Latest news with #Hess'
Yahoo
13-05-2025
- Business
- Yahoo
Tariffs Derail Hess Toy Launch -- Could Chevron's Mega Deal Face Delays Too?
Hess Corp. (NYSE:HES), the oil producer behind the iconic green-and-white toy trucks, just hit pause on its 2025 Miniature Collection launch. The company emailed customers saying the planned June 2nd release is now delayed, citing shifts in U.S. trade policy. A new date hasn't been confirmed. While the toys are a nostalgic side hustle, they're also a symbol of Hess' long-standing consumer connectionand this disruption drops right as retailers start locking in year-end holiday inventory. The timing isn't random. About 80% of U.S. toy imports come from China, which was recently slapped with a 145% tariff under Trump's new trade measures. That rate was walked back to 30% for a 90-day window to allow negotiation, but the whiplash is real. For companies like Hess, that uncertainty is now baked into global logistics planning. Even if tariff talks improve, ripple effects could linger through the rest of the yearespecially for consumer-facing brands navigating overseas supply chains. Meanwhile, Chevron's (NYSE:CVX) pending takeover of Hessfirst announced in 2023remains in motion. Hess has said the toy truck tradition will continue post-merger, but with supply shocks now in play, investors watching the energy sector's M&A wave may be asking new questions. Will operational delays bleed into strategic timelines? Could near-term consumer disruption signal deeper friction in cross-border execution? For now, the trucks are parked. But the broader impact may still be unfolding. This article first appeared on GuruFocus.
Yahoo
13-05-2025
- Business
- Yahoo
Tariffs Derail Hess Toy Launch -- Could Chevron's Mega Deal Face Delays Too?
Hess Corp. (NYSE:HES), the oil producer behind the iconic green-and-white toy trucks, just hit pause on its 2025 Miniature Collection launch. The company emailed customers saying the planned June 2nd release is now delayed, citing shifts in U.S. trade policy. A new date hasn't been confirmed. While the toys are a nostalgic side hustle, they're also a symbol of Hess' long-standing consumer connectionand this disruption drops right as retailers start locking in year-end holiday inventory. The timing isn't random. About 80% of U.S. toy imports come from China, which was recently slapped with a 145% tariff under Trump's new trade measures. That rate was walked back to 30% for a 90-day window to allow negotiation, but the whiplash is real. For companies like Hess, that uncertainty is now baked into global logistics planning. Even if tariff talks improve, ripple effects could linger through the rest of the yearespecially for consumer-facing brands navigating overseas supply chains. Meanwhile, Chevron's (NYSE:CVX) pending takeover of Hessfirst announced in 2023remains in motion. Hess has said the toy truck tradition will continue post-merger, but with supply shocks now in play, investors watching the energy sector's M&A wave may be asking new questions. Will operational delays bleed into strategic timelines? Could near-term consumer disruption signal deeper friction in cross-border execution? For now, the trucks are parked. But the broader impact may still be unfolding. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-03-2025
- Business
- Yahoo
Chevron buys around 5% of Hess shares ahead of merger
Chevron has acquired approximately 4.99% of Hess' common shares, highlighting its confidence in the planned $53bn all-stock merger. This move, disclosed in a regulatory filing, underscores Chevron's strategic interest in Hess' assets, particularly in Guyana's Stabroek block, reported Reuters. The US oil giant agreed to purchase Hess in October 2023, aiming to expand its presence in the oil-rich Stabroek block. The deal has received approval from US regulators and shareholders, although Hess' partners in Guyana, ExxonMobil and CNOOC, have challenged it in court. An arbitration panel is set to review the case in May, the report said. Chevron acquired 15,380,000 Hess shares between January and March, valued at approximately $2.3bn, based on Hess' closing share price of $150.45. The acquisition price reflects a strategic discount, as noted by Westchester Capital Management's co-president, Roy Behren, who stated: "It is a smart and savvy move on their part." The merger agreement stipulates that Chevron will offer 1.025 of its shares for each Hess share. Had the deal closed on Monday, Hess investors would have received $162.69 per share, based on Chevron's closing price of $158.72. Chevron had cleared a significant hurdle in the merger process by obtaining Federal Trade Commission approval after an antitrust review in October 2024. As a condition, Hess CEO John B Hess will not join Chevron's board of directors. The combined company's capital expenditures budget is anticipated to be between $19bn and $22bn. Hess is engaged in the exploration and production of crude oil and natural gas, with leading positions offshore Guyana, the Bakken shale play in North Dakota, the deep-water Gulf of Mexico and the Gulf of Thailand. "Chevron buys around 5% of Hess shares ahead of merger" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
29-01-2025
- Business
- Reuters
Shale producer Hess beats profit estimates on higher output in US, Guyana
Jan 29 (Reuters) - Oil and gas producer Hess Corp's (HES.N), opens new tab fourth-quarter profit surpassed Wall Street expectations on Wednesday, buoyed by higher production volumes in the United States and Guyana. Its total production rose over 18% to 495,000 barrels of oil equivalent per day (boepd) in the quarter, boosted by a 7% increase in volumes in the Bakken shale in the U.S and a 52% jump in output from its Guyana assets. But the lucrative oil properties in Guyana have posed a hurdle to Chevron's (CVX.N), opens new tab $53 billion acquisition of Hess, after other oil majors Exxon Mobil (XOM.N), opens new tab and CNOOC ( opens new tab filed an arbitration challenge over their stakes in the block. Production from Hess' Guyana assets jumped to 195,000 barrels of oil per day (bpd) in the fourth quarter ended Dec. 31 from 128,000 bpd a year earlier. A three-judge arbitration panel is set to consider Exxon's right to first refusal in May. The deal has, however, cleared a U.S. Federal Trade Commission review. Hess' net profit for the October-December quarter came in at $542 million, compared with the $413 million it earned during the same period a year earlier. New York-based Hess posted an adjusted profit of $1.76 per share, compared with analysts' average estimate of $1.48, according to data compiled by LSEG. The company said it expects current quarter net production in the range of 465,000 to 475,000 boepd, and added that it estimates capital and exploratory expenditures of about $4.5 billion in 2025.
Associated Press
29-01-2025
- Business
- Associated Press
Hess Midstream LP Announces 2025 Guidance, Extends Return of Capital Program Through 2027
Hess Midstream LP (NYSE: HESM) ('Hess Midstream') today provided financial and operational guidance and expectations. 'We continue to successfully execute our strategy of focused investments to capture increasing volumes in the Bakken,' said John Gatling, President and Chief Operating Officer of Hess Midstream. 'Our growth is underpinned by Hess' planned development activity and continuing to provide quality midstream services to our customers in the basin. We are starting construction of a gas processing plant north of the river, which, when online in 2027, will support growth for Hess Midstream through the end of the decade.' Full Year 2025 Guidance Hess Midstream expects full year 2025 net income of between $715 million and $765 million and Adjusted EBITDA of between $1,235 million and $1,285 million. Gross Adjusted EBITDA Margin 1 is targeted to be approximately 75% in 2025. Hess Midstream expects full year 2025 net income of between $715 million and $765 million and Adjusted EBITDA of between $1,235 million and $1,285 million. Gross Adjusted EBITDA Margin 1 is targeted to be approximately 75% in 2025. In 2025, Hess Midstream expects to generate Adjusted Free Cash Flow of between $735 million and $785 million and approximately $135 million at the midpoint of guidance after funding distributions that are targeted to grow at least 5% per annum on a distribution per Class A share basis. Hess Midstream expects its leverage to decrease to below its long-term target of 3x Adjusted EBITDA by the end of 2025, before any potential unit repurchases as part of Hess Midstream's Return of Capital Framework. In 2025, full year gas gathering volumes are anticipated to average between 475 to 485 million cubic feet ('MMcf') of natural gas per day and gas processing volumes are expected to average 455 to 465 MMcf of natural gas per day, reflecting Hess' four-rig program in the Bakken. Crude oil gathering volumes are anticipated to average 120 to 130 thousand barrels ('MBbl') per day of crude oil in 2025, and crude oil terminaling volumes are expected to average 130 to 140 MBbl of crude oil per day. Water gathering volumes are expected to average 120 to 130 MBbl of water per day for full year 2025. Full Year 2025 Capital Guidance Hess Midstream expects 2025 capital expenditures of approximately $300 million. Approximately $125 million of the 2025 capital budget is allocated to ongoing capital expenditures for gathering system well connects to service Hess and third-party customers and maintenance. Approximately $175 million of the 2025 capital budget is allocated to project based capital expenditures including gas gathering system and compression expansions, with activities focused on the continued construction of greenfield high-pressure gathering pipeline infrastructure and the completion of two new compressor stations, which are expected to initially provide, in aggregate, an additional 85 MMcf per day of gas compression capacity when brought online in 2025, and are expandable to 140 MMcf per day, further enhancing gas capture capability and supporting increasing gas volumes. 2025 project capital also includes expenditures for the commencement of construction and fabrication of a gas processing plant with capacity of approximately 125 MMcf per day expected to be online in 2027. Hess Midstream expects 2025 capital expenditures of approximately $300 million. Approximately $125 million of the 2025 capital budget is allocated to ongoing capital expenditures for gathering system well connects to service Hess and third-party customers and maintenance. Approximately $175 million of the 2025 capital budget is allocated to project based capital expenditures including gas gathering system and compression expansions, with activities focused on the continued construction of greenfield high-pressure gathering pipeline infrastructure and the completion of two new compressor stations, which are expected to initially provide, in aggregate, an additional 85 MMcf per day of gas compression capacity when brought online in 2025, and are expandable to 140 MMcf per day, further enhancing gas capture capability and supporting increasing gas volumes. 2025 project capital also includes expenditures for the commencement of construction and fabrication of a gas processing plant with capacity of approximately 125 MMcf per day expected to be online in 2027. Full year 2025 guidance is summarized below: Year Ending December 31, 2025 (Unaudited) Financials ( in millions) Net income $ 715 – 765 Adjusted EBITDA $ 1,235 - 1,285 Capital expenditures $ 300 Adjusted free cash flow $ 735 – 785 Year Ending December 31, 2025 (Unaudited) Throughput volumes Gas gathering - MMcf of natural gas per day 475 – 485 Crude oil gathering - MBbl of crude oil per day 120 – 130 Gas processing - MMcf of natural gas per day 455 – 465 Crude terminals - MBbl of crude oil per day 130 – 140 Water gathering - MBbl of water per day 120 – 130 Long-Term Throughput Volumes and Minimum Volume Commitments Hess Midstream expects continued growth in oil and gas throughput volumes with approximately 10% growth in gas throughput volumes in 2026, followed by approximately 5% growth in 2027, which includes the impact of planned regulatory inspections and maintenance at the Tioga Gas Plant of approximately 10 MMcf per day. The growth in gas throughput volumes includes Hess and additional third-party volumes and supports incremental gas processing capacity of approximately 125 MMcf per day expected to be online in 2027. Oil throughput volumes are expected to grow by approximately 5% in each of 2026 and 2027. Hess Midstream expects continued growth in oil and gas throughput volumes with approximately 10% growth in gas throughput volumes in 2026, followed by approximately 5% growth in 2027, which includes the impact of planned regulatory inspections and maintenance at the Tioga Gas Plant of approximately 10 MMcf per day. The growth in gas throughput volumes includes Hess and additional third-party volumes and supports incremental gas processing capacity of approximately 125 MMcf per day expected to be online in 2027. Oil throughput volumes are expected to grow by approximately 5% in each of 2026 and 2027. As part of the annual nomination process set forth in our long-term commercial contracts with Hess, MVCs were reviewed and updated based on Hess' volume nominations, which are based on Hess' expectations of its own volumes and third-party throughput volumes contracted through Hess. MVCs are set annually at 80% of Hess' nomination for the three years following each nomination. Once set, MVCs for each year can only be increased and not reduced. Hess Minimum Volume Commitments 2025 2026 2027 Gas Gathering Agreement- MMcf of natural gas per day 382 418 418 Crude Oil Gathering Agreement- MBbl of crude oil per day 103 110 112 Gas Processing and Fractionation Agreement - MMcf of natural gas per day 364 396 404 Terminaling and Export Services Agreement - MBbl of crude oil per day 111 118 124 Water Services Agreement - MBbl of water per day 104 102 98 Long-Term Financial Metrics Supported by growth in physical volumes across oil and gas systems from 2025 through 2027, Hess Midstream expects at least 10% growth in net income and Adjusted EBITDA in 2026, followed by at least 5% growth in 2027. Gas processing and gathering is expected to represent approximately 75% of total affiliate revenues in 2026 and 2027, excluding pass-through revenues. Gross Adjusted EBITDA Margin is targeted to be approximately 75% during this period. Hess Midstream expects to pay non-material cash taxes in 2026 and 2027. Supported by growth in physical volumes across oil and gas systems from 2025 through 2027, Hess Midstream expects at least 10% growth in net income and Adjusted EBITDA in 2026, followed by at least 5% growth in 2027. Gas processing and gathering is expected to represent approximately 75% of total affiliate revenues in 2026 and 2027, excluding pass-through revenues. Gross Adjusted EBITDA Margin is targeted to be approximately 75% during this period. Hess Midstream expects to pay non-material cash taxes in 2026 and 2027. Hess Midstream expects capital expenditures of between $250 million and $300 million in each of 2026 and 2027, relatively stable compared with 2025 levels. This includes ongoing capital expenditures of approximately $125 million and project capital expenditures of between $125 million to $175 million each year to support increasing gas volumes. Project capital expenditures include ongoing investments in gas compression projects and greenfield high-pressure gathering lines, as well as the construction of a gas processing plant with capacity of approximately 125 MMcf per day expected to be online in 2027. Adjusted Free Cash Flow is expected to grow by greater than 10% in 2026 and by greater than 5% 2027, which is more than sufficient to fully fund targeted distribution growth. Long-term targeted leverage continues to be 3x Adjusted EBITDA and leverage is expected to decrease to below 2.5x Adjusted EBITDA by the end of 2026 and to continue below this level through 2027, before any potential unit repurchases as part of Hess Midstream's Return of Capital framework. Return of Capital Framework Hess Midstream is extending its Return of Capital framework through 2027: Targeting annual distribution per Class A share growth of at least 5% through 2027, expected to be fully funded from Adjusted Free Cash Flow. Greater than $1.25 billion of financial flexibility through 2027 for incremental shareholder returns, including potential unit repurchases, expected to be funded from excess free cash flow beyond targeted distribution growth and leverage capacity compared with our long-term target of 3x Adjusted EBITDA. About Hess Midstream Hess Midstream LP is a fee‑based, growth-oriented midstream company that operates, develops and acquires a diverse set of midstream assets to provide services to Hess and third‑party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at Reconciliation of U.S. GAAP to Non‑GAAP Measures In addition to our financial information presented in accordance with U.S. generally accepted accounting principles ('GAAP'), management utilizes certain additional non-GAAP measures to facilitate comparisons of past performance and future periods. 'Adjusted EBITDA' presented in this release is defined as reported net income (loss) before net interest expense, income tax expense, depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non-cash and non-recurring items, if applicable. We define 'Adjusted Free Cash Flow' as Adjusted EBITDA less net interest, excluding amortization of deferred financing costs, cash paid for federal and state income taxes, capital expenditures and ongoing contributions to equity investments. We define 'Gross Adjusted EBITDA Margin' as the ratio of Adjusted EBITDA to total revenues, less passthrough revenues. We believe that investors' understanding of our performance is enhanced by disclosing these measures as they may assist in assessing our operating performance as compared to other publicly traded companies in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods, and assessing the ability of our assets to generate sufficient cash flow to make distributions to our shareholders. These measures are not, and should not be viewed as, a substitute for GAAP net income or cash flow from operating activities and should not be considered in isolation. Reconciliations of Adjusted EBITDA and Adjusted Free Cash Flow to reported net income (GAAP) are provided below. Hess Midstream is unable to project net cash provided by operating activities with a reasonable degree of accuracy because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occur. Therefore, Hess Midstream is unable to provide projected net cash provided by operating activities, or the related reconciliation of projected Adjusted Free Cash Flow to projected net cash provided by operating activities without unreasonable effort. Hess Midstream is unable to project passthrough revenues with a reasonable degree of accuracy. Therefore, Hess Midstream is unable to provide a reconciliation of Gross Adjusted EBITDA Margin without unreasonable effort. Guidance Year Ending December 31, 2025 (Unaudited) (in millions) Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to net income: Net income $ 715 – 765 Plus: Depreciation expense 210 Interest expense, net 210 Income tax expense 100 Adjusted EBITDA $ 1,235 – 1,285 Less: Interest, net 200 Capital expenditures 300 Adjusted free cash flow $ 735 - 785 Cautionary Note Regarding Forward-looking Information This press release contains 'forward-looking statements' within the meaning of U.S. federal securities laws. Words such as 'anticipate,' 'estimate,' 'expect,' 'forecast,' 'guidance,' 'could,' 'may,' 'should,' 'would,' 'believe,' 'intend,' 'project,' 'plan,' 'predict,' 'will,' 'target' and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; our industry; our expected revenues; our future profitability; our maintenance or expansion projects; our projected budget and capital expenditures and the impact of such expenditures on our performance; future economic and market conditions in the oil and gas industry; expected timing and completion of Hess' proposed merger with Chevron Corporation ('Chevron'); and our ability to execute future accretive opportunities, including incremental return of capital to shareholders. This press release contains 'forward-looking statements' within the meaning of U.S. federal securities laws. Words such as 'anticipate,' 'estimate,' 'expect,' 'forecast,' 'guidance,' 'could,' 'may,' 'should,' 'would,' 'believe,' 'intend,' 'project,' 'plan,' 'predict,' 'will,' 'target' and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; our industry; our expected revenues; our future profitability; our maintenance or expansion projects; our projected budget and capital expenditures and the impact of such expenditures on our performance; future economic and market conditions in the oil and gas industry; expected timing and completion of Hess' proposed merger with Chevron Corporation ('Chevron'); and our ability to execute future accretive opportunities, including incremental return of capital to shareholders. Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: the ability of Hess and other parties to satisfy their obligations to us, including Hess' ability to meet its drilling and development plans on a timely basis or at all, its ability to deliver its nominated volumes to us, and the operation of joint ventures that we may not control; our ability to generate sufficient cash flow to pay current and expected levels of distributions; reductions in the volumes of crude oil, natural gas, natural gas liquids ('NGLs') and produced water we gather, process, terminal or store; the actual volumes we gather, process, terminal or store for Hess in excess of our MVCs and relative to Hess' nominations; fluctuations in the prices and demand for crude oil, natural gas and NGLs; changes in global economic conditions and the effects of a global economic downturn or inflation on our business and the business of our suppliers, customers, business partners and lenders; our ability to comply with government regulations or make capital expenditures required to maintain compliance, including our ability to obtain or maintain permits necessary for capital projects in a timely manner, if at all, or the revocation or modification of existing permits; our ability to successfully identify, evaluate and timely execute our capital projects, investment opportunities and growth strategies, whether through organic growth or acquisitions; costs or liabilities associated with federal, state and local laws, regulations and governmental actions applicable to our business, including legislation and regulatory initiatives relating to environmental protection and health and safety, such as spills, releases, pipeline integrity and measures to limit greenhouse gas emissions and climate change; our ability to comply with the terms of our credit facility, indebtedness and other financing arrangements, which, if accelerated, we may not be able to repay; reduced demand for our midstream services, including the impact of weather or the availability of the competing third-party midstream gathering, processing and transportation operations; potential disruption or interruption of our business due to catastrophic events, such as accidents, severe weather events, labor disputes, information technology failures, constraints or disruptions and cyber-attacks; any limitations on our ability to access debt or capital markets on terms that we deem acceptable, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation; risks and uncertainties associated with Hess' proposed merger with Chevron; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission. As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Investor Contact: Jennifer Gordon (212) 536-8244Media Contact: Lorrie Hecker (212) 536-8250 SOURCE: Hess Midstream LP Copyright Business Wire 2025. PUB: 01/29/2025 08:05 AM/DISC: 01/29/2025 08:05 AM
