hes-20220727
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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 27, 2022
HESS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
DENo.1-1204No.13-4921002
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
1185 Avenue of the Americas
New York, New York   10036
(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)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common StockHESNew York Stock Exchange
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 27, 2022, Hess Corporation issued a news release reporting estimated results for the second quarter of 2022.  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
104Cover 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 27, 2022
HESS CORPORATION
By:/s/John P. Rielly
Name:John P. Rielly
Title:Executive Vice President and
Chief Financial Officer

Document
Exhibit 99.1


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HESS CORPORATION
https://cdn.kscope.io/3dd76a3196e52ddd439bc6c70a52127e-newsreleasea01.jpg
HESS REPORTS ESTIMATED RESULTS FOR THE SECOND QUARTER OF 2022
Key Developments:
Commenced common stock repurchases in the quarter of approximately 1.8 million shares for $190 million; total cash returned to shareholders in the quarter amounted to $306 million including dividends
Announced two new discoveries at Seabob and Kiru-Kiru on the Stabroek Block, offshore Guyana; adds to the previous gross discovered recoverable resource estimate for the Block of approximately 11 billion barrels of oil equivalent (boe)
The Liza Unity and Liza Destiny floating production, storage and offloading vessels (FPSOs) on the Stabroek Block have reached their combined production capacity of more than 360,000 gross barrels of oil per day (bopd)
Second Quarter Financial and Operational Highlights:
Net income was $667 million, or $2.15 per common share, compared with a net loss of $73 million, or $0.24 per common share, in the second quarter of 2021; 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 303,000 barrels of oil equivalent per day (boepd); Bakken net production was 140,000 boepd
E&P capital and exploratory expenditures were $622 million compared with $429 million in the prior-year quarter
Cash and cash equivalents, excluding Midstream, were $2.16 billion at June 30, 2022
2022 Updated Guidance:
Net production, excluding Libya, is forecast to be in the range of 330,000 boepd to 335,000 boepd in the third quarter, in the range of 365,000 boepd to 370,000 boepd in the fourth quarter, and approximately 320,000 boepd for the full year
Bakken net production is forecast to be in the range of 155,000 boepd to 160,000 boepd in the third quarter, in the range of 160,000 boepd to 165,000 boepd in the fourth quarter, and in the range of 150,000 boepd to 155,000 boepd for the full year
Full year E&P capital and exploratory expenditures are expected to be approximately $2.7 billion; a fourth rig was added in the Bakken in July
NEW YORK, July 27, 2022 — Hess Corporation (NYSE: HES) today reported net income of $667 million, or $2.15 per common share, in the second quarter of 2022, compared with a net loss of $73 million, or $0.24 per common share, in the second quarter of 2021. On an adjusted basis, the
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 and 8.
1


Corporation had net income of $74 million, or $0.24 per common share, in the second quarter of 2021. The improvement in after-tax earnings compared with the prior-year quarter adjusted results was primarily due to higher realized selling prices in the second quarter of 2022.
“In a world that needs reliable, low cost oil and gas resources now and for decades to come, Hess offers a highly differentiated value proposition,” CEO John Hess said. “As our portfolio becomes increasingly free cash flow positive, we will continue both to invest to grow our company’s intrinsic value and to return capital to our shareholders through further dividend increases and 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)
2022202120222021
(In millions, except per share amounts)
Net Income (Loss) Attributable to Hess Corporation
Exploration and Production$723 $(25)$1,183 $283 
Midstream65 76 137 151 
Corporate, Interest and Other(121)(124)(236)(255)
Net income (loss) attributable to Hess Corporation$667 $(73)$1,084 $179 
Net income (loss) per common share (diluted)$2.15 $(0.24)$3.49 $0.58 
Adjusted Net Income (Loss) Attributable to Hess Corporation
Exploration and Production$723 $122 $1,183 $430 
Midstream65 76 137 151 
Corporate, Interest and Other(121)(124)(249)(255)
Adjusted net income (loss) attributable to Hess Corporation$667 $74 $1,071 $326 
Adjusted net income (loss) per common share (diluted)$2.15 $0.24 $3.45 $1.06 
Weighted average number of shares (diluted)310.9 307.5 310.6 308.7 
Exploration and Production:
E&P net income was $723 million in the second quarter of 2022, compared with a net loss of $25 million in the second quarter of 2021. On an adjusted basis, E&P second quarter 2021 net income was $122 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $99.16 per barrel in the second quarter of 2022, compared with $59.79 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the second quarter of 2022 was $40.92 per barrel, compared with $23.12 per barrel in the prior-year
2


quarter, while the average realized natural gas selling price was $6.45 per mcf, compared with $4.05 per mcf in the second quarter of 2021.
Net production, excluding Libya, was 303,000 boepd in the second quarter of 2022, compared with 307,000 boepd in the second quarter of 2021, or 302,000 boepd proforma for assets sold.
Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $13.90 per boe (excluding Libya: $14.56 per boe) in the second quarter of 2022, compared with $11.63 per boe (excluding Libya: $12.16 per boe) in the prior-year quarter. The increase in cash operating costs in the second quarter of this year, compared with the second quarter of last year, reflects higher production and severance taxes in North Dakota due to higher realized selling prices, and higher workover activity in North Dakota and the Gulf of Mexico.
Operational Highlights for the Second Quarter of 2022:
Bakken (Onshore U.S.):  Net production from the Bakken was 140,000 boepd, which remained within our guidance range for the second quarter, reflecting unplanned production shut-ins caused by severe weather in April and May. Net production in the second quarter of 2021 was 159,000 boepd. During the second quarter of 2022, the Corporation operated three rigs and drilled 20 wells, completed 19 wells, and brought 19 new wells online. In July, the Corporation added a fourth drilling rig.
Gulf of Mexico (Offshore U.S.):  Net production from the Gulf of Mexico was 29,000 boepd, compared with 52,000 boepd in the prior-year quarter, primarily due to field decline and unplanned downtime at the Stampede and Penn State fields.
Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production totaled 67,000 bopd in the second quarter of 2022 compared with 26,000 bopd in the prior-year quarter. Production from the Liza Destiny FPSO reached its new production capacity of more than 140,000 gross bopd in the second quarter of 2022 following the completion of production optimization work initiated in March. Net production from the Liza Unity FPSO, which commenced in February, was 35,000 bopd in the second quarter of 2022, and reached its production capacity of 220,000 gross bopd in July. In the second quarter, we sold 6 one-million barrel cargos of crude oil from Guyana compared with 2 one-million barrel cargos in the prior year quarter.
Net production guidance for Guyana for the full year 2022 is expected to be approximately 75,000 bopd, which includes approximately 6,000 bopd of tax barrels. Net production guidance for the third quarter of 2022 is expected to be in the range of 90,000 bopd to 95,000 bopd, which includes approximately 7,000 bopd of tax barrels. There were no tax barrels in the first or second quarters.
3


The third development, Payara, will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd, with first production expected in late 2023. The fourth development, Yellowtail, was sanctioned in April and will utilize the ONE GUYANA FPSO with an expected capacity of approximately 250,000 gross bopd, with first production expected in 2025.
Two new discoveries were announced at Seabob and Kiru-Kiru, which add to the previously announced gross discovered recoverable resource estimate for the Stabroek Block of approximately 11 billion boe. The Seabob-1 well encountered 131 feet of high quality oil bearing sandstone reservoirs. The well was drilled in 4,660 feet of water and is located approximately 12 miles southeast of the Yellowtail Field. Drilling operations at Kiru-Kiru are ongoing. The Kiru-Kiru-1 well has thus far encountered 98 feet of high quality hydrocarbon bearing sandstone reservoirs. The well is being drilled in 5,760 feet of water and is located approximately 3 miles southeast of the Cataback-1 discovery.
Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 67,000 boepd in the second quarter of 2022 compared with 66,000 boepd in the prior-year quarter.
Midstream:
The Midstream segment had net income of $65 million in the second quarter of 2022, compared with net income of $76 million in the prior-year quarter.
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and Other was $121 million in the second quarter of 2022, compared with $124 million in the second quarter of 2021.
Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures were $622 million in the second quarter of 2022 compared with $429 million in the prior-year quarter, primarily due to higher drilling and development activities in the Bakken, Gulf of Mexico, Guyana, and Malaysia and JDA. Midstream capital expenditures were $72 million in the second quarter of 2022, up from $47 million in the prior-year quarter.
Liquidity:
Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.16 billion and debt and finance lease obligations totaling $5.61 billion at June 30, 2022. The Midstream segment had cash and cash equivalents of $3 million and total debt of $2.9 billion at June 30, 2022. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 37.9% at June 30, 2022 and 42.3% at December 31, 2021.
4


Net cash provided by operating activities was $1,509 million in the second quarter of 2022, up from $785 million in the second quarter of 2021. Net cash provided by operating activities before changes in operating assets and liabilities2 was $1,463 million in the second quarter of 2022, compared with $659 million in the prior-year quarter primarily due to higher realized selling prices. Changes in operating assets and liabilities increased cash flow from operating activities by $46 million during the second quarter of 2022 and increased cash flow from operating activities by $126 million during the prior-year quarter.
The Corporation commenced common stock repurchases in the second quarter with the purchase of approximately 1.8 million shares for $190 million under the Corporation’s existing $650 million board authorized stock repurchase program. The Corporation intends to utilize the remaining amount under the stock repurchase program by the end of this year. Total cash returned to shareholders in the second quarter amounted to $306 million including dividends.
In April 2022, the Corporation received net proceeds of $346 million from the public offering of approximately 5.1 million Hess Midstream LP (HESM) Class A shares held by the Corporation and the repurchase by Hess Midstream Operations LP (HESM Opco) of approximately 6.8 million HESM Opco Class B units held by the Corporation. The repurchase of approximately 6.8 million HESM Opco Class B units was financed by the issuance of $400 million of 5.500% senior unsecured notes due 2030 by HESM Opco. After giving effect to the above transactions, the Corporation owns approximately 41% of HESM on a consolidated basis.
In July 2022, the Corporation replaced its $3.5 billion revolving credit facility expiring in May 2024 with a new $3.25 billion revolving credit facility maturing in July 2027. In July 2022, HESM Opco extended the maturity of its $1.4 billion credit facilities, consisting of a $1.0 billion revolving credit facility and a fully drawn $400 million term loan, through July 2027. Borrowings under both revolving credit facilities, including the fully drawn five-year term loan, will bear interest based on the Secured Overnight Financing Rate plus an applicable margin.






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.
5


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)
2022202120222021
(In millions)
Exploration and Production$— $(147)$— $(147)
Midstream— — — — 
Corporate, Interest and Other— — 13 — 
Total items affecting comparability of earnings between periods$— $(147)$13 $(147)

Second Quarter 2021: E&P results included a charge of $147 million ($147 million after income taxes) in connection with abandonment obligations in the West Delta 79/86 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 (Fieldwood) as part of Fieldwood's approved bankruptcy plan.
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)
 2022202120222021
 (In millions)
Net income (loss) attributable to Hess Corporation$667 $(73)$1,084 $179 
Less: Total items affecting comparability of earnings between periods— (147)13 (147)
Adjusted net income (loss) attributable to Hess Corporation$667 $74 $1,071 $326 
6


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)
2022202120222021
(In millions)
Net cash provided by (used in) operating activities before changes in operating assets and liabilities$1,463 $659 $2,415 $1,474 
Changes in operating assets and liabilities46 126 (1,062)(98)
Net cash provided by (used in) operating activities$1,509 $785 $1,353 $1,376 
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; 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 COVID-19; reduced demand for our products, including due to COVID-19, perceptions regarding the oil and gas industry, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring, fracking bans as well as restrictions on oil and gas leases; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, health measures related to COVID-19, 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 or negative outcomes within commodity and financial markets; liability resulting from environmental obligations and litigation, including heightened risks associated with being a general partner of Hess Midstream LP; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
7


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
8


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Second
Quarter
2022
Second
Quarter
2021
First
Quarter
2022
Income Statement
Revenues and non-operating income
Sales and other operating revenues$2,955 $1,579 $2,313 
Gains (losses) on asset sales, net— 22 
Other, net30 19 36 
Total revenues and non-operating income2,988 1,598 2,371 
Costs and expenses
Marketing, including purchased oil and gas843 322 682 
Operating costs and expenses356 315 313 
Production and severance taxes67 44 61 
Exploration expenses, including dry holes and lease impairment33 48 43 
General and administrative expenses95 84 110 
Interest expense121 118 123 
Depreciation, depletion and amortization391 385 337 
Impairment and other— 147 — 
Total costs and expenses1,906 1,463 1,669 
Income (loss) before income taxes1,082 135 702 
Provision (benefit) for income taxes328 122 197 
Net income (loss)754 13 505 
Less: Net income (loss) attributable to noncontrolling interests87 86 88 
Net income (loss) attributable to Hess Corporation$667 $(73)$417 

9


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Six Months Ended
 June 30,
20222021
Income Statement
Revenues and non-operating income
Sales and other operating revenues$5,268 $3,477 
Gains (losses) on asset sales, net25 — 
Other, net66 40 
Total revenues and non-operating income5,359 3,517 
Costs and expenses
Marketing, including purchased oil and gas1,525 840 
Operating costs and expenses669 580 
Production and severance taxes128 81 
Exploration expenses, including dry holes and lease impairment76 81 
General and administrative expenses205 178 
Interest expense244 235 
Depreciation, depletion and amortization728 781 
Impairment and other— 147 
Total costs and expenses3,575 2,923 
Income (loss) before income taxes1,784 594 
Provision (benefit) for income taxes525 245 
Net income (loss)1,259 349 
Less: Net income (loss) attributable to noncontrolling interests175 170 
Net income (loss) attributable to Hess Corporation$1,084 $179 

10


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
June 30,
2022
December 31,
2021
Balance Sheet Information
Assets
Cash and cash equivalents$2,159 $2,713 
Other current assets1,810 1,633 
Property, plant and equipment – net14,818 14,182 
Operating lease right-of-use assets – net446 352 
Finance lease right-of-use assets – net136 144 
Other long-term assets1,811 1,491 
Total assets$21,180 $20,515 
Liabilities and equity
Current maturities of long-term debt$— $517 
Current portion of operating and finance lease obligations114 89 
Other current liabilities2,241 2,458 
Long-term debt8,332 7,941 
Long-term operating lease obligations457 394 
Long-term finance lease obligations190 200 
Other long-term liabilities2,088 1,890 
Total equity excluding other comprehensive income (loss)7,621 6,706 
Accumulated other comprehensive income (loss)(485)(406)
Noncontrolling interests622 726 
Total liabilities and equity$21,180 $20,515 

11


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
June 30,
2022
December 31,
2021
Total Debt
Hess Corporation$5,395 $5,894 
Midstream (a)2,937 2,564 
Hess Consolidated$8,332 $8,458 
(a) Midstream debt is non-recourse to Hess Corporation.
June 30,
2022
December 31,
2021
Debt to Capitalization Ratio (a)
Hess Consolidated52.4 %55.3 %
Hess Corporation as defined in debt covenants37.9 %42.3 %
(a)Includes finance lease obligations.
Three Months Ended
 June 30,
Six Months Ended
June 30,
2022202120222021
Interest Expense
Gross interest expense – Hess Corporation$86 $95 $178 $189 
Less: Capitalized interest – Hess Corporation(3)— (3)— 
Interest expense – Hess Corporation83 95 175 189 
Interest expense – Midstream (a)38 23 69 46 
Interest expense – Hess Consolidated$121 $118 $244 $235 
(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
2022
Second
Quarter
2021
First
Quarter
2022
Cash Flow Information
Cash Flows from Operating Activities
Net income (loss)$754 $13 $505 
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
(Gains) losses on asset sales, net(3)— (22)
Depreciation, depletion and amortization391 385 337 
Impairment and other— 147 — 
Exploratory dry hole costs— — 
Exploration lease and other impairment
Pension settlement loss— 
Stock compensation expense16 19 33 
Noncash (gains) losses on commodity derivatives, net163 64 55 
Provision (benefit) for deferred income taxes and other tax accruals136 13 38 
Net cash provided by (used in) operating activities before changes in operating assets and liabilities1,463 659 952 
Changes in operating assets and liabilities46 126 (1,108)
Net cash provided by (used in) operating activities1,509 785 (156)
Cash Flows from Investing Activities   
Additions to property, plant and equipment - E&P(607)(329)(491)
Additions to property, plant and equipment - Midstream(56)(26)(55)
Proceeds from asset sales, net of cash sold297 24 
Other, net— (2)— 
Net cash provided by (used in) investing activities(659)(60)(522)
Cash Flows from Financing Activities   
Net borrowings (repayments) of debt with maturities of 90 days or less(14)(65)
Debt with maturities of greater than 90 days:
Borrowings400 — — 
Repayments(5)(2)(505)
Proceeds from sale of Class A shares of Hess Midstream LP146 — — 
Employee stock options exercised63 33 
Payments on finance lease obligations(2)(2)(2)
Common stock acquired and retired(190)— — 
Cash dividends paid(116)(77)(119)
Noncontrolling interests, net(277)(70)(74)
Other, net(10)(8)
Net cash provided by (used in) financing activities(61)(161)(665)
Net Increase (Decrease) in Cash and Cash Equivalents789 564 (1,343)
Cash and Cash Equivalents at Beginning of Period1,370 1,866 2,713 
Cash and Cash Equivalents at End of Period$2,159 $2,430 $1,370 
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred$(665)$(443)$(580)
Increase (decrease) in related liabilities88 34 
Additions to property, plant and equipment$(663)$(355)$(546)

13


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Six Months Ended
 June 30,
20222021
Cash Flow Information
Cash Flows from Operating Activities
Net income (loss)$1,259 $349 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
(Gains) losses on asset sales, net(25)— 
Depreciation, depletion and amortization728 781 
Impairment and other— 147 
Exploratory dry hole costs— 
Exploration lease and other impairment10 10 
Pension settlement loss
Stock compensation expense49 44 
Noncash (gains) losses on commodity derivatives, net218 88 
Provision (benefit) for deferred income taxes and other tax accruals174 42 
Net cash provided by (used in) operating activities before changes in operating assets and liabilities2,415 1,474 
Changes in operating assets and liabilities(1,062)(98)
Net cash provided by (used in) operating activities1,353 1,376 
Cash Flows from Investing Activities  
Additions to property, plant and equipment - E&P(1,098)(687)
Additions to property, plant and equipment - Midstream(111)(53)
Proceeds from asset sales, net of cash sold28 297 
Other, net— (2)
Net cash provided by (used in) investing activities(1,181)(445)
Cash Flows from Financing Activities  
Net borrowings (repayments) of debt with maturities of 90 days or less(13)(75)
Debt with maturities of greater than 90 days:
Borrowings400 — 
Repayments(510)(5)
Proceeds from sale of Class A shares of Hess Midstream LP146 70 
Employee stock options exercised40 75 
Payments on finance lease obligations(4)(4)
Common stock acquired and retired(190)— 
Cash dividends paid(235)(157)
Noncontrolling interests, net(351)(137)
Other, net(9)(7)
Net cash provided by (used in) financing activities(726)(240)
Net Increase (Decrease) in Cash and Cash Equivalents(554)691 
Cash and Cash Equivalents at Beginning of Period2,713 1,739 
Cash and Cash Equivalents at End of Period$2,159 $2,430 
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred$(1,245)$(746)
Increase (decrease) in related liabilities36 
Additions to property, plant and equipment$(1,209)$(740)

14


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Second
Quarter
2022
Second
Quarter
2021
First
Quarter
2022
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota$188 $112 $135 
Offshore and Other72 25 56 
Total United States260 137 191 
Guyana286 250 319 
Malaysia and JDA66 36 59 
Other10 11 
 E&P Capital and exploratory expenditures$622 $429 $580 
Total exploration expenses charged to income included above$29 $33 $37 
Midstream Capital expenditures$72 $47 $37 

Six Months Ended
 June 30,
20222021
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota$323 $200 
Offshore and Other128 56 
Total United States451 256 
Guyana605 422 
Malaysia and JDA125 49 
Other21 11 
 E&P Capital and exploratory expenditures$1,202 $738 
Total exploration expenses charged to income included above$66 $62 
Midstream Capital expenditures$109 $70 

15


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
Second Quarter 2022
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$1,860 $1,095  $2,955 
Other, net25  26 
Total revenues and non-operating income1,885  1,096  2,981 
Costs and expenses     
Marketing, including purchased oil and gas (a)827 31  858 
Operating costs and expenses175 116  291 
Production and severance taxes65  67 
Midstream tariffs296 —  296 
Exploration expenses, including dry holes and lease impairment24  33 
General and administrative expenses40  47 
Depreciation, depletion and amortization192 153  345 
Total costs and expenses1,619  318  1,937 
Results of operations before income taxes266  778  1,044 
Provision (benefit) for income taxes— 321  321 
Net income (loss) attributable to Hess Corporation$266 (b)$457 (c)$723 
Second Quarter 2021
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income     
Sales and other operating revenues$1,088 $491  $1,579 
Other, net11  14 
Total revenues and non-operating income1,099  494  1,593 
Costs and expenses     
Marketing, including purchased oil and gas (a)335  343 
Operating costs and expenses158 96  254 
Production and severance taxes42  44 
Midstream tariffs270 —  270 
Exploration expenses, including dry holes and lease impairment26 22  48 
General and administrative expenses41  49 
Depreciation, depletion and amortization260 84  344 
Impairment and other147 — 147 
Total costs and expenses1,279  220  1,499 
Results of operations before income taxes(180) 274  94 
Provision (benefit) for income taxes— 119 119 
Net income (loss) attributable to Hess Corporation$(180)(d)$155 (e)$(25)
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $99 million (noncash premium amortization: $99 million; cash settlement:  $0 million).  
(c)Includes after-tax losses from realized crude oil hedging activities of $64 million (noncash premium amortization: $64 million; cash settlement:  $0 million).
(d)Includes after-tax losses from realized crude oil hedging activities of $51 million (noncash premium amortization: $51 million; cash settlement: $0 million).
(e)Includes after-tax losses from realized crude oil hedging activities of $13 million (noncash premium amortization: $13 million; cash settlement: $0 million).
16


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 First Quarter 2022
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$1,704 $609 $2,313 
Other, net27 33 
Total revenues and non-operating income1,731  615 2,346 
Costs and expenses    
Marketing, including purchased oil and gas (a)701 703 
Operating costs and expenses144 107 251 
Production and severance taxes58 61 
Midstream tariffs287 — 287 
Exploration expenses, including dry holes and lease impairment32 11 43 
General and administrative expenses49 57 
Depreciation, depletion and amortization195 97 292 
Total costs and expenses1,466  228 1,694 
Results of operations before income taxes265  387 652 
Provision (benefit) for income taxes— 192 192 
Net income (loss) attributable to Hess Corporation$265 (b)$195 (c)$460 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $57 million (noncash premium amortization: $34 million; cash settlement: $23 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $35 million (noncash premium amortization: $21 million; cash settlement: $14 million).

17


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
Six Months Ended June 30, 2022
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$3,564 $1,704  $5,268 
Other, net52  59 
Total revenues and non-operating income3,616  1,711  5,327 
Costs and expenses     
Marketing, including purchased oil and gas (a)1,528 33  1,561 
Operating costs and expenses319 223  542 
Production and severance taxes123  128 
Midstream tariffs583 —  583 
Exploration expenses, including dry holes and lease impairment56 20  76 
General and administrative expenses89 15  104 
Depreciation, depletion and amortization387 250  637 
Total costs and expenses3,085  546  3,631 
Results of operations before income taxes531  1,165  1,696 
Provision (benefit) for income taxes— 513  513 
Net income (loss) attributable to Hess Corporation$531 (b)$652 (c)$1,183 
Six Months Ended June 30, 2021
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income     
Sales and other operating revenues$2,486 $991  $3,477 
Other, net23  30 
Total revenues and non-operating income2,509  998  3,507 
Costs and expenses     
Marketing, including purchased oil and gas (a)855 30  885 
Operating costs and expenses293 169  462 
Production and severance taxes78  81 
Midstream tariffs532 —  532 
Exploration expenses, including dry holes and lease impairment56 25  81 
General and administrative expenses83 15  98 
Depreciation, depletion and amortization528 171  699 
Impairment and other147 — 147 
Total costs and expenses2,572  413  2,985 
Results of operations before income taxes(63) 585  522 
Provision (benefit) for income taxes— 239  239 
Net income (loss) attributable to Hess Corporation$(63)(d)$346 (e)$283 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $156 million (noncash premium amortization: $133 million; cash settlement:  $23 million).  
(c)Includes after-tax losses from realized crude oil hedging activities of $99 million (noncash premium amortization: $85 million; cash settlement:  $14 million).
(d)Includes after-tax losses from realized crude oil hedging activities of $90 million (noncash premium amortization: $90 million; cash settlement:  $0 million).
(e)Includes after-tax losses from realized crude oil hedging activities of $21 million (noncash premium amortization: $21 million; cash settlement:  $0 million).


18


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Second
Quarter
2022
Second
Quarter
2021
First
Quarter
2022
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota68 79 77 
Offshore20 33 22 
Total United States88 112 99 
Guyana67 26 30 
Malaysia and JDA
Other (a)17 24 19 
Total176 166 151 
Natural gas liquids - barrels
United States
North Dakota47 52 49 
Offshore
Total United States49 57 50 
Natural gas - mcf
United States
North Dakota147 167 158 
Offshore41 85 43 
Total United States188 252 201 
Malaysia and JDA381 371 364 
Other (a)11 12 
Total580 632 577 
Barrels of oil equivalent322 328 297 
(a)Other includes production from Libya and the Corporation's former interests in Denmark, which were sold in the third quarter of 2021. Libya net production was 19,000 boepd in the second quarter of 2022, 21,000 boepd in the second quarter of 2021 and 21,000 boepd in the first quarter of 2022. Denmark net production was 4,000 boepd in the second quarter of 2021.


19


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Six Months Ended
 June 30,
20222021
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota73 82 
Offshore20 34 
Total United States93 116 
Guyana49 29 
Malaysia and JDA
Other (a)18 23 
Total163 172 
Natural gas liquids - barrels
United States
North Dakota48 50 
Offshore
Total United States50 55 
Natural gas - mcf
United States
North Dakota152 159 
Offshore41 90 
Total United States193 249 
Malaysia and JDA373 366 
Other (a)12 10 
Total578 625 
Barrels of oil equivalent309 331 
(a)Other includes production from Libya and the Corporation's former interests in Denmark, which were sold in the third quarter of 2021. Libya net production was 20,000 boepd in the first six months of 2022 and 20,000 boepd in the first six months of 2021. Denmark net production was 5,000 boepd in the first six months of 2021.

20


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Second
Quarter
2022
Second
Quarter
2021
First
Quarter
2022
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels173 157 140 
Natural gas liquids – barrels46 57 50 
Natural gas – mcf580 632 577 
Barrels of oil equivalent316 319 286 
Sales Volumes (in thousands) (a)
Crude oil – barrels15,763 14,293 12,580 
Natural gas liquids – barrels4,180 5,142 4,539 
Natural gas – mcf52,811 57,557 51,898 
Barrels of oil equivalent28,745 29,028 25,769 

Six Months Ended
 June 30,
20222021
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels157 192 
Natural gas liquids – barrels48 55 
Natural gas – mcf578 625 
Barrels of oil equivalent301 351 
Sales Volumes (in thousands) (a)
Crude oil – barrels (b)28,343 34,688 
Natural gas liquids – barrels8,719 9,944 
Natural gas – mcf104,709 113,070 
Barrels of oil equivalent54,514 63,477 
(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 six months of 2021 include 4.2 million barrels of crude oil that were stored on very large crude carriers (VLCC) at December 31, 2020 and sold in the first quarter of 2021.
21


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Second
Quarter
2022
Second
Quarter
2021
First
Quarter
2022
Average Selling Prices   
Crude oil - per barrel (including hedging)   
United States   
North Dakota$93.60 $56.75 $84.77 
Offshore95.22 59.33 85.17 
Total United States93.96 57.52 84.85 
Guyana104.19 65.63 90.90 
Malaysia and JDA106.21 65.88 89.27 
Other (a)105.21 64.16 90.91 
Worldwide99.16 59.79 86.75 
Crude oil - per barrel (excluding hedging)
United States
North Dakota$106.01 $61.88 $91.55 
Offshore107.58 64.42 91.52 
Total United States106.37 62.63 91.54 
Guyana112.57 68.44 99.76 
Malaysia and JDA106.21 65.88 89.27 
Other (a)114.93 68.08 101.04 
Worldwide109.51 64.27 94.04 
Natural gas liquids - per barrel
United States
North Dakota$40.96 $23.23 $39.88 
Offshore39.88 21.84 37.48 
Worldwide40.92 23.12 39.79 
Natural gas - per mcf
United States
North Dakota$6.89 $2.40 $4.32 
Offshore7.63 2.35 4.46 
Total United States7.06 2.38 4.35 
Malaysia and JDA6.18 5.22 5.81 
Other (a)5.36 2.96 4.79 
Worldwide6.45 4.05 5.28 
(a)Other includes prices related to production from Libya and the Corporation's former interests in Denmark, which were sold in the third quarter of 2021.

22


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Six Months Ended
 June 30,
20222021
Average Selling Prices  
Crude oil - per barrel (including hedging)  
United States  
North Dakota (a)$88.98 $49.35 
Offshore90.21 55.99 
Total United States89.25 51.00 
Guyana100.55 62.48 
Malaysia and JDA97.73 64.69 
Other (b)98.14 60.94 
Worldwide93.65 54.04 
Crude oil - per barrel (excluding hedging)
United States
North Dakota (a)$98.46 $52.91 
Offshore99.58 60.24 
Total United States98.70 54.73 
Guyana109.06 64.48 
Malaysia and JDA97.73 64.69 
Other (b)108.06 63.88 
Worldwide102.65 57.36 
Natural gas liquids - per barrel
United States
North Dakota$40.40 $26.65 
Offshore38.68 21.55 
Worldwide40.33 26.20 
Natural gas - per mcf
United States
North Dakota$5.57 $4.06 
Offshore6.02 2.66 
Total United States5.67 3.56 
Malaysia and JDA6.00 5.13 
Other (b)5.07 2.82 
Worldwide5.87 4.47 
(a)Excluding the two VLCC cargo sales totaling 4.2 million barrels sold in the first quarter of 2021, the North Dakota crude oil price excluding hedging was $57.39 per barrel and $53.08 per barrel including hedging.
(b)Other includes prices related to production from Libya and the Corporation's former interests in Denmark, which were sold in the third quarter of 2021.

The following is a summary of the Corporation’s outstanding commodity hedging program for the remainder of calendar 2022:
 WTIBrent
Barrels of oil per day90,00060,000
Average monthly floor price$60$65
23