Company report
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26 Pages

Hess Corporation corporate report


Hess Corporation corporate report

Report summary

Hess entered the downturn in a strong position. Balance sheet strength, portfolio focus and a market premium had been restored through deep portfolio action completed in a higher price environment. But low oil prices have taken their toll, unwinding the premium rating secured through this successful phase of restructuring. A deeper strategic response is now underway to 1) conserve one of the strongest balance sheets in our coverage, 2) ensure competitive strengths remain intact and 3) commercialise the long-term growth options in its hybrid portfolio.

What's included?

This report includes 2 file(s)

  • Hess Corporation corporate report PDF - 1.34 MB 26 Pages, 8 Tables, 27 Figures
  • Hess Corporate Report.xls XLS - 3.09 MB

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Executive summary
  • Strategy
    • Initial bullish response but a more balanced outlook materialised
    • Current strategic positioning
      • Strategic fit of upstream regions
    • Strategic priorities
      • 1. Balance sheet protection and capital discipline
      • 2. Adapting the US unconventional portfolio to a low oil price environment
        • The Bakken is the primary focus
        • Slowing pace of development in the Utica or potential exit
      • 3. Maintain legacy offshore assets and deliver organic longer-term growth
      • 4. Exploration focus highlights long-term growth strategy
      • 5. Potential for counter-cyclical new business development
  • Financial health
    • Overview
    • Cash flow breakeven outlook
    • Net debt and liquidity outlook
  • Investment
    • Overview
    • Legacy assets
    • Development pipeline
  • Resources, reserves and production
    • Production
    • Reserves and resources
  • Key success factors
  • Economic assumptions
    • Economic assumptions

In this report there are 35 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Strategy
    • Benchmark: share price performance
    • Benchmark: market rating
    • Strategy: Image 3
    • Benchmark: % NPV,10 by resource theme
    • Hess: portfolio split by production 2015 vs. 2020
    • Benchmark: new project returns
    • Benchmark: capex by development status
    • Benchmark: reported 2015 year-end leverage
    • Benchmark: reported 2016 upstream cost cuts
    • Benchmark: US unconventional production
    • Benchmark: top US Lower 48 portfolios
    • Hess: conventional production
    • Hess: greenfield projects
    • Benchmark: exploration value creation
    • Benchmark: organic resource additions
  • Financial health
    • Hess: cash flow breakeven
    • Hess: year-end net-debt
    • Hess: upstream cash flow by resource theme
    • Benchmarking: low oil price cash burn
  • Investment
  • Resources, reserves and production
    • Reported historic and Wood Mackenzie forecast total production
    • Hess: production by resource theme
    • Hess: production by development stage
    • Reserves and resource detail
    • Benchmark: reserves and resources detail
    • Benchmark: reserves and resource life
  • Key success factors
    • Growth assets
    • Legacy assets
  • Economic assumptions
    • Base price assumptions (nominal terms)
    • Base price assumptions (nominal terms)
    • Base, high and low Brent (nominal terms)
    • High price assumptions
    • Low price assumptions
    • Value assumptions
    • Foreign exchange rate assumptions
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