Hess Corporation at a Glance


  • Employees praise the good people and good pay.
  • Excellent 401(k) plan.
  • Lots of development opportunities.


  • Long hours without overtime pay for some employees.

The Bottom Line

  • Many employees like working for a well-known company where opportunities are there for the taking, especially for those who learn to play the game.

About Hess Corporation

Oil and gas company Hess can profess to owning no less than 1.1 billion barrels of oil equivalent worldwide. Crude oil is the company's primary output resource, but it also produces natural gas and NGLs (natural gas liquids). Its primary operations are in the US, but it also has producing interests in Denmark, Malaysia, and Thailand. It also offers midstream services including gathering, compressing, and transporting hydrocarbons as well as propane storage. Hess has been prospecting for oil since the 1920s.


Hess has two operating segments: Exploration and Production and Midstream.

Exploration and Production accounts for almost all of the company' revenue. The segment and explores for, develops, produces, purchases, and sells crude oil, NGLs (natural gas liquids), and natural gas. It has production operations primarily in the US, Denmark, and the Malaysia/Thailand Joint Development Area.

The Midstream segment provides fee-based services including crude oil and natural gas gathering, processing of natural gas and the fractionation of natural gas liquids, terminaling and loading crude oil and NGLs, transportation of crude oil by rail car and the storage and terminals of propane, primarily in the Bakken, and Three Forks Shale plays in the Williston Basin area of North Dakota

Hess operates more than 1,300 production wells. Its offshore production on the Gulf of Mexico principally comes from a handful of fields in which it which holds stakes -- Tubular Bells (Hess 57%), Shenzi (Hess 28%), Llano (50%), Conger (38%), Baldpate (50%), Hack Wilson (25%), Penn State (50%), and Stampede (25%).

Geographic Reach

New York-based Hess has operations in Australia, Canada, Denmark, Guyana, Ghana, Indonesia, Kurdistan (Iraq), Libya, Malaysia, Suriname, Thailand, and the US.

Revenue from US accounts for about 70% of Hess' total sales. Europe and Africa more than 10% each; and the Asia-Pacific region and other continents about 10%.

Financial Performance

The oil price slump since 2014 has put a huge dent in Hess' annual sales. From $12 billion in annual revenue in 2012, it now averages $5 billion a year. The company hasn't posted profits since 2014, and has lost some $13.2 billion combined.

Revenue increased some 15% to $5.5 billion in 2017. This is due to higher crude oil prices (26% higher in 2017 compared to the prior year), and In addition, 84% increase in natural gas liquids prices.

In fiscal 2017, net loss reduced to $4 billion, from $6 billion loss the year before. Expenses went up by some $2.5 billion to 11.2 billion in 2017, mostly stemming from a $4.2 billion impairment charge. Losses in 2017 would have been worse, if not for the $4 billion in benefits from income taxes.

Net cash doubled from $2.7 billion to $4.9 billion. Operations raised $945 million, while investment contributed $1.4 billion (mostly proceeds from sale of assets totaling $3.3 billion). In contrast, financing activities used some $188 million, mostly in long-term debt reduction. CAPEX was close to $2 billion.


Predicting a $50 per barrel Brent oil price environment post 2020, Hess is restructuring its portfolio to be cash-generative yet again. The low oil price has been bad news for Hess' profits, pushing the company deep into the red for the last three years.

However, some good news comes from the Stabroek Block offshore Guyana where significant crude oil and natural gas resources have been discovered. Huge offshore reserves were discovered in 2015 by ExxonMobil; Hess is ExxonMobil's largest partner in the region.

To develop this asset fully, Hess is divesting from higher cost, mature assets. In 2017, Hess sold interests in Equatorial Guinea, Norway and enhanced oil recovery assets in the Permian Basin. In 2018, it will sell off assets in Denmark.

In addition, the company announced plans to reduce debt and repurchase common stock. With the oil price having rebounded somewhat, Hess plans to increase its exploration and production capital expenditure to around $2.4 billion, and a production forecast around 250,000 boepd.

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Hess Corporation

1185 Avenue Of The Americas Fl 40
New York, NY 10036-2601
Phone: 1 (212) 997-8500
Fax: 1 (212) 536-8390


  • Employer Type: Public
  • Stock Symbol: HESpA, HES
  • Stock Exchange: NYSE, NYSE
  • CEO: John B. Hess
  • President and COO: Gregory P. Hill
  • Chairman: James H. Quigley
  • 2017 Employees: 2,075

Major Office Locations

  • New York, NY

Other Locations

  • Washington, DC
  • Mentor, MN
  • Ewing, NJ
  • Steubenville, OH
  • Houston, TX