HES - Earnings call transcript Q3 2020

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Operator

Good day ladies and gentlemen, and welcome to the Third Quarter 2020 Hess Corporation Conference Call. My name is Andrew and I'll be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. to of conference Investor like Wilson, to now President Vice Relations. would turn over the Jay I Please proceed.

Jay Wilson

Thank you, call. in our Andrew. for third you Good quarter morning everyone earnings conference and thank participating

and differ and Our was known are to Today’s call actual Federal those the projections earnings contains subject Securities uncertainties and or cause implied within our other results statements of issued morning to conference forward-looking release and that meaning expressed website, may appears from such those section measures we the include this on can laws. www.hess.com. and website. these supplemental risks These non-GAAP statements. on unknown the statements quarterly Also, and These set in financial measures. discuss the the forth the information the provided today’s differences between most on in financial Risk of may of Hess' SEC. reconciliation measures with GAAP filed Factors be financial certain annual comparable call, our in directly conference found non-GAAP reports A risks

As Officer. Greg Financial Hill, Hess. usual, Officer; Chief Executive the Chief Operating Rielly, are Officer; today and John now over with to Chief turn call John Hess, I’ll John me

John Hess

Hill the well Jay. results. low these provide and quarter will hope review third Thank your discuss on current environment, financial to our operations healthy will update Greg challenging our an our our staying conference I in families oil executing call. Welcome you, times. strategy our Today, will and are and John during you I in then Rielly progress price

transition the Energy aggressive Development would for be energy oil in pledges provides met, in take and breakthroughs in be our it address Climate Energy of oil the its needed. about talk time gas will I macro Before were technology strategy. XXXX. Agency major outlook XX% Sustainable briefly the an still XXXX published The informs this mix will and of which, that Paris energy World Agreement like to how just Outlook quarter, Scenario we The International all if would and the

energy and to climate price and will policies economic to to company key supply in be environment. any in differentiated need fundamental oil only come battle prosperity. to needed a encourage have return, the the change, be human a that we superior our we and portfolio we to over The companies will world built S&P While to of continue renewable course high is By is low believe growth of cost to assets for growth for many investing and decades gas industry most provide cost low decade, in will cash which our XXX. peers have flow the to leading opportunities, of

Bakken, phases underpinned we cost is short-term industry. significant which under our price engines manage Gulf low must long-term $XX to per as of we will believe well Mexico Asia of in deepwater Southeast by developments, Brent challenges and as To our portfolio the realize cash strategy, multiple by our facing mid-decade. oil Guyana drive Our the breakeven barrel company’s

preserve and price of during to long-term the preserve our capability, priorities cash, this low are preserve assets. Our environment value

Brent. XXXX at oil day we XX,XXX barrels XXX,XXX Texas per Intermediate $XX for per barrel of In West with hedged enhance preserving and our June, chartered July at To of put options production came cash, day into terms oil per our VLCCs we million to May, per of $XX near approximately of barrel in with production, storage XX% barrels when capacity, three production. and carriers cash each and flow maximize U.S. store barrels very and or large crude was crude March oil Bakken X April, the value

in premium of barrels was X.X to China Brent million sold cargo September. at The in a first VLCC

of VLCC third Asia the in end sold expected the by be and to cargos are second year. The

$X.XX by we billion Bakken budget our We one; from reducing and to of have to count year billion, current rig cash, of term $X.X maturities operating of also XXXX guidance credit our a and our comes undrawn billion six loan cash $X XX% costs revolving debt facility, by reduced reduced $X.X by in had September, At no from the million. capital exploratory billion full XXXX. our until and primarily $XXX end XXXX the due we

rig capabilities practices of been have terms built In Greg we since over have the and that the the beginning years. his rigs than year preserving May, manufacturing down Bakken capability, to of at and one operating innovative in six from maintain team more XX the Lean

approach per at rig oil one WTI. Our until $XX plan remain barrel to prices is

count, per equivalent XXX,XXX reducing goal we rig the our of day ahead six of months oil achieved Before barrels of schedule.

and In has we completion drilling well further below cut costs opportunities and cost team reductions. Bakken per million addition, to average continue for our see $X our

In terms the industry of and top of supply returns, our leading our assets, low preserving cost with of priority. long-term value Guyana, its remains financial

which Payara, between of also the On Redtail we and discoveries class by government have Redtail, are additional and for oil on the in have per which recoverable resources and we gross measure. block FPSOs by Field, on Xth, of operator. three Yellowtail-X Brent plan to barrel, Guyana The of per breakeven any Payara and the in has discovered of more volumes the is the We Liza Hess development least and $XX first interest XXXX. third is current XX% Stabroek on where ExxonMobil of discoveries, barrels estimate prices producing, the are the increasing XXXX, Block XXth, discoveries, total is are for the the announced and Liza targeted September producing which oil oil the are Stabroek approximately oil X than Yellowtail-X, developments; billion to X day XXX,XXX $XX that barrels world approved for sanctioned bringing Block, oil block construction, Incorporating from pleased a very Payara on oil development the the September of we XX. at Uaru and equivalent. expect to gross five assessment X,

a in to the for resource potential of million transaction recoverable in Mexico Field early FPSOs working operator, for our the date in July at Shenzi see value Gulf XXXX. the Xth XX to and development an develop in of further position now deepwater an low Liza forward to of $XXX the sell discovered This current environment to our price online We the Billiton, field’s in also and interest the total brings agreement until base. BHP XXXX. Phase effective on Xst, October X announced liquidity consideration Guyana comes XX% up We strengthens cash

of We expect to end the before the year. close the transaction

and carbon we value for be this company’s creates the all our to XXXX TPI continue by sustainability, stakeholders. Transition the In summary, preservation delivering of the during Earlier all longstanding its strategy, and achieve recommendations. the economy and only our which XXXX that to we to this rating, will supporting strategy progress strategic Hess Management in to gas oil prioritizing line of Star is is operational climate or Quality In on price governance, long-term companies efforts Our while from risks guided with awarded to our which Level value report, satisfy a transitioning Initiative X perspective performance U.S. TPI demonstrably energy Disclosures a operational month, report only or strong a criteria. long-term change mitigate XXX commitment and and climate-related Task Pathway Force to believe company execute the TPI’s Financial and in low assets the published TCFD low environment. of to our opportunities cash, on capability, continue companies manage Climate-related

financial growth returns and to Hess uniquely deliver cash As industry over positioned a decade. flow leading is result, the

cash As to generates update. we now returns free increasing will turn shareholders. flow, and for I will our the over portfolio Greg call an debt operational increasing reduction to cash prioritize

Greg Hill

day. barrels again per per operational day, Companywide per averaged Thanks production excluding to XXX,XXX barrels barrels production oil oil XXX,XXX year John. equivalent Bakken approximately oil XXX,XXX within guidance net from net of equivalent In quarter our Libya, range delivered the up of of day. we above of XXX,XXX third day, oil guidance equivalent quarter, per was which averaged of prior barrels of performance. our XXX,XXX strong the XX% and once equivalent

by downtime our assumes equivalent companywide offset oil oil range XX,XXX where the approximately fourth of day, per the work of quarter, will that XX,XXX anticipate for the of Shenzi allow production equivalent quarter In to production end of hurricane-related Gulf and performance per in oil all that restored. equivalent before of the Bakken transitory XXX,XXX sale of Libya. to be barrels oil Mexico XX,XXX the Xst, closes Gulf recovery Gulf strong quarter net guidance the fully impacts barrels This in December barrels day. guidance year, expect we Our our of to fourth be reduce day. per hurricane of will to hurricane-related the excluding completed of below be We which per equivalent production shut-in the in Mexico just barrels averaged XX,XXX production Mexico, day, approximately

our the to is For equivalent Libya, net day, day. per XXXX, equivalent our excluding of full compared previous of production per approximately XXX,XXX guidance barrels barrels year oil of net guidance XXX,XXX oil

third XX new the six brought the to wells in Moving and Bakken, drilled we quarter online. wells

continued still the expect XX year quarter, we bring quarter, well we top fourth to expect quartile the to to average techniques, new which further Through cost enabled the to XX For wells our costs online bring and the In XXX gains further. drill expect is for completion us D&C of and XXXX, online. application wells drill our even third reduce technology and reduce we to per full wells efficiency new Bakken. manufacturing drilling Lean we and for the $X.X and six wells believe million,

we XXX,XXX of average fourth per to expect oil Bakken equivalent net production and day. between the quarter, For XXX,XXX barrels

production our XXX,XXX of now For equivalent day, guidance we expect of equivalent the approximately XXXX, year barrels oil up barrels per to average day. of per from oil net XXX,XXX Bakken previous full

prices a capital rig we and Although prices, free drilling financial future asset current inventory the completion WTI. cash positive, to our among to us contractors. our at flow that approach a to barrel and have $XX preserve manufacturing good years, maintain program preserve within one over the both large hard until a we that allows keep drilling returns we plan have worked rig generate single Hess capability Operating locations of Lean and primary oil discipline to per build

operations day, position before working XX,XXX to day the XX,XXX the be in Mexico the commercial of days, play of exploration XX from down equivalent net the has barrels not across Production remain due all of approximately disrupted production reached felt well seven net prospective. remains recovery gulf Moving the Gulf to XX,XXX well, in of a XX effects storms Zeta, equivalent shut per of range per Conger gross workover full the Gulf hurricane oil oil first will Gulf our X including to named the this year. that in the highly acreage of expected to a fully expect Hurricane hurricane-impacted from from of of the the per the The be quarter, production be XX% restored work, offshore, a the Hess Fields be data assessment Penn expected season equivalent State Deep fourth previous equivalent The or XX,XXX peak during of and approximately well currently success. incorporated continued is in day. to in rate industry. of oil which and interest, December. Esox-X a quarter barrels our Mexico into year barrels In X,XXX barrels which until BP-operated Cretaceous, can barrels XX,XXX in of Hess. per is for completed Again, we oil to day day respectively, expect the will to this Also net remain XXXX, in fourth shut-in September, the in have of well which approximately production is per we held the for the and equivalent oil end Galapagos was Llano the the in guidance to average of and

equivalent the to barrels day, nominations. XX,XXX Moving second per increased result equivalent of oil day production barrels a net as XX,XXX an per higher the Gulf to of average oil quarter to in of in the third compared of Thailand, quarter of

reflecting We production expect day, be flat per net COVID third barrels continued fourth oil uncertainties. at quarter approximately with quarter to XX,XXX the of equivalent

to equivalent guidance is to equivalent approximately per full barrels XX,XXX oil previous net oil XXXX year of XX,XXX our day XX,XXX of Our range for guidance compared production day. of barrels per now

its nameplate of will In Production in gas top with projects. gross barrels day for reach FPSOs a per or to Liza decision the which and to progressing is complete system in target Liza few net day day from to deliver the gross Payara XX% production, to about of a completed. turning produce and proceed per Field. of in build Now are work approximately injection continue haul wells barrels side gross is oil day XXX,XXX remains base averaged Prosperity or above, per allows announced note averaging last barrels the the of concept been the of oil. to barrels third early expectations. the per the and investment the injection FPSO, FPSO Ongoing and oil applied barrels XX,XXX per capacity Destiny from to of in once many It mechanical Guyana, development one, of learnings future production natural weeks. vessel vessel the or to will and quarter, subsea Liza oil barrels and and The of we Phase December. will final initially on continues, to oil commissioning be of oil reservoirs has track XXX production the floating XXX,XXX Hess. design for have million with system project first XX,XXX the Phase plan offloading the by to captured enable the barrels complete per The oil will XXX,XXX XXXX. of capacity storage gas day X of day work of to have capacity delays and overall of development September, important commissioning to gross XXX,XXX approximately to up that nature, Payara the at, for The will oil the X resource utilize

total quality, and adjacent the oil with The the discovery. on and expected production below wells, Guyana. including oil Yellowtail-X offshore XX a XX and Stabroek the feet planned discoveries injection encountered XX in in announced First bearing we XXth is Also XX reservoir, drill [ph], high XXXX. December Yellowtail-X are XX centers wells. well XXth of Block, wells of to

block of block. In These addition, located The at A Redtail well demonstrate likely on billion and further the approximately discoveries Yellowtail significant exploration high feet fourth the to fourth of bearing and of development the in is drill recoverable stem approximately will the the form to potential the of X equivalent test contribute XXX the increasing reservoir. estimate Redtail-X well northwest barrels approximately encountered of basis quarter. oil our quality X.X resource miles discovered discovery. planned the oil is

will and first approximately spud well year Block exploration In of Turonian. expect the the east reservoirs end the northwest deepest next will the well, aged is to miles Carron terms including of results Campanian well be Kaieteur The of and designed the target Field. is during should on Hassa-X, exploration, the XX Stabroek the well miles the Stena XX quarter. which Santonian, This drilled we geologic penetrate Liza which on near the drillship Guyana, approximately Liza. Campanian, intervals, This currently drilling offshore the is of Tanager-X Block, multiple well

that Guyana, to it Before Stabroek of Block the think is you what important I remind unique. makes I so leave

is in to First, size X.X and X,XXX The block its million which scale. of is blocks. equivalent Mexico size Gulf acres,

have remaining. we far, and prospects drilled barrels with that potential contain XX oil have of XX barrels discoveries made billion approximately of and exploration multi recoverable X gas So resources, billion

results that in high permeability wells quality factors. porosity world-class and and exceptional Secondly, reservoir rate high recovery with flow

is is cost is delays prices shallow developments in cost and the is Fourth, allows and leading Sharing Contract throughout have greatly chain risk occurring of drill a mechanism. offshore cycle. manager greatly Fifth, $XX barrel. us of low $XX development and finally, there with and basins. for cost project the cost Excess the And the in best overruns. between this industry world Sixth, a a reduces the supply per of breakeven ExxonMobil three Third, other first the fraction their the bottom competitive capacity of execution risk. cost the deepwater wells recovery reduces Brent reservoirs development arguably the to project offshore its at of Production supply, and of are operatorship time salt type that of no there

the reasons, For for workforce Rielly. of and the communities for ensuring and the safety to a will in delivering across of John hurricane long-term midst our strong closing, Gulf all value I’d and a to of team In while like our of for challenging call recognize will extraordinary pandemic Guyana. Mexico. these our portfolio, create in Guyana results citizens over shareholders turn the I season now our the

John Rielly

of $XXX third quarter in a million third Thanks of today, results $XXX incurred of will of a net my with We of second remarks the in quarter quarter compare Greg. In XXXX. net quarter. from the to compared XXXX XXXX the I the million second loss loss

of periods, affecting Excluding the earnings comparability an incurred adjusted we $XXX net in quarter. items between of million loss third

on the loss net of components E&P, net third and the after-tax results improve $XX quarter an selling million realized other driven increase $XXX a incurred $X by million. cash as third by an for reduce the Higher results E&P Higher XXXX million. $X exploration million. overall changes quarter. to $XX reduced to $XXX million. quarter by a results results the in $XX improved results previous by Turning by follows. reduce third results of by Higher were costs sales loss taxes XXXX expense of production million Higher million. XXXX adjusted adjusted basis, compared expenses quarter $XX DD&A items second Higher The results All of by of the of reduced E&P $XXX prices volumes in million. results million quarter of between in in

Payara $X.X projections the which the FPSO and is purchase presentation. timing of sanctioned net the costs cost excluding development share Field to be consistent with is December evaluated. is The we from Day development corporation’s billion, our costs forecast being earlier, FPSO Investor XXXX approximately of purchase mentioned The John September. pre-sanction As in

Our approximately forecast XXXX, $XXX costs million million in million in XXXX, XXXX, net share $XXX to be and in in million is $XXX XXXX. million of in XXXX, development $XXX $XXX

of turning compared EBITDA, volumes. net income interests, $XXX XXXX of Now previous million quarter higher non-controlling in segment the million The $XX quarter. to the to million $XX quarter, in million the amounted in compared the Midstream to Midstream. had reflecting quarter throughput Midstream $XXX in XXXX previous third to third before of

and million previous corporate the in after-tax basis, $XXX of compared adjusted XXXX an quarter quarter. $XXX on corporate, interest the million to were expenses third For in

financial cash our quarter equivalents $X.X billion to was end, available billion finance Turning and at billion. facilities, debt approximately position, $X.X and $X.X cash excluding committed liquidity while Midstream, and lease our totaled were including total obligations credit

in and which activities working operating reflecting our operating cash compared million next quarter. quarter the transactions receivable Our higher revolving after $XXX reduced by before the was during the increase is flow working XXXX. with from over prior inventory million quarters. changes net the in quarter, due resulting due quarter by was in previous $X.X to fully decreased changes activity reverse $XXX cash capital from operating quarter, capital activities prices. accounts the third third provided credit in In million third capital realized VLCC in operating reduction will the million primarily facility to through with selling May provided $XXX and the compared two a cash from undrawn $XXX payables, billion Changes committed Net temporary in levels, in $XXX working million, in primarily activities

oil remaining of oil VLCC cargo October $XXX nine while are of of the during contracts and from in million open of value from X.X be XXXX, $XXX settlements expected crude sale million received totaling in third production of the VLCC quarter and first sale approximately barrels million. X.X on of received of the cargos of the the million the barrels XXXX. first XXXX. to September second the the closed At XX% were year months Proceeds over proceeds realized contracts oil for first of was our approximately hedged have We hedge fair were XXth,

sale $XX in Xst, the from million close cash During total us date through on interest of Guyana working of allow from fund flow operations to The consideration the program expect proceeds effective cash environment Shenzi $XXX with for and to XXXX. investment the fourth will on Phase an Liza Shenzi X the quarter, in hand. our Field we sale July of oil with price of the a startup our

operations will at for corporation, flow corporation price in X to a generating in begin on even commodity and free cash Phase the begin environment oil Guyana As and prices our between comes cash online, the XXXX $XX depending free XXXX. time, will flow generate that

returns flow, plan first increase debt shareholders. then As reduce we to to we free generate cash and

turning Now guidance. to

First for E&P.

operating third shutdowns DD&A in forecast unchanged in the costs barrel oil the projected of excluding be be $XX.XX expense, the to $XX.XX per equivalent. the million $XXX from in guidance is million $X.XX in the is Gulf previous barrel and of per barrel year, $XX million E&P $XX $XXX the range. the oil fourth Libya, barrel the of for to per the oil of dry including to Libya fourth to which Our and per of range oil the $XX barrel excluding $XX quarter costs, of third of to down equivalent $XX.XX cash in equivalent excluding $XXX previous million which guidance costs, is to $XX.XX in excluding E&P equivalent $X.XX lower quarter, oil and We at to range expenses, Mexico. Exploration to are quarter. be Full excluding the fourth barrel of of full for fourth range equivalent, per of to hole year, were the of to barrel in quarter impact our range $XX.XX total full for year for per of barrel per oil per in the $XX is million. which Libya equivalent $XX.XX in expected barrel cash the of year. equivalent, hurricane-related approximately quarter full to E&P oil of of in of the oil equivalent $XX.XX unit DD&A costs, results and of oil the to equivalent reflects be per end the Libya, for $XX.XX Libya, of in expense range project for $X.XX quarter. guidance This $XX.XX was

from million midstream projected additional hole recognize The with be We is fourth $XX the $XX $XXX is quarter. expected E&P $XXX of $XXX an to in approximately excluding the associated up fourth year, previous quarter is tariff dry be $XXX the to expense, expect to million of fourth and guidance $XX income to which Libya, Galapagos the well $X and the approximately tax to million. million the for Deep million million of costs to full in the million for full million $XX range for in million quarter year.

Our hedge remain unchanged. positions crude oil

expect non-cash fourth $XX million premium option $XXX amortization the million approximately full quarter year. for We and be will the that for approximately

is Guyana Our the of expenditures guidance expected which $X.X be from approximately approximately in and the down billion to E&P capital year, approximately from exploratory full previous are primarily for spend $X.X in quarter $XXX and budget. coming million billion, fourth under

anticipate guidance Midstream, of $XX million. income Hess For to year, the net for from to $XXX fourth in approximately full $XXX quarter previous $XXX from Midstream up to segment million attributable which approximately is million be the the we million and

the the end million $XX lower to $XX million lower for remarks. our are the million $XX in estimated of $XXX expenses and the for guidance to the range. is for corporate $XXX approximately full expense corporate, of for and quarter range. previous million our to be million is to $XXX fourth in quarter is million For guidance concludes Interest the the previous year, of range full year, estimated end my This approximately fourth which be which

to will happy call over now questions. will We the the operator. to be I answer any turn

Operator

Instructions] Bank first comes Doug question [Operator the Leggate with line of Your from America. of

Doug Leggate

Good there. everybody. well hope out I Thanks. morning doing everyone's

John Hess

Good Yes, you. thank Doug. morning

You too.

Doug Leggate

if with moving probably through John, to sheet And balance of Rielly you Shenzi there's because pre trajectory and going is first the about for the the VLCC think like post-working surety capital. the obviously I'd question. core sales. year, lot and you end the a John of how cash burn ask of like about you my the parts in

sheet So, what prices? development Guyana, to manage in just next of like how the you know, continued going oil worsening are phase balance you given through the in looks

John Rielly

start thanks guess position. want for question. what Doug I to is, with our Sure I the cash is

have fourth So, look of have we the we this Shenzi quarter. billion sale XXth, September at closing you if in And we $X.X cash. as mentioned, approximately

So, just let use numbers. me round

you yet be $X.X the up Shenzi to the a quarters basis, and cash million and over $X.X it, billion couple you of If $XXX from will VLCC take thing flow beyond it over gets is next sale The pro above to of operations that billion our what on next forma cash. about transactions. generating the the

that received not right have now. we So, cash any of

closed. barrels million we And VLCC so X over already we've cash have be we will that receiving for these as One transactions close.

for have October that we that. in So, cash

the the around The year. as said, of two, closed end we other

early forma you we that essentially Shenzi, of go it billion million, prices, $XXX you billion that X current Therefore, barrels $X $XXX down a get even million and from So, $X.X on times we'll year. basis I'll of million. $XXX that if million round next take say pro probably But plus the the cash. have plus its just

to first think this transactions act a start with. VLCC here next We've put position with as sale year environment. with actually that's this price a So, really I that the into ourselves we move as thing and in hedge Shenzi the low

billion, flow. that look mentioned, at our cash our a $X and next thing, just starting So, as quarter was with you the

transactions, reduction capital about naturally, if just the million books, use the round the can and capital, the ships, on that's So, from the receivable to that due built we've working inventory two had the oil plus after numbers, half again next got on just quarters. I $XXX we is over going working VLCC I of from as to said crude going that reverse

levels have really $XXX stabilizing, is activity to in all saw you coming it's reducing just where down getting and we're to of capital is activity that coming now a operating are a thing we And levels. third there the CapEx million point right, payables. reduce down we The as quarter. the quarter in it's other reduction our for down; their costs

stabilizing. be we'll So,

begin come we'll those levels, get we it point activity just get inflow. and levels that activity that So, And a When go point, at get do an actually come be if having activity pulls. working you increase won't some It's from up, capital. they some how will and down, levels which you when prices pull works. back at inflow to

you $XXX So, a on million if our and cash cash you million. flow $XXX had operations, statement, we see at looked actually capital flow from was for the there outflow

increase our that from working capital a for our on have cash you and cash the except flow, be that the exceeded we breakeven if quarter. basically, we'd pull, working exceeded actually of didn't flow So, kind temporary capital, capital, for

So, coming we're the a a we price way Brent-base this position generating when forward, Phase in and costs fund corporation. prices. low and focus reducing everything withstand can getting of in like on get capital cash through flow continuing and environment low XX,XXX cash we again, our I doing balance production, And a to to said, point into we reducing to we we're for barrels this X approximately and even all move day as can the that to

Doug Leggate

number; I really really a billion looking explanation, what was I thorough think at. That's $X is

Hess, lowering that this Hess' your view So, what in My the see need Guyana, is when John follow-up from base point them when current sector, Thanks. I'll question and industry, go is, glad seem one the curveball, announcing competitor as Pioneer, do investable for this you of acquisition, the the the or of on consolidation just -- of a cost my other Hess we really, the But day, now. John given and to there. of look for probably you a be your thank a I'm way curious in handful basis. forward companies were bit doesn't I'm one participation potentially at to to anything a cited it undergoing you broader is of that. but one across of on talked their consolidation other view about is E&P but the right leave clearly onto

John Hess

executing on our is second, our first, we strategy, which priority Yes, to and maximize focused third believe Doug, obviously will remain value shareholders. our for

a a quality built long-term growth and portfolio resource provides We high of differentiated supply. have a that cost low with

are giving that all of Guyana to We there. And Obviously, a potential billion of multiple flow developments. forward. just obviously, of position company XX oil to Stabroek cash deliver cost together it's the barrels of course industry M&A need So, resource low X that we of guidance will this done bring oil on by our approximately the ships. to not over needs now supply. already Obviously, for a our estimate And some in get of Blok equivalent lot for growth and trajectory of we're five phases don't leading to those work Guyana, to with decades. be underpinned ships, increasing

and So, a flow go the free at provide cost will cash industry we leading growth industry cash with to same have passage time which curve, of flow great a time. hand down the leading generate

compete the for market of So, M&A we're portfolio we that always opportunities. nothing our will portfolio, existing looking but capital against to see return high in our optimize

Doug Leggate

again, my Appreciate you questions. Thanks Great. guys. taking

Operator

your the next Arun question with And JPMorgan of line from Chase. Jayaram comes

Arun Jayaram

revolves or wondering Phase or Jayaram F&D I X, a contingencies than X the implications capital My you can really if from Phase question JPMorgan. maybe budget put cost side around the Greg, higher morning context Arun came first Payara. the buy Guyana. in and efficiency in around in expectations. was F&D good any Yes, bit for

Greg Hill

in of Riley guidance, John Yes, terms I suggest address that that.

John Rielly

Sure.

as for Arun, the I net So, Hess development billion. as know, you costs $X.X said, is

We that high one add $X costs the comes the of as you and gross when -- thing the fairly And purchase it's the doing gross up in you the F&D you're that in because numbers, gets lower the our that We process. a still being timing did in have for evaluated cost billion include the is have to move up, our from is billion. it numbers in ultimate do contingencies basis that's also FPSO. that you when especially set out time. to and $X that early approximately So, on it's contingencies not

release had So, billion, lower at it to with that's $X.X Exxon, know the approximately its X, we what synergies. Phase they Phase be we don't that what in is. disclose FPSO X expect for

round $X.X if I billion. it's So, that

got additional then they but pre-sanction performing part some them performance, really have coming that, have they've as billion been as costs has about get add an to of And we $X.X contingencies you know great. -- happy So, operator, been budget. some and with we're do is that under Exxon I And beyond there. Exxon in

pre-sanction what have numbers FPSO and add our that and the calculation we to in was Brent and expected the the costs that saying I the I all in breakeven. is contingencies So, cost from Payara $XX that other want the is costs thing the with for that

asset area that, we're and probably is on for forward So, Yellowtail be third will this the and obviously, be actually And there, it's between greater the after doing early Guyana. to the the for drilling adds to like that looks those and there well breakeven, in $XX area. the be a expect therefore will costs lower Payara come size we and we project truly based going the project to next world-class looking to $XX greater see Yellowtail than

Arun Jayaram

Great, My give in which with option. us XX remarks that's great on the color this could lasts FPSO lease John purchase destiny years. But you some I to -- consortium have for color. the for believe years if I your CapEx. -- he the believe follow-up, upon related you XX-year option, prepared touched two a do did the is up

be and you the was CapEx current you the exercising I the incurred on XXXX? option wondering are if provide in FPSO-related some thoughts to So, anticipating of could

John Rielly

the timing the at the Phase -- our the X discussing be Exxon X, date date of Liza of is Okay, Payara. with would purchasing of on group right Phase and that -- current now, FPSOs all the SBM, so and at and the behalf

out point. purchase not in decided this part now, any as XXXX. been the beyond have purchase is But any So, for much timing cost at that cost right FPSOs. of Liza nothing I of in we has expected purchase X costs being go unfortunately, for is some XXXX, timing that, Phase discussed. it the still the moving those of do the really of And of is not can't discussion -- But it. timing expect right to again, for now But

Arun Jayaram

Hess? fair is just cost purchase $XXX on say Hess destiny the that to the the million, that to around And the net would it net be to

John Rielly

on depending in could will decrease on, as move it earlier to still vary. then it be million can so somewhere out time. -- under Okay, closer $XXX The timing, $XXX and it you million

Arun Jayaram

Thanks lot. Great. a

John Rielly

You're welcome.

John Hess

you. Thank

Operator

Thank question Sachs. Brian you. line And with our Singer Goldman comes from of the next

Brian Singer

morning. Good you. Thank

John Hess

Good morning, Brian.

Brian Singer

estimate with Boe And also for X resource. XX first that the to to FPSO. regards discovered that think I you can Guyana up topic billion My would then approximate you is mentioned believe support

relative greater not in to just or So, just decline a times and relates the no that longer some later couple what's about XXX remind to there like some comments made is in brought as FPSOs, the any it been recent that up past have nine, oil billion you And expect -- within been online? it can the we Number of are number? as be there's XXX XX given the that plus number? than production times any approximately one plus you up sign in developments revisions discoveries? updated? the FPSOs But downward there there, a Boe discoveries easy Is of any then that when how when and there. to seems think X or to have as peak the questions You of should that? one, And anything to that's to Yellowtail in Redtail us not

John Hess

and Fair number tackle behind enough. really Greg, was resource the that? want to do what you

Greg Hill

remember the Redtail-X. greater results from to greater Sure. Yellowtail-X reflected -- to Yeah, upgrade really the the than Uaru, nine eight so of and the in drilling eight

included barrel resource a upgrade. of call at of the portion billion So, results good that that were in

additional potential is with we'll obviously number around that So and to appraisal that in that brings us close that testing and area. further to out upside figure some being up-to-date. There

So, time, one engineering further three on out in top some more still FPSOs, that those could those we said do XX his as -- and on of year I of a your FPSOs, again, on a is have but lot be remarks that there of of number, question think the cadence get you to really obviously the upside FPSOs opening but And John earlier in that this results decline. reflects those work coming wells. in to then, of could you regular as assume XX

barrels still appraised. been of remember, hasn't However, we explored or have upside multi-billion that

systems think is the the Campanian, deeper than furthermore, kind represents Santonian, currently yet has the extent remember more works two penetrations at is or look on And So, hubs, extensive and determined new billion it out you about is of how as got the I barrels. seismic, all on block. Apache's to XXXX industry channel Campanian. the feet works be that fillers, all extensive X And it, on in Suriname and you in the three five and if if that the Santonian Stabroek obviously they age of think than Brian,

multi-billion all be that of all fillers over that years both barrels depending the hub as be and in couple age well appraisal will a Campanian, of could turns and developments. lot that of the on class used also So drilling as and the of next as how Santonian exploration subject a of out, remaining upside new

going say So, on that that's Santonian Guyana and of I early XX more to we years upside innings even the the surface the in of than barrels yet Campanian is scratched go would because of like to haven't in we're a multi-billion and still. story the

John Rielly

to year we And timing the the the think potential work most ships, appraisal still Greg specifics gave need wanted but with to know, great a is of inform terms with important good government, partners. but is and to our need work is thing ships, the one to about, of and our estimate we the a obviously generally size but to speaking, Greg lot obviously, we context the of investors to more Brian, the a about, and there be is as work talking done in here exploration needs of tremendous

when So, realize I think in barrels it's at XXXX, equivalent ships we still the least was early resource a barrels people want of and talked estimate least XXX,XXX and day. at X we to X oil days, that's billion but

we're that of upgrade of be the based upon giving. could investors update to what resource get the So, we potential wanted ships an number

So it's exciting. done, more work needs very lot obviously a be but to

Brian Singer

can the Thank maintenance to great. is the capital side, that just on versus context how hedging some the about you're then how about of That's about you you of not into either discussion and free questions plans year. and My updates hedging color. any or of think more balance you sheet, thinking capital XXXX for follow-up cash talk flow financial next in earlier,

John Rielly

Sure.

January their on we're going we our exploration being year rigs still to me with move some adding we'll give Bakken additional process sanction through comparable we start we because capital. next to our Payara down but development Guyana's What then I forward obviously, final and XXXX for you that basically, one, mean, capital our up. and going now. our six the guidance as coming let capital XXXX call, rigs went see with budget capital So, from have see and we and is

X, year, this with those Bakken happens wells levels it's type some is Brian, in at decline movements, lower that don't you one big are I if of the Mexico, it standpoint, being Phase capital comparable we day pricing we the the if So, on on again our not production. a there do declines tieback there. will equivalent XX,XXX and will barrels Gulf uniqueness and it the but asked maintenance get we this two we Brent some rig, approximately is the stay When capital, But we see from a and Guyana, lot in actually of XX% as be get for down what right. because these bring

up picking go you you one declines pace and Gulf offsets both there of in a year, as as after on saying we're of we're XX,XXX then day and for John Then we're kind the So, Payara barrels that Mexico. Bakken and have a that. XXXX Greg,

of Asia at $XXX capital. these actually million grow So, at continue If $XXX level stays to lower flat levels. Southeast capital we can million to type that

have day. a can XX,XXX about barrels we that So,

bit this capital maintenance we our level. would levels be a are at actually than So, good lower where lower

So, profile these again, of returns and nature low-cost of of flow, because we can it's the the its and cash are that so free developments, generate and uniqueness it just because we can good grow grow Guyana's breakeven. the low

did question. your Sorry, you to one -- about question get to other hedging I hedging, so had you just think

barrels of remainder of put for So, we at and at Brent $XX, XXXX have have XXX,XXX our WTI XX,XXX to of XX options a day of options continue remainder obviously, the a we barrels XXXX. the put day

So, on as in still a Phase on next into would a clearly on like are we move early for put because XXXX, some insurance we hedge, coming year with Guyana to put put floor we X to investing XXXX. this

a put to we'd floor on. So, like

put Now, told the great hedge position that for the Shenzi VLCC you, that in us it. I into we have the a have year, this good sale, position going

to to where get to period know you're to of So, volatility to to no us due for like further you rush and time the put get market. there right obviously on then now. hedge is insurance, money, you Put expensive the want options the the from have obviously year. away this if off hedges now is value options are We'd right use full which paid in

a should So, for for for us it year, on floor next you be again, but could significant, later insurance it XXXX, you year. could a will be this in put see early us look us position to hedge,

Brian Singer

for Thank Great. you that detail.

Operator

from our of comes question Jeanine Barclays. the And you. Thank next line Wai with

Jeanine Wai

morning good Wai. Hi, Jeanine Thanks questions. my everyone. This taking for is

John Rielly

Morning Jeanine.

Jeanine Wai

morning. Good

Greg Hill

Hi, Jeanine.

Jeanine Wai

the touched you've but the little prior We the also that's I contributing on, more cost, extent, Q&A on is what question earlier Payara that heard a of you lower larger know development in aerial developments, cost, which phase already. likely be the that has than my next on In Guyana the Payara terms of and the breakeven. is the to I in it's resource terms know to I mentioned think this is

compare different was terms So, of can terms size in I how future discuss moving phases you you provide in probably on to development and more maybe color could development lower breakeven, this just the a wondering Can of little scope? Payara the all pieces.

John Rielly

aerial than both in with we've extent I hitting Redtail Yellowtail, as Yes, just what Greg terms the seen thickness well. of think

still of about specific the to that the DST the development. on more we're being to context, than the but optimistic we be attractiveness relatively Just can't give that go got Redtail, next now. economic We

Greg Hill

Sure.

remember the results half large. I the and extent based It's both is mile a wells on from showed the reservoir the just Redtail we Yellowtail-X. is thought, -- is a larger very think the and only Yellowtail the well, of than that what Redtail Yellowtail

is looks need -- so is same So, very a to, there. huge will why have of and resource reservoirs reservoir will quality there Yellowtail likely and to a crude Liza-X the get similar resource. is and Liza-like John It base bigger cost. We that's area say, the lower tanks, that around fewer that you very like know also development wells the in amount it bigger and quality mentioned had greater probably I'll

got to we've and However, will Yellowtail process reservoir barrels have breakeven of that also as it's got be various versus I the will because which think gates we've more PSC, Payara, drive further definitive big. our still But on, engineering affects development big, through that, the of cost rate I to recovery, the but of look which lower. it's also the to you tend to say, about at very get our of do, nature you'll work

Jeanine Wai

Thank and is well Okay, much there. I hope out you great. very doing everyone

Greg Hill

you. Thank

too. You

Operator

of the from line next Energy. with Ryan comes Simmons question Your Todd

Ryan Todd

enough said to continues XXX,XXX I you've on Great, congrats if know expectations the you the production give but know thanks. hitting forward isn't extra Bakken, about barrels of declines, from here? target the day hold Maybe or one rate a idea production us the going outperformance, of start early. maybe XXXX, out an in we that an update you how and idea? how How In continued to the flat, think about versus rig exceed you think declines, given you it can XXXX Bakken.

John Rielly

Yes, Greg?

Greg Hill

we're right for Yes, we're development still in throes now year. next -- plan of our the

to give on always do January, the you we So, like I Bakken. guidance want in

be think as more think I we speak. that'd appropriate, development the I well,

Ryan Todd

do a DUC be work Or to Maybe. down? at will similar With level till you then have drilled that, next still wells year?

Greg Hill

rigs normal well other will quarter. fourth just be of than, be rig. that will really because will just right? worked the won't waiting on had DUC there crew. it effectively -- remember, in we be did No, particularly we DUC it process, speak, then be completion off -- the six to And work that first inventory, a So carry don't is so part we don't built-in We large year, during inventory, the a with in a one inventory,

John Hess

some the to Yes. what rig that the And keep for is everyone precedent Greg, the and is Ryan, remind portfolio just it Bakken what thing. flat. maybe of provide rate that might context what about role then is takes or And sort two rate the over takes to the also in you of production production and

You might people of remind that. just

Greg Hill

Yes. Sure.

John Hess

Even quarter final from a though for on we're guidance now. working

Greg Hill

day think, as in cash is XXX,XXX to oil take, mentioned be to it a flow would now John with Bakken the the corporate the is the hold context rate so be me Take a would and two also the It mentioned, take flat; hold will cash but I two it it count Bakken. for generator develop portfolio with important at let what of hold we start the Bakken, level. range But flat. John the to Bakken we broadly govern could the which rigs role a as in barrel function that rig price, That obviously at will of needs. the what rigs

to capability. order firepower the to firepower it So it flat, and cash you that like least some hold at that would that has, maintain of we right? decline doesn't away cash in Now obviously magnificent Bakken lose

second It that an course, my Guyana consider role engine. look is decision $XX. Bakken, it as It's though, the in engine are approach point, But -- growth opening where to be won't add of said we growth remarks prices and hold on is and we as would At that we As oil rig grow not to at the again, whether second WTI that we I cash. it's engine. make prices informed adding could flat improve. we'd rig. until primary cash will the it we the

Ryan Todd

off up maybe, think on a you the to plays the generally similar to your follow -- the about of the -- under-developments, talk guess that gap Shenzi the X decision pull the as is a which Is flow in to natural is Payara the you role to bridge I bridge that can underpinning maybe in Mexico, to follow just more that bit the start-up? helping up start to portfolio Gulf the I cash-cow little opportunistically transition cash sell John -- a or Phase forward stake Thanks. Field?

Greg Hill

Yes. John -- any

Ryan Todd

forward? I the Or change, that you of has think -- any about asset, going how guess, use in

John Hess

the To be future. Mexico a no. for Rielly clear, opportunity company, will and core No, area some the we for unique is the focus to monetize background. John can have did of a Gulf Shenzi; it provide But be

John Rielly

Sure.

Gulf to So hubs, the existing John class back infill Mexico core reiterate, has know, tie not part a our of oil both pursue hub as you with just opportunities as exploration, of our prices to as strategy said, sale. portfolio, we plan changed Shenzi recover. our to well and it's

expectations. unchanged. does really able you met to value know, price we're the our being it again, Shenzi for With Shenzi this operator, So with that a remain sale get BHP

as there our then of environment. kind current I our mentioned, to our therefore, in you know, well the long So fit term dollars. strategy with preserve and oil assets the low billion And this value of to $X.X proceeds sale price cash the add

So cash all fund and from we our comes Guyana. we the And online. Phase cash Phase use to fund way to sheet, can X, a when balance in hand will we up already on flow investment it on flow in operations the use step where we opportunities get our Guyana and cash have X through to

Ryan Todd

you. Thank Okay.

Operator

Bernstein the next question with comes of line Research. Brackett Bob Our from

Bob Brackett

Hi, already. good been asked of number have morning. A my questions

portfolio? Libya. around one the country whole back think throw terms that seeing just a to about get I'll So the Hess do volumes. in export out you We're of What in as

John Hess

know, Well, engine Libya producing. cash when is the a you Bob, it's

is agreed the reopened Given it and to The the just has seen unrest. and have Libya in that level restrictions be a continued still political to uncertainties But going to production force and majeure normalized ceasefire. a lifted has the report now country liftings initial of remains what given the NOC SE has started. be

ongoing happy same basis. we get an So, But stabilized at numbers that. be to point cash what it's it's where not do our we're at time, in you when the from it know, on obviously, the it, can

Bob Brackett

Thank Great. that. you for

John Hess

Sure.

Operator

of Your question from the Scotia Bank. comes with next Paul line Cheng

Paul Cheng

Thank you. Good morning.

John Hess

morning. Good

Paul Cheng

both. better X.X. that's John I to $X either total cost the about question is for first if I'm The trying or FPSO my is at including recollection, correct. maybe billion, have if actually think X development Greg, a I The understanding Liza look

and billion, XXX $X.X is the capacity it for call total So FPSO.

for So, Payara, in XXX. we also looking

thought experience and lower actually what is may And cost Greg one So help why will be become John, me have would little you of have costs a instead the as than more -- developing get X, this. having in the understand lower you design higher? bit, a changed? Liza how can

Greg Hill

John. ahead, Go Yes.

John Hess

Sure.

Paul. unique So just with start let that me each like development is

I lower point, that that at So Yellowtail like Greater development mentioned, we the as with a Payara at costs $XX. see area, $XX that and breakeven being with $XX drops between and

expect in from at that you because synergies we lower getting FPSO, the said do are the we come building difference, to of cost. the like So a

have say as of to breakeven and Phase when everybody, I out Payara industry. there objective remind compared is always with $XX X Paul, in best this. So is Brent Phase But not Liza project with the arguably I the and E&P Liza X I know the to I'm that

So is this project things world-class. to comparing we top are really and Payara

number why distinct and of greater it has extent. a greater a more happens and therefore also does what So aerial -- Payara is cost reservoirs

a So said, it back it XXXX December X. always, cost to as have higher than always it our we was Presentation going was Liza Phase Investor was in

there, aerial causes there to breakeven with to and reservoirs were flow be what going caused wells there. the the the just we be some So And be that's what more versus came extent the to cost Brent now that more in to those exactly lines in $XX. expecting, costs $XX

be Now, Brent again the be reservoirs, cost Yellowtail, lower as reservoir believe mentioned, we between Therefore, lower, great breakeven extent the $XX aerial have its and individual expect on I the that the in think had will to we a because Greg $XX. own.

Paul Cheng

And Greg, system injection as about the when talking mechanical issue. Thank you're a earlier gas you. that

what's the that or You mechanical that problem that causing said site problem?

Greg Hill

were there Yes, two Paul. issues,

and operating. production new blades fan cooling So blades the and design the Those that's big both is that are couple were installed, first sure. XXX,XXX was averaged fan for now about issue compressors of for the gas day a re-engineered, weeks. on a our was And currently those why barrels compressors last

So month the is things plan are things The out the as are ramp-up system. to of failure or to piece back oil there being then platform That begin in was November, compressors. Germany, back compressor. to that on flash track the in design in is speak. full retrofitted for gas the during get FPSO we the main lube it the is nameplate December. the and And is last And a to issue. compressor gas a related a And

So design both issues. were

think, know, Paul, as I've to lining in and one said build I the all this many design, is silver before, you me this strategy.

being All out of the learning’s are that of future incorporated this phases. into are coming

to time ability on on to these flawlessly. bring just vessels continue and the these reliability over will that increase So

Paul Cheng

in the And quick OpEx, also much the hurricane Okay. third unit Gulf third how the Mexico why quarter, international in the is one. and a impact just is Thank high so John you. that's quarter? the of cost

John Rielly

Sure.

with start the Mexico in quarter. of -- third me let Gulf in the the So

undergoing and Conger, we on Llano shutdowns between that were had and the already Enchilada Auger platforms. working at So Shell maintenance is

then the going day And was a impact shutdowns an from you in maintenance hurricane and there XX,XXX. that, approximately about heard downtime, with XX,XXX the Greg third of So to is in script that it fourth quarter barrels as the quarter. be

State So, Greg is that well fourth the that happening then continuing difference Penn the quarter, that and what's incurred. hurricane shutdown, Conger is with Llano really between mentioned. third and now damage was and biggest the The though, again to due

be to for the of is that of going So most till end the not basically down quarter back coming December.

XX what the takes the XX charge. what $X saw, then with you costs associated to And severance is out have take the that's that million So you in QX. do international to

of it special So $XX the million of charge, that million side. severance $X over was international on

Paul Cheng

Thank you.

John Rielly

You're welcome.

Operator

Energy. question of line your David comes Heikkinen And from with next Heikkinen the

David Heikkinen

for question. Thanks guys. morning, taking Good the

couple of questions. Just a quick

Kaieteur, you costs expect the be? all, do hole of to what dry First

John Hess

John?

John Rielly

mentioned, -- drilling our to as wells well, going more than typical has this -- Stabroek. So is this on been standpoint stain is that expensive one we've an Greg exploration be from

be pressure the down just one know, So way the we is it managed you because drilling section. using careful we deeper, to all drill going are as this on to deeper

Turonian. going Santonian and mentioned, Greg As

not has have longer, in it's remember we put do to more. on Exxon a in interest Stabroek. cost that this an out generally And it So Kaieteur But a do right will working take and just estimate going now. lesser though than we bit

David Heikkinen

going the feel guess, I a you Well, Gulf run the I earlier And moving rate Penn of your year, this the all Mexico, your up? back With It's XX a Okay. the given to do back volumes have in guess State? pieces, of into all then plus, right? XXXX? volumes recovery your for

John Rielly

Sure. Yes.

So I that approximately Gulf of than day. and barrels the a were basically XX,XXX in quarters. year, when we have Mexico be shutdowns shutdowns I what that like higher it incorporate is things mean, mean, can full we we don't saying and you

for will sale, that get So Shenzi we rate the back except run right. on

you XX,XXX had So barrels being sold.

January So, X. basically day, everything when then, approximately coming down in starting rate it run you a we back to on know, barrels XX,XXX take a

David Heikkinen

Perfect. put X that like the FPSO, side it all do, with chinks the concepts; avoided, that And at will you're correct be additional by Phase really ordered Is looks compressor you've that kit. working the kit with that same, with many basic one side --? the hopefully design on just or you'll out the least build is same

Greg Hill

David, the part the the something XX% same you of absolutely, this X. it Phase numbers are side extreme part numbers, look I top Phase the if as part at look the in in fact, numbers on like at if you standardization, X think Yes, and is

the what that's vessels quickly a real future roll think reliability drive and I can So just is, phases really high of these in that. really, very standardization of into advantage result learnings, as you the is

David Heikkinen

Yes.

downtime six That's months move Cool. first this as forward. of that'll things helpful. less stabilize lot learnings a in So you and

Greg Hill

Exactly.

David Heikkinen

Thank you.

Greg Hill

Thank you.

Operator

you. Thank

next with Your comes Wells Roger from line the Read question of Fargo.

Roger Read

morning. Good Thanks. Yes.

John Hess

Good morning.

Roger Read

get road get of rely solely in on But Or said, up I'm sub also asset terms to as anything Does what sales Guyana? is the there? opening to expect additional to you're total else curious the middle the envisioning your popped down going kind just the do Shenzi. of decade. on where development opportunity in that $XX obviously of there's comments some thinking, you that if in you planned you to

John Hess

there current X XX XX, about, phase online And breakeven Yellowtail Guyana, portfolio. planned is as There's $XX, come we spoke is, in Payara these nothing with a being No. it and XX. being else in our FPSO really

get our FPSOs overall online, breakeven below $XX. these As brought down it portfolio in the drives to

Roger Read

Okay.

have you activity XXXX, the you about The under as look thinking you running costs think in in other Bakken you one pocket X as mentioned in the on inflation, rig on budget? follow-up there. about at deflation, to thoughts as you're gone the Any talk CapEx XXXX, about well question million your

John Hess

Greg?

Greg Hill

for not -- suppliers well their things strategic already whatsoever we're No, inflation with that. at contracts I next supplied. really in locked assuming over year We think any have Bakken, are still any the

market they technology doesn't do costs think adjustments, no Now, based through if that have the prove, innovation and thing what. the matter lower will some I but market drive still is important

Roger Read

you. Thank Great. Okay.

Operator

the Molchanov Your with of Pavel from next light James. comes Raymond question

Pavel Molchanov

questions to taking for are my Thanks of Both question. the COVID. related

ask is Malaysia, you're days what what a there. emerged the the statuses I how just that the in one with and few -- outbreak? outbreak of one, very serious operators first last you're that since coping The having XX thought, I would sudden, the international

John Hess

well Yes, as as the talk field about Greg, the might offshore. you

Greg Hill

Yes.

and worked So no all that, but get operation side. we remember, essentially impacts There COVID. had quarantined that of outbreak people first the were all and Logistically, during out. to you the to tested

really remember, saw very ongoing we developed. a side. on the the us, based a we we And impact active, protocols area ongoing active so didn't beat, a projects, Malaysia and very on drilling no result programs, So of operating we for have the is COVID that as skip

the in remotely. down about everyone taken you first If XX% working complement back again. that now we've back during up got outbreak, office, was the our at to And again, look We office.

So people working would go just back to remotely.

because equivalent our no to in lower the nominations, those impact for work for to outbreak. seen operations our COVID quarter we've -- to the Malaysia in the always guidance why which is second resulted It just of or it think uncertainties kept has barrels I ability in we fourth XX,XXX Malaysia.

Pavel Molchanov

August that plateau an distancing availability question for kind much delay? with Guyana course, was four now reaching you're Similar of about month COVID Okay. originally December, about how or timetable Exxon, to or that have labor have full of social restrictions talking related had capacity

John Hess

impacted it Obviously, repairs, but go ahead.

Greg Hill

margins, Yes. mean, I I on think design were about, would say, the issues I the it's I the that No, really reason. primary talked

as which absolutely Exxon protocols, I strict However, very appropriate. think, has are

country before for to self-quarantine tested. and has in anyone go days offshore So they XX be

Exxon be needs I So, change they've bit done, X,XXX that a to because take to some compliment any little going work profusely but longer, it's crew events. obviously, will Mobil special had

And far no offshore. had so COVID they've touchwood cases

So is I what's think there down going on absolutely remarkable.

that's being executed of how In amidst well terms all a pandemic.

Pavel Molchanov

very Thanks much.

Operator

Thank participation. today's for conference. you you very much. your Thank This concludes

You great day. may Have now disconnect. a

Hess (HES) 28 Oct 202020 Q3 Earnings call transcript