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Hess Reports Estimated Results for the Second Quarter of 2024

Second Quarter Financial and Operational Highlights:

  • Net income was $757 million, or $2.46 per share, compared with net income of $119 million, or $0.39 per share, in the second quarter of 2023
  • Adjusted net income1 was $809 million, or $2.62 per share, compared with $201 million, or $0.65 per share, in the second quarter of 2023
  • Oil and gas net production was 494,000 barrels of oil equivalent per day (boepd), up 28% from 387,000 boepd in the second quarter of 2023
  • Bakken net production was 212,000 boepd, up 17% from 181,000 boepd in the second quarter of 2023; Guyana net production was 192,000 barrels of oil per day (bopd), up 75% from 110,000 bopd in the prior-year quarter
  • E&P capital and exploratory expenditures were $1,151 million, compared with $933 million in the prior-year quarter

Hess Corporation (NYSE: HES) today reported net income of $757 million, or $2.46 per share, in the second quarter of 2024, compared with net income of $119 million, or $0.39 per share, in the second quarter of 2023. On an adjusted basis, the Corporation reported net income of $809 million, or $2.62 per share in the second quarter of 2024, compared with $201 million or $0.65 per share, in the prior-year quarter. The increase in adjusted after-tax earnings compared with the prior-year quarter primarily reflects higher production volumes and realized selling prices in the second quarter of 2024.

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

   After-tax income (loss) by major operating activity was as follows:

 

Three Months Ended

June 30,

(unaudited)

 

Six Months Ended

June 30,

(unaudited)

 

2024

 

2023

 

2024

 

2023

 

(In millions, except per share amounts)

Net Income Attributable to Hess Corporation

 

 

 

 

Exploration and Production

$

765

 

$

155

 

$

1,762

 

$

560

Midstream

 

66

 

 

62

 

 

133

 

 

123

Corporate, Interest and Other

 

(74)

 

 

(98)

 

 

(166)

 

 

(218)

Net income attributable to Hess Corporation

$

757

 

$

119

 

$

1,729

 

$

465

Net income per share (diluted)

$

2.46

 

$

0.39

 

$

5.61

 

$

1.51

 

 

 

 

 

 

 

 

Adjusted Net Income Attributable to Hess Corporation

 

 

 

 

Exploration and Production

$

817

 

$

237

 

$

1,814

 

$

642

Midstream

 

66

 

 

62

 

 

133

 

 

123

Corporate, Interest and Other

 

(74)

 

 

(98)

 

 

(166)

 

 

(218)

Adjusted net income attributable to Hess Corporation

$

809

 

$

201

 

$

1,781

 

$

547

Adjusted net income per share (diluted)

$

2.62

 

$

0.65

 

$

5.78

 

$

1.78

 

 

 

 

 

 

 

 

Weighted average number of shares (diluted)

 

308.3

 

 

307.5

 

 

308.1

 

 

307.4

Exploration and Production:

   E&P net income was $765 million in the second quarter of 2024, compared with $155 million in the second quarter of 2023. On an adjusted basis, E&P second quarter 2024 net income was $817 million, compared with $237 million in the prior-year quarter. The Corporation’s average realized crude oil selling price was $80.29 per barrel in the second quarter of 2024, compared with $71.13 per barrel, including the effect of hedging, in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the second quarter of 2024 was $20.07 per barrel, compared with $17.95 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.22 per mcf, compared with $3.82 per mcf in the second quarter of 2023.

   Net production was 494,000 boepd in the second quarter of 2024, compared with 387,000 boepd in the second quarter of 2023, primarily due to higher production in Guyana and the Bakken. In the third quarter of 2024, E&P net production is expected to be in the range of 460,000 boepd to 470,000 boepd, primarily reflecting planned downtime in Guyana and Southeast Asia.

   Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $11.69 per barrel of oil equivalent (boe) in the second quarter of 2024, compared with $13.97 per boe in the prior-year quarter, primarily due to higher production volumes.

Operational Highlights for the Second Quarter of 2024:

   Bakken (Onshore U.S.): Net production from the Bakken was 212,000 boepd in the second quarter of 2024, compared with 181,000 boepd in the prior-year quarter, primarily reflecting increased drilling and completion activity. NGL and natural gas volumes received under percentage of proceeds contracts were 26,000 boepd in the second quarter of 2024, compared with 22,000 boepd in the second quarter of 2023. During the second quarter of 2024, the Corporation operated four rigs and drilled 38 wells, completed 37 wells, and brought 31 new wells online. The Corporation plans to continue operating four drilling rigs in 2024. Bakken net production is forecasted to be in the range of 200,000 boepd to 205,000 boepd in the third quarter of 2024, reflecting lower anticipated volumes received under percentage of proceeds contracts and planned maintenance at our gas infrastructure.

   Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico in the second quarter of 2024 was 24,000 boepd, compared with 32,000 boepd in the prior-year quarter, reflecting planned maintenance at the Conger and Tubular Bells fields. The Pickerel-1 oil discovery (Hess – 100%) located in Mississippi Canyon Block 727 achieved first production in late June as a tieback to the Tubular Bells production facilities. In June, the Corporation spud an exploration well at the Vancouver prospect (Hess – 40%) located in Green Canyon Block 287. The exploration well results are anticipated in the third quarter.

   Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production totaled 192,0002 bopd in the second quarter of 2024, compared with 110,0002 bopd in the prior-year quarter. The third development on the block, Payara, which commenced production in November 2023, reached its initial production capacity of approximately 220,000 gross bopd in January 2024. Guyana net production is forecasted to be in the range of 170,000 bopd2 to 175,000 bopd2 in the third quarter reflecting downtime associated with the Liza Destiny and the Liza Unity floating production, storage and offloading vessels related to pipeline and field hook-up for the Gas to Energy project, and production optimization work at the Liza Unity. In the second quarter of 2024, 14 cargos of crude oil were sold from Guyana, compared with nine cargos in the prior-year quarter. In the third quarter of 2024, 14 cargos of crude oil are expected to be sold.

   The fourth development on the block, Yellowtail, was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd and first production expected in 2025. The fifth development, Uaru, was sanctioned in April 2023 with a production capacity of approximately 250,000 gross bopd and first production expected in 2026. The sixth development, Whiptail, was sanctioned in April 2024 and is expected to add production capacity of approximately 250,000 gross bopd by the end of 2027. The application for the environmental permit for the seventh development, Hammerhead, has been filed with Guyana's Environmental Protection Agency. Pending government and regulatory approval and project sanctioning, the development is expected to have a production capacity in the range of 120,000 gross bopd to 180,000 gross bopd with first oil anticipated in 2029.

   Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 66,000 boepd in the second quarter of 2024, compared with 64,000 boepd in the prior-year quarter.

Midstream:

   The Midstream segment had net income of $66 million in the second quarter of 2024, compared with net income of $62 million in the prior-year quarter.

   In June 2024, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP (HESM), repurchased approximately 2.7 million HESM Opco Class B units held by Hess Corporation and Global Infrastructure Partners for $100 million, of which the Corporation received $38 million. The Corporation continues to own approximately 37.8% of HESM on a consolidated basis.

Corporate, Interest and Other:

   After-tax expense for Corporate, Interest and Other was $74 million in the second quarter of 2024, compared with $98 million in the second quarter of 2023, reflecting higher capitalized interest.

Capital and Exploratory Expenditures:

   E&P capital and exploratory expenditures were $1,151 million in the second quarter of 2024, compared with $933 million in the prior-year quarter, primarily due to higher development activities in Guyana, and higher drilling activity in the Gulf of Mexico and the Bakken. Third quarter 2024 E&P capital and exploratory expenditures are expected to be approximately $1,125 million.

   Midstream capital expenditures were $73 million in the second quarter of 2024 and $52 million in the prior-year quarter.

Liquidity:

   Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $1.9 billion and debt and finance lease obligations totaling $5.6 billion at June 30, 2024. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 30.8% at June 30, 2024 and 33.6% at December 31, 2023. In July 2024, the Corporation repaid $300 million principal amount of senior unsecured notes, which are classified as current portion of long-term debt, in the consolidated balance sheet at June 30, 2024.

   The Midstream segment had cash and cash equivalents of $100 million and total debt of $3.5 billion at June 30, 2024. In May 2024, HESM Opco issued $600 million of 6.500% fixed-rate senior unsecured notes due 2029. Net proceeds from the borrowings were primarily used to reduce debt outstanding under HESM Opco’s revolving credit facility.

   Net cash provided by operating activities was $1,893 million in the second quarter of 2024, compared with $974 million in the second quarter of 2023. Net cash provided by operating activities before changes in operating assets and liabilities3 was $1,592 million in the second quarter of 2024, compared with $974 million in the prior-year quarter, primarily due to higher production volumes and realized selling prices in the second quarter of 2024. Changes in operating assets and liabilities increased cash flow from operating activities by $301 million in the second quarter of 2024.

Items Affecting Comparability of Earnings Between Periods:

   The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:

 

Three Months Ended

June 30,

(unaudited)

 

Six Months Ended

June 30,

(unaudited)

 

2024

 

2023

 

2024

 

2023

 

(In millions)

Exploration and Production

$

(52)

 

$

(82)

 

$

(52)

 

$

(82)

Midstream

 

 

 

 

 

 

 

Corporate, Interest and Other

 

 

 

 

 

 

 

Total items affecting comparability of earnings between periods

$

(52)

 

$

(82)

 

$

(52)

 

$

(82)

   Second Quarter 2024: E&P results include a charge of $48 million ($38 million after income taxes) to write-off previously capitalized exploration wells, and a charge of $18 million ($14 million after income taxes) related to materials and supplies inventory recorded to operating costs and expenses, both in the JDA, based on the regulator's notification that the existing production sharing contract (PSC) for Block A-18 will not be re-awarded to the existing PSC contractors upon its expiration in 2029.

   Second Quarter 2023: E&P results included a charge of $82 million ($82 million after income taxes) that resulted from updates to the Corporation’s estimated abandonment obligations in the West Delta Field in the Gulf of Mexico. These abandonment obligations were assigned to the Corporation as a former owner after they were discharged from Fieldwood Energy LLC as part of its approved bankruptcy plan in 2021.

   2. Net production from Guyana included 29,000 bopd of tax barrels in the second quarter of 2024 and 13,000 bopd of tax barrels in the second quarter of 2023. Net production guidance for Guyana for the third quarter of 2024 includes tax barrels in the range of 25,000 bopd to 30,000 bopd.

   
3. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure. The reconciliation to its nearest GAAP equivalent measure, and its definition, appear on pages 6 and 7, respectively.

Reconciliation of U.S. GAAP to Non-GAAP Measures:

   The following table reconciles reported net income attributable to Hess Corporation and adjusted net income:

 

Three Months Ended

June 30,

(unaudited)

 

Six Months Ended

June 30,

(unaudited)

 

2024

 

2023

 

2024

 

2023

 

(In millions)

Net income attributable to Hess Corporation

$

757

 

$

119

 

$

1,729

 

$

465

Less: Total items affecting comparability of earnings between periods

 

(52)

 

 

(82)

 

 

(52)

 

 

(82)

Adjusted net income attributable to Hess Corporation

$

809

 

$

201

 

$

1,781

 

$

547

   The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:

 

Three Months Ended

June 30,

(unaudited)

 

Six Months Ended

June 30,

(unaudited)

 

2024

 

2023

 

2024

 

2023

 

(In millions)

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

$

1,592

 

$

974

 

$

3,321

 

$

2,006

Changes in operating assets and liabilities

 

301

 

 

 

 

(543)

 

 

(394)

Net cash provided by (used in) operating activities

$

1,893

 

$

974

 

$

2,778

 

$

1,612

Investor Conference Call:

   Due to the pending merger with Chevron Corporation (Chevron), the Corporation will not host a conference call to review its second quarter 2024 results.

   Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Forward-looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects; information about sustainability goals and targets and planned social, safety and environmental policies, programs and initiatives; future economic and market conditions in the oil and gas industry; and expected timing and completion of our proposed merger with Chevron.

Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry; reduced demand for our products, including due to perceptions regarding the oil and gas industry, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring, fracking bans as well as restrictions on oil and gas leases; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic and other events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, public health measures, or climate change; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of limitations on investment in oil and gas activities, rising interest rates or negative outcomes within commodity and financial markets; liability resulting from environmental obligations and litigation, including heightened risks associated with being a general partner of HESM; risks and uncertainties associated with our proposed merger with Chevron; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).

As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Non-GAAP financial measures

The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income” presented in this release is defined as reported net income attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income to evaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income or net cash provided by (used in) operating activities. A reconciliation of reported net income attributable to Hess Corporation (U.S. GAAP) to adjusted net income, and a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities are provided in the release.

Cautionary Note to Investors

We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Second

Quarter

2024

 

Second

Quarter

2023

 

First

Quarter

2024

Income Statement

 

 

 

 

 

Revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

3,202

 

$

2,289

 

$

3,309

Other, net

 

53

 

 

31

 

 

32

Total revenues and non-operating income

 

3,255

 

 

2,320

 

 

3,341

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas

 

632

 

 

547

 

 

622

Operating costs and expenses

 

490

 

 

454

 

 

412

Production and severance taxes

 

64

 

 

46

 

 

56

Exploration expenses, including dry holes and lease impairment

 

101

 

 

99

 

 

42

General and administrative expenses

 

115

 

 

108

 

 

124

Interest expense

 

106

 

 

122

 

 

113

Depreciation, depletion and amortization

 

600

 

 

497

 

 

557

Impairment and other

 

 

 

82

 

 

Total costs and expenses

 

2,108

 

 

1,955

 

 

1,926

Income before income taxes

 

1,147

 

 

365

 

 

1,415

Provision for income taxes

 

296

 

 

160

 

 

348

Net income

 

851

 

 

205

 

 

1,067

Less: Net income attributable to noncontrolling interests

 

94

 

 

86

 

 

95

Net income attributable to Hess Corporation

$

757

 

$

119

 

$

972

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Six Months Ended

June 30,

Income Statement

2024

 

2023

Revenues and non-operating income

 

 

 

Sales and other operating revenues

$

6,511

 

$

4,700

Other, net

 

85

 

 

73

Total revenues and non-operating income

 

6,596

 

 

4,773

Costs and expenses

 

 

 

Marketing, including purchased oil and gas

 

1,254

 

 

1,150

Operating costs and expenses

 

902

 

 

836

Production and severance taxes

 

120

 

 

94

Exploration expenses, including dry holes and lease impairment

 

143

 

 

165

General and administrative expenses

 

239

 

 

244

Interest expense

 

219

 

 

245

Depreciation, depletion and amortization

 

1,157

 

 

988

Impairment and other

 

 

 

82

Total costs and expenses

 

4,034

 

 

3,804

Income before income taxes

 

2,562

 

 

969

Provision for income taxes

 

644

 

 

336

Net income

 

1,918

 

 

633

Less: Net income attributable to noncontrolling interests

 

189

 

 

168

Net income attributable to Hess Corporation

$

1,729

 

$

465

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

June 30,

2024

 

December 31,

2023

Balance Sheet Information

 

 

 

Assets

 

 

 

Cash and cash equivalents

$

2,025

 

$

1,688

Other current assets

 

1,808

 

 

1,742

Property, plant and equipment – net

 

18,429

 

 

17,432

Operating lease right-of-use assets – net

 

772

 

 

720

Finance lease right-of-use assets – net

 

100

 

 

108

Other long-term assets

 

2,676

 

 

2,317

Total assets

$

25,810

 

$

24,007

Liabilities and equity

 

 

 

Current portion of long-term debt

$

317

 

$

311

Current portion of operating and finance lease obligations

 

354

 

 

370

Other current liabilities

 

2,350

 

 

2,589

Long-term debt

 

8,548

 

 

8,302

Long-term operating lease obligations

 

520

 

 

459

Long-term finance lease obligations

 

145

 

 

156

Other long-term liabilities

 

2,375

 

 

2,218

Total equity excluding accumulated other comprehensive income (loss)

 

10,645

 

 

9,120

Accumulated other comprehensive income (loss)

 

(158)

 

 

(134)

Noncontrolling interests

 

714

 

 

616

Total liabilities and equity

$

25,810

 

$

24,007

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

June 30,

2024

December 31,

2023

Total Debt

 

 

 

Hess Corporation

$

5,405

 

$

5,402

Midstream (a)

 

3,460

 

 

3,211

Hess Consolidated

$

8,865

 

$

8,613

(a) Midstream debt is non-recourse to Hess Corporation.

 

 

 

 

 

June 30,

2024

 

December 31,

2023

Debt to Capitalization Ratio (a)

 

 

 

Hess Consolidated

44.6 %

47.8 %

Hess Corporation as defined in debt covenants

30.8 %

 

33.6 %

(a) Includes finance lease obligations.

 

 

 

 

 

 

 

 

Three Months Ended

June 30,

Six Months Ended

June 30,

 

2024

 

2023

 

2024

 

2023

Interest Expense

 

 

 

 

 

 

 

Gross interest expense – Hess Corporation

$

86

 

$

88

 

$

173

 

$

174

Less: Capitalized interest – Hess Corporation

 

(30)

 

 

(10)

 

 

(53)

 

 

(15)

Interest expense – Hess Corporation

 

56

 

 

78

 

 

120

 

 

159

Interest expense – Midstream (a)

 

50

 

 

44

 

 

99

 

 

86

Interest expense – Hess Consolidated

$

106

 

$

122

 

$

219

 

$

245

(a) Midstream interest expense is reported in the Midstream operating segment.

 
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Second

Quarter

2024

 

Second

Quarter

2023

 

First

Quarter

2024

Cash Flow Information

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

Net income

$

851

 

$

205

 

$

1,067

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

Depreciation, depletion and amortization

 

600

 

 

497

 

 

557

Impairment and other

 

 

 

82

 

 

Exploratory dry hole costs

 

63

 

 

62

 

 

Exploration lease impairment

 

7

 

 

8

 

 

3

Stock compensation expense

 

20

 

 

18

 

 

39

Noncash (gains) losses on commodity derivatives, net

 

 

 

52

 

 

Provision (benefit) for deferred income taxes and other tax accruals

 

51

 

 

50

 

 

63

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

 

1,592

 

 

974

 

 

1,729

Changes in operating assets and liabilities

 

301

 

 

 

 

(844)

Net cash provided by (used in) operating activities

 

1,893

 

 

974

 

 

885

Cash Flows from Investing Activities

 

 

 

 

 

Additions to property, plant and equipment - E&P

 

(1,087)

 

 

(778)

 

 

(902)

Additions to property, plant and equipment - Midstream

 

(64)

 

 

(43)

 

 

(55)

Other, net

 

(1)

 

 

 

 

(1)

Net cash provided by (used in) investing activities

 

(1,152)

 

 

(821)

 

 

(958)

Cash Flows from Financing Activities

 

 

 

 

 

Net borrowings (repayments) of debt with maturities of 90 days or less

 

(455)

 

 

77

 

 

115

Debt with maturities of greater than 90 days:

 

 

 

 

 

Borrowings

 

600

 

 

 

 

Repayments

 

(2)

 

 

 

 

(3)

Cash dividends paid

 

(134)

 

 

(134)

 

 

(137)

Proceeds from sale of Class A shares of Hess Midstream LP

 

 

 

167

 

 

Noncontrolling interests, net

 

(154)

 

 

(132)

 

 

(151)

Employee stock options exercised

 

2

 

 

1

 

 

11

Payments on finance lease obligations

 

(2)

 

 

(2)

 

 

(3)

Other, net

 

(9)

 

 

(4)

 

 

(9)

Net cash provided by (used in) financing activities

 

(154)

 

 

(27)

 

 

(177)

Net Increase (Decrease) in Cash and Cash Equivalents

 

587

 

 

126

 

 

(250)

Cash and Cash Equivalents at Beginning of Period

 

1,438

 

 

2,100

 

 

1,688

Cash and Cash Equivalents at End of Period

$

2,025

 

$

2,226

 

$

1,438

 

 

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

(1,193)

 

$

(956)

 

$

(923)

Increase (decrease) in related liabilities

 

42

 

 

135

 

 

(34)

Additions to property, plant and equipment

$

(1,151)

 

$

(821)

 

$

(957)

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Six Months Ended

June 30,

 

2024

 

2023

 

 

 

 

Cash Flow Information

 

 

 

Cash Flows from Operating Activities

 

 

 

Net income

$

1,918

 

$

633

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

Depreciation, depletion and amortization

 

1,157

 

 

988

Impairment and other

 

 

 

82

Exploratory dry hole costs

 

63

 

 

93

Exploration lease impairment

 

10

 

 

13

Stock compensation expense

 

59

 

 

53

Noncash (gains) losses on commodity derivatives, net

 

 

 

52

Provision (benefit) for deferred income taxes and other tax accruals

 

114

 

 

92

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

 

3,321

 

 

2,006

Changes in operating assets and liabilities

 

(543)

 

 

(394)

Net cash provided by (used in) operating activities

 

2,778

 

 

1,612

Cash Flows from Investing Activities

 

 

 

Additions to property, plant and equipment - E&P

 

(1,989)

 

 

(1,551)

Additions to property, plant and equipment - Midstream

 

(119)

 

 

(107)

Other, net

 

(2)

 

 

(4)

Net cash provided by (used in) investing activities

 

(2,110)

 

 

(1,662)

Cash Flows from Financing Activities

 

 

 

Net borrowings (repayments) of debt with maturities of 90 days or less

 

(340)

 

 

180

Debt with maturities of greater than 90 days:

 

 

 

Borrowings

 

600

 

 

Repayments

 

(5)

 

 

Cash dividends paid

 

(271)

 

 

(271)

Common stock acquired and retired

 

 

 

(20)

Proceeds from sale of Class A shares of Hess Midstream LP

 

 

 

167

Noncontrolling interests, net

 

(305)

 

 

(263)

Employee stock options exercised

 

13

 

 

4

Payments on finance lease obligations

 

(5)

 

 

(4)

Other, net

 

(18)

 

 

(3)

Net cash provided by (used in) financing activities

 

(331)

 

 

(210)

Net Increase (Decrease) in Cash and Cash Equivalents

 

337

 

 

(260)

Cash and Cash Equivalents at Beginning of Period

 

1,688

 

 

2,486

Cash and Cash Equivalents at End of Period

$

2,025

 

$

2,226

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

(2,116)

 

$

(1,748)

Increase (decrease) in related liabilities

 

8

 

 

90

Additions to property, plant and equipment

$

(2,108)

 

$

(1,658)

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Second

Quarter

2024

 

Second

Quarter

2023

 

First

Quarter

2024

Capital and Exploratory Expenditures

 

 

 

 

 

E&P Capital and exploratory expenditures

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

318

 

$

264

 

$

288

Offshore and Other

 

138

 

 

82

 

 

159

Total United States

 

456

 

 

346

 

 

447

Guyana

 

642

 

 

508

 

 

447

Malaysia and JDA

 

43

 

 

44

 

 

28

Other (a)

 

10

 

 

35

 

 

5

E&P Capital and exploratory expenditures

$

1,151

 

$

933

 

$

927

 

 

 

 

 

 

Total exploration expenses charged to income included above

$

31

 

$

29

 

$

39

 

 

 

 

 

 

Midstream Capital expenditures

$

73

 

$

52

 

$

35

(a) Other in 2023 includes capital and exploratory expenditures mainly associated with Canada.

 

 

Six Months Ended

June 30,

 

2024

 

2023

 

 

 

 

Capital and Exploratory Expenditures

 

 

 

E&P Capital and exploratory expenditures

 

 

 

United States

 

 

 

North Dakota

$

606

 

$

496

Offshore and Other

 

297

 

 

111

Total United States

 

903

 

 

607

Guyana

 

1,089

 

 

962

Malaysia and JDA

 

71

 

 

91

Other (a)

 

15

 

 

38

E&P Capital and exploratory expenditures

$

2,078

 

$

1,698

 

 

 

 

Total exploration expenses charged to income included above

$

70

 

$

59

 

 

 

 

Midstream Capital expenditures

$

108

 

$

109

(a) Other in 2023 includes capital and exploratory expenditures mainly associated with Canada.

 

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

Second Quarter 2024

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,540

 

$

1,655

 

$

3,195

Other, net

 

12

 

 

19

 

 

31

Total revenues and non-operating income

 

1,552

 

 

1,674

 

 

3,226

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

617

 

 

34

 

 

651

Operating costs and expenses

 

229

 

 

177

 

 

406

Production and severance taxes

 

61

 

 

3

 

 

64

Midstream tariffs

 

335

 

 

 

 

335

Exploration expenses, including dry holes and lease impairment

 

25

 

 

76

 

 

101

General and administrative expenses

 

65

 

 

9

 

 

74

Depreciation, depletion and amortization

 

266

 

 

284

 

 

550

Total costs and expenses

 

1,598

 

 

583

 

 

2,181

Results of operations before income taxes

 

(46)

 

 

1,091

 

 

1,045

Provision for income taxes

 

 

 

280

 

 

280

Net income (loss) attributable to Hess Corporation

$

(46)

 

$

811

 

$

765

 

 

 

 

 

 

 

Second Quarter 2023

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,299

 

$

988

 

$

2,287

Other, net

 

6

 

 

2

 

 

8

Total revenues and non-operating income

 

1,305

 

 

990

 

 

2,295

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

537

 

 

27

 

 

564

Operating costs and expenses

 

241

 

 

143

 

 

384

Production and severance taxes

 

45

 

 

1

 

 

46

Midstream tariffs

 

302

 

 

 

 

302

Exploration expenses, including dry holes and lease impairment

 

23

 

 

76

 

 

99

General and administrative expenses

 

50

 

 

11

 

 

61

Depreciation, depletion and amortization

 

212

 

 

238

 

 

450

Impairment and other

 

82

 

 

 

 

82

Total costs and expenses

 

1,492

 

 

496

 

 

1,988

Results of operations before income taxes

 

(187)

 

 

494

 

 

307

Provision for income taxes

 

 

 

152

 

 

152

Net income (loss) attributable to Hess Corporation

$

(187)

(b)

 

$

342

(c)

$

155

(a) Includes amounts charged from the Midstream segment.

(b) Includes after-tax losses from realized crude oil hedging activities of $34 million (noncash premium amortization: $34 million; cash settlement: $0 million).

(c) Includes after-tax losses from realized crude oil hedging activities of $18 million (noncash premium amortization: $18 million; cash settlement: $0 million).

 
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

First Quarter 2024

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,523

 

$

1,780

 

$

3,303

Other, net

 

10

 

 

1

 

 

11

Total revenues and non-operating income

 

1,533

 

 

1,781

 

 

3,314

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

589

 

 

51

 

 

640

Operating costs and expenses

 

205

 

 

133

 

 

338

Production and severance taxes

 

54

 

 

2

 

 

56

Midstream tariffs

 

328

 

 

 

 

328

Exploration expenses, including dry holes and lease impairment

 

34

 

 

8

 

 

42

General and administrative expenses

 

64

 

 

8

 

 

72

Depreciation, depletion and amortization

 

244

 

 

263

 

 

507

Total costs and expenses

 

1,518

 

 

465

 

 

1,983

Results of operations before income taxes

 

15

 

 

1,316

 

 

1,331

Provision for income taxes

 

 

 

334

 

 

334

Net income (loss) attributable to Hess Corporation

$

15

 

$

982

 

$

997

(a) Includes amounts charged from the Midstream segment.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

Six Months Ended June 30, 2024

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

3,063

 

$

3,435

 

$

6,498

Other, net

 

22

 

 

20

 

 

42

Total revenues and non-operating income

 

3,085

 

 

3,455

 

 

6,540

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

1,206

 

 

85

 

 

1,291

Operating costs and expenses

 

434

 

 

310

 

 

744

Production and severance taxes

 

115

 

 

5

 

 

120

Midstream tariffs

 

663

 

 

 

 

663

Exploration expenses, including dry holes and lease impairment

 

59

 

 

84

 

 

143

General and administrative expenses

 

129

 

 

17

 

 

146

Depreciation, depletion and amortization

 

510

 

 

547

 

 

1,057

Total costs and expenses

 

3,116

 

 

1,048

 

 

4,164

Results of operations before income taxes

 

(31)

 

 

2,407

 

 

2,376

Provision for income taxes

 

 

 

614

 

 

614

Net income (loss) attributable to Hess Corporation

$

(31)

 

$

1,793

 

$

1,762

 

 

Six Months Ended June 30, 2023

Income Statement

United States

 

International

 

Total

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

2,664

 

$

2,032

 

$

4,696

Other, net

 

15

 

 

7

 

 

22

Total revenues and non-operating income

 

2,679

 

 

2,039

 

 

4,718

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

 

1,121

 

 

62

 

 

1,183

Operating costs and expenses

 

446

 

 

261

 

 

707

Production and severance taxes

 

91

 

 

3

 

 

94

Midstream tariffs

 

585

 

 

 

 

585

Exploration expenses, including dry holes and lease impairment

 

43

 

 

122

 

 

165

General and administrative expenses

 

104

 

 

23

 

 

127

Depreciation, depletion and amortization

 

415

 

 

478

 

 

893

Impairment and other

 

82

 

 

 

 

82

Total costs and expenses

 

2,887

 

 

949

 

 

3,836

Results of operations before income taxes

 

(208)

 

 

1,090

 

 

882

Provision for income taxes

 

 

 

322

 

 

322

Net income (loss) attributable to Hess Corporation

$

(208)

(b)

 

$

768

(c)

$

560

(a) Includes amounts charged from the Midstream segment.

(b) Includes after-tax losses from realized crude oil hedging activities of $61 million (noncash premium amortization: $61 million; cash settlement: $0 million).

(c) Includes after-tax losses from realized crude oil hedging activities of $25 million (noncash premium amortization: $25 million; cash settlement: $0 million).

 
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Second

Quarter

2024

 

Second

Quarter

2023

 

First

Quarter

2024

Net Production Per Day (in thousands)

 

 

 

 

 

Crude oil - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

93

 

79

 

88

Offshore

18

 

23

 

22

Total United States

111

 

102

 

110

Guyana (a)

192

 

110

 

190

Malaysia and JDA

5

 

4

 

5

Total

308

 

216

 

305

 

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

76

 

68

 

69

Offshore

1

 

1

 

2

Total United States

77

 

69

 

71

 

 

 

 

 

 

Natural gas - mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

256

 

206

 

200

Offshore

28

 

45

 

41

Total United States

284

 

251

 

241

Malaysia and JDA

369

 

359

 

358

Total

653

 

610

 

599

 

 

 

 

 

 

Barrels of oil equivalent

494

 

387

 

476

(a) Production from Guyana includes 29,000 bopd of tax barrels in the second quarter of 2024, 13,000 bopd of tax barrels in the second quarter of 2023 and 33,000 bopd of tax barrels in the first quarter of 2024.

 
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Six Months Ended

June 30,

 

2024

 

2023

 

 

 

 

Net Production Per Day (in thousands)

 

 

 

Crude oil - barrels

 

 

 

United States

 

 

 

North Dakota

90

 

78

Offshore

20

 

23

Total United States

110

 

101

Guyana (a)

191

 

111

Malaysia and JDA

5

 

4

Total

306

 

216

 

 

 

 

Natural gas liquids - barrels

 

 

 

United States

 

 

 

North Dakota

73

 

64

Offshore

2

 

2

Total United States

75

 

66

 

 

 

 

Natural gas - mcf

 

 

 

United States

 

 

 

North Dakota

228

 

182

Offshore

35

 

47

Total United States

263

 

229

Malaysia and JDA

363

 

363

Total

626

 

592

 

 

 

 

Barrels of oil equivalent

485

 

381

(a) Production from Guyana includes 31,000 bopd of tax barrels in the first six months of 2024 and 14,000 bopd of tax barrels in the first six months of 2023.

 
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Second

Quarter

2024

 

Second

Quarter

2023

First

Quarter

2024

Sales Volumes Per Day (in thousands) (a)

 

 

 

 

Crude oil – barrels

293

 

217

308

Natural gas liquids – barrels

76

 

67

73

Natural gas – mcf

653

 

610

599

Barrels of oil equivalent

478

 

386

481

 

 

 

 

 

Sales Volumes (in thousands) (a)

 

 

 

 

Crude oil – barrels

26,677

 

19,740

28,053

Natural gas liquids – barrels

6,925

 

6,084

6,650

Natural gas – mcf

59,402

 

55,548

54,495

Barrels of oil equivalent

43,502

 

35,082

43,786

 

 

Six Months Ended

June 30,

 

2024

 

2023

 

 

 

Sales Volumes Per Day (in thousands) (a)

 

 

Crude oil – barrels

301

 

215

Natural gas liquids – barrels

75

 

65

Natural gas – mcf

626

 

592

Barrels of oil equivalent

480

 

379

 

 

 

Sales Volumes (in thousands) (a)

 

 

Crude oil – barrels

54,730

 

38,901

Natural gas liquids – barrels

13,575

 

11,845

Natural gas – mcf

113,897

 

107,240

Barrels of oil equivalent

87,288

 

68,619

(a) Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.

 
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Second

Quarter

2024

 

Second

Quarter

2023

 

First

Quarter

2024

Average Selling Prices

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

75.84

 

$

65.67

 

$

71.75

Offshore

 

80.21

 

 

68.32

 

 

75.86

Total United States

 

76.54

 

 

66.24

 

 

72.58

Guyana

 

82.53

 

 

75.82

 

 

84.27

Malaysia and JDA

 

82.77

 

 

68.87

 

 

81.10

Worldwide

 

80.29

 

 

71.13

 

 

80.06

 

 

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

75.84

 

$

69.22

 

$

71.75

Offshore

 

80.21

 

 

71.86

 

 

75.86

Total United States

 

76.54

 

 

69.79

 

 

72.58

Guyana

 

82.53

 

 

77.64

 

 

84.27

Malaysia and JDA

 

82.77

 

 

68.87

 

 

81.10

Worldwide

 

80.29

 

 

73.74

 

 

80.06

 

 

 

 

 

 

Natural gas liquids - per barrel

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

20.08

 

$

17.90

 

$

23.03

Offshore

 

19.60

 

 

20.17

 

 

21.36

Worldwide

 

20.07

 

 

17.95

 

 

22.97

 

 

 

 

 

 

Natural gas - per mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

0.81

 

$

1.29

 

$

1.80

Offshore

 

1.33

 

 

1.62

 

 

2.11

Total United States

 

0.86

 

 

1.35

 

 

1.85

Malaysia and JDA

 

6.81

 

 

5.56

 

 

6.49

Worldwide

 

4.22

 

 

3.82

 

 

4.62

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Six Months Ended

June 30,

 

2024

 

2023

 

 

 

 

Average Selling Prices

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

United States

 

 

 

North Dakota

$

73.84

 

$

67.05

Offshore

 

77.78

 

 

68.22

Total United States

 

74.56

 

 

67.32

Guyana

 

83.43

 

 

77.50

Malaysia and JDA

 

81.94

 

 

71.02

Worldwide

 

80.17

 

 

72.66

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

United States

 

 

 

North Dakota

$

73.84

 

$

70.41

Offshore

 

77.78

 

 

71.55

Total United States

 

74.56

 

 

70.68

Guyana

 

83.43

 

 

78.76

Malaysia and JDA

 

81.94

 

 

71.02

Worldwide

 

80.17

 

 

74.87

 

 

 

 

Natural gas liquids - per barrel

 

 

 

United States

 

 

 

North Dakota

$

21.52

 

$

20.99

Offshore

 

20.62

 

 

22.20

Worldwide

 

21.49

 

 

21.02

 

 

 

 

Natural gas - per mcf

 

 

 

United States

 

 

 

North Dakota

$

1.24

 

$

1.83

Offshore

 

1.79

 

 

2.03

Total United States

 

1.32

 

 

1.87

Malaysia and JDA

 

6.65

 

 

5.50

Worldwide

 

4.41

 

 

4.09

 

Contacts

For Hess Corporation

Investor Contact:

Jay Wilson

(212) 536-8940

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