hes-20231025
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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):  October 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 October 25, 2023, Hess Corporation issued a news release reporting estimated results for the third quarter of 2023.  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:  October 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


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HESS CORPORATION
https://cdn.kscope.io/62f67961febe3645a8bd3b4dfdf69f2a-newsreleasea01.jpg
HESS REPORTS ESTIMATED RESULTS FOR THE THIRD QUARTER OF 2023
Key Development:
On October 23rd the Corporation entered into an agreement to merge with Chevron. The transaction is expected to close in the first half of 2024
Third Quarter Financial and Operational Highlights:
Net income was $504 million, or $1.64 per share, compared with net income of $515 million, or $1.67 per share, in the third quarter of 2022; adjusted net income1 in the third quarter of 2022 was $583 million, or $1.89 per share
Oil and gas net production was 395,000 barrels of oil equivalent per day (boepd), up 13% from 351,000 boepd, proforma for asset sold, in the third quarter of 2022
Bakken net production was 190,000 boepd, up 14% from 166,000 boepd in the third quarter of 2022; Guyana net production was 108,000 barrels of oil per day (bopd), compared with 98,000 bopd in the prior-year quarter
E&P capital and exploratory expenditures were $998 million, compared with $701 million in the prior-year quarter
Updated 2023 Full Year Guidance:
Net production is now forecast to be approximately 390,000 boepd, which is at the upper end of the previous guidance range of 385,000 boepd to 390,000 boepd
E&P capital and exploratory expenditures are expected to be approximately $4.1 billion, up from previous guidance of $3.7 billion, reflecting the decision to purchase the Liza Unity floating production, storage and offloading vessel (FPSO) in the fourth quarter of 2023 instead of the first quarter of 2024
NEW YORK, October 25, 2023 — Hess Corporation (NYSE: HES) today reported net income of $504 million, or $1.64 per share, in the third quarter of 2023, compared with net income of $515 million, or $1.67 per share, in the third quarter of 2022. On an adjusted basis, the Corporation reported net income of $583 million, or $1.89 per share, in the third quarter of 2022. The decrease in adjusted after-tax results compared with the prior-year quarter reflects lower realized selling prices, partially offset by the net impact of higher production volumes, in the third quarter of 2023.

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

1



After-tax income (loss) by major operating activity was as follows:
Three Months Ended
September 30,
(unaudited)
Nine Months Ended
September 30,
(unaudited)
2023202220232022
(In millions, except per share amounts)
Net Income Attributable to Hess Corporation
Exploration and Production$529 $572 $1,089 $1,755 
Midstream66 68 189 205 
Corporate, Interest and Other(91)(125)(309)(361)
Net income attributable to Hess Corporation$504 $515 $969 $1,599 
Net income per share (diluted)$1.64 $1.67 $3.15 $5.16 
Adjusted Net Income Attributable to Hess Corporation
Exploration and Production$529 $626 $1,171 $1,809 
Midstream66 68 189 205 
Corporate, Interest and Other(91)(111)(309)(360)
Adjusted net income attributable to Hess Corporation$504 $583 $1,051 $1,654 
Adjusted net income per share (diluted)$1.64 $1.89 $3.42 $5.33 
Weighted average number of shares (diluted)307.7 308.9 307.5 310.1 
Exploration and Production:
E&P net income was $529 million in the third quarter of 2023, compared with $572 million in the third quarter of 2022. On an adjusted basis, E&P third quarter 2022 net income was $626 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $81.53 per barrel in the third quarter of 2023, compared with $85.32 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the third quarter of 2023 was $20.17 per barrel, compared with $35.44 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.57 per mcf, compared with $5.85 per mcf in the third quarter of 2022.
Net production was 395,000 boepd in the third quarter of 2023, compared with 351,000 boepd, proforma for asset sold, in the third quarter of 2022, primarily due to higher production in the Bakken, Guyana, and Southeast Asia.
Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $14.04 per barrel of oil equivalent (boe) in the third quarter of 2023, compared with $13.64 per boe, proforma for asset sold, in the prior-year quarter.
2


Operational Highlights for the Third Quarter of 2023:
Bakken (Onshore U.S.):  Net production from the Bakken was 190,000 boepd in the third quarter of 2023, compared with 166,000 boepd in the prior-year quarter, reflecting increased drilling and completion activity and higher NGL and natural gas volumes received under percentage of proceeds contracts due to lower commodity prices. NGL and natural gas volumes received under percentage of proceeds contracts were 19,000 boepd in the third quarter of 2023, compared with 11,000 boepd in the third quarter of 2022, due to lower realized NGL and natural gas prices increasing volumes received as consideration for gas processing fees. During the third quarter of 2023, the Corporation drilled 28 wells, completed 41 wells, and brought 26 new wells online.
Gulf of Mexico (Offshore U.S.):  Net production from the Gulf of Mexico in the third quarter of 2023 was 28,000 boepd, compared with 30,000 boepd in the prior-year quarter.
Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production from the Liza Destiny and the Liza Unity FPSOs totaled 108,0002 bopd in the third quarter of 2023, compared with 98,0002 bopd in the prior-year quarter. In the third quarter of 2023, we sold nine cargos of crude oil from Guyana, compared with eight cargos in the prior-year quarter.
During the third quarter of 2023, a mechanical issue on the Liza Destiny reduced production during the quarter. Repairs were completed by the operator in October that resolved the issue, and production is currently in the range of 150,000 gross bopd to 160,000 gross bopd.
The third development, Payara, with a production capacity of approximately 220,000 gross bopd, will startup in the fourth quarter. The fourth development, Yellowtail, was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd and first production expected in 2025. The fifth development, Uaru, was sanctioned in April 2023 with a production capacity of approximately 250,000 gross bopd and first production expected in 2026. The operator submitted the field development plan for the sixth development, Whiptail, to the Government of Guyana in October.
The successful Lancetfish-2 appraisal well encountered approximately 125 feet of net oil pay in appraisal reservoirs and approximately 65 feet of net oil pay in a new discovery interval. The well was drilled in 5,649 feet of water and is located approximately 4 miles southeast of the Lancetfish-1 discovery well.
Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 69,000 boepd in the third quarter of 2023, compared with 57,000 boepd in the prior-year quarter, primarily due to planned maintenance at both North Malay Basin and JDA during the third quarter of 2022.
3


Midstream:
The Midstream segment had net income of $66 million in the third quarter of 2023, compared with net income of $68 million in the prior-year quarter.
In September 2023, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP (HESM), repurchased approximately 3.3 million HESM Opco Class B units held by Hess Corporation and Global Infrastructure Partners for $100 million, of which the Corporation received $50 million. The repurchase of the Class B units was financed by HESM Opco’s revolving credit facility. After giving effect to the transaction, the Corporation owns approximately 38% of HESM on a consolidated basis.
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and Other was $91 million in the third quarter of 2023, compared with $125 million in the third quarter of 2022. On an adjusted basis, after-tax expense for Corporate, Interest and Other was $111 million in the third quarter of 2022. Adjusted corporate and other expenses decreased by $6 million in the third quarter of 2023, primarily due to higher interest income. Interest expense decreased by $14 million in the third quarter of 2023, reflecting higher capitalized interest.
Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures were $998 million in the third quarter of 2023, compared with $701 million in the prior-year quarter, primarily due to development activities in Guyana and higher drilling activity in the Bakken. Full year 2023 E&P capital and exploratory expenditures are expected to be approximately $4.1 billion, up from previous guidance of $3.7 billion, reflecting the decision to purchase the Liza Unity FPSO in the fourth quarter of 2023 instead of the first quarter of 2024.
Midstream capital expenditures were $65 million in the third quarter of 2023 and $60 million in the prior-year quarter.
Liquidity:
Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.0 billion and debt and finance lease obligations totaling $5.6 billion at September 30, 2023. The Midstream segment had cash and cash equivalents of $4 million and total debt of $3.1 billion at September 30, 2023. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 34.3% at September 30, 2023 and 36.1% at December 31, 2022.
4


Net cash provided by operating activities was $986 million in the third quarter of 2023, compared with $1,339 million in the third quarter of 2022. Net cash provided by operating activities before changes in operating assets and liabilities3 was $1,249 million in the third quarter of 2023, compared with $1,405 million in the prior-year quarter. During the third quarter of 2023 and the third quarter of 2022, changes in operating assets and liabilities decreased cash flow from operating activities by $263 million and $66 million, respectively.
Items Affecting Comparability of Earnings Between Periods:
The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:
Three Months Ended
September 30,
(unaudited)
Nine Months Ended
September 30,
(unaudited)
2023202220232022
(In millions)
Exploration and Production$— $(54)$(82)$(54)
Midstream— — — — 
Corporate, Interest and Other— (14)— (1)
Total items affecting comparability of earnings between periods$— $(68)$(82)$(55)
Third Quarter 2022: E&P results included impairment charges of $28 million ($28 million after income taxes) that resulted from updates to the Corporation’s estimated abandonment liabilities for non-producing properties in the Gulf of Mexico and $26 million ($26 million after income taxes) related to the Penn State Field in the Gulf of Mexico. Results for Corporate, Interest and Other included a charge of $14 million ($14 million after income taxes) for legal costs related to a former downstream business.







2.Net production from Guyana included 14,000 bopd of tax barrels in the third quarter of 2023 and 7,000 bopd of tax barrels in the third quarter of 2022.
3.“Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure.  The reconciliation to its nearest GAAP equivalent measure, and its definition, appear on pages 6 and 7, respectively.
5


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
September 30,
(unaudited)
Nine Months Ended
September 30,
(unaudited)
 2023202220232022
 (In millions)
Net income attributable to Hess Corporation$504 $515 $969 $1,599 
Less: Total items affecting comparability of earnings between periods— (68)(82)(55)
Adjusted net income attributable to Hess Corporation$504 $583 $1,051 $1,654 
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
September 30,
(unaudited)
Nine Months Ended
September 30,
(unaudited)
2023202220232022
(In millions)
Net cash provided by (used in) operating activities before changes in operating assets and liabilities$1,249 $1,405 $3,255 $3,820 
Changes in operating assets and liabilities(263)(66)(657)(1,128)
Net cash provided by (used in) operating activities$986 $1,339 $2,598 $2,692 
Investor Conference Call:
Due to the pending merger with Chevron, the Company will not host a conference call to review its third quarter 2023 results.
Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas.  More information on Hess Corporation is available at www.hess.com.
Forward-looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects; information about sustainability goals and targets and planned social, safety and environmental policies, programs and initiatives; future economic and market conditions in the oil and gas industry; and expected timing and completion of our proposed merger with Chevron.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking
6


statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry; reduced demand for our products, including due to perceptions regarding the oil and gas industry, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring, fracking bans as well as restrictions on oil and gas leases; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic and other events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, public health measures, or climate change; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of limitations on investment in oil and gas activities, rising interest rates or negative outcomes within commodity and financial markets; liability resulting from environmental obligations and litigation, including heightened risks associated with being a general partner of HESM; risks and uncertainties associated with our proposed merger with Chevron; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
Non-GAAP financial measures
The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income” presented in this release is defined as reported net income attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income to evaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income or net cash provided by (used in) operating activities. A reconciliation of reported net income attributable to Hess Corporation (U.S. GAAP) to adjusted net income, and a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities are provided in the release.
Cautionary Note to Investors
We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources.  Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com.  You can also obtain this form from the SEC on the EDGAR system.

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
7


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Third
Quarter
2023
Third
Quarter
2022
Second
Quarter
2023
Income Statement
Revenues and non-operating income
Sales and other operating revenues$2,800 $3,122 $2,289 
Gains on asset sales, net— — 
Other, net35 35 31 
Total revenues and non-operating income2,837 3,157 2,320 
Costs and expenses
Marketing, including purchased oil and gas696 982 547 
Operating costs and expenses467 398 454 
Production and severance taxes61 72 46 
Exploration expenses, including dry holes and lease impairment65 58 99 
General and administrative expenses115 109 108 
Interest expense117 125 122 
Depreciation, depletion and amortization499 471 497 
Impairment and other— 54 82 
Total costs and expenses2,020 2,269 1,955 
Income before income taxes817 888 365 
Provision for income taxes215 282 160 
Net income602 606 205 
Less: Net income attributable to noncontrolling interests98 91 86 
Net income attributable to Hess Corporation$504 $515 $119 


8


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Nine Months Ended
 September 30,
Income Statement20232022
Revenues and non-operating income
Sales and other operating revenues$7,500 $8,390 
Gains on asset sales, net25 
Other, net108 101 
Total revenues and non-operating income7,610 8,516 
Costs and expenses
Marketing, including purchased oil and gas1,846 2,507 
Operating costs and expenses1,303 1,067 
Production and severance taxes155 200 
Exploration expenses, including dry holes and lease impairment230 134 
General and administrative expenses359 314 
Interest expense362 369 
Depreciation, depletion and amortization1,487 1,199 
Impairment and other82 54 
Total costs and expenses5,824 5,844 
Income before income taxes1,786 2,672 
Provision for income taxes551 807 
Net income1,235 1,865 
Less: Net income attributable to noncontrolling interests266 266 
Net income attributable to Hess Corporation$969 $1,599 
9


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
September 30,
2023
December 31,
2022
Balance Sheet Information
Assets
Cash and cash equivalents$2,018 $2,486 
Other current assets1,898 1,445 
Property, plant and equipment – net16,421 15,098 
Operating lease right-of-use assets – net481 570 
Finance lease right-of-use assets – net113 126 
Other long-term assets2,270 1,970 
Total assets$23,201 $21,695 
Liabilities and equity
Current portion of long-term debt$307 $
Current portion of operating and finance lease obligations200 221 
Other current liabilities2,489 2,172 
Long-term debt8,241 8,278 
Long-term operating lease obligations392 469 
Long-term finance lease obligations163 179 
Other long-term liabilities2,110 1,877 
Total equity excluding accumulated other comprehensive income (loss)8,823 7,986 
Accumulated other comprehensive income (loss)(192)(131)
Noncontrolling interests668 641 
Total liabilities and equity$23,201 $21,695 

10


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
September 30,
2023
December 31,
2022
Total Debt
Hess Corporation$5,400 $5,395 
Midstream (a)3,148 2,886 
Hess Consolidated$8,548 $8,281 
(a) Midstream debt is non-recourse to Hess Corporation.
September 30,
2023
December 31,
2022
Debt to Capitalization Ratio (a)
Hess Consolidated48.4 %50.0 %
Hess Corporation as defined in debt covenants34.3 %36.1 %
(a)Includes finance lease obligations.
Three Months Ended
 September 30,
Nine Months Ended
 September 30,
2023202220232022
Interest Expense
Gross interest expense – Hess Corporation$85 $88 $259 $266 
Less: Capitalized interest – Hess Corporation(14)(3)(29)(6)
Interest expense – Hess Corporation71 85 230 260 
Interest expense – Midstream (a)46 40 132 109 
Interest expense – Hess Consolidated$117 $125 $362 $369 
(a)Midstream interest expense is reported in the Midstream operating segment.
11


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Third
Quarter
2023
Third
Quarter
2022
Second
Quarter
2023
Cash Flow Information
Cash Flows from Operating Activities
Net income$602 $606 $205 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Gains) losses on asset sales, net(2)— — 
Depreciation, depletion and amortization499 471 497 
Impairment and other— 54 82 
Exploratory dry hole costs19 62 
Exploration lease impairment11 
Stock compensation expense16 17 18 
Noncash (gains) losses on commodity derivatives, net52 165 52 
Provision (benefit) for deferred income taxes and other tax accruals67 69 50 
Net cash provided by (used in) operating activities before changes in operating assets and liabilities1,249 1,405 974 
Changes in operating assets and liabilities(263)(66)— 
Net cash provided by (used in) operating activities986 1,339 974 
Cash Flows from Investing Activities   
Additions to property, plant and equipment - E&P(953)(657)(778)
Additions to property, plant and equipment - Midstream(53)(66)(43)
Proceeds from asset sales, net of cash sold— — 
Other, net(1)(4)— 
Net cash provided by (used in) investing activities(1,004)(727)(821)
Cash Flows from Financing Activities   
Net borrowings (repayments) of debt with maturities of 90 days or less78 (48)77 
Debt with maturities of greater than 90 days:
Borrowings— 20 — 
Repayments— — — 
Cash dividends paid(134)(115)(134)
Common stock acquired and retired— (150)— 
Proceeds from sale of Class A shares of Hess Midstream LP— — 167 
Noncontrolling interests, net(136)(79)(132)
Employee stock options exercised
Payments on finance lease obligations(3)(1)(2)
Other, net(1)(18)(4)
Net cash provided by (used in) financing activities(190)(387)(27)
Net Increase (Decrease) in Cash and Cash Equivalents(208)225 126 
Cash and Cash Equivalents at Beginning of Period2,226 2,159 2,100 
Cash and Cash Equivalents at End of Period$2,018 $2,384 $2,226 
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred$(1,013)$(726)$(956)
Increase (decrease) in related liabilities135 
Additions to property, plant and equipment$(1,006)$(723)$(821)

12


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Nine Months Ended
 September 30,
20232022
Cash Flow Information
Cash Flows from Operating Activities
Net income$1,235 $1,865 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Gains) losses on asset sales, net(2)(25)
Depreciation, depletion and amortization1,487 1,199 
Impairment and other82 54 
Exploratory dry hole costs97 19 
Exploration lease impairment24 14 
Pension settlement loss— 
Stock compensation expense69 66 
Noncash (gains) losses on commodity derivatives, net104 383 
Provision (benefit) for deferred income taxes and other tax accruals159 243 
Net cash provided by (used in) operating activities before changes in operating assets and liabilities3,255 3,820 
Changes in operating assets and liabilities(657)(1,128)
Net cash provided by (used in) operating activities2,598 2,692 
Cash Flows from Investing Activities  
Additions to property, plant and equipment - E&P(2,504)(1,755)
Additions to property, plant and equipment - Midstream(160)(177)
Proceeds from asset sales, net of cash sold28 
Other, net(5)(4)
Net cash provided by (used in) investing activities(2,666)(1,908)
Cash Flows from Financing Activities  
Net borrowings (repayments) of debt with maturities of 90 days or less258 (61)
Debt with maturities of greater than 90 days:
Borrowings— 420 
Repayments— (510)
Cash dividends paid(405)(350)
Common stock acquired and retired(20)(340)
Proceeds from sale of Class A shares of Hess Midstream LP167 146 
Noncontrolling interests, net(399)(430)
Employee stock options exercised10 44 
Payments on finance lease obligations(7)(5)
Other, net(4)(27)
Net cash provided by (used in) financing activities(400)(1,113)
Net Increase (Decrease) in Cash and Cash Equivalents(468)(329)
Cash and Cash Equivalents at Beginning of Period2,486 2,713 
Cash and Cash Equivalents at End of Period$2,018 $2,384 
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred$(2,761)$(1,971)
Increase (decrease) in related liabilities97 39 
Additions to property, plant and equipment$(2,664)$(1,932)
13


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Third
Quarter
2023
Third
Quarter
2022
Second
Quarter
2023
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota$329 $226 $264 
Offshore and Other115 57 82 
Total United States444 283 346 
Guyana509 301 508 
Malaysia and JDA43 92 44 
Other (a)25 35 
 E&P Capital and exploratory expenditures$998 $701 $933 
Total exploration expenses charged to income included above$50 $35 $29 
Midstream Capital expenditures$65 $60 $52 
(a)Other includes capital and exploratory expenditures associated with Suriname in the third quarter of 2022 and Canada in the second quarter of 2023.
Nine Months Ended
 September 30,
20232022
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota$825 $549 
Offshore and Other226 185 
Total United States1,051 734 
Guyana1,471 906 
Malaysia and JDA134 217 
Other (a)40 46 
 E&P Capital and exploratory expenditures$2,696 $1,903 
Total exploration expenses charged to income included above$109 $101 
Midstream Capital expenditures$174 $169 
(a)Other includes capital and exploratory expenditures associated with Canada in the first nine months of 2023 and Suriname in the first nine months of 2022.

14


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
Third Quarter 2023
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$1,651 $1,147  $2,798 
Other, net 12 
Total revenues and non-operating income1,655  1,155  2,810 
Costs and expenses     
Marketing, including purchased oil and gas (a)693 26  719 
Operating costs and expenses226 158  384 
Production and severance taxes59  61 
Midstream tariffs332 —  332 
Exploration expenses, including dry holes and lease impairment45 20  65 
General and administrative expenses56 10  66 
Depreciation, depletion and amortization234 217  451 
Total costs and expenses1,645  433  2,078 
Results of operations before income taxes10  722  732 
Provision for income taxes— 203  203 
Net income (loss) attributable to Hess Corporation$10 (b)$519 (c)$529 
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 (loss) attributable to Hess Corporation$152 (d)$420 (e)$572 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $33 million (noncash premium amortization: $33 million; cash settlement:  $0 million).  
(c)Includes after-tax losses from realized crude oil hedging activities of $19 million (noncash premium amortization: $19 million; cash settlement:  $0 million).
(d)Includes after-tax losses from realized crude oil hedging activities of $100 million (noncash premium amortization: $100 million; cash settlement: $0 million).
(e)Includes after-tax losses from realized crude oil hedging activities of $65 million (noncash premium amortization: $65 million; cash settlement: $0 million).

15


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 Second Quarter 2023
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$1,299 $988 $2,287 
Other, net
Total revenues and non-operating income1,305  990 2,295 
Costs and expenses    
Marketing, including purchased oil and gas (a)537 27 564 
Operating costs and expenses241 143 384 
Production and severance taxes45 46 
Midstream tariffs302 — 302 
Exploration expenses, including dry holes and lease impairment23 76 99 
General and administrative expenses50 11 61 
Depreciation, depletion and amortization212 238 450 
Impairment and other82 — 82 
Total costs and expenses1,492  496 1,988 
Results of operations before income taxes(187) 494 307 
Provision for income taxes— 152 152 
Net income (loss) attributable to Hess Corporation$(187)(b)$342 (c)$155 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $34 million (noncash premium amortization: $34 million; cash settlement: $0 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $18 million (noncash premium amortization: $18 million; cash settlement: $0 million).



16


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 Nine Months Ended September 30, 2023
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$4,315 $3,179 $7,494 
Other, net19 15 34 
Total revenues and non-operating income4,334  3,194 7,528 
Costs and expenses    
Marketing, including purchased oil and gas (a)1,814 88 1,902 
Operating costs and expenses672 419 1,091 
Production and severance taxes150 155 
Midstream tariffs917 — 917 
Exploration expenses, including dry holes and lease impairment88 142 230 
General and administrative expenses160 33 193 
Depreciation, depletion and amortization649 695 1,344 
Impairment and other82 — 82 
Total costs and expenses4,532  1,382 5,914 
Results of operations before income taxes(198) 1,812 1,614 
Provision for income taxes— 525 525 
Net income (loss) attributable to Hess Corporation$(198)(b)$1,287 (c)$1,089 
 Nine Months Ended September 30, 2022
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$5,586 $2,804 $8,390 
Other, net68 13 81 
Total revenues and non-operating income5,654  2,817 8,471 
Costs and expenses    
Marketing, including purchased oil and gas (a)2,500 60 2,560 
Operating costs and expenses513 351 864 
Production and severance taxes190 10 200 
Midstream tariffs896 — 896 
Exploration expenses, including dry holes and lease impairment89 45 134 
General and administrative expenses134 24 158 
Depreciation, depletion and amortization595 467 1,062 
Impairment and other54 — 54 
Total costs and expenses4,971  957 5,928 
Results of operations before income taxes683  1,860 2,543 
Provision for income taxes— 788 788 
Net income (loss) attributable to Hess Corporation$683 (d)$1,072 (e)$1,755 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $94 million (noncash premium amortization: $94 million; cash settlement: $0 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $44 million (noncash premium amortization: $44 million; cash settlement: $0 million).
(d)Includes after-tax losses from realized crude oil hedging activities of $256 million (noncash premium amortization: $233 million; cash settlement: $23 million).
(e)Includes after-tax losses from realized crude oil hedging activities of $164 million (noncash premium amortization: $150 million; cash settlement: $14 million).

17


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Third
Quarter
2023
Third
Quarter
2022
Second
Quarter
2023
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota87 79 79 
Offshore21 21 23 
Total United States108 100 102 
Guyana (a)108 98 110 
Malaysia and JDA
Other (b)— 15 — 
Total221 217 216 
Natural gas liquids - barrels
United States
North Dakota70 58 68 
Offshore
Total United States71 60 69 
Natural gas - mcf
United States
North Dakota195 176 206 
Offshore37 41 45 
Total United States232 217 251 
Malaysia and JDA383 320 359 
Other (b)— 10 — 
Total615 547 610 
Barrels of oil equivalent395 368 387 
(a)Production from Guyana includes 14,000 bopd of tax barrels in the third quarter of 2023, 7,000 bopd of tax barrels in the third quarter of 2022 and 13,000 bopd of tax barrels in the second quarter of 2023.
(b)Other includes production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022. Libya net production was 17,000 boepd in the third quarter of 2022.


18


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Nine Months Ended
 September 30,
20232022
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota81 75 
Offshore22 20 
Total United States103 95 
Guyana (a)110 65 
Malaysia and JDA
Other (b)— 17 
Total217 181 
Natural gas liquids - barrels
United States
North Dakota66 51 
Offshore
Total United States68 53 
Natural gas - mcf
United States
North Dakota187 160 
Offshore43 42 
Total United States230 202 
Malaysia and JDA370 355 
Other (b)— 11 
Total600 568 
Barrels of oil equivalent385 329 
(a)Production from Guyana includes 14,000 bopd of tax barrels in the first nine months of 2023 and 2,000 bopd in the first nine months of 2022.
(b)Other includes production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022. Libya net production was 19,000 boepd in the first nine months of 2022.




19


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Third
Quarter
2023
Third
Quarter
2022
Second
Quarter
2023
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels223 208 217 
Natural gas liquids – barrels71 58 67 
Natural gas – mcf615 547 610 
Barrels of oil equivalent397 357 386 
Sales Volumes (in thousands) (a)
Crude oil – barrels20,519 19,118 19,740 
Natural gas liquids – barrels6,500 5,299 6,084 
Natural gas – mcf56,553 50,343 55,548 
Barrels of oil equivalent36,445 32,807 35,082 
Nine Months Ended
 September 30,
20232022
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels218 174 
Natural gas liquids – barrels67 51 
Natural gas – mcf600 568 
Barrels of oil equivalent385 320 
Sales Volumes (in thousands) (a)
Crude oil – barrels59,420 47,461 
Natural gas liquids – barrels18,345 14,018 
Natural gas – mcf163,793 155,052 
Barrels of oil equivalent105,064 87,321 
(a)Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.
20


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Third
Quarter
2023
Third
Quarter
2022
Second
Quarter
2023
Average Selling Prices   
Crude oil - per barrel (including hedging)   
United States   
North Dakota$76.06 $79.04 $65.67 
Offshore78.50 78.80 68.32 
Total United States76.56 79.00 66.24 
Guyana86.24 92.02 75.82 
Malaysia and JDA87.21 85.23 68.87 
Other (a)— 87.90 — 
Worldwide81.53 85.32 71.13 
Crude oil - per barrel (excluding hedging)
United States
North Dakota$79.43 $89.80 $69.22 
Offshore81.86 89.47 71.86 
Total United States79.92 89.74 69.79 
Guyana88.06 98.91 77.64 
Malaysia and JDA87.21 85.23 68.87 
Other (a)— 94.96 — 
Worldwide84.07 93.95 73.74 
Natural gas liquids - per barrel
United States
North Dakota$20.17 $35.41 $17.90 
Offshore20.15 36.30 20.17 
Worldwide20.17 35.44 17.95 
Natural gas - per mcf
United States
North Dakota$1.56 $6.67 $1.29 
Offshore2.35 8.12 1.62 
Total United States1.69 6.94 1.35 
Malaysia and JDA6.32 5.07 5.56 
Other (a)— 7.03 — 
Worldwide4.57 5.85 3.82 
(a)Other includes prices related to production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022.

21



HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Nine Months Ended
 September 30,
20232022
Average Selling Prices  
Crude oil - per barrel (including hedging)  
United States  
North Dakota$70.35 $85.39 
Offshore71.55 86.13 
Total United States70.62 85.56 
Guyana80.41 96.24 
Malaysia and JDA76.84 93.16 
Other (a)— 95.49 
Worldwide75.72 90.30 
Crude oil - per barrel (excluding hedging)
United States
North Dakota$73.72 $95.33 
Offshore74.89 95.96 
Total United States73.98 95.47 
Guyana81.86 103.94 
Malaysia and JDA76.84 93.16 
Other (a)— 104.67 
Worldwide78.04 99.14 
Natural gas liquids - per barrel
United States
North Dakota$20.70 $38.51 
Offshore21.52 37.86 
Worldwide20.72 38.48 
Natural gas - per mcf
United States
North Dakota$1.73 $5.97 
Offshore2.12 6.71 
Total United States1.81 6.13 
Malaysia and JDA5.78 5.72 
Other (a)— 5.65 
Worldwide4.26 5.86 
(a)Other includes prices related to production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022.
The following is a summary of the Corporation’s outstanding commodity hedging program for the remainder of calendar 2023:
 WTIBrent
Barrels of oil per day80,00050,000
Average monthly floor price$70$75
22