Business Units or Product Lines

Hess Corporation operates in two main segments: Exploration and Production (E&P) and Midstream. The E&P segment is engaged in exploring, developing, producing, and selling crude oil, natural gas liquids, and natural gas. The Midstream segment provides fee-based services, including gathering, processing, transportation, and storage of crude oil and natural gas.

Business Models for Each Product Line

For the E&P segment, revenue is primarily derived from the sale of crude oil, natural gas liquids, and natural gas. Costs in this segment include exploration expenses, production costs, and transportation expenses. In the Midstream segment, revenue is generated through fees for gathering, processing, and transporting hydrocarbons from the company's E&P operations and third-party producers. Major expenses include pipeline maintenance and operational costs.

Future Opportunities for Growth

Hess Corporation sees future growth opportunities in an increased focus on high-margin oil assets, especially in the Guyana region where they have significant development plans. Enhancements in efficiency and technology in their U.S. shale operations, particularly in the Bakken Shale Play, also represent growth prospects. Additionally, expanding midstream infrastructure to support production growth is seen as an opportunity.

Potential Major Risks

Hess Corporation faces risks such as fluctuations in oil and natural gas prices which can significantly impact revenue and profitability. Operational risks include drilling, production, and transportation risks, alongside regulatory risks associated with environmental and safety requirements. Political instability in regions of operation, particularly where they have significant investments, such as in offshore Guyana, may also pose threats.