Second Quarter Financial and Operational Highlights:
- Net income was $757 million, or
$2.46 per share, compared with net income of $119
million, or $0.39 per share, in the second quarter of 2023
- Adjusted net income1 was $809 million,
or $2.62 per share, compared with $201 million, or $0.65 per
share, in the second quarter of 2023
- Oil and gas net production was 494,000 barrels of oil
equivalent per day (boepd), up 28% from 387,000 boepd
in the second quarter of 2023
- Bakken net production was 212,000 boepd, up 17% from 181,000
boepd in the second quarter of 2023; Guyana net production was
192,000 barrels of oil per day (bopd), up 75% from 110,000 bopd in
the prior-year quarter
- E&P capital and exploratory expenditures were $1,151
million, compared with $933 million in the prior-year
quarter
Hess Corporation (NYSE: HES) today reported net income of $757
million, or $2.46 per share, in the second quarter of 2024,
compared with net income of $119 million, or $0.39 per share, in
the second quarter of 2023. On an adjusted basis, the Corporation
reported net income of $809 million, or $2.62 per share in the
second quarter of 2024, compared with $201 million or $0.65 per
share, in the prior-year quarter. The increase in adjusted
after-tax earnings compared with the prior-year quarter primarily
reflects higher production volumes and realized selling prices in
the second quarter of 2024.
1. “Adjusted net income” is a non-GAAP
financial measure. The reconciliation to its nearest GAAP
equivalent measure, and its definition, appear on pages 6 and 7,
respectively.
After-tax income (loss) by major operating
activity was as follows:
Three Months Ended June 30,
(unaudited)
Six Months Ended June 30,
(unaudited)
2024
2023
2024
2023
(In millions, except per share
amounts)
Net Income
Attributable to Hess Corporation
Exploration and Production
$
765
$
155
$
1,762
$
560
Midstream
66
62
133
123
Corporate, Interest and Other
(74)
(98)
(166)
(218)
Net income attributable to Hess
Corporation
$
757
$
119
$
1,729
$
465
Net income per share (diluted)
$
2.46
$
0.39
$
5.61
$
1.51
Adjusted Net Income
Attributable to Hess Corporation
Exploration and Production
$
817
$
237
$
1,814
$
642
Midstream
66
62
133
123
Corporate, Interest and Other
(74)
(98)
(166)
(218)
Adjusted net income attributable to Hess
Corporation
$
809
$
201
$
1,781
$
547
Adjusted net income per share
(diluted)
$
2.62
$
0.65
$
5.78
$
1.78
Weighted average number of shares
(diluted)
308.3
307.5
308.1
307.4
Exploration and Production:
E&P net income was $765 million in the
second quarter of 2024, compared with $155 million in the second
quarter of 2023. On an adjusted basis, E&P second quarter 2024
net income was $817 million, compared with $237 million in the
prior-year quarter. The Corporation’s average realized crude oil
selling price was $80.29 per barrel in the second quarter of 2024,
compared with $71.13 per barrel, including the effect of hedging,
in the prior-year quarter. The average realized natural gas liquids
(NGL) selling price in the second quarter of 2024 was $20.07 per
barrel, compared with $17.95 per barrel in the prior-year quarter,
while the average realized natural gas selling price was $4.22 per
mcf, compared with $3.82 per mcf in the second quarter of 2023.
Net production was 494,000 boepd in the second
quarter of 2024, compared with 387,000 boepd in the second quarter
of 2023, primarily due to higher production in Guyana and the
Bakken. In the third quarter of 2024, E&P net production is
expected to be in the range of 460,000 boepd to 470,000 boepd,
primarily reflecting planned downtime in Guyana and Southeast
Asia.
Cash operating costs, which include operating
costs and expenses, production and severance taxes, and E&P
general and administrative expenses, were $11.69 per barrel of oil
equivalent (boe) in the second quarter of 2024, compared with
$13.97 per boe in the prior-year quarter, primarily due to higher
production volumes.
Operational Highlights for the Second Quarter of
2024:
Bakken (Onshore U.S.): Net production
from the Bakken was 212,000 boepd in the second quarter of 2024,
compared with 181,000 boepd in the prior-year quarter, primarily
reflecting increased drilling and completion activity. NGL and
natural gas volumes received under percentage of proceeds contracts
were 26,000 boepd in the second quarter of 2024, compared with
22,000 boepd in the second quarter of 2023. During the second
quarter of 2024, the Corporation operated four rigs and drilled 38
wells, completed 37 wells, and brought 31 new wells online. The
Corporation plans to continue operating four drilling rigs in 2024.
Bakken net production is forecasted to be in the range of 200,000
boepd to 205,000 boepd in the third quarter of 2024, reflecting
lower anticipated volumes received under percentage of proceeds
contracts and planned maintenance at our gas infrastructure.
Gulf of Mexico (Offshore U.S.): Net
production from the Gulf of Mexico in the second quarter of 2024
was 24,000 boepd, compared with 32,000 boepd in the prior-year
quarter, reflecting planned maintenance at the Conger and Tubular
Bells fields. The Pickerel-1 oil discovery (Hess – 100%) located in
Mississippi Canyon Block 727 achieved first production in late June
as a tieback to the Tubular Bells production facilities. In June,
the Corporation spud an exploration well at the Vancouver prospect
(Hess – 40%) located in Green Canyon Block 287. The exploration
well results are anticipated in the third quarter.
Guyana (Offshore): At the Stabroek
Block (Hess – 30%), net production totaled 192,0002 bopd in the
second quarter of 2024, compared with 110,0002 bopd in the
prior-year quarter. The third development on the block, Payara,
which commenced production in November 2023, reached its initial
production capacity of approximately 220,000 gross bopd in January
2024. Guyana net production is forecasted to be in the range of
170,000 bopd2 to 175,000 bopd2 in the third quarter reflecting
downtime associated with the Liza Destiny and the Liza Unity
floating production, storage and offloading vessels related to
pipeline and field hook-up for the Gas to Energy project, and
production optimization work at the Liza Unity. In the second
quarter of 2024, 14 cargos of crude oil were sold from Guyana,
compared with nine cargos in the prior-year quarter. In the third
quarter of 2024, 14 cargos of crude oil are expected to be
sold.
The fourth development on the block,
Yellowtail, was sanctioned in April 2022 with a production capacity
of approximately 250,000 gross bopd and first production expected
in 2025. The fifth development, Uaru, was sanctioned in April 2023
with a production capacity of approximately 250,000 gross bopd and
first production expected in 2026. The sixth development, Whiptail,
was sanctioned in April 2024 and is expected to add production
capacity of approximately 250,000 gross bopd by the end of 2027.
The application for the environmental permit for the seventh
development, Hammerhead, has been filed with Guyana's Environmental
Protection Agency. Pending government and regulatory approval and
project sanctioning, the development is expected to have a
production capacity in the range of 120,000 gross bopd to 180,000
gross bopd with first oil anticipated in 2029.
Southeast Asia (Offshore): Net
production at North Malay Basin and JDA was 66,000 boepd in the
second quarter of 2024, compared with 64,000 boepd in the
prior-year quarter.
Midstream:
The Midstream segment had net income of $66
million in the second quarter of 2024, compared with net income of
$62 million in the prior-year quarter.
In June 2024, Hess Midstream Operations LP
(HESM Opco), a consolidated subsidiary of Hess Midstream LP (HESM),
repurchased approximately 2.7 million HESM Opco Class B units held
by Hess Corporation and Global Infrastructure Partners for $100
million, of which the Corporation received $38 million. The
Corporation continues to own approximately 37.8% of HESM on a
consolidated basis.
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and
Other was $74 million in the second quarter of 2024, compared with
$98 million in the second quarter of 2023, reflecting higher
capitalized interest.
Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures
were $1,151 million in the second quarter of 2024, compared with
$933 million in the prior-year quarter, primarily due to higher
development activities in Guyana, and higher drilling activity in
the Gulf of Mexico and the Bakken. Third quarter 2024 E&P
capital and exploratory expenditures are expected to be
approximately $1,125 million.
Midstream capital expenditures were $73
million in the second quarter of 2024 and $52 million in the
prior-year quarter.
Liquidity:
Excluding the Midstream segment, Hess
Corporation had cash and cash equivalents of $1.9 billion and debt
and finance lease obligations totaling $5.6 billion at June 30,
2024. The Corporation’s debt to capitalization ratio as defined in
its debt covenants was 30.8% at June 30, 2024 and 33.6% at December
31, 2023. In July 2024, the Corporation repaid $300 million
principal amount of senior unsecured notes, which are classified as
current portion of long-term debt, in the consolidated balance
sheet at June 30, 2024.
The Midstream segment had cash and cash
equivalents of $100 million and total debt of $3.5 billion at June
30, 2024. In May 2024, HESM Opco issued $600 million of 6.500%
fixed-rate senior unsecured notes due 2029. Net proceeds from the
borrowings were primarily used to reduce debt outstanding under
HESM Opco’s revolving credit facility.
Net cash provided by operating activities was
$1,893 million in the second quarter of 2024, compared with $974
million in the second quarter of 2023. Net cash provided by
operating activities before changes in operating assets and
liabilities3 was $1,592 million in the second quarter of 2024,
compared with $974 million in the prior-year quarter, primarily due
to higher production volumes and realized selling prices in the
second quarter of 2024. Changes in operating assets and liabilities
increased cash flow from operating activities by $301 million in
the second quarter of 2024.
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 June 30,
(unaudited)
Six Months Ended June 30,
(unaudited)
2024
2023
2024
2023
(In millions)
Exploration and Production
$
(52)
$
(82)
$
(52)
$
(82)
Midstream
—
—
—
—
Corporate, Interest and Other
—
—
—
—
Total items affecting comparability of
earnings between periods
$
(52)
$
(82)
$
(52)
$
(82)
Second Quarter 2024: E&P results include a
charge of $48 million ($38 million after income taxes) to write-off
previously capitalized exploration wells, and a charge of $18
million ($14 million after income taxes) related to materials and
supplies inventory recorded to operating costs and expenses, both
in the JDA, based on the regulator's notification that the existing
production sharing contract (PSC) for Block A-18 will not be
re-awarded to the existing PSC contractors upon its expiration in
2029.
Second Quarter 2023: E&P results included
a charge of $82 million ($82 million after income taxes) that
resulted from updates to the Corporation’s estimated abandonment
obligations in the West Delta Field in the Gulf of Mexico. These
abandonment obligations were assigned to the Corporation as a
former owner after they were discharged from Fieldwood Energy LLC
as part of its approved bankruptcy plan in 2021.
2. Net production from Guyana included 29,000
bopd of tax barrels in the second quarter of 2024 and 13,000 bopd
of tax barrels in the second quarter of 2023. Net production
guidance for Guyana for the third quarter of 2024 includes tax
barrels in the range of 25,000 bopd to 30,000 bopd.
3. “Net cash provided by (used in) operating
activities before changes in operating assets and liabilities” is a
non-GAAP financial measure. The reconciliation to its nearest GAAP
equivalent measure, and its definition, appear on pages 6 and 7,
respectively.
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 June 30,
(unaudited)
Six Months Ended June 30,
(unaudited)
2024
2023
2024
2023
(In millions)
Net income attributable to Hess
Corporation
$
757
$
119
$
1,729
$
465
Less: Total items affecting comparability
of earnings between periods
(52)
(82)
(52)
(82)
Adjusted net income attributable to Hess
Corporation
$
809
$
201
$
1,781
$
547
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 June 30,
(unaudited)
Six Months Ended June 30,
(unaudited)
2024
2023
2024
2023
(In millions)
Net cash provided by (used in) operating
activities before changes in operating assets and liabilities
$
1,592
$
974
$
3,321
$
2,006
Changes in operating assets and
liabilities
301
—
(543)
(394)
Net cash provided by (used in) operating
activities
$
1,893
$
974
$
2,778
$
1,612
Investor Conference Call:
Due to the pending merger with Chevron
Corporation (Chevron), the Corporation will not host a conference
call to review its second quarter 2024 results.
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; future economic and market conditions in the oil and
gas industry; and expected timing and completion of our proposed
merger with Chevron.
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 and other 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 HESM; risks and uncertainties associated with
our proposed merger with Chevron; and other factors described in
Item 1A—Risk Factors in our Annual Report on Form 10-K and any
additional risks described in our other filings with the Securities
and Exchange Commission (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)
Second Quarter 2024
Second Quarter 2023
First Quarter 2024
Income
Statement
Revenues and non-operating
income
Sales and other operating revenues
$
3,202
$
2,289
$
3,309
Other, net
53
31
32
Total revenues and non-operating
income
3,255
2,320
3,341
Costs and expenses
Marketing, including purchased oil and
gas
632
547
622
Operating costs and expenses
490
454
412
Production and severance taxes
64
46
56
Exploration expenses, including dry holes
and lease impairment
101
99
42
General and administrative expenses
115
108
124
Interest expense
106
122
113
Depreciation, depletion and
amortization
600
497
557
Impairment and other
—
82
—
Total costs and expenses
2,108
1,955
1,926
Income before income taxes
1,147
365
1,415
Provision for income taxes
296
160
348
Net income
851
205
1,067
Less: Net income attributable to
noncontrolling interests
94
86
95
Net income attributable to Hess
Corporation
$
757
$
119
$
972
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
Six Months Ended June 30,
Income
Statement
2024
2023
Revenues and non-operating
income
Sales and other operating revenues
$
6,511
$
4,700
Other, net
85
73
Total revenues and non-operating
income
6,596
4,773
Costs and expenses
Marketing, including purchased oil and
gas
1,254
1,150
Operating costs and expenses
902
836
Production and severance taxes
120
94
Exploration expenses, including dry holes
and lease impairment
143
165
General and administrative expenses
239
244
Interest expense
219
245
Depreciation, depletion and
amortization
1,157
988
Impairment and other
—
82
Total costs and expenses
4,034
3,804
Income before income taxes
2,562
969
Provision for income taxes
644
336
Net income
1,918
633
Less: Net income attributable to
noncontrolling interests
189
168
Net income attributable to Hess
Corporation
$
1,729
$
465
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
June 30, 2024
December 31, 2023
Balance Sheet
Information
Assets
Cash and cash equivalents
$
2,025
$
1,688
Other current assets
1,808
1,742
Property, plant and equipment – net
18,429
17,432
Operating lease right-of-use assets –
net
772
720
Finance lease right-of-use assets –
net
100
108
Other long-term assets
2,676
2,317
Total assets
$
25,810
$
24,007
Liabilities and equity
Current portion of long-term debt
$
317
$
311
Current portion of operating and finance
lease obligations
354
370
Other current liabilities
2,350
2,589
Long-term debt
8,548
8,302
Long-term operating lease obligations
520
459
Long-term finance lease obligations
145
156
Other long-term liabilities
2,375
2,218
Total equity excluding accumulated other
comprehensive income (loss)
10,645
9,120
Accumulated other comprehensive income
(loss)
(158)
(134)
Noncontrolling interests
714
616
Total liabilities and equity
$
25,810
$
24,007
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
June 30, 2024
December 31, 2023
Total
Debt
Hess Corporation
$
5,405
$
5,402
Midstream (a)
3,460
3,211
Hess Consolidated
$
8,865
$
8,613
(a) Midstream debt is non-recourse to Hess
Corporation.
June 30, 2024
December 31, 2023
Debt to
Capitalization Ratio (a)
Hess Consolidated
44.6 %
47.8 %
Hess Corporation as defined in debt
covenants
30.8 %
33.6 %
(a) Includes finance lease
obligations.
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Interest
Expense
Gross interest expense – Hess
Corporation
$
86
$
88
$
173
$
174
Less: Capitalized interest – Hess
Corporation
(30)
(10)
(53)
(15)
Interest expense – Hess Corporation
56
78
120
159
Interest expense – Midstream (a)
50
44
99
86
Interest expense – Hess
Consolidated
$
106
$
122
$
219
$
245
(a) Midstream interest expense is reported in the Midstream
operating segment.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
Second Quarter 2024
Second Quarter 2023
First Quarter 2024
Cash Flow
Information
Cash Flows from Operating
Activities
Net income
$
851
$
205
$
1,067
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation, depletion and
amortization
600
497
557
Impairment and other
—
82
—
Exploratory dry hole costs
63
62
—
Exploration lease impairment
7
8
3
Stock compensation expense
20
18
39
Noncash (gains) losses on commodity
derivatives, net
—
52
—
Provision (benefit) for deferred income
taxes and other tax accruals
51
50
63
Net cash provided by (used in) operating
activities before changes in operating assets and liabilities
1,592
974
1,729
Changes in operating assets and
liabilities
301
—
(844)
Net cash provided by (used in) operating
activities
1,893
974
885
Cash Flows from Investing
Activities
Additions to property, plant and equipment
- E&P
(1,087)
(778)
(902)
Additions to property, plant and equipment
- Midstream
(64)
(43)
(55)
Other, net
(1)
—
(1)
Net cash provided by (used in) investing
activities
(1,152)
(821)
(958)
Cash Flows from Financing
Activities
Net borrowings (repayments) of debt with
maturities of 90 days or less
(455)
77
115
Debt with maturities of greater than 90
days:
Borrowings
600
—
—
Repayments
(2)
—
(3)
Cash dividends paid
(134)
(134)
(137)
Proceeds from sale of Class A shares of
Hess Midstream LP
—
167
—
Noncontrolling interests, net
(154)
(132)
(151)
Employee stock options exercised
2
1
11
Payments on finance lease obligations
(2)
(2)
(3)
Other, net
(9)
(4)
(9)
Net cash provided by (used in) financing
activities
(154)
(27)
(177)
Net Increase (Decrease) in Cash and
Cash Equivalents
587
126
(250)
Cash and Cash Equivalents at Beginning
of Period
1,438
2,100
1,688
Cash and Cash Equivalents at End of
Period
$
2,025
$
2,226
$
1,438
Additions to
Property, Plant and Equipment included within Investing
Activities
Capital expenditures incurred
$
(1,193)
$
(956)
$
(923)
Increase (decrease) in related
liabilities
42
135
(34)
Additions to property, plant and
equipment
$
(1,151)
$
(821)
$
(957)
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
Six Months Ended June 30,
2024
2023
Cash Flow
Information
Cash Flows from Operating
Activities
Net income
$
1,918
$
633
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation, depletion and
amortization
1,157
988
Impairment and other
—
82
Exploratory dry hole costs
63
93
Exploration lease impairment
10
13
Stock compensation expense
59
53
Noncash (gains) losses on commodity
derivatives, net
—
52
Provision (benefit) for deferred income
taxes and other tax accruals
114
92
Net cash provided by (used in) operating
activities before changes in operating assets and liabilities
3,321
2,006
Changes in operating assets and
liabilities
(543)
(394)
Net cash provided by (used in) operating
activities
2,778
1,612
Cash Flows from Investing
Activities
Additions to property, plant and equipment
- E&P
(1,989)
(1,551)
Additions to property, plant and equipment
- Midstream
(119)
(107)
Other, net
(2)
(4)
Net cash provided by (used in) investing
activities
(2,110)
(1,662)
Cash Flows from Financing
Activities
Net borrowings (repayments) of debt with
maturities of 90 days or less
(340)
180
Debt with maturities of greater than 90
days:
Borrowings
600
—
Repayments
(5)
—
Cash dividends paid
(271)
(271)
Common stock acquired and retired
—
(20)
Proceeds from sale of Class A shares of
Hess Midstream LP
—
167
Noncontrolling interests, net
(305)
(263)
Employee stock options exercised
13
4
Payments on finance lease obligations
(5)
(4)
Other, net
(18)
(3)
Net cash provided by (used in) financing
activities
(331)
(210)
Net Increase (Decrease) in Cash and
Cash Equivalents
337
(260)
Cash and Cash Equivalents at Beginning
of Period
1,688
2,486
Cash and Cash Equivalents at End of
Period
$
2,025
$
2,226
Additions to
Property, Plant and Equipment included within Investing
Activities
Capital expenditures incurred
$
(2,116)
$
(1,748)
Increase (decrease) in related
liabilities
8
90
Additions to property, plant and
equipment
$
(2,108)
$
(1,658)
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
Second Quarter 2024
Second Quarter 2023
First Quarter 2024
Capital and
Exploratory Expenditures
E&P Capital and exploratory
expenditures
United States
North Dakota
$
318
$
264
$
288
Offshore and Other
138
82
159
Total United States
456
346
447
Guyana
642
508
447
Malaysia and JDA
43
44
28
Other (a)
10
35
5
E&P Capital and exploratory
expenditures
$
1,151
$
933
$
927
Total exploration expenses charged to
income included above
$
31
$
29
$
39
Midstream Capital expenditures
$
73
$
52
$
35
(a) Other in 2023 includes capital and
exploratory expenditures mainly associated with Canada.
Six Months Ended June 30,
2024
2023
Capital and
Exploratory Expenditures
E&P Capital and exploratory
expenditures
United States
North Dakota
$
606
$
496
Offshore and Other
297
111
Total United States
903
607
Guyana
1,089
962
Malaysia and JDA
71
91
Other (a)
15
38
E&P Capital and exploratory
expenditures
$
2,078
$
1,698
Total exploration expenses charged to
income included above
$
70
$
59
Midstream Capital expenditures
$
108
$
109
(a) Other in 2023 includes capital and
exploratory expenditures mainly associated with Canada.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION
EARNINGS (UNAUDITED)
(IN MILLIONS)
Second Quarter 2024
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
1,540
$
1,655
$
3,195
Other, net
12
19
31
Total revenues and non-operating
income
1,552
1,674
3,226
Costs and expenses
Marketing, including purchased oil and gas
(a)
617
34
651
Operating costs and expenses
229
177
406
Production and severance taxes
61
3
64
Midstream tariffs
335
—
335
Exploration expenses, including dry holes
and lease impairment
25
76
101
General and administrative expenses
65
9
74
Depreciation, depletion and
amortization
266
284
550
Total costs and expenses
1,598
583
2,181
Results of operations before income
taxes
(46)
1,091
1,045
Provision for income taxes
—
280
280
Net income (loss) attributable to Hess
Corporation
$
(46)
$
811
$
765
Second Quarter 2023
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
1,299
$
988
$
2,287
Other, net
6
2
8
Total revenues and non-operating
income
1,305
990
2,295
Costs and expenses
Marketing, including purchased oil and gas
(a)
537
27
564
Operating costs and expenses
241
143
384
Production and severance taxes
45
1
46
Midstream tariffs
302
—
302
Exploration expenses, including dry holes
and lease impairment
23
76
99
General and administrative expenses
50
11
61
Depreciation, depletion and
amortization
212
238
450
Impairment and other
82
—
82
Total costs and expenses
1,492
496
1,988
Results of operations before income
taxes
(187)
494
307
Provision for income taxes
—
152
152
Net income (loss) attributable to Hess
Corporation
$
(187)
(b)
$
342
(c)
$
155
(a) Includes amounts charged from the
Midstream segment. (b) Includes after-tax losses from realized
crude oil hedging activities of $34 million (noncash premium
amortization: $34 million; cash settlement: $0 million). (c)
Includes after-tax losses from realized crude oil hedging
activities of $18 million (noncash premium amortization: $18
million; cash settlement: $0 million).
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION
EARNINGS (UNAUDITED)
(IN MILLIONS)
First Quarter 2024
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
1,523
$
1,780
$
3,303
Other, net
10
1
11
Total revenues and non-operating
income
1,533
1,781
3,314
Costs and expenses
Marketing, including purchased oil and gas
(a)
589
51
640
Operating costs and expenses
205
133
338
Production and severance taxes
54
2
56
Midstream tariffs
328
—
328
Exploration expenses, including dry holes
and lease impairment
34
8
42
General and administrative expenses
64
8
72
Depreciation, depletion and
amortization
244
263
507
Total costs and expenses
1,518
465
1,983
Results of operations before income
taxes
15
1,316
1,331
Provision for income taxes
—
334
334
Net income (loss) attributable to Hess
Corporation
$
15
$
982
$
997
(a) Includes amounts charged from the
Midstream segment.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION
EARNINGS (UNAUDITED)
(IN MILLIONS)
Six Months Ended June 30,
2024
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
3,063
$
3,435
$
6,498
Other, net
22
20
42
Total revenues and non-operating
income
3,085
3,455
6,540
Costs and expenses
Marketing, including purchased oil and gas
(a)
1,206
85
1,291
Operating costs and expenses
434
310
744
Production and severance taxes
115
5
120
Midstream tariffs
663
—
663
Exploration expenses, including dry holes
and lease impairment
59
84
143
General and administrative expenses
129
17
146
Depreciation, depletion and
amortization
510
547
1,057
Total costs and expenses
3,116
1,048
4,164
Results of operations before income
taxes
(31)
2,407
2,376
Provision for income taxes
—
614
614
Net income (loss) attributable to Hess
Corporation
$
(31)
$
1,793
$
1,762
Six Months Ended June 30,
2023
Income
Statement
United States
International
Total
Total revenues and non-operating
income
Sales and other operating revenues
$
2,664
$
2,032
$
4,696
Other, net
15
7
22
Total revenues and non-operating
income
2,679
2,039
4,718
Costs and expenses
Marketing, including purchased oil and gas
(a)
1,121
62
1,183
Operating costs and expenses
446
261
707
Production and severance taxes
91
3
94
Midstream tariffs
585
—
585
Exploration expenses, including dry holes
and lease impairment
43
122
165
General and administrative expenses
104
23
127
Depreciation, depletion and
amortization
415
478
893
Impairment and other
82
—
82
Total costs and expenses
2,887
949
3,836
Results of operations before income
taxes
(208)
1,090
882
Provision for income taxes
—
322
322
Net income (loss) attributable to Hess
Corporation
$
(208)
(b)
$
768
(c)
$
560
(a) Includes amounts charged from the
Midstream segment. (b) Includes after-tax losses from realized
crude oil hedging activities of $61 million (noncash premium
amortization: $61 million; cash settlement: $0 million). (c)
Includes after-tax losses from realized crude oil hedging
activities of $25 million (noncash premium amortization: $25
million; cash settlement: $0 million).
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION
OPERATING DATA
Second Quarter 2024
Second Quarter 2023
First Quarter 2024
Net Production
Per Day (in thousands)
Crude oil - barrels
United States
North Dakota
93
79
88
Offshore
18
23
22
Total United States
111
102
110
Guyana (a)
192
110
190
Malaysia and JDA
5
4
5
Total
308
216
305
Natural gas liquids - barrels
United States
North Dakota
76
68
69
Offshore
1
1
2
Total United States
77
69
71
Natural gas - mcf
United States
North Dakota
256
206
200
Offshore
28
45
41
Total United States
284
251
241
Malaysia and JDA
369
359
358
Total
653
610
599
Barrels of oil equivalent
494
387
476
(a) Production from Guyana includes 29,000
bopd of tax barrels in the second quarter of 2024, 13,000 bopd of
tax barrels in the second quarter of 2023 and 33,000 bopd of tax
barrels in the first quarter of 2024.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION
OPERATING DATA
Six Months Ended June 30,
2024
2023
Net Production
Per Day (in thousands)
Crude oil - barrels
United States
North Dakota
90
78
Offshore
20
23
Total United States
110
101
Guyana (a)
191
111
Malaysia and JDA
5
4
Total
306
216
Natural gas liquids - barrels
United States
North Dakota
73
64
Offshore
2
2
Total United States
75
66
Natural gas - mcf
United States
North Dakota
228
182
Offshore
35
47
Total United States
263
229
Malaysia and JDA
363
363
Total
626
592
Barrels of oil equivalent
485
381
(a) Production from Guyana includes 31,000
bopd of tax barrels in the first six months of 2024 and 14,000 bopd
of tax barrels in the first six months of 2023.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION
OPERATING DATA
Second Quarter 2024
Second Quarter 2023
First Quarter 2024
Sales Volumes Per
Day (in thousands) (a)
Crude oil – barrels
293
217
308
Natural gas liquids – barrels
76
67
73
Natural gas – mcf
653
610
599
Barrels of oil equivalent
478
386
481
Sales Volumes (in
thousands) (a)
Crude oil – barrels
26,677
19,740
28,053
Natural gas liquids – barrels
6,925
6,084
6,650
Natural gas – mcf
59,402
55,548
54,495
Barrels of oil equivalent
43,502
35,082
43,786
Six Months Ended June 30,
2024
2023
Sales Volumes Per
Day (in thousands) (a)
Crude oil – barrels
301
215
Natural gas liquids – barrels
75
65
Natural gas – mcf
626
592
Barrels of oil equivalent
480
379
Sales Volumes (in
thousands) (a)
Crude oil – barrels
54,730
38,901
Natural gas liquids – barrels
13,575
11,845
Natural gas – mcf
113,897
107,240
Barrels of oil equivalent
87,288
68,619
(a) Sales volumes from purchased crude
oil, natural gas liquids, and natural gas are not included in the
sales volumes reported.
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION
OPERATING DATA
Second Quarter 2024
Second Quarter 2023
First Quarter 2024
Average Selling
Prices
Crude oil - per barrel (including
hedging)
United States
North Dakota
$
75.84
$
65.67
$
71.75
Offshore
80.21
68.32
75.86
Total United States
76.54
66.24
72.58
Guyana
82.53
75.82
84.27
Malaysia and JDA
82.77
68.87
81.10
Worldwide
80.29
71.13
80.06
Crude oil - per barrel (excluding
hedging)
United States
North Dakota
$
75.84
$
69.22
$
71.75
Offshore
80.21
71.86
75.86
Total United States
76.54
69.79
72.58
Guyana
82.53
77.64
84.27
Malaysia and JDA
82.77
68.87
81.10
Worldwide
80.29
73.74
80.06
Natural gas liquids - per
barrel
United States
North Dakota
$
20.08
$
17.90
$
23.03
Offshore
19.60
20.17
21.36
Worldwide
20.07
17.95
22.97
Natural gas - per mcf
United States
North Dakota
$
0.81
$
1.29
$
1.80
Offshore
1.33
1.62
2.11
Total United States
0.86
1.35
1.85
Malaysia and JDA
6.81
5.56
6.49
Worldwide
4.22
3.82
4.62
HESS CORPORATION AND
CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION
OPERATING DATA
Six Months Ended June 30,
2024
2023
Average Selling
Prices
Crude oil - per barrel (including
hedging)
United States
North Dakota
$
73.84
$
67.05
Offshore
77.78
68.22
Total United States
74.56
67.32
Guyana
83.43
77.50
Malaysia and JDA
81.94
71.02
Worldwide
80.17
72.66
Crude oil - per barrel (excluding
hedging)
United States
North Dakota
$
73.84
$
70.41
Offshore
77.78
71.55
Total United States
74.56
70.68
Guyana
83.43
78.76
Malaysia and JDA
81.94
71.02
Worldwide
80.17
74.87
Natural gas liquids - per
barrel
United States
North Dakota
$
21.52
$
20.99
Offshore
20.62
22.20
Worldwide
21.49
21.02
Natural gas - per mcf
United States
North Dakota
$
1.24
$
1.83
Offshore
1.79
2.03
Total United States
1.32
1.87
Malaysia and JDA
6.65
5.50
Worldwide
4.41
4.09
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731382954/en/
For Hess Corporation
Investor Contact:
Jay Wilson (212) 536-8940
Media Contacts:
Lorrie Hecker (212) 536-8250
Liz James FGS Global (281) 881-5170
Hess (NYSE:HES)
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