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Hess Reports Estimated Results for the Fourth Quarter of 2022

Key Developments:

  • Continued exploration success in 2023 on the Stabroek Block, offshore Guyana, with a significant new oil discovery at the Fangtooth SE-1 well located approximately 8 miles southeast of the original Fangtooth-1 discovery
  • The Fangtooth SE-1 well encountered approximately 200 feet of oil bearing sandstone reservoirs
  • Fangtooth adds to the block’s gross discovered recoverable resource estimate of more than 11 billion barrels of oil equivalent (boe) and has the potential to underpin a future oil development
  • The development plan for Uaru, the fifth development on the Stabroek Block, was submitted to the Government of Guyana for approval in the fourth quarter; the project is expected to have a capacity of approximately 250,000 gross barrels of oil per day (bopd) with first oil anticipated at the end of 2026
  • Entered into an agreement with the Government of Guyana for the purchase of high quality REDD+ carbon credits for a minimum of $750 million from 2022 through 2032; the long-term strategic partnership with the Government of Guyana aims to prevent deforestation and support sustainable development in Guyana
  • Completed the sale of the Corporation's interest in Libya for net proceeds of $150 million
  • Total cash returned to stockholders was $405 million in the quarter through dividends and share repurchases of $310 million

Fourth Quarter Financial and Operational Highlights:

  • Net income was $624 million, or $2.03 per common share, compared with net income of $265 million, or $0.85 per common share, in the fourth quarter of 2021; adjusted net income1 was $548 million, or $1.78 per common share, in the fourth quarter of 2022
  • Oil and gas net production, excluding Libya, was 376,000 barrels of oil equivalent per day (boepd), up 27 percent from 295,000 boepd in the fourth quarter of 2021
  • E&P capital and exploratory expenditures were $818 million compared with $593 million in the prior-year quarter
  • Cash and cash equivalents, excluding Midstream, were $2.48 billion at December 31, 2022
  • Year-end proved reserves are estimated to be 1.26 billion boe; organic reserve replacement was 144 percent at a finding and development cost of approximately $14.80 per boe

2023 Guidance:

  • Net production is forecast to be in the range of 355,000 boepd to 365,000 boepd, which is an approximate 10 percent increase from 2022, proforma for assets sold
  • E&P capital and exploratory expenditures are expected to be approximately $3.7 billion, of which more than 80 percent will be allocated to Guyana and the Bakken

  1. “Adjusted net income” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 6 and 7.

   Hess Corporation (NYSE: HES) today reported net income of $624 million, or $2.03 per common share, in the fourth quarter of 2022 compared with net income of $265 million, or $0.85 per common share, in the fourth quarter of 2021. On an adjusted basis, the Corporation had net income of $548 million or $1.78 per common share in the fourth quarter of 2022. The improvement in adjusted after-tax earnings compared with the prior-year period was primarily due to increased sales volumes in Guyana in the fourth quarter of 2022.

   “Our strategy is to grow our resource base, deliver a low cost of supply and generate industry leading cash flow growth – and at the same time maintain our industry leadership in environmental, social and governance performance and disclosure,” CEO John Hess said. “Our successful execution of this strategy has uniquely positioned our company to deliver significant value to shareholders by both growing intrinsic value and growing cash returns.”

   After-tax income (loss) by major operating activity was as follows:

 

Three Months Ended

December 31,

(unaudited)

 

Year Ended

December 31,

(unaudited)

 

2022

 

2021

 

2022

 

2021

 

(In millions, except per share amounts)

Net Income Attributable to Hess Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration and Production

$

 

667

 

$

 

309

 

$

 

2,422

 

$

 

770

Midstream

 

 

64

 

 

 

74

 

 

 

269

 

 

 

286

Corporate, Interest and Other

 

 

(107)

 

 

 

(118)

 

 

 

(468)

 

 

 

(497)

Net income attributable to Hess Corporation

$

 

624

 

$

 

265

 

$

 

2,223

 

$

 

559

Net income per common share (diluted)

$

 

2.03

 

$

 

0.85

 

$

 

7.18

 

$

 

1.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income Attributable to Hess Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration and Production

$

 

591

 

$

 

309

 

$

 

2,400

 

$

 

888

Midstream

 

 

64

 

 

 

74

 

 

 

269

 

 

 

286

Corporate, Interest and Other

 

 

(107)

 

 

 

(118)

 

 

 

(467)

 

 

 

(497)

Adjusted net income attributable to Hess Corporation

$

 

548

 

$

 

265

 

$

 

2,202

 

$

 

677

Adjusted net income per common share (diluted)

$

 

1.78

 

$

 

0.85

 

$

 

7.11

 

$

 

2.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares (diluted)

 

 

308.1

 

 

 

310.0

 

 

 

309.6

 

 

 

309.3

Exploration and Production:

   E&P net income was $667 million in the fourth quarter of 2022, compared with $309 million in the fourth quarter of 2021. On an adjusted basis, fourth quarter 2022 E&P net income was $591 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $76.07 per barrel in the fourth quarter of 2022, compared with $71.04 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the fourth quarter of 2022 was $26.93 per barrel, compared with $36.47 per barrel in the prior-year quarter, while the average realized natural gas selling price was $5.17 per mcf, compared with $4.77 per mcf in the fourth quarter of 2021.

   Net production, excluding Libya, was 376,000 boepd in the fourth quarter of 2022, compared with 295,000 boepd in the fourth quarter of 2021, primarily due to higher production in Guyana.

   Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $12.49 per boe (excluding Libya: $12.72 per boe) in the fourth quarter of 2022, compared with $12.17 per boe (excluding Libya: $12.84 per boe) in the prior-year quarter.

Oil and Gas Reserves Estimates:

   Oil and gas proved reserves at December 31, 2022, which are subject to final review, were 1.26 billion boe, compared with 1.31 billion boe at December 31, 2021. Proved reserve additions and net revisions in 2022 totaled 184 million boe, primarily from Guyana, which included sanctioning of the Yellowtail development, and the Bakken. Asset sales during 2022 reduced proved reserves by 109 million boe.

   Excluding asset sales, the Corporation replaced 144 percent of its 2022 production at a finding and development cost of approximately $14.80 per boe.

Operational Highlights for the Fourth Quarter of 2022:

   Bakken (Onshore U.S.): Net production from the Bakken of 158,000 boepd in the fourth quarter was impacted by unplanned production shut-ins caused by severe winter weather in December. Net production in the fourth quarter of 2021 was 159,000 boepd. The Corporation added a fourth drilling rig in July 2022, and drilled 19 wells, completed 14 wells, and brought 15 new wells online during the fourth quarter. Net production is forecast to be in the range of 165,000 boepd to 170,000 boepd in 2023.

   Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 35,000 boepd in the fourth quarter of 2022, compared with 39,000 boepd in the prior-year quarter.

   Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production from the Liza Destiny and the Liza Unity floating production, storage and offloading vessels (FPSOs) totaled 116,0002 bopd in the fourth quarter of 2022 compared with 31,000 bopd2 in the prior-year quarter. The Liza Unity FPSO, which commenced production in February 2022, reached its production capacity of 220,000 gross bopd in July 2022. In the fourth quarter, we sold ten cargos of crude oil from Guyana compared with three cargos in the prior year quarter. Net production is forecast to be approximately 100,0002 bopd in 2023.

   The third development, Payara, will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd, with first production expected by the end of 2023. The fourth development, Yellowtail, was sanctioned in April 2022 and will utilize the ONE GUYANA FPSO with an expected capacity of 250,000 gross bopd, with first production expected in 2025. A fifth development, Uaru, was submitted for approval to the Government of Guyana in the fourth quarter. Pending Government approvals and project sanctioning, the project is expected to have a capacity of approximately 250,000 gross bopd with first oil anticipated at the end of 2026.

   The Corporation today announced a significant oil discovery at the Fangtooth SE-1 well on the Stabroek Block, offshore Guyana. The Fangtooth SE-1 well encountered approximately 200 feet of oil bearing sandstone reservoirs.  The well was drilled in 5,397 feet of water by the Stena Carron and is located approximately 8 miles southeast of the original Fangtooth-1 well, which had encountered approximately 164 feet of oil bearing sandstone reservoirs.  Further appraisal activities are underway.  Fangtooth will add to the block's gross discovered recoverable resource estimate of more than 11 billion boe and has the potential to underpin a future oil development on the Stabroek Block.

   Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 67,000 boepd in the fourth quarter of 2022 compared with 66,000 boepd in the prior-year quarter.

   Libya (Onshore): In November 2022, the Corporation completed the sale of its 8% interest in the Waha Concession for net proceeds of $150 million. Net production from Libya was 10,000 boepd in the fourth quarter of 2022 compared with 21,000 boepd in the prior-year quarter.

Midstream:

   The Midstream segment had net income of $64 million in the fourth quarter of 2022, compared with net income of $74 million in the prior-year quarter.

Corporate, Interest and Other:

   After-tax expense for Corporate, Interest and Other was $107 million in the fourth quarter of 2022, compared with $118 million in the fourth quarter of 2021.

Capital and Exploratory Expenditures:

   E&P capital and exploratory expenditures were $818 million in the fourth quarter of 2022 compared with $593 million in the prior-year quarter, primarily due to higher drilling and development activities in the Bakken and Guyana. Midstream capital expenditures were $63 million in the fourth quarter of 2022 and $54 million in the prior-year quarter.

Liquidity:

   Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.48 billion and debt and finance lease obligations totaling $5.60 billion at December 31, 2022. The Midstream segment had cash and cash equivalents of $4 million and total debt of $2.9 billion at December 31, 2022. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 35.8% at December 31, 2022 and 42.3% at December 31, 2021.

   Net cash provided by operating activities was $1,252 million in the fourth quarter of 2022, up from $899 million in the fourth quarter of 2021. Net cash provided by operating activities before changes in operating assets and liabilities3 was $1,402 million in the fourth quarter of 2022, compared with $886 million in the prior-year quarter primarily due to higher sales volumes.

   During the fourth quarter, the Corporation received net proceeds of $150 million from the sale of its interest in the Waha Concession in Libya and purchased 5 million REDD+ carbon credits from the Government of Guyana for $75 million.

   Total cash returned to stockholders in the fourth quarter through common stock repurchases and dividends amounted to $405 million. The Corporation repurchased approximately 2.3 million shares of common stock for $310 million during the fourth quarter, bringing total share repurchases in 2022 to $650 million at an average price of approximately $120 per share.

2. Net production from Guyana in the fourth quarter of 2022 included 22,000 bopd of tax barrels. There were no tax barrels in the fourth quarter of 2021. Net production guidance for Guyana in 2023 of approximately 100,000 bopd includes approximately 10,000 bopd of tax barrels.

3. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 6 and 7.

Items Affecting Comparability of Earnings Between Periods:

   The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:

 

Three Months Ended

December 31,

(unaudited)

 

Year Ended

December 31,

(unaudited)

 

2022

 

2021

 

2022

 

2021

 

(In millions)

Exploration and Production

$

76

 

$

 

$

22

 

$

(118)

Midstream

 

 

 

 

 

 

 

Corporate, Interest and Other

 

 

 

 

 

(1)

 

 

Total items affecting comparability of earnings between periods

$

76

 

$

 

$

21

 

$

(118)

    Fourth Quarter 2022: E&P results include a pre-tax gain of $76 million ($76 million after income taxes) associated with the sale of the Corporation's interest in the Waha Concession in Libya.

Reconciliation of U.S. GAAP to Non-GAAP Measures:

   The following table reconciles reported net income attributable to Hess Corporation and adjusted net income:

 

Three Months Ended

December 31,

(unaudited)

 

Year Ended

December 31,

(unaudited)

 

2022

 

2021

 

2022

 

2021

 

(In millions)

Net income attributable to Hess Corporation

$

624

 

$

265

 

$

2,223

 

$

559

Less: Total items affecting comparability of earnings between periods

 

76

 

 

 

21

 

  

 (118)

Adjusted net income attributable to Hess Corporation

$

548

 

$

265

 

$

2,202

 

$

677

   The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:

 

Three Months Ended

December 31,

(unaudited)

 

Year Ended

December 31,

(unaudited)

 

2022

 

2021

 

2022

 

2021

 

(In millions)

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

$

 

1,402

 

$

 

886

 

$

 

5,222

 

$

 

2,991

Changes in operating assets and liabilities

 

 

(150)

 

 

 

13

 

 

 

(1,278)

 

 

 

(101)

Net cash provided by (used in) operating activities

$

 

1,252

 

$

 

899

 

$

 

3,944

 

$

 

2,890

Hess Corporation will review fourth quarter financial and operating results and other matters on a webcast at 10 a.m. today (EDT). For details about the event, refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Forward-looking Statements

   This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects; information about sustainability goals and targets and planned social, safety and environmental policies, programs and initiatives; and future economic and market conditions in the oil and gas industry.

   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: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry; reduced demand for our products, including due to perceptions regarding the oil and gas industry, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring, fracking bans as well as restrictions on oil and gas leases; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, public health measures or climate change; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of limitations on investment in oil and gas activities, rising interest rates or negative outcomes within commodity and financial markets; liability resulting from environmental obligations and litigation, including heightened risks associated with being a general partner of Hess Midstream LP; 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 (SEC).

   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.

Non-GAAP financial measures

   The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income” presented in this release is defined as reported net income attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income to evaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income or net cash provided by (used in) operating activities. A reconciliation of reported net income attributable to Hess Corporation (U.S. GAAP) to adjusted net income, and a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities are provided in the release.

Cautionary Note to Investors

   We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Fourth

Quarter

2022

 

Fourth

Quarter

2021

 

Third

Quarter

2022

Income Statement

 

 

 

 

 

Revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

 

2,934

 

$

 

2,237

 

$

 

3,122

Gains on asset sales, net

 

 

76

 

 

 

 

 

 

Other, net

 

 

44

 

 

 

18

 

 

 

35

Total revenues and non-operating income

 

 

3,054

 

 

 

2,255

 

 

 

3,157

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas

 

 

821

 

 

 

672

 

 

 

982

Operating costs and expenses

 

 

385

 

 

 

316

 

 

 

398

Production and severance taxes

 

 

55

 

 

 

49

 

 

 

72

Exploration expenses, including dry holes and lease impairment

 

 

40

 

 

 

45

 

 

 

58

General and administrative expenses

 

 

116

 

 

 

86

 

 

 

109

Interest expense

 

 

124

 

 

 

121

 

 

 

125

Depreciation, depletion and amortization

 

 

504

 

 

 

398

 

 

 

471

Impairment and other

 

 

 

 

 

 

 

 

54

Total costs and expenses

 

 

2,045

 

 

 

1,687

 

 

 

2,269

Income before income taxes

 

 

1,009

 

 

 

568

 

 

 

888

Provision for income taxes

 

 

300

 

 

 

212

 

 

 

282

Net income

 

 

709

 

 

 

356

 

 

 

606

Less: Net income attributable to noncontrolling interests

 

 

85

 

 

 

91

 

 

 

91

Net income attributable to Hess Corporation

$

 

 624

 

$

 

265

 

$

 

515

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

Year Ended

December 31,

 

2022

 

2021

Income Statement

 

 

 

Revenues and non-operating income

 

 

 

Sales and other operating revenues

$

 

11,324

 

$

 

7,473

Gains on asset sales, net

 

 

101

 

 

 

29

Other, net

 

 

145

 

 

 

81

Total revenues and non-operating income

 

 

11,570

 

 

 

7,583

Costs and expenses

 

 

 

Marketing, including purchased oil and gas

 

 

3,328

 

 

 

2,034

Operating costs and expenses

 

 

1,452

 

 

 

1,229

Production and severance taxes

 

 

255

 

 

 

172

Exploration expenses, including dry holes and lease impairment

 

 

174

 

 

 

162

General and administrative expenses

 

 

430

 

 

 

340

Interest expense

 

 

493

 

 

 

481

Depreciation, depletion and amortization

 

 

1,703

 

 

 

1,528

Impairment and other

 

 

54

 

 

 

147

Total costs and expenses

 

 

7,889

 

 

 

6,093

Income before income taxes

 

 

3,681

 

 

 

1,490

Provision for income taxes

 

 

1,107

 

 

 

600

Net income

 

 

2,574

 

 

 

890

Less: Net income attributable to noncontrolling interests

 

 

351

 

 

 

331

Net income attributable to Hess Corporation

$

 

2,223

 

$

 

559

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

December 31,

2022

 

December 31,

2021

Balance Sheet Information

 

 

 

Assets

 

 

 

Cash and cash equivalents

$

 

2,486

 

$

 

2,713

Other current assets

 

 

1,445

 

 

 

1,633

Property, plant and equipment – net

 

 

15,132

 

 

 

14,182

Operating lease right-of-use assets – net

 

 

570

 

 

 

352

Finance lease right-of-use assets – net

 

 

126

 

 

 

144

Other long-term assets

 

 

1,970

 

 

 

1,491

Total assets

$

 

21,729

 

$

 

20,515

Liabilities and equity

 

 

 

Current portion of long-term debt

$

 

3

 

$

 

517

Current portion of operating and finance lease obligations

 

 

221

 

 

 

89

Other current liabilities

 

 

2,056

 

 

 

2,458

Long-term debt

 

 

8,278

 

 

 

7,941

Long-term operating lease obligations

 

 

469

 

 

 

394

Long-term finance lease obligations

 

 

179

 

 

 

200

Other long-term liabilities

 

 

1,900

 

 

 

1,890

Total equity excluding other comprehensive income

 

 

8,113

 

 

 

6,706

Accumulated other comprehensive income

 

 

(131)

 

 

 

(406)

Noncontrolling interests

 

 

641

 

 

 

726

Total liabilities and equity

$

 

21,729

 

$

 

20,515

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

December 31,

2022

 

December 31,

2021

Total Debt

 

 

 

Hess Corporation

$

 

5,395

 

$

 

5,894

Midstream (a)

 

 

2,886

 

 

 

2,564

Hess Consolidated

$

 

8,281

 

$

 

8,458

(a) Midstream debt is non-recourse to Hess Corporation.

 

 

December 31,

2022

 

December 31,

2021

Debt to Capitalization Ratio (a)

 

 

 

Hess Consolidated

 

 

49.6 %

 

 

 

55.3 %

Hess Corporation as defined in debt covenants

 

 

35.8 %

 

 

 

42.3 %

(a) Includes finance lease obligations.

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

Interest Expense

 

 

 

 

 

 

 

Gross interest expense – Hess Corporation

$

 

87

 

$

 

90

 

$

 

353

 

$

 

376

Less: Capitalized interest – Hess Corporation

 

 

(4)

 

 

 

 

 

 

(10)

 

 

 

Interest expense – Hess Corporation

 

 

83

 

 

 

90

 

 

 

343

 

 

 

376

Interest expense – Midstream (a)

 

 

41

 

 

 

31

 

 

 

150

 

 

 

105

Interest expense – Hess Consolidated

$

 

124

 

$

 

121

 

$

 

493

 

$

 

481

(a) Midstream interest expense is reported in the Midstream operating segment.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Fourth

Quarter

2022

 

Fourth

Quarter

2021

 

Third

Quarter

2022

Cash Flow Information

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

Net income

$

 

709

 

$

 

356

 

$

 

606

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

(Gains) losses on asset sales, net

 

 

(76)

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

504

 

 

 

398

 

 

 

471

Impairment and other

 

 

 

 

 

 

 

 

54

Exploratory dry hole costs

 

 

3

 

 

 

 

 

 

19

Exploration lease impairment

 

 

6

 

 

 

5

 

 

 

4

Pension settlement loss

 

 

 

 

 

4

 

 

 

Stock compensation expense

 

 

17

 

 

 

16

 

 

 

17

Noncash (gains) losses on commodity derivatives, net

 

 

165

 

 

 

64

 

 

 

165

Provision for deferred income taxes and other tax accruals

 

 

74

 

 

 

43

 

 

 

69

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

 

 

1,402

 

 

 

886

 

 

 

1,405

Changes in operating assets and liabilities

 

 

(150)

 

 

 

13

 

 

 

(66)

Net cash provided by (used in) operating activities

 

 

1,252

 

 

 

899

 

 

 

1,339

Cash Flows from Investing Activities

 

 

 

 

 

Additions to property, plant and equipment - E&P

 

 

(732)

 

 

 

(466)

 

 

 

(657)

Additions to property, plant and equipment - Midstream

 

 

(61)

 

 

 

(43)

 

 

 

(66)

Proceeds from asset sales, net of cash sold

 

 

150

 

 

 

 

 

 

Other, net

 

 

(4)

 

 

 

(1)

 

 

 

(4)

Net cash provided by (used in) investing activities

 

 

(647)

 

 

 

(510)

 

 

 

(727)

Cash Flows from Financing Activities

 

 

 

 

 

Net borrowings (repayments) of debt with maturities of 90 days or less

 

 

(25)

 

 

 

(48)

 

 

 

(48)

Debt with maturities of greater than 90 days:

 

 

 

 

 

Borrowings

 

 

 

 

 

 

 

 

20

Repayments

 

 

 

 

 

(2)

 

 

 

Cash dividends paid

 

 

(115)

 

 

 

(77)

 

 

 

(115)

Common stock acquired and retired

 

 

(290)

 

 

 

 

 

 

(150)

Proceeds from sale of Class A shares of Hess Midstream LP

 

 

 

 

 

108

 

 

 

Noncontrolling interests, net

 

 

(80)

 

 

 

(75)

 

 

 

(79)

Employee stock options exercised

 

 

8

 

 

 

2

 

 

 

4

Payments on finance lease obligations

 

 

(4)

 

 

 

(3)

 

 

 

(1)

Other, net

 

 

3

 

 

 

 

 

 

(18)

Net cash provided by (used in) financing activities

 

 

(503)

 

 

 

(95)

 

 

 

(387)

Net Increase (Decrease) in Cash and Cash Equivalents

 

 

102

 

 

 

294

 

 

 

225

Cash and Cash Equivalents at Beginning of Period

 

 

2,384

 

 

 

2,419

 

 

 

2,159

Cash and Cash Equivalents at End of Period

$

 

2,486

 

$

 

2,713

 

$

 

2,384

 

 

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

 

(850)

 

$

 

(607)

 

$

 

(726)

Increase (decrease) in related liabilities

 

 

57

 

 

 

98

 

 

 

3

Additions to property, plant and equipment

$

 

(793)

 

$

 

(509)

 

$

 

(723)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Year Ended

December 31,

 

2022

 

2021

Cash Flow Information

 

 

 

Cash Flows from Operating Activities

 

 

 

Net income

$

2,574

 

$

890

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

(Gains) losses on asset sales, net

 

(101)

 

 

(29)

Depreciation, depletion and amortization

 

1,703

 

 

1,528

Impairment and other

 

54

 

 

147

Exploratory dry hole costs

 

22

 

 

11

Exploration lease impairment

 

20

 

 

20

Pension settlement loss

 

2

 

 

9

Stock compensation expense

 

83

 

 

77

Noncash (gains) losses on commodity derivatives, net

 

548

 

 

216

Provision for deferred income taxes and other tax accruals

 

317

 

 

122

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

 

5,222

 

 

2,991

Changes in operating assets and liabilities

 

(1,278)

 

 

(101)

Net cash provided by (used in) operating activities

 

3,944

 

 

2,890

Cash Flows from Investing Activities

 

 

 

Additions to property, plant and equipment - E&P

 

(2,487)

 

 

(1,584)

Additions to property, plant and equipment - Midstream

 

(238)

 

 

(163)

Proceeds from asset sales, net of cash sold

 

178

 

 

427

Other, net

 

(8)

 

 

(5)

Net cash provided by (used in) investing activities

 

(2,555)

 

 

(1,325)

Cash Flows from Financing Activities

 

 

 

Net borrowings (repayments) of debt with maturities of 90 days or less

 

(86)

 

 

(80)

Debt with maturities of greater than 90 days:

 

 

 

Borrowings

 

420

 

 

750

Repayments

 

(510)

 

 

(510)

Cash dividends paid

 

(465)

 

 

(311)

Common stock acquired and retired

 

(630)

 

 

Proceeds from sale of Class A shares of Hess Midstream LP

 

146

 

 

178

Noncontrolling interests, net

 

(510)

 

 

(664)

Employee stock options exercised

 

52

 

 

77

Payments on finance lease obligations

 

(9)

 

 

(10)

Other, net

 

(24)

 

 

(21)

Net cash provided by (used in) financing activities

 

(1,616)

 

 

(591)

Net Increase (Decrease) in Cash and Cash Equivalents

 

(227)

 

 

974

Cash and Cash Equivalents at Beginning of Year

 

2,713

 

 

1,739

Cash and Cash Equivalents at End of Year

$

2,486

 

$

2,713

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

(2,821)

 

$

(1,881)

Increase (decrease) in related liabilities

 

96

 

 

134

Additions to property, plant and equipment

$

(2,725)

 

$

(1,747)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Fourth

Quarter

2022

 

Fourth

Quarter

2021

 

Third

Quarter

2022

Capital and Exploratory Expenditures

 

 

 

 

 

E&P Capital and exploratory expenditures

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

258

 

$

153

 

$

226

Offshore and Other

 

39

 

 

31

 

 

57

Total United States

 

297

 

 

184

 

 

283

Guyana

 

439

 

 

330

 

 

301

Malaysia and JDA

 

58

 

 

63

 

 

92

Other

 

24

 

 

16

 

 

25

E&P Capital and exploratory expenditures

$

818

 

$

593

 

$

701

 

 

 

 

 

 

Total exploration expenses charged to income included above

$

31

 

$

40

 

$

35

 

 

 

 

 

 

Midstream Capital expenditures

$

63

 

$

54

 

$

60

 

 

Year Ended

December 31,

 

2022

 

2021

Capital and Exploratory Expenditures

 

 

 

E&P Capital and exploratory expenditures

 

 

 

United States

 

 

 

North Dakota

$

807

 

$

522

Offshore and Other

 

224

 

 

103

Total United States

 

1,031

 

 

625

Guyana

 

1,345

 

 

1,016

Malaysia and JDA

 

275

 

 

154

Other

 

70

 

 

34

E&P Capital and exploratory expenditures

$

2,721

 

$

1,829

 

 

 

 

Total exploration expenses charged to income included above

$

132

 

$

131

 

 

 

 

Midstream Capital expenditures

$

232

 

$

183

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

Fourth Quarter 2022

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,628

 

$

1,306

 

$

2,934

Gains on asset sales, net

 

 

 

76

 

 

76

Other, net

 

13

 

 

8

 

 

21

Total revenues and non-operating income

 

1,641

 

 

1,390

 

 

3,031

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

771

 

 

63

 

 

834

Operating costs and expenses

 

193

 

 

129

 

 

322

Production and severance taxes

 

52

 

 

3

 

 

55

Midstream tariffs

 

297

 

 

 

 

297

Exploration expenses, including dry holes and lease impairment

 

33

 

 

7

 

 

40

General and administrative expenses

 

55

 

 

11

 

 

66

Depreciation, depletion and amortization

 

215

 

 

243

 

 

458

Total costs and expenses

 

1,616

 

 

456

 

 

2,072

Results of operations before income taxes

 

25

 

 

934

 

 

959

Provision for income taxes

 

 

 

292

 

 

292

Net income attributable to Hess Corporation

$

25

(b)

$

642

(c)

$

667

 

 

 

 

 

 

 

Fourth Quarter 2021

Income Statement

United States

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,612

 

$

625

 

$

2,237

Other, net

 

13

 

 

2

 

 

15

Total revenues and non-operating income

 

1,625

 

 

627

 

 

2,252

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

668

 

 

24

 

 

692

Operating costs and expenses

 

167

 

 

87

 

 

254

Production and severance taxes

 

47

 

 

2

 

 

49

Midstream tariffs

 

292

 

 

 

 

292

Exploration expenses, including dry holes and lease impairment

 

25

 

 

20

 

 

45

General and administrative expenses

 

44

 

 

7

 

 

51

Depreciation, depletion and amortization

 

263

 

 

91

 

 

354

Total costs and expenses

 

1,506

 

 

231

 

 

1,737

Results of operations before income taxes

 

119

 

 

396

 

 

515

Provision for income taxes

 

 

 

206

 

 

206

Net income attributable to Hess Corporation

$

119

(d)

$

190

(e)

$

309

(a) Includes amounts charged from the Midstream segment.

(b) Includes after-tax losses from realized crude oil hedging activities of $100 million (noncash premium amortization: $100 million; cash settlement: $0 million).

(c) Includes after-tax losses from realized crude oil hedging activities of $65 million (noncash premium amortization: $65 million; cash settlement: $0 million).

(d) Includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement: $0 million).

(e) Includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement: $0 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

Third Quarter 2022

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

2,022

 

$

1,100

 

$

3,122

Other, net

 

16

 

 

6

 

 

22

Total revenues and non-operating income

 

2,038

 

 

1,106

 

 

3,144

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

972

 

 

27

 

 

999

Operating costs and expenses

 

194

 

 

128

 

 

322

Production and severance taxes

 

67

 

 

5

 

 

72

Midstream tariffs

 

313

 

 

 

 

313

Exploration expenses, including dry holes and lease impairment

 

33

 

 

25

 

 

58

General and administrative expenses

 

45

 

 

9

 

 

54

Depreciation, depletion and amortization

 

208

 

 

217

 

 

425

Impairment and other

 

54

 

 

 

 

54

Total costs and expenses

 

1,886

 

 

411

 

 

2,297

Results of operations before income taxes

 

152

 

 

695

 

 

847

Provision for income taxes

 

 

 

275

 

 

275

Net income attributable to Hess Corporation

$

152

(b)

$

420

(c)

$

572

(a) Includes amounts charged from the Midstream segment.

(b) Includes after-tax losses from realized crude oil hedging activities of $100 million (noncash premium amortization: $100 million; cash settlement: $0 million).

(c) Includes after-tax losses from realized crude oil hedging activities of $65 million (noncash premium amortization: $65 million; cash settlement: $0 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

Year Ended December 31, 2022

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

7,214

 

$

4,110

 

$

11,324

Gains on asset sales, net

 

 

 

76

 

 

76

Other, net

 

81

 

 

21

 

 

102

Total revenues and non-operating income

 

7,295

 

 

4,207

 

 

11,502

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

3,271

 

 

123

 

 

3,394

Operating costs and expenses

 

706

 

 

480

 

 

1,186

Production and severance taxes

 

242

 

 

13

 

 

255

Midstream tariffs

 

1,193

 

 

 

 

1,193

Exploration expenses, including dry holes and lease impairment

 

122

 

 

52

 

 

174

General and administrative expenses

 

189

 

 

35

 

 

224

Depreciation, depletion and amortization

 

810

 

 

710

 

 

1,520

Impairment and other

 

54

 

 

 

 

54

Total costs and expenses

 

6,587

 

 

1,413

 

 

8,000

Results of operations before income taxes

 

708

 

 

2,794

 

 

3,502

Provision for income taxes

 

 

 

1,080

 

 

1,080

Net income attributable to Hess Corporation

$

708

(b)

$

1,714

(c)

$

2,422

 

 

 

 

 

 

 

Year Ended December 31, 2021

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

5,378

 

$

2,095

 

$

7,473

Gains on asset sales, net

 

 

 

29

 

 

29

Other, net

 

48

 

 

16

 

 

64

Total revenues and non-operating income

 

5,426

 

 

2,140

 

 

7,566

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

2,065

 

 

54

 

 

2,119

Operating costs and expenses

 

610

 

 

355

 

 

965

Production and severance taxes

 

166

 

 

6

 

 

172

Midstream tariffs

 

1,094

 

 

 

 

1,094

Exploration expenses, including dry holes and lease impairment

 

102

 

 

60

 

 

162

General and administrative expenses

 

162

 

 

29

 

 

191

Depreciation, depletion and amortization

 

1,020

 

 

341

 

 

1,361

Impairment and other

 

147

 

 

 

 

147

Total costs and expenses

 

5,366

 

 

845

 

 

6,211

Results of operations before income taxes

 

60

 

 

1,295

 

 

1,355

Provision for income taxes

 

 

 

585

 

 

585

Net income attributable to Hess Corporation

$

60

(d)

$

710

(e)

$

770

(a) Includes amounts charged from the Midstream segment.

(b) Includes after-tax losses from realized crude oil hedging activities of $356 million (noncash premium amortization: $333 million; cash settlement: $23 million).

(c) Includes after-tax losses from realized crude oil hedging activities of $229 million (noncash premium amortization: $215 million; cash settlement: $14 million).

(d) Includes after-tax losses from realized crude oil hedging activities of $190 million (noncash premium amortization: $190 million; cash settlement: $0 million).

(e) Includes after-tax losses from realized crude oil hedging activities of $49 million (noncash premium amortization: $49 million; cash settlement: $0 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Fourth

Quarter

2022

 

Fourth

Quarter

2021

 

Third

Quarter

2022

Net Production Per Day (in thousands)

 

 

 

 

 

Crude oil - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

74

 

79

 

79

Offshore

25

 

26

 

21

Total United States

99

 

105

 

100

Guyana (a)

116

 

31

 

98

Malaysia and JDA

4

 

3

 

4

Other (b)

9

 

19

 

15

Total

228

 

158

 

217

 

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

60

 

52

 

58

Offshore

2

 

4

 

2

Total United States

62

 

56

 

60

 

 

 

 

 

 

Natural gas - mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

143

 

170

 

176

Offshore

50

 

55

 

41

Total United States

193

 

225

 

217

Malaysia and JDA

377

 

375

 

320

Other (b)

6

 

11

 

10

Total

576

 

611

 

547

 

 

 

 

 

 

Barrels of oil equivalent

386

 

316

 

368

(a) Production from Guyana includes 22,000 bopd of tax barrels in the fourth quarter of 2022 and 7,000 bopd of tax barrels in the third quarter of 2022. There were no tax barrels in the fourth quarter of 2021.

(b) Other includes production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022. Libya net production was 10,000 boepd in the fourth quarter of 2022, 21,000 boepd in the fourth quarter of 2021 and 17,000 boepd in the third quarter of 2022.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Year Ended

December 31,

 

2022

 

2021

Net Production Per Day (in thousands)

 

 

 

Crude oil - barrels

 

 

 

United States

 

 

 

North Dakota

75

 

80

Offshore

22

 

29

Total United States

97

 

109

Guyana (a)

78

 

30

Malaysia and JDA

4

 

3

Other (b)

15

 

21

Total

194

 

163

 

 

 

 

Natural gas liquids - barrels

 

 

 

United States

 

 

 

North Dakota

53

 

49

Offshore

2

 

4

Total United States

55

 

53

 

 

 

 

Natural gas - mcf

 

 

 

United States

 

 

 

North Dakota

156

 

162

Offshore

44

 

72

Total United States

200

 

234

Malaysia and JDA

360

 

347

Other (b)

10

 

10

Total

570

 

591

 

 

 

 

Barrels of oil equivalent

344

 

315

(a) Production from Guyana includes 7,000 bopd of tax barrels in 2022. There were no tax barrels in 2021.

(b) Other includes production from Libya and Denmark. The Corporation sold its interest in the Waha Concession in Libya in November 2022. Libya net production was 17,000 boepd in 2022 and 20,000 boepd in 2021. The Corporation sold its interests in Denmark in the third quarter of 2021. Denmark net production was 3,000 boepd in 2021.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

 EXPLORATION AND PRODUCTION OPERATING DATA

 

Fourth

Quarter

2022

 

Fourth

Quarter

2021

 

Third

Quarter

2022

Sales Volumes Per Day (in thousands) (a)

 

 

 

 

 

Crude oil – barrels

242

 

165

 

208

Natural gas liquids – barrels

63

 

56

 

58

Natural gas – mcf

576

 

611

 

547

Barrels of oil equivalent

401

 

323

 

357

 

 

 

 

 

 

Sales Volumes (in thousands) (a)

 

 

 

 

 

Crude oil – barrels

22,218

 

15,225

 

19,118

Natural gas liquids – barrels

5,825

 

5,124

 

5,299

Natural gas – mcf

52,949

 

56,202

 

50,343

Barrels of oil equivalent

36,868

 

29,716

 

32,807

 

 

 

 

Year Ended

December 31,

 

   

2022

 

2021

Sales Volumes Per Day (in thousands) (a)

   

 

 

 

Crude oil – barrels

   

191

 

174

Natural gas liquids – barrels

   

54

 

53

Natural gas – mcf

   

570

 

591

Barrels of oil equivalent

   

340

 

326

 

   

 

 

 

Sales Volumes (in thousands) (a)

   

 

 

 

Crude oil – barrels (b)

   

69,679

 

63,540

Natural gas liquids – barrels

   

19,843

 

19,406

Natural gas – mcf

   

208,001

 

215,589

Barrels of oil equivalent

   

124,189

 

118,878

(a) Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.

(b) Sales volumes for the year ended December 31, 2021 include 4.2 million barrels of crude oil that were stored on very large crude carriers (VLCC) at December 31, 2020 and sold in the first quarter of 2021.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Fourth

Quarter

2022

 

Fourth

Quarter

2021

 

Third

Quarter

2022

Average Selling Prices

 

 

 

 

 

 

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

 

 

United States

 

 

 

 

 

Onshore

$

68.52

 

$

67.39

 

$

79.04

Offshore

 

69.07

 

 

69.04

 

 

78.80

Total United States

 

68.65

 

 

67.80

 

 

79.00

Guyana

 

80.77

 

 

77.20

 

 

92.02

Malaysia and JDA

 

80.41

 

 

83.23

 

 

85.23

Other (a)

 

86.83

 

 

75.24

 

 

87.90

Worldwide

 

76.07

 

 

71.04

 

 

85.32

 

 

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

 

 

United States

 

 

 

 

 

Onshore

$

79.47

 

$

72.54

 

$

89.80

Offshore

 

79.99

 

 

74.11

 

 

89.47

Total United States

 

79.60

 

 

72.93

 

 

89.74

Guyana

 

85.93

 

 

79.94

 

 

98.91

Malaysia and JDA

 

80.41

 

 

83.23

 

 

85.23

Other (a)

 

91.60

 

 

77.78

 

 

94.96

Worldwide

 

83.50

 

 

75.22

 

 

93.95

 

 

 

 

 

 

Natural gas liquids - per barrel

 

 

 

 

 

United States

 

 

 

 

 

Onshore

$

26.95

 

$

36.63

 

$

35.41

Offshore

 

26.13

 

 

34.23

 

 

36.30

Worldwide

 

26.93

 

 

36.47

 

 

35.44

 

 

 

 

 

 

Natural gas - per mcf

 

 

 

 

 

United States

 

 

 

 

 

Onshore

$

4.68

 

$

4.40

 

$

6.67

Offshore

 

4.98

 

 

4.63

 

 

8.12

Total United States

 

4.76

 

 

4.46

 

 

6.94

Malaysia and JDA

 

5.34

 

 

4.97

 

 

5.07

Other (a)

 

7.48

 

 

4.27

 

 

7.03

Worldwide

 

5.17

 

 

4.77

 

 

5.85

(a) Other includes prices related to production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Year Ended

December 31,

 

2022

 

2021

Average Selling Prices

 

 

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

United States

 

 

 

Onshore

$

81.06

 

$

55.57

Offshore

 

81.38

 

 

60.09

Total United States

 

81.14

 

 

56.64

Guyana

 

89.86

 

 

68.57

Malaysia and JDA

 

89.77

 

 

71.00

Other (a)

 

93.67

 

 

66.39

Worldwide

 

85.76

 

 

60.08

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

United States

 

 

 

Onshore

$

91.26

 

$

59.90

Offshore

 

91.51

 

 

64.77

Total United States

 

91.32

 

 

61.05

Guyana

 

96.52

 

 

71.07

Malaysia and JDA

 

89.77

 

 

71.00

Other (a)

 

101.92

 

 

69.25

Worldwide

 

94.15

 

 

63.90

 

 

 

 

Natural gas liquids - per barrel

 

 

 

United States

 

 

 

Onshore

$

35.09

 

$

30.74

Offshore

 

35.24

 

 

26.40

Worldwide

 

35.09

 

 

30.40

 

 

 

 

Natural gas - per mcf

 

 

 

United States

 

 

 

Onshore

$

5.50

 

$

4.08

Offshore

 

6.21

 

 

3.25

Total United States

 

5.66

 

 

3.82

Malaysia and JDA

 

5.62

 

 

5.15

Other (a)

 

5.93

 

 

3.40

Worldwide

 

5.64

 

 

4.60

(a) Other includes prices related to production from Libya and Denmark. The Corporation sold its interest in the Waha Concession in Libya in November 2022, and sold its interests in Denmark in the third quarter of 2021.

The following is a summary of the Corporation’s outstanding commodity hedging program for 2023:

 

WTI

Barrels of oil per day

75,000

Average monthly floor price

$70

 

Contacts

For Hess Corporation

Investors:

Jay Wilson

(212) 536-8940

Media:

Lorrie Hecker

(212) 536-8250

Jamie Tully

Sard Verbinnen & Co

(917) 679-7908

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