareholders through further dividend increases and further share repurchases |
| Looking ahead, we plan to continue increasing our regular dividend to a level that is attractive to income oriented investors, but sustainable in a low oil price environment |
| We believe that Hess offers a unique value proposition for investors |
| So I think relative to a lot of our competitors that are having cost pressures going up, our costs are going down, and we're going to keep a strong balance sheet to stay resilient through the cycle |
| First quarter net production averaged 112,000 barrels of oil per day above our guidance of approximately 100,000 barrels of oil per day, primarily driven by strong facility uptime and well performance |
| So upside, upside |
| Based upon a flat Brent oil price of $70 per barrel -- $75 per barrel, our cash flow is forecast to increase by approximately 25% annually between 2022 and 2027, more than twice as fast as our topline growth |
| We want to also have a strong cash position, and we do have $2.1 billion of cash on the balance sheet |
| Greg and his team continue to do an outstanding job of applying lean manufacturing principles to build a culture of innovation, improve efficiency and mitigate inflationary cost pressures |
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| Lower sales volumes decreased earnings by $138 million lower realized selling prices decreased earnings by $45 million |
| For the first quarter, our E&P oil sales volumes were under lifted compared with production by approximately 325,000 barrels, which decreased our after-tax income by approximately $15 million |
| In the first quarter of 2023, net cash provided by operating activities before changes in working capital was $1 billion compared with $1.3 billion in the fourth quarter of 2022, primarily due to lower sales volumes and realized selling prices |
| Onshore rigs pretty much staying flat, but we're still seeing some pressure in certain areas, particularly labor |
| For the second quarter, net production from Guyana is expected to average between 105,000 and 110,000 barrels of oil per day, reflecting reduced capacity at Liza Phase 2 for planned maintenance |
| And then finally, in our Gulf of Mexico operations, we contracted our services in 2022, so we missed some of the recent uptick |
| So it's difficult to provide that to you for the next couple of years |
| Also, the cash cost going down 25% as well |
| Obviously, there's a lot of reasons to be constructive long-term – near-term is more uncertain from an economic perspective |
| These risks include those set forth in the Risk Factors section of Hess's annual and quarterly reports filed with the SEC |
| Sorry, I was on mute there |
| Lower exploration expenses increased earnings by $7 million for an overall decrease in first quarter earnings of $160 million |
| In the second quarter, we expect net production to average approximately 25,000 barrels of oil equivalent per day, reflecting planned maintenance at several of our Gulf of Mexico fields |
| Changes in operating assets and liabilities during the first quarter decreased cash flow from operating activities by $394 million, which includes premiums paid for hedging contracts |
| Our E&P cash costs were $12.96 per barrel of oil equivalent in the first quarter of 2023, which was lower than our guidance of $14 to $14.50 per barrel of oil equivalent due to higher production and the deferral of workover spend to the second quarter |
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