hes-20230125
0000004447false00000044472023-01-252023-01-25

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):  January 25, 2023
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 January 25, 2023, Hess Corporation issued a news release reporting estimated results for the fourth 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:  January 25, 2023
HESS CORPORATION
By:/s/John P. Rielly
Name:John P. Rielly
Title:Executive Vice President and
Chief Financial Officer

Document
Exhibit 99.1


https://cdn.kscope.io/ec25d5e6feb591df5ef76c8e1e3c1df5-hesslogoa01a.jpg
HESS CORPORATION
https://cdn.kscope.io/ec25d5e6feb591df5ef76c8e1e3c1df5-newsreleasea01a.jpg
HESS REPORTS ESTIMATED RESULTS FOR THE FOURTH QUARTER OF 2022
Key Developments:
Continued exploration success in 2023 on the Stabroek Block, offshore Guyana, with a significant new oil discovery at the Fangtooth SE-1 well located approximately 8 miles southeast of the original Fangtooth-1 discovery
The Fangtooth SE-1 well encountered approximately 200 feet of oil bearing sandstone reservoirs
Fangtooth adds to the block’s gross discovered recoverable resource estimate of more than 11 billion barrels of oil equivalent (boe) and has the potential to underpin a future oil development
The development plan for Uaru, the fifth development on the Stabroek Block, was submitted to the Government of Guyana for approval in the fourth quarter; the project is expected to have a capacity of approximately 250,000 gross barrels of oil per day (bopd) with first oil anticipated at the end of 2026
Entered into an agreement with the Government of Guyana for the purchase of high quality REDD+ carbon credits for a minimum of $750 million from 2022 through 2032; the long-term strategic partnership with the Government of Guyana aims to prevent deforestation and support sustainable development in Guyana
Completed the sale of the Corporation's interest in Libya for net proceeds of $150 million
Total cash returned to stockholders was $405 million in the quarter through dividends and share repurchases of $310 million
Fourth Quarter Financial and Operational Highlights:
Net income was $624 million, or $2.03 per common share, compared with net income of $265 million, or $0.85 per common share, in the fourth quarter of 2021; adjusted net income1 was $548 million, or $1.78 per common share, in the fourth quarter of 2022
Oil and gas net production, excluding Libya, was 376,000 barrels of oil equivalent per day (boepd), up 27 percent from 295,000 boepd in the fourth quarter of 2021
E&P capital and exploratory expenditures were $818 million compared with $593 million in the prior-year quarter
Cash and cash equivalents, excluding Midstream, were $2.48 billion at December 31, 2022
Year-end proved reserves are estimated to be 1.26 billion boe; organic reserve replacement was 144 percent at a finding and development cost of approximately $14.80 per boe

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


2023 Guidance:
Net production is forecast to be in the range of 355,000 boepd to 365,000 boepd, which is an approximate 10 percent increase from 2022, proforma for assets sold
E&P capital and exploratory expenditures are expected to be approximately $3.7 billion, of which more than 80 percent will be allocated to Guyana and the Bakken
NEW YORK, January 25, 2023 — Hess Corporation (NYSE: HES) today reported net income of $624 million, or $2.03 per common share, in the fourth quarter of 2022 compared with net income of $265 million, or $0.85 per common share, in the fourth quarter of 2021. On an adjusted basis, the Corporation had net income of $548 million or $1.78 per common share in the fourth quarter of 2022. The improvement in adjusted after-tax earnings compared with the prior-year period was primarily due to increased sales volumes in Guyana in the fourth quarter of 2022.
“Our strategy is to grow our resource base, deliver a low cost of supply and generate industry leading cash flow growth – and at the same time maintain our industry leadership in environmental, social and governance performance and disclosure,” CEO John Hess said. “Our successful execution of this strategy has uniquely positioned our company to deliver significant value to shareholders by both growing intrinsic value and growing cash returns.”
After-tax income (loss) by major operating activity was as follows:
Three Months Ended
December 31,
(unaudited)
Year Ended
December 31,
(unaudited)
2022202120222021
(In millions, except per share amounts)
Net Income Attributable to Hess Corporation
Exploration and Production$667 $309 $2,422 $770 
Midstream64 74 269 286 
Corporate, Interest and Other(107)(118)(468)(497)
Net income attributable to Hess Corporation$624 $265 $2,223 $559 
Net income per common share (diluted)$2.03 $0.85 $7.18 $1.81 
Adjusted Net Income Attributable to Hess Corporation
Exploration and Production$591 $309 $2,400 $888 
Midstream64 74 269 286 
Corporate, Interest and Other(107)(118)(467)(497)
Adjusted net income attributable to Hess Corporation$548 $265 $2,202 $677 
Adjusted net income per common share (diluted)$1.78 $0.85 $7.11 $2.19 
Weighted average number of shares (diluted)308.1 310.0 309.6 309.3 
2


Exploration and Production:
E&P net income was $667 million in the fourth quarter of 2022, compared with $309 million in the fourth quarter of 2021. On an adjusted basis, fourth quarter 2022 E&P net income was $591 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $76.07 per barrel in the fourth quarter of 2022, compared with $71.04 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the fourth quarter of 2022 was $26.93 per barrel, compared with $36.47 per barrel in the prior-year quarter, while the average realized natural gas selling price was $5.17 per mcf, compared with $4.77 per mcf in the fourth quarter of 2021.
Net production, excluding Libya, was 376,000 boepd in the fourth quarter of 2022, compared with 295,000 boepd in the fourth quarter of 2021, primarily due to higher production in Guyana.
Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $12.49 per boe (excluding Libya: $12.72 per boe) in the fourth quarter of 2022, compared with $12.17 per boe (excluding Libya: $12.84 per boe) in the prior-year quarter.
Oil and Gas Reserves Estimates:
Oil and gas proved reserves at December 31, 2022, which are subject to final review, were 1.26 billion boe, compared with 1.31 billion boe at December 31, 2021. Proved reserve additions and net revisions in 2022 totaled 184 million boe, primarily from Guyana, which included sanctioning of the Yellowtail development, and the Bakken. Asset sales during 2022 reduced proved reserves by 109 million boe.
Excluding asset sales, the Corporation replaced 144 percent of its 2022 production at a finding and development cost of approximately $14.80 per boe.
Operational Highlights for the Fourth Quarter of 2022:
Bakken (Onshore U.S.):  Net production from the Bakken of 158,000 boepd in the fourth quarter was impacted by unplanned production shut-ins caused by severe winter weather in December. Net production in the fourth quarter of 2021 was 159,000 boepd. The Corporation added a fourth drilling rig in July 2022, and drilled 19 wells, completed 14 wells, and brought 15 new wells online during the fourth quarter. Net production is forecast to be in the range of 165,000 boepd to 170,000 boepd in 2023.
Gulf of Mexico (Offshore U.S.):  Net production from the Gulf of Mexico was 35,000 boepd in the fourth quarter of 2022, compared with 39,000 boepd in the prior-year quarter.
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Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production from the Liza Destiny and the Liza Unity floating production, storage and offloading vessels (FPSOs) totaled 116,000 bopd2 in the fourth quarter of 2022 compared with 31,000 bopd2 in the prior-year quarter. The Liza Unity FPSO, which commenced production in February 2022, reached its production capacity of 220,000 gross bopd in July 2022. In the fourth quarter, we sold ten cargos of crude oil from Guyana compared with three cargos in the prior year quarter. Net production is forecast to be approximately 100,000 bopd2 in 2023.
The third development, Payara, will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd, with first production expected by the end of 2023. The fourth development, Yellowtail, was sanctioned in April 2022 and will utilize the ONE GUYANA FPSO with an expected capacity of 250,000 gross bopd, with first production expected in 2025. A fifth development, Uaru, was submitted for approval to the Government of Guyana in the fourth quarter. Pending Government approvals and project sanctioning, the project is expected to have a capacity of approximately 250,000 gross bopd with first oil anticipated at the end of 2026.
The Corporation today announced a significant oil discovery at the Fangtooth SE-1 well on the Stabroek Block, offshore Guyana. The Fangtooth SE-1 well encountered approximately 200 feet of oil bearing sandstone reservoirs. The well was drilled in 5,397 feet of water by the Stena Carron and is located approximately 8 miles southeast of the original Fangtooth-1 well, which had encountered approximately 164 feet of oil bearing sandstone reservoirs. Further appraisal activities are underway. Fangtooth will add to the block's gross discovered recoverable resource estimate of more than 11 billion boe and has the potential to underpin a future oil development on the Stabroek Block.
Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 67,000 boepd in the fourth quarter of 2022 compared with 66,000 boepd in the prior-year quarter.
Libya (Onshore): In November 2022, the Corporation completed the sale of its 8% interest in the Waha Concession for net proceeds of $150 million. Net production from Libya was 10,000 boepd in the fourth quarter of 2022 compared with 21,000 boepd in the prior-year quarter.
Midstream:
The Midstream segment had net income of $64 million in the fourth quarter of 2022, compared with net income of $74 million in the prior-year quarter.
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and Other was $107 million in the fourth quarter of 2022, compared with $118 million in the fourth quarter of 2021.
4


Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures were $818 million in the fourth quarter of 2022 compared with $593 million in the prior-year quarter, primarily due to higher drilling and development activities in the Bakken and Guyana. Midstream capital expenditures were $63 million in the fourth quarter of 2022 and $54 million in the prior-year quarter.
Liquidity:
Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.48 billion and debt and finance lease obligations totaling $5.60 billion at December 31, 2022. The Midstream segment had cash and cash equivalents of $4 million and total debt of $2.9 billion at December 31, 2022. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 35.8% at December 31, 2022 and 42.3% at December 31, 2021.
Net cash provided by operating activities was $1,252 million in the fourth quarter of 2022, up from $899 million in the fourth quarter of 2021. Net cash provided by operating activities before changes in operating assets and liabilities3 was $1,402 million in the fourth quarter of 2022, compared with $886 million in the prior-year quarter primarily due to higher sales volumes.
During the fourth quarter, the Corporation received net proceeds of $150 million from the sale of its interest in the Waha Concession in Libya and purchased 5 million REDD+ carbon credits from the Government of Guyana for $75 million.
Total cash returned to stockholders in the fourth quarter through common stock repurchases and dividends amounted to $405 million. The Corporation repurchased approximately 2.3 million shares of common stock for $310 million during the fourth quarter, bringing total share repurchases in 2022 to $650 million at an average price of approximately $120 per share.








2.Net production from Guyana in the fourth quarter of 2022 included 22,000 bopd of tax barrels. There were no tax barrels in the fourth quarter of 2021. Net production guidance for Guyana in 2023 of approximately 100,000 bopd includes approximately 10,000 bopd of tax barrels.
3.“Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure.  The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 6 and 7.
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
December 31,
(unaudited)
Year Ended
December 31,
(unaudited)
2022202120222021
(In millions)
Exploration and Production$76 $— $22 $(118)
Midstream— — — — 
Corporate, Interest and Other— — (1)— 
Total items affecting comparability of earnings between periods$76 $— $21 $(118)
Fourth Quarter 2022: E&P results include a pre-tax gain of $76 million ($76 million after income taxes) associated with the sale of the Corporation's interest in the Waha Concession in Libya.
Reconciliation of U.S. GAAP to Non-GAAP Measures:
The following table reconciles reported net income attributable to Hess Corporation and adjusted net income:
Three Months Ended
December 31,
(unaudited)
Year Ended
December 31,
(unaudited)
 2022202120222021
 (In millions)
Net income attributable to Hess Corporation$624 $265 $2,223 $559 
Less: Total items affecting comparability of earnings between periods76 — 21 (118)
Adjusted net income attributable to Hess Corporation$548 $265 $2,202 $677 
The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:
Three Months Ended
December 31,
(unaudited)
Year Ended
December 31,
(unaudited)
2022202120222021
(In millions)
Net cash provided by (used in) operating activities before changes in operating assets and liabilities$1,402 $886 $5,222 $2,991 
Changes in operating assets and liabilities(150)13 (1,278)(101)
Net cash provided by (used in) operating activities$1,252 $899 $3,944 $2,890 
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Hess Corporation will review fourth quarter financial and operating results and other matters on a webcast at 10 a.m. today (EDT).  For details about the event, refer to the Investor Relations section of our website at www.hess.com.
Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas.  More information on Hess Corporation is available at www.hess.com.
Forward-looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects; information about sustainability goals and targets and planned social, safety and environmental policies, programs and initiatives; and future economic and market conditions in the oil and gas industry.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry; reduced demand for our products, including due to perceptions regarding the oil and gas industry, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring, fracking bans as well as restrictions on oil and gas leases; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, public health measures or climate change; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of limitations on investment in oil and gas activities, rising interest rates or negative outcomes within commodity and financial markets; liability resulting from environmental obligations and litigation, including heightened risks associated with being a general partner of Hess Midstream LP; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
Non-GAAP financial measures
The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income” presented in this release is defined as reported net income attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income to evaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income or net cash provided by (used in) operating activities. A reconciliation of reported net income attributable to Hess Corporation (U.S. GAAP) to adjusted net income, and a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities are provided in the release.
Cautionary Note to Investors
We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources.  Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the
7


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)
Fourth
Quarter
2022
Fourth
Quarter
2021
Third
Quarter
2022
Income Statement
Revenues and non-operating income
Sales and other operating revenues$2,934 $2,237 $3,122 
Gains on asset sales, net76 — — 
Other, net44 18 35 
Total revenues and non-operating income3,054 2,255 3,157 
Costs and expenses
Marketing, including purchased oil and gas821 672 982 
Operating costs and expenses385 316 398 
Production and severance taxes55 49 72 
Exploration expenses, including dry holes and lease impairment40 45 58 
General and administrative expenses116 86 109 
Interest expense124 121 125 
Depreciation, depletion and amortization504 398 471 
Impairment and other— — 54 
Total costs and expenses2,045 1,687 2,269 
Income before income taxes1,009 568 888 
Provision for income taxes300 212 282 
Net income709 356 606 
Less: Net income attributable to noncontrolling interests85 91 91 
Net income attributable to Hess Corporation$624 $265 $515 

9


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Year Ended
 December 31,
20222021
Income Statement
Revenues and non-operating income
Sales and other operating revenues$11,324 $7,473 
Gains on asset sales, net101 29 
Other, net145 81 
Total revenues and non-operating income11,570 7,583 
Costs and expenses
Marketing, including purchased oil and gas3,328 2,034 
Operating costs and expenses1,452 1,229 
Production and severance taxes255 172 
Exploration expenses, including dry holes and lease impairment174 162 
General and administrative expenses430 340 
Interest expense493 481 
Depreciation, depletion and amortization1,703 1,528 
Impairment and other54147
Total costs and expenses7,889 6,093 
Income before income taxes3,681 1,490 
Provision for income taxes1,107 600 
Net income2,574 890 
Less: Net income attributable to noncontrolling interests351 331 
Net income attributable to Hess Corporation$2,223 $559 

10


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
December 31,
2022
December 31,
2021
Balance Sheet Information
Assets
Cash and cash equivalents$2,486 $2,713 
Other current assets1,445 1,633 
Property, plant and equipment – net15,132 14,182 
Operating lease right-of-use assets – net570 352 
Finance lease right-of-use assets – net126 144 
Other long-term assets1,970 1,491 
Total assets$21,729 $20,515 
Liabilities and equity
Current portion of long-term debt$$517 
Current portion of operating and finance lease obligations221 89 
Other current liabilities2,056 2,458 
Long-term debt8,278 7,941 
Long-term operating lease obligations469 394 
Long-term finance lease obligations179 200 
Other long-term liabilities1,900 1,890 
Total equity excluding other comprehensive income8,113 6,706 
Accumulated other comprehensive income(131)(406)
Noncontrolling interests641 726 
Total liabilities and equity$21,729 $20,515 

11


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
December 31,
2022
December 31,
2021
Total Debt
Hess Corporation$5,395 $5,894 
Midstream (a)2,886 2,564 
Hess Consolidated$8,281 $8,458 
(a) Midstream debt is non-recourse to Hess Corporation.
December 31,
2022
December 31,
2021
Debt to Capitalization Ratio (a)
Hess Consolidated49.6 %55.3 %
Hess Corporation as defined in debt covenants35.8 %42.3 %
(a)Includes finance lease obligations.
Three Months Ended
 December 31,
Year Ended
December 31,
2022202120222021
Interest Expense
Gross interest expense – Hess Corporation$87 $90 $353 $376 
Less: Capitalized interest – Hess Corporation(4)— (10)— 
Interest expense – Hess Corporation83 90 343 376 
Interest expense – Midstream (a)41 31 150 105 
Interest expense – Hess Consolidated$124 $121 $493 $481 
(a)Midstream interest expense is reported in the Midstream operating segment.
12


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Fourth
Quarter
2022
Fourth
Quarter
2021
Third
Quarter
2022
Cash Flow Information
Cash Flows from Operating Activities
Net income$709 $356 $606 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Gains) losses on asset sales, net(76)— — 
Depreciation, depletion and amortization504 398 471 
Impairment and other— — 54 
Exploratory dry hole costs— 19 
Exploration lease impairment
Pension settlement loss— — 
Stock compensation expense17 16 17 
Noncash (gains) losses on commodity derivatives, net165 64 165 
Provision for deferred income taxes and other tax accruals74 43 69 
Net cash provided by (used in) operating activities before changes in operating assets and liabilities1,402 886 1,405 
Changes in operating assets and liabilities(150)13 (66)
Net cash provided by (used in) operating activities1,252 899 1,339 
Cash Flows from Investing Activities   
Additions to property, plant and equipment - E&P(732)(466)(657)
Additions to property, plant and equipment - Midstream(61)(43)(66)
Proceeds from asset sales, net of cash sold150 — — 
Other, net(4)(1)(4)
Net cash provided by (used in) investing activities(647)(510)(727)
Cash Flows from Financing Activities   
Net borrowings (repayments) of debt with maturities of 90 days or less(25)(48)(48)
Debt with maturities of greater than 90 days:
Borrowings— — 20 
Repayments— (2)— 
Cash dividends paid(115)(77)(115)
Common stock acquired and retired(290)— (150)
Proceeds from sale of Class A shares of Hess Midstream LP— 108 — 
Noncontrolling interests, net(80)(75)(79)
Employee stock options exercised
Payments on finance lease obligations(4)(3)(1)
Other, net— (18)
Net cash provided by (used in) financing activities(503)(95)(387)
Net Increase (Decrease) in Cash and Cash Equivalents102 294 225 
Cash and Cash Equivalents at Beginning of Period2,384 2,419 2,159 
Cash and Cash Equivalents at End of Period$2,486 $2,713 $2,384 
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred$(850)$(607)$(726)
Increase (decrease) in related liabilities57 98 
Additions to property, plant and equipment$(793)$(509)$(723)

13


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Year Ended
 December 31,
20222021
Cash Flow Information
Cash Flows from Operating Activities
Net income$2,574 $890 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Gains) losses on asset sales, net(101)(29)
Depreciation, depletion and amortization1,703 1,528 
Impairment and other54 147 
Exploratory dry hole costs22 11 
Exploration lease impairment20 20 
Pension settlement loss
Stock compensation expense83 77 
Noncash (gains) losses on commodity derivatives, net548 216 
Provision for deferred income taxes and other tax accruals317 122 
Net cash provided by (used in) operating activities before changes in operating assets and liabilities5,222 2,991 
Changes in operating assets and liabilities(1,278)(101)
Net cash provided by (used in) operating activities3,944 2,890 
Cash Flows from Investing Activities  
Additions to property, plant and equipment - E&P(2,487)(1,584)
Additions to property, plant and equipment - Midstream(238)(163)
Proceeds from asset sales, net of cash sold178 427 
Other, net(8)(5)
Net cash provided by (used in) investing activities(2,555)(1,325)
Cash Flows from Financing Activities  
Net borrowings (repayments) of debt with maturities of 90 days or less(86)(80)
Debt with maturities of greater than 90 days:
Borrowings420 750 
Repayments(510)(510)
Cash dividends paid(465)(311)
Common stock acquired and retired(630)— 
Proceeds from sale of Class A shares of Hess Midstream LP146 178 
Noncontrolling interests, net(510)(664)
Employee stock options exercised52 77 
Payments on finance lease obligations(9)(10)
Other, net(24)(21)
Net cash provided by (used in) financing activities(1,616)(591)
Net Increase (Decrease) in Cash and Cash Equivalents(227)974 
Cash and Cash Equivalents at Beginning of Year2,713 1,739 
Cash and Cash Equivalents at End of Year$2,486 $2,713 
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred$(2,821)$(1,881)
Increase (decrease) in related liabilities96 134 
Additions to property, plant and equipment$(2,725)$(1,747)

14


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Fourth
Quarter
2022
Fourth
Quarter
2021
Third
Quarter
2022
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota$258 $153 $226 
Offshore and Other39 31 57 
Total United States297 184 283 
Guyana439 330 301 
Malaysia and JDA58 63 92 
Other24 16 25 
 E&P Capital and exploratory expenditures$818 $593 $701 
Total exploration expenses charged to income included above$31 $40 $35 
Midstream Capital expenditures$63 $54 $60 

Year Ended
 December 31,
20222021
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota$807 $522 
Offshore and Other224 103 
Total United States1,031 625 
Guyana1,345 1,016 
Malaysia and JDA275 154 
Other70 34 
 E&P Capital and exploratory expenditures$2,721 $1,829 
Total exploration expenses charged to income included above$132 $131 
Midstream Capital expenditures$232 $183 

15


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
Fourth Quarter 2022
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$1,628 $1,306  $2,934 
Gains on asset sales, net— 76 76 
Other, net13  21 
Total revenues and non-operating income1,641  1,390  3,031 
Costs and expenses     
Marketing, including purchased oil and gas (a)771 63  834 
Operating costs and expenses193 129  322 
Production and severance taxes52  55 
Midstream tariffs297 —  297 
Exploration expenses, including dry holes and lease impairment33  40 
General and administrative expenses55 11  66 
Depreciation, depletion and amortization215 243  458 
Total costs and expenses1,616  456  2,072 
Results of operations before income taxes25  934  959 
Provision for income taxes— 292  292 
Net income attributable to Hess Corporation$25 (b)$642 (c)$667 
Fourth Quarter 2021
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income     
Sales and other operating revenues$1,612 $625  $2,237 
Other, net13  15 
Total revenues and non-operating income1,625  627  2,252 
Costs and expenses     
Marketing, including purchased oil and gas (a)668 24  692 
Operating costs and expenses167 87  254 
Production and severance taxes47  49 
Midstream tariffs292 —  292 
Exploration expenses, including dry holes and lease impairment25 20  45 
General and administrative expenses44  51 
Depreciation, depletion and amortization263 91  354 
Total costs and expenses1,506  231  1,737 
Results of operations before income taxes119  396  515 
Provision for income taxes— 206 206 
Net income attributable to Hess Corporation$119 (d)$190 (e)$309 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $100 million (noncash premium amortization: $100 million; cash settlement:  $0 million).  
(c)Includes after-tax losses from realized crude oil hedging activities of $65 million (noncash premium amortization: $65 million; cash settlement:  $0 million).
(d)Includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement: $0 million).
(e)Includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement: $0 million).

16


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 Third Quarter 2022
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$2,022 $1,100 $3,122 
Other, net16 22 
Total revenues and non-operating income2,038  1,106 3,144 
Costs and expenses    
Marketing, including purchased oil and gas (a)972 27 999 
Operating costs and expenses194 128 322 
Production and severance taxes67 72 
Midstream tariffs313 — 313 
Exploration expenses, including dry holes and lease impairment33 25 58 
General and administrative expenses45 54 
Depreciation, depletion and amortization208 217 425 
Impairment and other54 — 54 
Total costs and expenses1,886  411 2,297 
Results of operations before income taxes152  695 847 
Provision for income taxes— 275 275 
Net income attributable to Hess Corporation$152 (b)$420 (c)$572 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $100 million (noncash premium amortization: $100 million; cash settlement: $0 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $65 million (noncash premium amortization: $65 million; cash settlement: $0 million).

17


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
Year Ended December 31, 2022
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$7,214 $4,110  $11,324 
Gains on asset sales, net— 76 76 
Other, net81 21  102 
Total revenues and non-operating income7,295  4,207  11,502 
Costs and expenses     
Marketing, including purchased oil and gas (a)3,271 123  3,394 
Operating costs and expenses706 480  1,186 
Production and severance taxes242 13  255 
Midstream tariffs1,193 —  1,193 
Exploration expenses, including dry holes and lease impairment122 52  174 
General and administrative expenses189 35  224 
Depreciation, depletion and amortization810 710  1,520 
Impairment and other54 — 54 
Total costs and expenses6,587  1,413  8,000 
Results of operations before income taxes708  2,794  3,502 
Provision for income taxes— 1,080  1,080 
Net income attributable to Hess Corporation$708 (b)$1,714 (c)$2,422 
Year Ended December 31, 2021
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income     
Sales and other operating revenues$5,378 $2,095  $7,473 
Gains on asset sales, net— 29 29 
Other, net48 16  64 
Total revenues and non-operating income5,426  2,140  7,566 
Costs and expenses     
Marketing, including purchased oil and gas (a)2,065 54  2,119 
Operating costs and expenses610 355  965 
Production and severance taxes166  172 
Midstream tariffs1,094 —  1,094 
Exploration expenses, including dry holes and lease impairment102 60  162 
General and administrative expenses162 29  191 
Depreciation, depletion and amortization1,020 341  1,361 
Impairment and other147 — 147 
Total costs and expenses5,366  845  6,211 
Results of operations before income taxes60  1,295  1,355 
Provision for income taxes— 585  585 
Net income attributable to Hess Corporation$60 (d)$710 (e)$770 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $356 million (noncash premium amortization: $333 million; cash settlement:  $23 million).  
(c)Includes after-tax losses from realized crude oil hedging activities of $229 million (noncash premium amortization: $215 million; cash settlement:  $14 million).
(d)Includes after-tax losses from realized crude oil hedging activities of $190 million (noncash premium amortization: $190 million; cash settlement:  $0 million).
(e)Includes after-tax losses from realized crude oil hedging activities of $49 million (noncash premium amortization: $49 million; cash settlement:  $0 million).


18


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Fourth
Quarter
2022
Fourth
Quarter
2021
Third
Quarter
2022
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota74 79 79 
Offshore25 26 21 
Total United States99 105 100 
Guyana (a)116 31 98 
Malaysia and JDA
Other (b)19 15 
Total228 158 217 
Natural gas liquids - barrels
United States
North Dakota60 52 58 
Offshore
Total United States62 56 60 
Natural gas - mcf
United States
North Dakota143 170 176 
Offshore50 55 41 
Total United States193 225 217 
Malaysia and JDA377 375 320 
Other (b)11 10 
Total576 611 547 
Barrels of oil equivalent386 316 368 
(a)Production from Guyana includes 22,000 bopd of tax barrels in the fourth quarter of 2022 and 7,000 bopd of tax barrels in the third quarter of 2022. There were no tax barrels in the fourth quarter of 2021.
(b)Other includes production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022. Libya net production was 10,000 boepd in the fourth quarter of 2022, 21,000 boepd in the fourth quarter of 2021 and 17,000 boepd in the third quarter of 2022.


19


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Year Ended
 December 31,
20222021
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota75 80 
Offshore22 29 
Total United States97 109 
Guyana (a)78 30 
Malaysia and JDA
Other (b)15 21 
Total194 163 
Natural gas liquids - barrels
United States
North Dakota53 49 
Offshore
Total United States55 53 
Natural gas - mcf
United States
North Dakota156 162 
Offshore44 72 
Total United States200 234 
Malaysia and JDA360 347 
Other (b)10 10 
Total570 591 
Barrels of oil equivalent344 315 
(a)Production from Guyana includes 7,000 bopd of tax barrels in 2022. There were no tax barrels in 2021.
(b)Other includes production from Libya and Denmark. The Corporation sold its interest in the Waha Concession in Libya in November 2022. Libya net production was 17,000 boepd in 2022 and 20,000 boepd in 2021. The Corporation sold its interests in Denmark in the third quarter of 2021. Denmark net production was 3,000 boepd in 2021.

20


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Fourth
Quarter
2022
Fourth
Quarter
2021
Third
Quarter
2022
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels242 165 208 
Natural gas liquids – barrels63 56 58 
Natural gas – mcf576 611 547 
Barrels of oil equivalent401 323 357 
Sales Volumes (in thousands) (a)
Crude oil – barrels22,218 15,225 19,118 
Natural gas liquids – barrels5,825 5,124 5,299 
Natural gas – mcf52,949 56,202 50,343 
Barrels of oil equivalent36,868 29,716 32,807 

Year Ended
 December 31,
20222021
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels191 174 
Natural gas liquids – barrels54 53 
Natural gas – mcf570 591 
Barrels of oil equivalent340 326 
Sales Volumes (in thousands) (a)
Crude oil – barrels (b)69,679 63,540 
Natural gas liquids – barrels19,843 19,406 
Natural gas – mcf208,001 215,589 
Barrels of oil equivalent124,189 118,878 
(a)Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.
(b)Sales volumes for the year ended December 31, 2021 include 4.2 million barrels of crude oil that were stored on very large crude carriers (VLCC) at December 31, 2020 and sold in the first quarter of 2021.
21


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Fourth
Quarter
2022
Fourth
Quarter
2021
Third
Quarter
2022
Average Selling Prices   
Crude oil - per barrel (including hedging)   
United States   
Onshore$68.52 $67.39 $79.04 
Offshore69.07 69.04 78.80 
Total United States68.65 67.80 79.00 
Guyana80.77 77.20 92.02 
Malaysia and JDA80.41 83.23 85.23 
Other (a)86.83 75.24 87.90 
Worldwide76.07 71.04 85.32 
Crude oil - per barrel (excluding hedging)
United States
Onshore$79.47 $72.54 $89.80 
Offshore79.99 74.11 89.47 
Total United States79.60 72.93 89.74 
Guyana85.93 79.94 98.91 
Malaysia and JDA80.41 83.23 85.23 
Other (a)91.60 77.78 94.96 
Worldwide83.50 75.22 93.95 
Natural gas liquids - per barrel
United States
Onshore$26.95 $36.63 $35.41 
Offshore26.13 34.23 36.30 
Worldwide26.93 36.47 35.44 
Natural gas - per mcf
United States
Onshore$4.68 $4.40 $6.67 
Offshore4.98 4.63 8.12 
Total United States4.76 4.46 6.94 
Malaysia and JDA5.34 4.97 5.07 
Other (a)7.48 4.27 7.03 
Worldwide5.17 4.77 5.85 
(a)Other includes prices related to production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022.

22


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Year Ended
 December 31,
20222021
Average Selling Prices  
Crude oil - per barrel (including hedging)  
United States  
Onshore$81.06 $55.57 
Offshore81.38 60.09 
Total United States81.14 56.64 
Guyana89.86 68.57 
Malaysia and JDA89.77 71.00 
Other (a)93.67 66.39 
Worldwide85.76 60.08 
Crude oil - per barrel (excluding hedging)
United States
Onshore$91.26 $59.90 
Offshore91.51 64.77 
Total United States91.32 61.05 
Guyana96.52 71.07 
Malaysia and JDA89.77 71.00 
Other (a)101.92 69.25 
Worldwide94.15 63.90 
Natural gas liquids - per barrel
United States
Onshore$35.09 $30.74 
Offshore35.24 26.40 
Worldwide35.09 30.40 
Natural gas - per mcf
United States
Onshore$5.50 $4.08 
Offshore6.21 3.25 
Total United States5.66 3.82 
Malaysia and JDA5.62 5.15 
Other (a)5.93 3.40 
Worldwide5.64 4.60 
(a)Other includes prices related to production from Libya and Denmark. The Corporation sold its interest in the Waha Concession in Libya in November 2022, and sold its interests in Denmark in the third quarter of 2021.

The following is a summary of the Corporation’s outstanding commodity hedging program for 2023:
 WTI
Barrels of oil per day75,000
Average monthly floor price$70
23