UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): July 28, 2021
(Exact Name of Registrant as Specified in Its Charter)
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| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (212) 997-8500
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
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Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On July 28, 2021 , Hess Corporation issued a news release reporting estimated results for the second quarter of 2021. A copy of this news release is attached hereto as Exhibit 99(1) and is hereby incorporated by reference.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibit | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: July 28, 2021 | ||||||||
| HESS CORPORATION | ||||||||
| By: | /s/John P. Rielly | |||||||
| Name: | John P. Rielly | |||||||
| Title: | Executive Vice President and | |||||||
| Chief Financial Officer | ||||||||
Exhibit 99.1
HESS CORPORATION
HESS REPORTS ESTIMATED RESULTS FOR THE SECOND QUARTER OF 2021
Key Developments:
•Announced a significant new oil discovery at Whiptail on the Stabroek Block, offshore Guyana; adds to previous gross discovered recoverable resource estimate for the block of approximately 9 billion barrels of oil equivalent (boe)
•Reduced debt by $500 million in July by prepaying half of the Corporation's $1 billion term loan maturing in March 2023
•Expect to receive net proceeds of approximately $375 million in the third quarter from an agreement announced today by Hess Midstream LP to repurchase from its sponsors $750 million of Class B units of Hess Midstream Operations LP
•Plan to add a third rig in the Bakken in September
Second Quarter Financial and Operational Highlights:
•Net loss was $73 million, or $0.24 per common share, including an after-tax charge of $147 million for estimated future abandonment costs relating to a previously disposed asset, compared with a net loss of $320 million, or $1.05 per common share, in the second quarter of 2020
•Adjusted net income1 in the second quarter of 2021 was $74 million, or $0.24 per common share
•Oil and gas net production, excluding Libya, was 307,000 barrels of oil equivalent per day (boepd); Bakken net production was 159,000 boepd
•E&P capital and exploratory expenditures were $429 million compared with $453 million in the prior-year quarter
•Cash and cash equivalents, excluding Midstream, were $2.42 billion at June 30, 2021
2021 Revised Full Year Guidance:
•Net production, excluding Libya, is expected to be approximately 295,000 boepd, the upper end of the previous guidance range of approximately 290,000 boepd to 295,000 boepd
•E&P capital and exploratory expenditure guidance of approximately $1.9 billion remains unchanged, including the planned increase in Bakken rig count
NEW YORK, July 28, 2021 — Hess Corporation (NYSE: HES) today reported a net loss of $73 million, or $0.24 per common share, in the second quarter of 2021, compared with a net loss of $320 million, or $1.05 per common share, in the second quarter of 2020. On an adjusted basis, net income
1.“Adjusted net income (loss)” 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 to 8.
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in the second quarter of 2021 was $74 million, or $0.24 per common share. The improvement in adjusted after-tax results compared with the prior-year period primarily reflects higher realized selling prices in the second quarter of 2021.
“Our company is uniquely positioned to deliver industry leading cash flow growth over the next decade,” CEO John Hess said. “In July, we paid down half of our $1 billion term loan maturing in March 2023 and, depending on market conditions, we plan to repay the balance in 2022. This debt reduction, combined with increasing cash flows from our Guyana developments, will allow us to significantly increase cash returns to shareholders in the coming years through dividend increases and opportunistic share repurchases."
After-tax income (loss) by major operating activity was as follows:
| Three Months Ended June 30, (unaudited) | Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||
| Net Income (Loss) Attributable to Hess Corporation | |||||||||||||||||||||||
| Exploration and Production | $ | (25) | $ | (249) | $ | 283 | $ | (2,620) | |||||||||||||||
| Midstream | 76 | 51 | 151 | 112 | |||||||||||||||||||
| Corporate, Interest and Other | (124) | (122) | (255) | (245) | |||||||||||||||||||
| Net income (loss) attributable to Hess Corporation | $ | (73) | $ | (320) | $ | 179 | $ | (2,753) | |||||||||||||||
| Net income (loss) per common share (diluted) | $ | (0.24) | $ | (1.05) | $ | 0.58 | $ | (9.04) | |||||||||||||||
| Adjusted Net Income (Loss) Attributable to Hess Corporation | |||||||||||||||||||||||
| Exploration and Production | $ | 122 | $ | (249) | $ | 430 | $ | (369) | |||||||||||||||
| Midstream | 76 | 51 | 151 | 112 | |||||||||||||||||||
| Corporate, Interest and Other | (124) | (122) | (255) | (245) | |||||||||||||||||||
| Adjusted net income (loss) attributable to Hess Corporation | $ | 74 | $ | (320) | $ | 326 | $ | (502) | |||||||||||||||
| Adjusted net income (loss) per common share (diluted) | $ | 0.24 | $ | (1.05) | $ | 1.06 | $ | (1.65) | |||||||||||||||
| Weighted average number of shares (diluted) | 307.5 | 305.0 | 308.7 | 304.5 | |||||||||||||||||||
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Exploration and Production:
E&P net loss was $25 million in the second quarter of 2021, compared with a net loss of $249 million in the second quarter of 2020. On an adjusted basis, E&P's second quarter 2021 net income was $122 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $59.79 per barrel in the second quarter of 2021, compared with $38.46 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the second quarter of 2021 was $23.12 per barrel, compared with $7.32 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.05 per mcf, compared with $2.41 per mcf in the second quarter of 2020.
Net production, excluding Libya, was 307,000 boepd in the second quarter of 2021, compared with 334,000 boepd in the second quarter of 2020, or 322,000 boepd pro forma for assets sold. Net production for Libya was 21,000 boepd in the second quarter of 2021 compared with zero in the second quarter of 2020 due to force majeure declared by the Libyan National Oil Corporation.
Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $11.63 per boe (excluding Libya: $12.16 per boe) in the second quarter of 2021, compared with $8.81 per boe (excluding Libya: $8.64 per boe) in the prior-year quarter. The increase was due to higher maintenance and workover activity and production and severance taxes. The increase in the effective tax rate in the second quarter of 2021 compared with the year-ago period was primarily driven by higher production in Libya.
Operational Highlights for the Second Quarter of 2021:
Bakken (Onshore U.S.): Net production from the Bakken was 159,000 boepd compared with 194,000 boepd in the prior-year quarter, primarily due to lower drilling activity caused by a reduction in rig count from six to one last year, and lower NGL and natural gas volumes received under percentage of proceeds contracts due to higher commodity prices. Net oil production was 79,000 barrels of oil per day (bopd) in the second quarter of 2021 and 108,000 bopd in the prior year quarter. NGL and natural gas volumes received under percentage of proceeds contracts were 14,000 boepd in the second quarter of 2021 compared with 22,000 boepd in the second quarter of 2020 due to higher realized NGL prices lowering volumes received as consideration for gas processing fees. The Corporation added a second rig in February 2021 and drilled 17 wells, completed 9 wells, and brought 9 new wells online during the second quarter. In September, the Corporation plans to add a third rig in the field.
In April, the Corporation completed the sale of its Little Knife and Murphy Creek nonstrategic acreage interests in the Bakken for net proceeds of $297 million, after closing adjustments. The sale
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consisted of approximately 78,700 net acres, which were located in the southernmost portion of the Corporation's Bakken position and not connected to Hess Midstream LP infrastructure.
Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 52,000 boepd, compared with 68,000 boepd in the prior-year quarter, primarily due to the sale of the Corporation's interest in the Shenzi Field in the fourth quarter of 2020. Net production from the Shenzi Field was 12,000 boepd in the second quarter of 2020.
Guyana (Offshore): At the Stabroek Block (Hess – 30%), the operator, Esso Exploration and Production Guyana Limited, announced a significant new oil discovery at Whiptail. The Whiptail-1 well encountered 246 feet (75 meters) of net pay in high quality oil bearing sandstone reservoirs. Drilling is also ongoing at the Whiptail-2 well, which is located 3 miles northeast of Whiptail-1 and has encountered 167 feet (51 meters) of net pay in high quality oil bearing sandstone reservoirs. Drilling continues at both wells to test deeper targets, and results will be evaluated for future development. The Whiptail discovery is located approximately 4 miles southeast of the Uaru-1 discovery that was announced in January 2020 and approximately 3 miles west of the Yellowtail Field.
The Corporation’s net production from the Liza Field was 26,000 bopd in the second quarter of 2021 compared with 22,000 bopd in the prior-year quarter. Startup of Phase 2 of the Liza Field development, which will utilize the Liza Unity floating production, storage and offloading vessel (FPSO) with an expected capacity of 220,000 gross bopd, remains on track for early 2022. The third development, Payara, will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd; first oil is expected in 2024. A fourth development, Yellowtail, has been identified on the Stabroek Block with anticipated startup in 2025, pending government approvals and project sanctioning. The Mako-2 appraisal well completed in the second quarter confirmed the quality, thickness and areal extent of the reservoir. When integrated with the previously announced results at Uaru-2, the combined discovered resource at Mako and Uaru is expected to support a fifth FPSO on the Stabroek Block. We expect to have at least six FPSOs on the Stabroek Block by 2027 with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base.
The Longtail-3 well encountered 230 feet of net pay, including newly identified, high quality hydrocarbon bearing reservoirs below the original Longtail-1 discovery intervals. The well was drilled in more than 6,100 feet of water and is located approximately 2 miles south of the Longtail-1 well.
The Koebi-1 exploration well was drilled to a depth of 20,700 feet and did not encounter commercial quantities of hydrocarbons. Second quarter results include a charge of $12 million in exploration expenses for well costs incurred.
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The Stena DrillMax is continuing drilling operations at Whiptail-1 and the Noble Don Taylor is continuing drilling operations at Whiptail-2. The Stena Carron is performing a drill stem test on the Uaru-1 well. The Noble Tom Madden, the Noble Bob Douglas and the Noble Sam Croft are drilling and completing Phase 2 development wells.
South East Asia (Offshore): Net production at the North Malay Basin and JDA was 66,000 boepd, compared with 44,000 boepd in the prior-year quarter, reflecting higher natural gas nominations due to a recovery in economic activity.
Midstream:
The Midstream segment had net income of $76 million in the second quarter of 2021, compared with net income of $51 million in the prior-year quarter, primarily due to higher revenue from minimum volume commitments and tariff rates.
Hess Midstream LP today announced an agreement to purchase approximately 31 million Class B units of its consolidated subsidiary, Hess Midstream Operations LP, from its sponsors, Hess Corporation and Global Infrastructure Partners, for approximately $750 million. The Corporation is expected to receive net proceeds of approximately $375 million. After giving effect to this transaction, which is expected to be completed in the third quarter of 2021, the Corporation will own an approximate 45% interest in Hess Midstream LP, on a consolidated basis.
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and Other was $124 million in the second quarter of 2021, compared with $122 million in the second quarter of 2020.
Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures were $429 million in the second quarter of 2021 compared with $453 million in the prior-year quarter, primarily due to lower drilling activity in the Bakken and Gulf of Mexico, partially offset by increased exploration and development activity in Guyana. Midstream capital expenditures were $47 million in the second quarter of 2021, down from $79 million in the prior-year quarter.
Liquidity:
Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.42 billion and debt and finance lease obligations totaling $6.6 billion at June 30, 2021. The Midstream segment had cash and cash equivalents of $6 million and total debt of $1.8 billion at June 30, 2021. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 47.2% at June 30, 2021 and 47.5% at December 31, 2020. The Corporation has no material near-term debt maturities aside from the $1.0 billion term loan, which matures in March 2023. In July 2021, the Corporation
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prepaid $500 million principal amount of the term loan, which was classified as current maturities of long-term debt, in the consolidated balance sheet at June 30, 2021.
Net cash provided by operating activities was $785 million in the second quarter of 2021, up from $266 million in the second quarter of 2020 primarily due to higher realized selling prices. Net cash provided by operating activities before changes in operating assets and liabilities2 was $659 million in the second quarter of 2021, compared with $301 million in the prior-year quarter. Changes in operating assets and liabilities increased cash flow from operating activities by $126 million during the second quarter of 2021 and decreased cash flow from operating activities by $35 million during the prior-year quarter.
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) | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Exploration and Production | $ | (147) | $ | — | $ | (147) | $ | (2,251) | |||||||||||||||
| Midstream | — | — | — | — | |||||||||||||||||||
| Corporate, Interest and Other | — | — | — | — | |||||||||||||||||||
| Total items affecting comparability of earnings between periods | $ | (147) | $ | — | $ | (147) | $ | (2,251) | |||||||||||||||
Second Quarter 2021: E&P results include a charge of $147 million ($147 million after income taxes) in connection with estimated future abandonment obligations of Fieldwood Energy LLC in the West Delta 79/86 field (West Delta Field) in the Gulf of Mexico. In June 2021, the U.S. Bankruptcy Court approved Fieldwood’s bankruptcy plan which includes discharging decommissioning obligations, subject to conditions precedent, for certain of Fieldwood’s assets. Those obligations will transfer to former owners of the properties, including Hess with respect to the West Delta Field, which Hess sold in 2004. Potential recoveries from other parties that previously owned an interest in the West Delta Field have not been recognized as of June 30, 2021.
2.“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 7 and 8.
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Reconciliation of U.S. GAAP to Non-GAAP measures:
The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):
| Three Months Ended June 30, (unaudited) | Six Months Ended June 30, (unaudited) | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Net income (loss) attributable to Hess Corporation | $ | (73) | $ | (320) | $ | 179 | $ | (2,753) | |||||||||||||||
| Less: Total items affecting comparability of earnings between periods | (147) | — | (147) | (2,251) | |||||||||||||||||||
| Adjusted net income (loss) attributable to Hess Corporation | $ | 74 | $ | (320) | $ | 326 | $ | (502) | |||||||||||||||
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) | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Net cash provided by (used in) operating activities before changes in operating assets and liabilities | $ | 659 | $ | 301 | $ | 1,474 | $ | 803 | |||||||||||||||
| Changes in operating assets and liabilities | 126 | (35) | (98) | (92) | |||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 785 | $ | 266 | $ | 1,376 | $ | 711 | |||||||||||||||
Hess Corporation will review second 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, proposed asset sale and the Midstream Class B unit repurchase; 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, including as a result of the global COVID-19 pandemic; reduced demand for our products, including due to the global COVID-19 pandemic or the
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outbreak of any other public health threat, or due to the impact of 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 as well as fracking bans; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks or health measures related to the COVID-19 pandemic; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control; the ability to satisfy the closing conditions of the proposed asset sale and the Midstream Class B unit repurchase; 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 weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from 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 (loss)” presented in this release is defined as reported net income (loss) 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 (loss) 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 (loss) or net cash provided by (used in) operating activities. A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss), 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.
For Hess Corporation
Investor Contact:
Jay Wilson
(212) 536-8940
Media Contacts:
Lorrie Hecker
(212) 536-8250
Jamie Tully
Sard Verbinnen & Co
(917) 679-7908
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| Second Quarter 2021 | Second Quarter 2020 | First Quarter 2021 | |||||||||||||||
| Income Statement | |||||||||||||||||
| Revenues and non-operating income | |||||||||||||||||
| Sales and other operating revenues | $ | 1,579 | $ | 833 | $ | 1,898 | |||||||||||
| Other, net | 19 | 9 | 21 | ||||||||||||||
| Total revenues and non-operating income | 1,598 | 842 | 1,919 | ||||||||||||||
| Costs and expenses | |||||||||||||||||
| Marketing, including purchased oil and gas | 322 | 56 | 518 | ||||||||||||||
| Operating costs and expenses | 315 | 294 | 265 | ||||||||||||||
| Production and severance taxes | 44 | 16 | 37 | ||||||||||||||
| Exploration expenses, including dry holes and lease impairment | 48 | 31 | 33 | ||||||||||||||
| General and administrative expenses | 84 | 89 | 94 | ||||||||||||||
| Interest expense | 118 | 119 | 117 | ||||||||||||||
| Depreciation, depletion and amortization | 385 | 509 | 396 | ||||||||||||||
| Impairment and other | 147 | — | — | ||||||||||||||
| Total costs and expenses | 1,463 | 1,114 | 1,460 | ||||||||||||||
| Income (loss) before income taxes | 135 | (272) | 459 | ||||||||||||||
| Provision (benefit) for income taxes | 122 | (9) | 123 | ||||||||||||||
| Net income (loss) | 13 | (263) | 336 | ||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 86 | 57 | 84 | ||||||||||||||
| Net income (loss) attributable to Hess Corporation | $ | (73) | $ | (320) | $ | 252 | |||||||||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| Six Months Ended June 30, | |||||||||||
| 2021 | 2020 | ||||||||||
| Income Statement | |||||||||||
| Revenues and non-operating income | |||||||||||
| Sales and other operating revenues | $ | 3,477 | $ | 2,187 | |||||||
| Other, net | 40 | 24 | |||||||||
| Total revenues and non-operating income | 3,517 | 2,211 | |||||||||
| Costs and expenses | |||||||||||
| Marketing, including purchased oil and gas | 840 | 434 | |||||||||
| Operating costs and expenses | 580 | 597 | |||||||||
| Production and severance taxes | 81 | 58 | |||||||||
| Exploration expenses, including dry holes and lease impairment | 81 | 220 | |||||||||
| General and administrative expenses | 178 | 191 | |||||||||
| Interest expense | 235 | 232 | |||||||||
| Depreciation, depletion and amortization | 781 | 1,070 | |||||||||
| Impairment and other | 147 | 2,126 | |||||||||
| Total costs and expenses | 2,923 | 4,928 | |||||||||
| Income (loss) before income taxes | 594 | (2,717) | |||||||||
| Provision (benefit) for income taxes | 245 | (88) | |||||||||
| Net income (loss) | 349 | (2,629) | |||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 170 | 124 | |||||||||
| Net income (loss) attributable to Hess Corporation | $ | 179 | $ | (2,753) | |||||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| June 30, 2021 | December 31, 2020 | ||||||||||
| Balance Sheet Information | |||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 2,430 | $ | 1,739 | |||||||
| Other current assets | 1,539 | 1,342 | |||||||||
| Property, plant and equipment – net | 13,622 | 14,115 | |||||||||
| Operating lease right-of-use assets – net | 373 | 426 | |||||||||
| Finance lease right-of-use assets – net | 155 | 168 | |||||||||
| Other long-term assets | 1,012 | 1,031 | |||||||||
| Total assets | $ | 19,131 | $ | 18,821 | |||||||
| Liabilities and equity | |||||||||||
| Current maturities of long-term debt | $ | 511 | $ | 10 | |||||||
| Current portion of operating and finance lease obligations | 90 | 81 | |||||||||
| Other current liabilities | 1,914 | 1,532 | |||||||||
| Long-term debt | 7,712 | 8,286 | |||||||||
| Long-term operating lease obligations | 421 | 478 | |||||||||
| Long-term finance lease obligations | 210 | 220 | |||||||||
| Other long-term liabilities | 1,741 | 1,879 | |||||||||
| Total equity excluding other comprehensive income (loss) | 6,324 | 6,121 | |||||||||
| Accumulated other comprehensive income (loss) | (836) | (755) | |||||||||
| Noncontrolling interests | 1,044 | 969 | |||||||||
| Total liabilities and equity | $ | 19,131 | $ | 18,821 | |||||||
11
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| June 30, 2021 | December 31, 2020 | ||||||||||
| Total Debt | |||||||||||
| Hess Corporation | $ | 6,391 | $ | 6,386 | |||||||
| Midstream (a) | 1,832 | 1,910 | |||||||||
| Hess Consolidated | $ | 8,223 | $ | 8,296 | |||||||
(a) Midstream debt is non-recourse to Hess Corporation.
| June 30, 2021 | December 31, 2020 | ||||||||||
| Debt to Capitalization Ratio (a) | |||||||||||
| Hess Consolidated | 56.4 | % | 57.4 | % | |||||||
| Hess Corporation as defined in debt covenants | 47.2 | % | 47.5 | % | |||||||
(a)Includes finance lease obligations.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||
| Hess Corporation | $ | 95 | $ | 96 | $ | 189 | $ | 184 | |||||||||||||||
| Midstream (a) | 23 | 23 | 46 | 48 | |||||||||||||||||||
| Hess Consolidated | $ | 118 | $ | 119 | $ | 235 | $ | 232 | |||||||||||||||
(a)Midstream interest expense is reported in the Midstream operating segment.
12
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| Second Quarter 2021 | Second Quarter 2020 | First Quarter 2021 | |||||||||||||||
| Cash Flow Information | |||||||||||||||||
| Cash Flows from Operating Activities | |||||||||||||||||
| Net income (loss) | $ | 13 | $ | (263) | $ | 336 | |||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
| (Gains) losses on asset sales, net | — | (8) | — | ||||||||||||||
| Depreciation, depletion and amortization | 385 | 509 | 396 | ||||||||||||||
| Impairment and other | 147 | — | — | ||||||||||||||
| Exploratory dry hole costs | 9 | — | — | ||||||||||||||
| Exploration lease and other impairment | 6 | 6 | 4 | ||||||||||||||
| Pension settlement loss | 3 | — | 1 | ||||||||||||||
| Stock compensation expense | 19 | 18 | 25 | ||||||||||||||
| Noncash (gains) losses on commodity derivatives, net | 64 | 49 | 24 | ||||||||||||||
| Provision (benefit) for deferred income taxes and other tax accruals | 13 | (10) | 29 | ||||||||||||||
| Net cash provided by (used in) operating activities before changes in operating assets and liabilities | 659 | 301 | 815 | ||||||||||||||
| Changes in operating assets and liabilities | 126 | (35) | (224) | ||||||||||||||
| Net cash provided by (used in) operating activities | 785 | 266 | 591 | ||||||||||||||
| Cash Flows from Investing Activities | |||||||||||||||||
| Additions to property, plant and equipment - E&P | (329) | (510) | (358) | ||||||||||||||
| Additions to property, plant and equipment - Midstream | (26) | (69) | (27) | ||||||||||||||
| Proceeds from asset sales, net of cash sold | 297 | 11 | — | ||||||||||||||
| Other, net | (2) | (2) | — | ||||||||||||||
| Net cash provided by (used in) investing activities | (60) | (570) | (385) | ||||||||||||||
| Cash Flows from Financing Activities | |||||||||||||||||
| Net borrowings (repayments) of debt with maturities of 90 days or less | (65) | 12 | (10) | ||||||||||||||
| Debt with maturities of greater than 90 days: | |||||||||||||||||
| Borrowings | — | — | — | ||||||||||||||
| Repayments | (2) | — | (3) | ||||||||||||||
| Proceeds from sale of Class A shares of Hess Midstream LP | — | — | 70 | ||||||||||||||
| Payments on finance lease obligations | (2) | (2) | (2) | ||||||||||||||
| Cash dividends paid | (77) | (76) | (80) | ||||||||||||||
| Employee stock options exercised | 63 | — | 12 | ||||||||||||||
| Noncontrolling interests, net | (70) | (65) | (67) | ||||||||||||||
| Other, net | (8) | 1 | 1 | ||||||||||||||
| Net cash provided by (used in) financing activities | (161) | (130) | (79) | ||||||||||||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 564 | (434) | 127 | ||||||||||||||
| Cash and Cash Equivalents at Beginning of Period | 1,866 | 2,080 | 1,739 | ||||||||||||||
| Cash and Cash Equivalents at End of Period | $ | 2,430 | $ | 1,646 | $ | 1,866 | |||||||||||
| Additions to Property, Plant and Equipment included within Investing Activities | |||||||||||||||||
| Capital expenditures incurred | $ | (443) | $ | (507) | $ | (303) | |||||||||||
| Increase (decrease) in related liabilities | 88 | (72) | (82) | ||||||||||||||
| Additions to property, plant and equipment | $ | (355) | $ | (579) | $ | (385) | |||||||||||
13
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| Six Months Ended June 30, | |||||||||||
| 2021 | 2020 | ||||||||||
| Cash Flow Information | |||||||||||
| Cash Flows from Operating Activities | |||||||||||
| Net income (loss) | $ | 349 | $ | (2,629) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| (Gains) losses on asset sales, net | — | (8) | |||||||||
| Depreciation, depletion and amortization | 781 | 1,070 | |||||||||
| Impairment and other | 147 | 2,126 | |||||||||
| Exploratory dry hole costs | 9 | 135 | |||||||||
| Exploration lease and other impairment | 10 | 38 | |||||||||
| Pension settlement loss | 4 | — | |||||||||
| Stock compensation expense | 44 | 47 | |||||||||
| Noncash (gains) losses on commodity derivatives, net | 88 | 119 | |||||||||
| Provision (benefit) for deferred income taxes and other tax accruals | 42 | (95) | |||||||||
| Net cash provided by (used in) operating activities before changes in operating assets and liabilities | 1,474 | 803 | |||||||||
| Changes in operating assets and liabilities | (98) | (92) | |||||||||
| Net cash provided by (used in) operating activities | 1,376 | 711 | |||||||||
| Cash Flows from Investing Activities | |||||||||||
| Additions to property, plant and equipment - E&P | (687) | (1,250) | |||||||||
| Additions to property, plant and equipment - Midstream | (53) | (147) | |||||||||
| Proceeds from asset sales, net of cash sold | 297 | 11 | |||||||||
| Other, net | (2) | (2) | |||||||||
| Net cash provided by (used in) investing activities | (445) | (1,388) | |||||||||
| Cash Flows from Financing Activities | |||||||||||
| Net borrowings (repayments) of debt with maturities of 90 days or less | (75) | 72 | |||||||||
| Debt with maturities of greater than 90 days: | |||||||||||
| Borrowings | — | 1,000 | |||||||||
| Repayments | (5) | — | |||||||||
| Proceeds from sale of Class A shares of Hess Midstream LP | 70 | — | |||||||||
| Payments on finance lease obligations | (4) | (3) | |||||||||
| Cash dividends paid | (157) | (157) | |||||||||
| Employee stock options exercised | 75 | 15 | |||||||||
| Noncontrolling interests, net | (137) | (128) | |||||||||
| Other, net | (7) | (21) | |||||||||
| Net cash provided by (used in) financing activities | (240) | 778 | |||||||||
| Net Increase (Decrease) in Cash and Cash Equivalents | 691 | 101 | |||||||||
| Cash and Cash Equivalents at Beginning of Period | 1,739 | 1,545 | |||||||||
| Cash and Cash Equivalents at End of Period | $ | 2,430 | $ | 1,646 | |||||||
| Additions to Property, Plant and Equipment included within Investing Activities | |||||||||||
| Capital expenditures incurred | $ | (746) | $ | (1,173) | |||||||
| Increase (decrease) in related liabilities | 6 | (224) | |||||||||
| Additions to property, plant and equipment | $ | (740) | $ | (1,397) | |||||||
14
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| Second Quarter 2021 | Second Quarter 2020 | First Quarter 2021 | |||||||||||||||
| Capital and Exploratory Expenditures | |||||||||||||||||
| E&P Capital and exploratory expenditures | |||||||||||||||||
| United States | |||||||||||||||||
| North Dakota | $ | 112 | $ | 181 | $ | 88 | |||||||||||
| Offshore and Other | 25 | 64 | 31 | ||||||||||||||
| Total United States | 137 | 245 | 119 | ||||||||||||||
| Guyana | 250 | 183 | 172 | ||||||||||||||
| Malaysia and JDA | 36 | 21 | 13 | ||||||||||||||
| Other | 6 | 4 | 5 | ||||||||||||||
| E&P Capital and exploratory expenditures | $ | 429 | $ | 453 | $ | 309 | |||||||||||
| Total exploration expenses charged to income included above | $ | 33 | $ | 25 | $ | 29 | |||||||||||
| Midstream Capital expenditures | $ | 47 | $ | 79 | $ | 23 | |||||||||||
| Six Months Ended June 30, | |||||||||||
| 2021 | 2020 | ||||||||||
| Capital and Exploratory Expenditures | |||||||||||
| E&P Capital and exploratory expenditures | |||||||||||
| United States | |||||||||||
| North Dakota | $ | 200 | $ | 503 | |||||||
| Offshore and Other | 56 | 157 | |||||||||
| Total United States | 256 | 660 | |||||||||
| Guyana | 422 | 359 | |||||||||
| Malaysia and JDA | 49 | 53 | |||||||||
| Other | 11 | 12 | |||||||||
| E&P Capital and exploratory expenditures | $ | 738 | $ | 1,084 | |||||||
| Total exploration expenses charged to income included above | $ | 62 | $ | 47 | |||||||
| Midstream Capital expenditures | $ | 70 | $ | 136 | |||||||
15
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
| Second Quarter 2021 | |||||||||||||||||
| Income Statement | United States | International | Total | ||||||||||||||
| Total revenues and non-operating income | |||||||||||||||||
| Sales and other operating revenues | $ | 1,088 | $ | 491 | $ | 1,579 | |||||||||||
| Other, net | 11 | 3 | 14 | ||||||||||||||
| Total revenues and non-operating income | 1,099 | 494 | 1,593 | ||||||||||||||
| Costs and expenses | |||||||||||||||||
| Marketing, including purchased oil and gas (a) | 335 | 8 | 343 | ||||||||||||||
| Operating costs and expenses | 158 | 96 | 254 | ||||||||||||||
| Production and severance taxes | 42 | 2 | 44 | ||||||||||||||
| Midstream tariffs | 270 | — | 270 | ||||||||||||||
| Exploration expenses, including dry holes and lease impairment | 26 | 22 | 48 | ||||||||||||||
| General and administrative expenses | 41 | 8 | 49 | ||||||||||||||
| Depreciation, depletion and amortization | 260 | 84 | 344 | ||||||||||||||
| Impairment and other | 147 | — | 147 | ||||||||||||||
| Total costs and expenses | 1,279 | 220 | 1,499 | ||||||||||||||
| Results of operations before income taxes | (180) | 274 | 94 | ||||||||||||||
| Provision (benefit) for income taxes | — | 119 | 119 | ||||||||||||||
| Net income (loss) attributable to Hess Corporation | $ | (180) | (b) | $ | 155 | (c) | $ | (25) | |||||||||
| Second Quarter 2020 | |||||||||||||||||
| Income Statement | United States | International | Total | ||||||||||||||
| Total revenues and non-operating income | |||||||||||||||||
| Sales and other operating revenues | $ | 660 | $ | 173 | $ | 833 | |||||||||||
| Other, net | (4) | 3 | (1) | ||||||||||||||
| Total revenues and non-operating income | 656 | 176 | 832 | ||||||||||||||
| Costs and expenses | |||||||||||||||||
| Marketing, including purchased oil and gas (a) | 111 | (14) | 97 | ||||||||||||||
| Operating costs and expenses | 131 | 72 | 203 | ||||||||||||||
| Production and severance taxes | 15 | 1 | 16 | ||||||||||||||
| Midstream tariffs | 225 | — | 225 | ||||||||||||||
| Exploration expenses, including dry holes and lease impairment | 23 | 8 | 31 | ||||||||||||||
| General and administrative expenses | 42 | 8 | 50 | ||||||||||||||
| Depreciation, depletion and amortization | 373 | 97 | 470 | ||||||||||||||
| Total costs and expenses | 920 | 172 | 1,092 | ||||||||||||||
| Results of operations before income taxes | (264) | 4 | (260) | ||||||||||||||
| Provision (benefit) for income taxes | — | (11) | (11) | ||||||||||||||
| Net income (loss) attributable to Hess Corporation | $ | (264) | (d) | $ | 15 | (e) | $ | (249) | |||||||||
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $51 million (noncash premium amortization: $51 million; cash settlement: $0 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $13 million (noncash premium amortization: $13 million; cash settlement: $0 million).
(d)Includes after-tax gains from realized crude oil hedging activities of $192 million (noncash premium amortization: $43 million; cash settlement: $235 million).
(e)Includes after-tax gains from realized crude oil hedging activities of $36 million (noncash premium amortization: $6 million; cash settlement: $42 million).
16
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
| First Quarter 2021 | |||||||||||||||||
| Income Statement | United States | International | Total | ||||||||||||||
| Total revenues and non-operating income | |||||||||||||||||
| Sales and other operating revenues | $ | 1,398 | $ | 500 | $ | 1,898 | |||||||||||
| Other, net | 12 | 4 | 16 | ||||||||||||||
| Total revenues and non-operating income | 1,410 | 504 | 1,914 | ||||||||||||||
| Costs and expenses | |||||||||||||||||
| Marketing, including purchased oil and gas (a) | 520 | 22 | 542 | ||||||||||||||
| Operating costs and expenses | 135 | 73 | 208 | ||||||||||||||
| Production and severance taxes | 36 | 1 | 37 | ||||||||||||||
| Midstream tariffs | 262 | — | 262 | ||||||||||||||
| Exploration expenses, including dry holes and lease impairment | 30 | 3 | 33 | ||||||||||||||
| General and administrative expenses | 42 | 7 | 49 | ||||||||||||||
| Depreciation, depletion and amortization | 268 | 87 | 355 | ||||||||||||||
| Total costs and expenses | 1,293 | 193 | 1,486 | ||||||||||||||
| Results of operations before income taxes | 117 | 311 | 428 | ||||||||||||||
| Provision (benefit) for income taxes | — | 120 | 120 | ||||||||||||||
| Net income (loss) attributable to Hess Corporation | $ | 117 | (b) | $ | 191 | (c) | $ | 308 | |||||||||
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $39 million (noncash premium amortization: $39 million; cash settlement: $0 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $8 million (noncash premium amortization: $8 million; cash settlement: $0 million).
17
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
| Six Months Ended June 30, 2021 | |||||||||||||||||
| Income Statement | United States | International | Total | ||||||||||||||
| Total revenues and non-operating income | |||||||||||||||||
| Sales and other operating revenues | $ | 2,486 | $ | 991 | $ | 3,477 | |||||||||||
| Other, net | 23 | 7 | 30 | ||||||||||||||
| Total revenues and non-operating income | 2,509 | 998 | 3,507 | ||||||||||||||
| Costs and expenses | |||||||||||||||||
| Marketing, including purchased oil and gas (a) | 855 | 30 | 885 | ||||||||||||||
| Operating costs and expenses | 293 | 169 | 462 | ||||||||||||||
| Production and severance taxes | 78 | 3 | 81 | ||||||||||||||
| Midstream tariffs | 532 | — | 532 | ||||||||||||||
| Exploration expenses, including dry holes and lease impairment | 56 | 25 | 81 | ||||||||||||||
| General and administrative expenses | 83 | 15 | 98 | ||||||||||||||
| Depreciation, depletion and amortization | 528 | 171 | 699 | ||||||||||||||
| Impairment and other | 147 | — | 147 | ||||||||||||||
| Total costs and expenses | 2,572 | 413 | 2,985 | ||||||||||||||
| Results of operations before income taxes | (63) | 585 | 522 | ||||||||||||||
| Provision (benefit) for income taxes | — | 239 | 239 | ||||||||||||||
| Net income (loss) attributable to Hess Corporation | $ | (63) | (b) | $ | 346 | (c) | $ | 283 | |||||||||
| Six Months Ended June 30, 2020 | |||||||||||||||||
| Income Statement | United States | International | Total | ||||||||||||||
| Total revenues and non-operating income | |||||||||||||||||
| Sales and other operating revenues | $ | 1,782 | $ | 405 | $ | 2,187 | |||||||||||
| Other, net | — | 7 | 7 | ||||||||||||||
| Total revenues and non-operating income | 1,782 | 412 | 2,194 | ||||||||||||||
| Costs and expenses | |||||||||||||||||
| Marketing, including purchased oil and gas (a) | 530 | (8) | 522 | ||||||||||||||
| Operating costs and expenses | 268 | 149 | 417 | ||||||||||||||
| Production and severance taxes | 55 | 3 | 58 | ||||||||||||||
| Midstream tariffs | 466 | — | 466 | ||||||||||||||
| Exploration expenses, including dry holes and lease impairment | 179 | 41 | 220 | ||||||||||||||
| General and administrative expenses | 87 | 15 | 102 | ||||||||||||||
| Depreciation, depletion and amortization | 767 | 224 | 991 | ||||||||||||||
| Impairment and other | 697 | 1,429 | 2,126 | ||||||||||||||
| Total costs and expenses | 3,049 | 1,853 | 4,902 | ||||||||||||||
| Results of operations before income taxes | (1,267) | (1,441) | (2,708) | ||||||||||||||
| Provision (benefit) for income taxes | — | (88) | (88) | ||||||||||||||
| Net income (loss) attributable to Hess Corporation | $ | (1,267) | (d) | $ | (1,353) | (e) | $ | (2,620) | |||||||||
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $90 million (noncash premium amortization: $90 million; cash settlement: $0 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $21 million (noncash premium amortization: $21 million; cash settlement: $0 million).
(d)Includes after-tax gains from realized crude oil hedging activities of $245 million (noncash premium amortization: $106 million; cash settlement: $351 million).
(e)Includes after-tax gains from realized crude oil hedging activities of $47 million (noncash premium amortization: $13 million; cash settlement: $60 million).
18
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
| Second Quarter 2021 | Second Quarter 2020 | First Quarter 2021 | |||||||||||||||
| Net Production Per Day (in thousands) | |||||||||||||||||
| Crude oil - barrels | |||||||||||||||||
| United States | |||||||||||||||||
| North Dakota | 79 | 108 | 84 | ||||||||||||||
| Offshore (a) | 33 | 45 | 36 | ||||||||||||||
| Total United States | 112 | 153 | 120 | ||||||||||||||
| Guyana | 26 | 22 | 31 | ||||||||||||||
| Malaysia and JDA | 4 | 3 | 4 | ||||||||||||||
| Other (b) | 24 | 5 | 22 | ||||||||||||||
| Total | 166 | 183 | 177 | ||||||||||||||
| Natural gas liquids - barrels | |||||||||||||||||
| United States | |||||||||||||||||
| North Dakota | 52 | 57 | 49 | ||||||||||||||
| Offshore (a) | 5 | 6 | 4 | ||||||||||||||
| Total United States | 57 | 63 | 53 | ||||||||||||||
| Natural gas - mcf | |||||||||||||||||
| United States | |||||||||||||||||
| North Dakota | 167 | 177 | 151 | ||||||||||||||
| Offshore | 85 | 101 | 95 | ||||||||||||||
| Total United States | 252 | 278 | 246 | ||||||||||||||
| Malaysia and JDA | 371 | 245 | 360 | ||||||||||||||
| Other (b) | 9 | 5 | 11 | ||||||||||||||
| Total | 632 | 528 | 617 | ||||||||||||||
| Barrels of oil equivalent | 328 | 334 | 333 | ||||||||||||||
(a)The Corporation sold its working interest in the Shenzi Field in the deepwater Gulf of Mexico in the fourth quarter of 2020. Net production from the Shenzi Field was 12,000 boepd in the second quarter of 2020.
(b)Other includes production from Denmark and Libya. Libya net production was 21,000 boepd in the second quarter of 2021, 0 boepd in the second quarter of 2020 and 18,000 boepd in the first quarter of 2021. Denmark net production was 4,000 boepd in the second quarter of 2021, 6,000 boepd in the second quarter of 2020 and 6,000 boepd in the first quarter of 2021.
19
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
| Six Months Ended June 30, | |||||||||||
| 2021 | 2020 | ||||||||||
| Net Production Per Day (in thousands) | |||||||||||
| Crude oil - barrels | |||||||||||
| United States | |||||||||||
| North Dakota | 82 | 111 | |||||||||
| Offshore (a) | 34 | 47 | |||||||||
| Total United States | 116 | 158 | |||||||||
| Guyana | 29 | 18 | |||||||||
| Malaysia and JDA | 4 | 3 | |||||||||
| Other (b) | 23 | 8 | |||||||||
| Total | 172 | 187 | |||||||||
| Natural gas liquids - barrels | |||||||||||
| United States | |||||||||||
| North Dakota | 50 | 53 | |||||||||
| Offshore (a) | 5 | 6 | |||||||||
| Total United States | 55 | 59 | |||||||||
| Natural gas - mcf | |||||||||||
| United States | |||||||||||
| North Dakota | 159 | 170 | |||||||||
| Offshore | 90 | 107 | |||||||||
| Total United States | 249 | 277 | |||||||||
| Malaysia and JDA | 366 | 285 | |||||||||
| Other (b) | 10 | 9 | |||||||||
| Total | 625 | 571 | |||||||||
| Barrels of oil equivalent | 331 | 341 | |||||||||
(a)The Corporation sold its working interest in the Shenzi Field in the deepwater Gulf of Mexico in the fourth quarter of 2020. Net production from the Shenzi Field was 12,000 boepd in the first six months of 2020.
(b)Other includes production from Denmark and Libya. Libya net production was 20,000 boepd in the first six months of 2021 and 3,000 boepd in the first six months of 2020. Denmark net production was 5,000 boepd in the first six months of 2021 and 7,000 boepd in the first six months of 2020.
20
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
| Second Quarter 2021 | Second Quarter 2020 | First Quarter 2021 | |||||||||||||||
| Sales Volumes Per Day (in thousands) (a) | |||||||||||||||||
| Crude oil – barrels | 157 | 140 | 227 | ||||||||||||||
| Natural gas liquids – barrels | 57 | 63 | 53 | ||||||||||||||
| Natural gas – mcf | 632 | 528 | 617 | ||||||||||||||
| Barrels of oil equivalent | 319 | 291 | 383 | ||||||||||||||
| Sales Volumes (in thousands) (a) | |||||||||||||||||
| Crude oil – barrels (b) | 14,293 | 12,764 | 20,395 | ||||||||||||||
| Natural gas liquids – barrels | 5,142 | 5,690 | 4,802 | ||||||||||||||
| Natural gas – mcf | 57,557 | 48,081 | 55,513 | ||||||||||||||
| Barrels of oil equivalent | 29,028 | 26,468 | 34,449 | ||||||||||||||
| Six Months Ended June 30, | |||||||||||
| 2021 | 2020 | ||||||||||
| Sales Volumes Per Day (in thousands) (a) | |||||||||||
| Crude oil – barrels | 192 | 158 | |||||||||
| Natural gas liquids – barrels | 55 | 59 | |||||||||
| Natural gas – mcf | 625 | 571 | |||||||||
| Barrels of oil equivalent | 351 | 312 | |||||||||
| Sales Volumes (in thousands) (a) | |||||||||||
| Crude oil – barrels (b) | 34,688 | 28,816 | |||||||||
| Natural gas liquids – barrels | 9,944 | 10,787 | |||||||||
| Natural gas – mcf | 113,070 | 103,701 | |||||||||
| Barrels of oil equivalent | 63,477 | 56,887 | |||||||||
(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 first quarter of 2021 include 4.2 million barrels of crude oil that were stored on VLCCs at December 31, 2020. During the second quarter of 2020, 3.7 million barrels of crude oil were loaded on VLCCs for sale at a later date.
21
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
| Second Quarter 2021 | Second Quarter 2020 | First Quarter 2021 | |||||||||||||||
| Average Selling Prices | |||||||||||||||||
| Crude oil - per barrel (including hedging) | |||||||||||||||||
| United States | |||||||||||||||||
| North Dakota (a) | $ | 56.75 | $ | 38.23 | $ | 44.97 | |||||||||||
| Offshore | 59.33 | 39.10 | 53.03 | ||||||||||||||
| Total United States | 57.52 | 38.57 | 46.73 | ||||||||||||||
| Guyana | 65.63 | 35.28 | 60.37 | ||||||||||||||
| Malaysia and JDA | 65.88 | 15.62 | 63.27 | ||||||||||||||
| Other (b) | 64.16 | 50.29 | 57.66 | ||||||||||||||
| Worldwide | 59.79 | 38.46 | 50.02 | ||||||||||||||
| Crude oil - per barrel (excluding hedging) | |||||||||||||||||
| United States | |||||||||||||||||
| North Dakota (a) | $ | 61.88 | $ | 18.93 | $ | 47.62 | |||||||||||
| Offshore | 64.42 | 22.78 | 56.53 | ||||||||||||||
| Total United States | 62.63 | 20.48 | 49.56 | ||||||||||||||
| Guyana | 68.44 | 19.23 | 61.85 | ||||||||||||||
| Malaysia and JDA | 65.88 | 15.62 | 63.27 | ||||||||||||||
| Other (b) | 68.08 | 29.16 | 59.61 | ||||||||||||||
| Worldwide | 64.27 | 20.63 | 52.52 | ||||||||||||||
| Natural gas liquids - per barrel | |||||||||||||||||
| United States | |||||||||||||||||
| North Dakota | $ | 23.23 | $ | 7.59 | $ | 30.32 | |||||||||||
| Offshore | 21.84 | 4.71 | 21.25 | ||||||||||||||
| Worldwide | 23.12 | 7.32 | 29.49 | ||||||||||||||
| Natural gas - per mcf | |||||||||||||||||
| United States | |||||||||||||||||
| North Dakota | $ | 2.40 | $ | 0.94 | $ | 5.93 | |||||||||||
| Offshore | 2.35 | 1.14 | 2.95 | ||||||||||||||
| Total United States | 2.38 | 1.01 | 4.78 | ||||||||||||||
| Malaysia and JDA | 5.22 | 3.97 | 5.04 | ||||||||||||||
| Other (b) | 2.96 | 3.51 | 2.69 | ||||||||||||||
| Worldwide | 4.05 | 2.41 | 4.90 | ||||||||||||||
(a)Excluding the two VLCC cargo sales in the first quarter totaling 4.2 million barrels, the first quarter 2021 North Dakota crude oil price excluding hedging was $53.30 per barrel and $49.73 per barrel including hedging.
(b)Other includes prices related to production from Denmark and Libya.
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
| Six Months Ended June 30, | |||||||||||
| 2021 | 2020 | ||||||||||
| Average Selling Prices | |||||||||||
| Crude oil - per barrel (including hedging) | |||||||||||
| United States | |||||||||||
| North Dakota (a) | $ | 49.35 | $ | 42.26 | |||||||
| Offshore | 55.99 | 44.49 | |||||||||
| Total United States | 51.00 | 43.03 | |||||||||
| Guyana | 62.48 | 38.41 | |||||||||
| Malaysia and JDA | 64.69 | 26.73 | |||||||||
| Other (b) | 60.94 | 53.49 | |||||||||
| Worldwide | 54.04 | 42.98 | |||||||||
| Crude oil - per barrel (excluding hedging) | |||||||||||
| United States | |||||||||||
| North Dakota (a) | $ | 52.91 | $ | 32.52 | |||||||
| Offshore | 60.24 | 34.61 | |||||||||
| Total United States | 54.73 | 33.23 | |||||||||
| Guyana | 64.48 | 26.11 | |||||||||
| Malaysia and JDA | 64.69 | 26.73 | |||||||||
| Other (b) | 63.88 | 41.19 | |||||||||
| Worldwide | 57.36 | 32.90 | |||||||||
| Natural gas liquids - per barrel | |||||||||||
| United States | |||||||||||
| North Dakota | $ | 26.65 | $ | 8.39 | |||||||
| Offshore | 21.55 | 7.23 | |||||||||
| Worldwide | 26.20 | 8.27 | |||||||||
| Natural gas - per mcf | |||||||||||
| United States | |||||||||||
| North Dakota | $ | 4.06 | $ | 1.10 | |||||||
| Offshore | 2.66 | 1.23 | |||||||||
| Total United States | 3.56 | 1.15 | |||||||||
| Malaysia and JDA | 5.13 | 4.39 | |||||||||
| Other (b) | 2.82 | 4.03 | |||||||||
| Worldwide | 4.47 | 2.81 | |||||||||
(a)Excluding the two VLCC cargo sales in the first quarter totaling 4.2 million barrels, the North Dakota crude oil price for the first six months of 2021 excluding hedging was $57.39 per barrel and $53.08 per barrel including hedging.
(b)Other includes prices related to production from Denmark and Libya.
The following is a summary of the Corporation’s outstanding crude oil put options for the remainder of 2021:
| WTI | Brent | ||||||||||
| Barrels of oil per day | 120,000 | 30,000 | |||||||||
| Average monthly floor price | $55 | $60 | |||||||||
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