Part 4/7:
Hess's experience combined with Exxon's operational expertise creates a powerful duo that is well-equipped to exploit the low-cost oil resources available in Guyana. The expectation is that this partnership will be a key driver for Hess's earnings growth, potentially enabling it to double its earnings by 2025.
Diversification of Cash Flow Sources
Hess not only relies on the Bakken and Guyana for growth but also has other assets—a crucial strategy for stabilizing cash flows. Their operations in Malaysia and the Deepwater Gulf of Mexico are significant contributors to their cash flow, responsible for generating about 70% of the company’s cash from operations through 2020 while requiring just 20% of their capital expenditures.