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Hess Reports Estimated Results for the Fourth Quarter of 2021

Key Developments:

  • Announced significant new discoveries at Fangtooth and Lau Lau on the Stabroek Block, offshore Guyana; the positive result at Fangtooth, the first standalone deep prospect, confirms the deeper exploration potential of the Block
  • The Fangtooth and Lau Lau discoveries increase the Stabroek Block's previously announced gross discovered recoverable resource estimate to more than 10 billion barrels of oil equivalent (boe)

Fourth Quarter Financial and Operational Highlights:

  • Net income was $265 million, or $0.85 per share, compared with a net loss of $97 million, or $0.32 per share in the fourth quarter of 2020; adjusted net loss1 in the prior-year quarter was $176 million, or $0.58 per share
  • Oil and gas net production, excluding Libya, was 295,000 barrels of oil equivalent per day (boepd); Bakken net production was 159,000 boepd
  • E&P capital and exploratory expenditures were $593 million compared with $371 million in the prior-year quarter
  • Year-end proved reserves are estimated to be 1,309 million boe; organic reserve replacement was 295 percent (204 percent excluding price revisions) at a finding and development cost of approximately $5.25 per boe (approximately $7.60 per boe excluding price revisions)

2022 Guidance:

  • Net production, excluding Libya, is forecast to be in the range of 330,000 boepd to 340,000 boepd, which is a 12 percent to 15 percent increase from 2021; Bakken net production is forecast to be in the range of 165,000 boepd to 170,000 boepd, which is a 6 percent to 9 percent increase from 2021
  • E&P capital and exploratory expenditures are expected to be approximately $2.6 billion, of which approximately 80 percent will be allocated to Guyana and the Bakken

 

Hess Corporation (NYSE: HES) today reported net income of $265 million, or $0.85 per share, in the fourth quarter of 2021, compared with a net loss of $97 million, or $0.32 per share, in the fourth quarter of 2020. On an adjusted basis, the Corporation reported a net loss in the prior-year quarter of $176 million, or $0.58 per share. The improvement in adjusted after-tax results compared with the prior-year period was primarily due to higher realized selling prices in the fourth quarter of 2021.

  1. “Adjusted net income (loss)” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 6 to 8.

 “This year marks an inflection point in the execution of our strategy,” CEO John Hess said.  “We have built a differentiated portfolio offering a unique value proposition – delivering durable cash flow growth that enables us to continue to invest in some of the highest return projects in the industry and to start growing our cash returns to our shareholders.”

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

 

Three Months Ended

December 31,

(unaudited)

 

Year Ended

December 31,

(unaudited)

 

2021

 

2020

 

2021

 

2020

 

(In millions, except per share amounts)

Net Income (Loss) Attributable to Hess Corporation

     

 

         

 

Exploration and Production

$

 

309

 

$

 

(39)

 

$

 

770

 

$

 

(2,841)

Midstream

 

 

74

 

 

 

62

 

 

 

286

     

230

Corporate, Interest and Other

 

 

(118)

 

 

 

(120)

 

 

 

(497)

     

(482)

Net income (loss) attributable to Hess Corporation

$

 

265

 

$

 

(97)

 

$

 

559

 

$

 

(3,093)

Net income (loss) per share (diluted)

$

 

0.85

 

$

 

(0.32)

 

$

 

1.81

 

$

 

(10.15)

 

 

     

 

     

 

         

 

 

 

     

 

     

 

         

 

Adjusted Net Income (Loss) Attributable to Hess Corporation

     

 

         

 

Exploration and Production

$

 

309

 

$

 

(118)

 

$

 

888

 

$

 

(643)

Midstream

 

 

74

 

 

 

62

 

 

 

286

     

230

Corporate, Interest and Other

(118)

(120)

 

 

 

(497)

     

(481)

Adjusted net income (loss) attributable to Hess Corporation

$

 

265

 

$

 

(176)

 

$

 

677

 

$

 

(894)

Adjusted net income (loss) per share (diluted)

$

 

0.85

 

$

 

(0.58)

 

$

 

2.19

 

$

 

(2.93)

 

 

     

 

     

 

         

 

Weighted average number of shares (diluted)

 

 

310.0

 

 

 

305.1

 

 

 

309.3

     

304.8

 

 

     

 

     

 

         

 

Exploration and Production:

   E&P net income was $309 million in the fourth quarter of 2021, compared with a net loss of $39 million in the fourth quarter of 2020. On an adjusted basis, E&P's net loss in the prior-year quarter was $118 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $71.04 per barrel in the fourth quarter of 2021, compared with $45.32 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the fourth quarter of 2021 was $36.47 per barrel, compared with $15.80 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.77 per mcf, compared with $3.35 per mcf in the fourth quarter of 2020.

   Net production, excluding Libya, was 295,000 boepd in the fourth quarter of 2021, compared with 309,000 boepd in the fourth quarter of 2020, or 295,000 boepd proforma for assets sold. Net production for Libya was 21,000 boepd in the fourth quarter of 2021 compared with 12,000 boepd in the prior-year quarter.

   Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $12.17 per boe (excluding Libya: $12.84 per boe) in the fourth quarter of 2021, compared with $11.31 per boe (excluding Libya: $11.57 per boe) in the prior-year quarter. The change in per unit cost reflects the impact of lower production volumes and higher production and severance taxes in North Dakota in the fourth quarter of this year. Income tax expense increased in the fourth quarter of 2021 compared with the prior-year quarter primarily due to improved results from Libya and Guyana.

Oil and Gas Reserves Estimates:

   Oil and gas proved reserves at December 31, 2021, which are subject to final review, were 1,309 million boe, compared with 1,170 million boe at December 31, 2020. Net proved reserve additions in 2021 totaled 348 million boe, which is comprised of net positive revisions of 107 million boe due to higher commodity prices and other net additions of 241 million boe primarily from the Bakken. Asset sales in 2021 reduced proved reserves by 91 million boe.

   Excluding asset sales, the Corporation replaced 295 percent of its 2021 production (204 percent excluding price revisions) at a finding and development cost of approximately $5.25 per boe (approximately $7.60 per boe excluding price revisions).

Operational Highlights for the Fourth Quarter of 2021:

   Bakken (Onshore U.S.): Net production from the Bakken was 159,000 boepd compared with 189,000 boepd in the prior-year quarter primarily due to the impact of lower drilling activity caused by a reduction in rig count from six to one during the first half of last year, lower NGL and natural gas volumes received under percentage of proceeds contracts, and the second quarter 2021 sale of Little Knife and Murphy Creek nonstrategic acreage interests, which contributed net production of approximately 5,000 boepd in the fourth quarter of 2020. Net oil production was 79,000 barrels of oil per day (bopd) compared with 97,000 bopd in the fourth quarter of 2020. NGL and natural gas volumes received under percentage of proceeds contracts were 9,000 boepd in the fourth quarter of 2021 compared with 21,000 boepd in the fourth quarter of 2020 due to higher realized NGL prices lowering volumes received as consideration for gas processing fees. The Corporation added a second rig in February 2021 and a third rig in September 2021, and drilled 17 wells, completed 13 wells, and brought 19 new wells online in the fourth quarter.

   Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 39,000 boepd, compared with 32,000 boepd in the prior-year quarter primarily due to downtime for hurricane-related maintenance in the fourth quarter of 2020. Net production from the Shenzi Field, which was sold in November 2020, was 3,000 boepd in the fourth quarter of 2020.

   Guyana (Offshore): At the Stabroek Block (Hess – 30%), the operator, Esso Exploration and Production Guyana Limited, announced two significant discoveries at Fangtooth and Lau Lau. The Fangtooth-1 well encountered approximately 164 feet of high quality oil bearing sandstone reservoirs, and confirms the deeper exploration potential of the Stabroek Block. The well was drilled in 6,030 feet of water and is located approximately 11 miles northwest of the Liza Field. The Lau Lau-1 well encountered approximately 315 feet of high quality hydrocarbon bearing sandstone reservoirs. The well was drilled in 4,793 feet of water and is located approximately 42 miles southeast of the Liza Field.

   The Corporation’s net production from the Liza Destiny floating production, storage and offloading vessel (FPSO) was 31,000 bopd in the fourth quarter of 2021 compared with 26,000 bopd in the prior-year quarter. On October 25, 2021, the Liza Unity FPSO, with an expected capacity of 220,000 gross bopd, arrived at the Stabroek Block and startup of Phase 2 of the Liza Field development remains on track for the first quarter of 2022. The third development, Payara, will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd; first oil is expected in 2024. A fourth development, Yellowtail, was submitted to the government of Guyana for approval in the fourth quarter. Pending government approval and project sanctioning, the project is expected to have a capacity of 250,000 gross bopd with first oil anticipated in 2025. We expect to have at least six FPSOs on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base.

   Following the completion of the Fangtooth-1 well, the Stena DrillMAX will begin drilling at the Tarpon prospect. Following the completion of the Lau Lau-1 well, the Noble Don Taylor began drilling at the Barreleye prospect. The Stena Carron completed drill stem tests on the Longtail-2, Whiptail-2 and Turbot-2 wells, and is currently performing a drill stem test on the Tilapia-1 well. The Noble Sam Croft, the Noble Bob Douglas and the Noble Tom Madden are currently drilling and completing development wells at Liza Phase 2 and the Payara Field.

   South East Asia (Offshore): Net production at North Malay Basin and JDA was 66,000 boepd compared with 56,000 boepd in the prior-year quarter, reflecting higher natural gas nominations due to a recovery in economic activity which had been impacted by COVID-19.

Midstream:

   The Midstream segment had net income of $74 million in the fourth quarter of 2021, compared with net income of $62 million in the prior-year quarter, primarily due to increased revenue from higher minimum volume commitments and rates.

   In October 2021, Hess Midstream LP completed a public offering of approximately 8.6 million Class A shares held by Hess Corporation and Global Infrastructure Partners. The Corporation received net proceeds of $108 million. After giving effect to this transaction, the Corporation owns an approximate 44% interest in Hess Midstream LP, on a consolidated basis.

Corporate, Interest and Other:

   After-tax expense for Corporate, Interest and Other was $118 million in the fourth quarter of 2021, compared with $120 million in the fourth quarter of 2020.

Capital and Exploratory Expenditures:

   E&P capital and exploratory expenditures were $593 million in the fourth quarter of 2021, compared with $371 million in the prior-year quarter, primarily due to higher drilling and development activity in Guyana and the Bakken. Midstream capital expenditures were $54 million in the fourth quarter of 2021, compared with $51 million in the prior-year quarter.

Liquidity:

   Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.71 billion and debt and finance lease obligations totaling $6.1 billion at December 31, 2021. The Midstream segment had cash and cash equivalents of $2 million and total debt of $2.6 billion at December 31, 2021. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 42.3% at December 31, 2021 and 47.5% at December 31, 2020.

   Net cash provided by operating activities was $899 million in the fourth quarter of 2021, up from $486 million in the fourth quarter of 2020. Net cash provided by operating activities before changes in operating assets and liabilities2 was $886 million in the fourth quarter of 2021, compared with $532 million in the prior-year quarter, primarily due to higher realized selling prices. Changes in operating assets and liabilities increased cash flow from operating activities by $13 million during the fourth quarter of 2021 and decreased cash flow from operating activities by $46 million in the prior-year quarter.

   During the quarter, the Corporation received net proceeds of $108 million from the public offering of approximately 4.3 million Hess-owned Class A shares of Hess Midstream LP. In January 2022, the Corporation paid accrued Libyan income tax and royalties of approximately $470 million related to operations for the period December 2020 through November 2021.

   2. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 7 and 8.

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)

 

2021

 

2020

 

2021

 

2020

 

(In millions)

Exploration and Production

$

 

 

$

 

79

 

$

 

(118)

 

$

 

(2,198)

Midstream

   

     

     

     

Corporate, Interest and Other

   

     

     

     

(1)

Total items affecting comparability of earnings between periods

$

 

 

$

 

79

 

$

 

(118)

 

$

 

(2,199)

   Fourth Quarter 2020: E&P results included a pre-tax gain of $79 million ($79 million after income taxes) associated with the sale of the Corporation's 28% working interest in the Shenzi Field in the deepwater Gulf of Mexico.

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

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

 

Three Months Ended

December 31,

(unaudited)

 

Year Ended

December 31,

(unaudited)

 

2021

 

2020

 

2021

 

2020

 

(In millions)

Net income (loss) attributable to Hess Corporation

$

 

265

 

$

 

(97)

 

$

 

559

 

$

 

(3,093)

Less: Total items affecting comparability of earnings between periods

   

     

79

     

(118)

     

(2,199)

Adjusted net income (loss) attributable to Hess Corporation

$

 

265

 

$

 

(176)

 

$

 

677

 

$

 

(894)

   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)

 

2021

 

2020

 

2021

 

2020

 

   

(In millions)

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

$

 

886

 

 

$

 

532

 

$

 

2,991

 

$

 

1,803

Changes in operating assets and liabilities

   

13

 

   

(46)

 

   

(101)

 

   

(470)

Net cash provided by (used in) operating activities

$

 

899

 

$

 

486

 

$

 

2,890

 

$

 

1,333

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, and future economic and market conditions in the oil and gas industry.

Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry, including as a result of COVID-19; reduced demand for our products, including due to COVID-19, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring as well as fracking bans; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, health measures related to COVID-19 or climate change; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation, including heightened risks associated with being a general partner of Hess Midstream LP; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).

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

Non-GAAP financial measures

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

Cautionary Note to Investors

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

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

Fourth

Quarter

2021

 

Fourth

Quarter

2020

 

Third

Quarter

2021

Income Statement

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Revenues and non-operating income

   

 

 

   

 

 

   

 

Sales and other operating revenues

$

 

2,237

 

$

 

1,321

 

$

 

1,759

Gains on asset sales, net

   

 

   

79

 

   

29

Other, net

   

18

 

   

17

 

   

23

Total revenues and non-operating income

   

2,255

 

   

1,417

 

   

1,811

Costs and expenses

   

 

 

   

 

 

   

 

Marketing, including purchased oil and gas

   

672

 

   

281

 

   

522

Operating costs and expenses

   

316

 

   

313

 

   

333

Production and severance taxes

   

49

 

   

32

 

   

42

Exploration expenses, including dry holes and lease impairment

   

45

 

   

60

 

   

36

General and administrative expenses

   

86

 

   

82

 

   

76

Interest expense

   

121

 

   

118

 

   

125

Depreciation, depletion and amortization

   

398

 

   

486

 

   

349

Total costs and expenses

   

1,687

 

   

1,372

 

   

1,483

Income (loss) before income taxes

   

568

 

   

45

 

   

328

Provision (benefit) for income taxes

   

212

 

   

72

 

   

143

Net income (loss)

   

356

 

   

(27)

 

   

185

Less: Net income (loss) attributable to noncontrolling interests

   

91

 

   

70

 

   

70

Net income (loss) attributable to Hess Corporation

$

 

265

 

$

 

(97)

 

$

 

115

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

Year Ended

December 31,

 

2021

 

2020

Income Statement

   

 

 

   

 

 

   

 

 

   

 

Revenues and non-operating income

   

 

 

   

 

Sales and other operating revenues

$

 

7,473

 

$

 

4,667

Gains on asset sales, net

   

29

 

   

87

Other, net

   

81

 

   

50

Total revenues and non-operating income

   

7,583

 

   

4,804

Costs and expenses

   

 

 

   

 

Marketing, including purchased oil and gas

   

2,034

 

   

936

Operating costs and expenses

   

1,229

 

   

1,218

Production and severance taxes

   

172

 

   

124

Exploration expenses, including dry holes and lease impairment

   

162

 

   

351

General and administrative expenses

   

340

 

   

357

Interest expense

   

481

 

   

468

Depreciation, depletion and amortization

   

1,528

 

   

2,074

Impairment and other

   

147

 

   

2,126

Total costs and expenses

   

6,093

 

   

7,654

Income (loss) before income taxes

   

1,490

 

   

(2,850)

Provision (benefit) for income taxes

   

600

 

   

(11)

Net income (loss)

   

890

 

   

(2,839)

Less: Net income (loss) attributable to noncontrolling interests

   

331

 

   

254

Net income (loss) attributable to Hess Corporation

$

 

559

 

$

 

(3,093)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

December 31,

 

2021

 

2020

Balance Sheet Information

   

 

 

   

 

Assets

   

 

 

   

 

Cash and cash equivalents

$

 

2,713

 

$

 

1,739

Other current assets

   

1,633

 

   

1,342

Property, plant and equipment – net

   

14,182

 

   

14,115

Operating lease right-of-use assets – net

   

352

 

   

426

Finance lease right-of-use assets – net

   

144

 

   

168

Other long-term assets

   

1,491

 

   

1,031

Total assets

$

 

20,515

 

$

 

18,821

Liabilities and equity

   

 

 

   

 

Current portion of long-term debt

 

517

 

$  

10

Current portion of operating and finance lease obligations

   

89

 

   

81

Other current liabilities

   

2,458

 

   

1,532

Long-term debt

   

7,941

 

   

8,286

Long-term operating lease obligations

   

394

 

   

478

Long-term finance lease obligations

   

200

 

   

220

Other long-term liabilities

   

1,890

 

   

1,879

Total equity excluding other comprehensive income (loss)

   

6,706

 

   

6,121

Accumulated other comprehensive income (loss)

   

(406)

 

   

(755)

Noncontrolling interests

   

726

 

   

969

Total liabilities and equity

$

 

20,515

 

$

 

18,821

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

December 31,

 

2021

 

2020

Total Debt

   

 

 

   

 

Hess Corporation

$

 

5,894

 

$

 

6,386

Midstream (a)

   

2,564

 

   

1,910

Hess Consolidated

$

 

8,458

 

$

 

8,296

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

 

December 31,

 

2021

 

2020

Debt to Capitalization Ratio (a)

   

 

 

 

 

Hess Consolidated

   

55.3 %

 

 

57.4 %

Hess Corporation as defined in debt covenants

   

42.3 %

 

 

47.5 %

(a) Includes finance lease obligations.

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

Interest Expense

   

 

 

   

 

 

   

 

 

   

 

Hess Corporation

$

 

90

 

$

 

94

 

$

 

376

 

$

 

373

Midstream (a)

   

31

 

   

24

 

   

105

 

   

95

Hess Consolidated

$

 

121

 

$

 

118

 

$

 

481

 

$

 

468

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

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

Fourth

Quarter

2021

 

Fourth

Quarter

2020

 

Third

Quarter

2021

Cash Flow Information

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Cash Flows from Operating Activities

   

 

 

   

 

 

   

 

Net income (loss)

$

 

356

 

$

 

(27)

 

$

 

185

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

   

 

 

   

 

 

   

 

Gains on asset sales, net

   

 

   

(79)

 

   

(29)

Depreciation, depletion and amortization

   

398

 

   

486

 

   

349

Exploratory dry hole costs

   

 

   

26

 

   

2

Exploration lease and other impairment

   

5

 

   

3

 

   

5

Pension settlement loss

   

4

 

   

 

   

1

Stock compensation expense

   

16

 

   

16

 

   

17

Noncash (gains) losses on commodity derivatives, net

   

64

 

   

73

 

   

64

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

   

43

 

   

34

 

   

37

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

   

886

 

   

532

 

   

631

Changes in operating assets and liabilities

   

13

 

   

(46)

 

   

(16)

Net cash provided by (used in) operating activities

   

899

 

   

486

 

   

615

Cash Flows from Investing Activities

   

 

 

   

 

 

   

 

Additions to property, plant and equipment - E&P

   

(466)

 

   

(319)

 

   

(431)

Additions to property, plant and equipment - Midstream

   

(43)

 

   

(55)

 

   

(67)

Proceeds from asset sales, net of cash sold

   

 

   

482

 

   

130

Other, net

   

(1)

 

   

(1)

 

   

(2)

Net cash provided by (used in) investing activities

   

(510)

 

   

107

 

   

(370)

Cash Flows from Financing Activities

   

 

 

   

 

 

   

 

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

   

(48)

 

   

6

 

   

43

Debt with maturities of greater than 90 days:

   

 

 

   

 

 

   

 

Borrowings

   

 

   

 

   

750

Repayments

   

(2)

 

   

 

   

(503)

Payments on finance lease obligations

   

(3)

 

   

(1)

 

   

(3)

Proceeds from sale of Class A shares of Hess Midstream LP

   

108

 

   

 

   

Cash dividends paid

   

(77)

 

   

(76)

 

   

(77)

Noncontrolling interests, net

   

(75)

 

   

(67)

 

   

(452)

Employee stock options exercised

   

2

 

   

 

   

Other, net

   

 

   

(1)

 

   

(14)

Net cash provided by (used in) financing activities

   

(95)

 

   

(139)

 

   

(256)

Net Increase (Decrease) in Cash and Cash Equivalents

   

294

 

   

454

 

   

(11)

Cash and Cash Equivalents at Beginning of Period

   

2,419

 

   

1,285

 

   

2,430

Cash and Cash Equivalents at End of Period

$

2,713

$

 

1,739

$

 

2,419

 

   

 

 

   

 

 

   

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

 

(607)

 

$

 

(391)

 

$

 

(528)

Increase (decrease) in related liabilities

   

98

 

   

17

 

   

30

Additions to property, plant and equipment

$

 

(509)

 

$

 

(374)

 

$

 

(498)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

Year Ended December 31,

 

2021

 

2020

Cash Flow Information

   

 

 

   

 

 

   

 

 

   

 

Cash Flows from Operating Activities

   

 

 

   

 

Net income (loss)

$

 

890

 

$

 

(2,839)

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

   

 

 

   

 

Gains on asset sales, net

   

(29)

 

   

(87)

Depreciation, depletion and amortization

   

1,528

 

   

2,074

Impairment and other

   

147

 

   

2,126

Exploratory dry hole costs

   

11

 

   

192

Exploration lease and other impairment

   

20

 

   

51

Pension settlement loss

   

9

 

   

Stock compensation expense

   

77

 

   

79

Noncash (gains) losses on commodity derivatives, net

   

216

 

   

260

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

   

122

 

   

(53)

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

   

2,991

 

   

1,803

Changes in operating assets and liabilities

   

(101)

 

   

(470)

Net cash provided by (used in) operating activities

   

2,890

 

   

1,333

Cash Flows from Investing Activities

   

 

 

   

 

Additions to property, plant and equipment - E&P

   

(1,584)

 

   

(1,896)

Additions to property, plant and equipment - Midstream

   

(163)

 

   

(301)

Proceeds from asset sales, net of cash sold

   

427

 

   

493

Other, net

   

(5)

 

   

(3)

Net cash provided by (used in) investing activities

   

(1,325)

 

   

(1,707)

Cash Flows from Financing Activities

   

 

 

   

 

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

   

(80)

 

   

152

Debt with maturities of greater than 90 days:

   

 

 

   

 

Borrowings

   

750

 

   

1,000

Repayments

   

(510)

 

   

Payments on finance lease obligations

   

(10)

 

   

(7)

Proceeds from sale of Class A shares of Hess Midstream LP

   

178

 

   

Cash dividends paid

   

(311)

 

   

(309)

Noncontrolling interests, net

   

(664)

 

   

(261)

Employee stock options exercised

   

77

 

   

15

Other, net

   

(21)

 

   

(22)

Net cash provided by (used in) financing activities

   

(591)

 

   

568

Net Increase (Decrease) in Cash and Cash Equivalents

   

974

 

   

194

Cash and Cash Equivalents at Beginning of Year

   

1,739

 

   

1,545

Cash and Cash Equivalents at End of Year

$

 

2,713

 

$

 

1,739

 

   

 

 

   

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

 

(1,881)

 

$

 

(1,931)

Increase (decrease) in related liabilities

   

134

 

   

(266)

Additions to property, plant and equipment

$

 

(1,747)

 

$

 

(2,197)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

Fourth

Quarter

2021

 

Fourth

Quarter

2020

 

Third

Quarter

2021

Capital and Exploratory Expenditures

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

E&P Capital and exploratory expenditures

   

 

 

   

 

 

   

 

United States

   

 

 

   

 

 

   

 

North Dakota

$

 

153

 

$

 

72

 

$

 

169

Offshore and Other

   

31

 

   

40

 

   

16

Total United States

   

184

 

   

112

 

   

185

Guyana

   

330

 

   

224

 

   

264

Malaysia and JDA

   

63

 

   

25

 

   

42

Other

   

16

 

   

10

 

   

7

E&P Capital and exploratory expenditures

$

 

593

 

$

 

371

 

$

 

498

 

   

 

 

   

 

 

   

 

Total exploration expenses charged to income included above

$

 

40

 

$

 

31

 

$

 

29

 

   

 

 

   

 

 

   

 

Midstream Capital expenditures

$

 

54

 

$

 

51

 

$

 

59

             

 

Year Ended December 31,

 

2021

 

2020

Capital and Exploratory Expenditures

   

 

 

   

 

 

   

 

 

   

 

E&P Capital and exploratory expenditures

   

 

 

   

 

United States

   

 

 

   

 

North Dakota

$  

522

 

$

 

661

Offshore and Other

   

103

 

   

258

Total United States

   

625

 

   

919

Guyana

   

1,016

 

   

743

Malaysia and JDA

   

154

 

   

99

Other

   

34

 

   

25

E&P Capital and exploratory expenditures

$

 

1,829

 

$

 

1,786

 

   

 

 

   

 

Total exploration expenses charged to income included above

$

 

131

 

$

 

108

 

   

 

 

   

 

Midstream Capital expenditures

$

 

183

 

$

 

253

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

Fourth Quarter 2021

Income Statement

United States

   

International

   

Total

 

   

 

   

 

 

 

   

 

 

 

Total revenues and non-operating income

   

 

   

 

 

 

   

 

 

 

Sales and other operating revenues

$

 

1,612

   

$

 

625

   

$

 

2,237

Other, net

   

13

   

 

 

2

   

 

 

15

Total revenues and non-operating income

   

1,625

   

 

 

627

   

 

 

2,252

Costs and expenses

   

 

   

 

 

 

   

 

 

 

Marketing, including purchased oil and gas (a)

   

668

   

 

 

24

   

 

 

692

Operating costs and expenses

   

167

   

 

 

87

   

 

 

254

Production and severance taxes

   

47

   

 

 

2

   

 

 

49

Midstream tariffs

   

292

   

 

 

   

 

 

292

Exploration expenses, including dry holes and lease impairment

   

25

   

 

 

20

   

 

 

45

General and administrative expenses

   

44

   

 

 

7

   

 

 

51

Depreciation, depletion and amortization

   

263

   

 

 

91

   

 

 

354

Total costs and expenses

   

1,506

   

 

 

231

   

 

 

1,737

Results of operations before income taxes

   

119

   

 

 

396

   

 

 

515

Provision (benefit) for income taxes

   

   

 

 

206

   

 

 

206

Net income (loss) attributable to Hess Corporation

$

 

119

(b)

 

$

 

190

(c)

 

$

 

309

 

   

 

   

 

 

 

   

 

 

 

 

Fourth Quarter 2020

Income Statement

United States

   

International

   

Total

 

   

 

   

 

 

 

   

 

 

 

Total revenues and non-operating income

   

 

   

 

 

 

   

 

 

 

Sales and other operating revenues

$

 

904

   

$

 

417

   

$

 

1,321

Gains (losses) on asset sales, net

   

79

   

 

 

   

 

 

79

Other, net

   

12

   

 

 

2

   

 

 

14

Total revenues and non-operating income

   

995

   

 

 

419

   

 

 

1,414

Costs and expenses

   

 

   

 

 

 

   

 

 

 

Marketing, including purchased oil and gas (a)

   

267

   

 

 

34

   

 

 

301

Operating costs and expenses

   

158

   

 

 

92

   

 

 

250

Production and severance taxes

   

30

   

 

 

2

   

 

 

32

Midstream tariffs

   

243

   

 

 

   

 

 

243

Exploration expenses, including dry holes and lease impairment

   

36

   

 

 

24

   

 

 

60

General and administrative expenses

   

43

   

 

 

8

   

 

 

51

Depreciation, depletion and amortization

   

325

   

 

 

121

   

 

 

446

Total costs and expenses

   

1,102

   

 

 

281

   

 

 

1,383

Results of operations before income taxes

   

(107)

   

 

 

138

   

 

 

31

Provision (benefit) for income taxes

   

   

 

 

70

   

 

 

70

Net income (loss) attributable to Hess Corporation

$

 

(107)

(d)

 

$

 

68

(e)

 

$

 

(39)

(a)

 

Includes amounts charged from the Midstream segment.

(b)

 

Includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement:  $0 million).

(c)

 

Includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement:  $0 million).

(d)

 

Includes after-tax gains from realized crude oil hedging activities of $84 million (noncash premium amortization: $63 million; cash settlement:  $147 million).

(e)

 

Includes after-tax gains from realized crude oil hedging activities of $28 million (noncash premium amortization: $10 million; cash settlement:  $38 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

Third Quarter 2021

Income Statement

United States

 

 

International

 

 

Total

 

   

 

 

     

 

 

     

 

Total revenues and non-operating income

   

 

 

     

 

 

     

 

Sales and other operating revenues

$

 

1,280

 

 

$

 

479

 

 

$

 

1,759

Gains on asset sales, net

   

 

     

29

 

     

29

Other, net

   

12

 

     

7

 

     

19

Total revenues and non-operating income

   

1,292

 

     

515

 

     

1,807

Costs and expenses

   

 

 

     

 

 

     

 

Marketing, including purchased oil and gas (a)

   

542

 

     

 

     

542

Operating costs and expenses

   

150

 

     

99

 

     

249

Production and severance taxes

   

41

 

     

1

 

     

42

Midstream tariffs

   

270

 

     

 

     

270

Exploration expenses, including dry holes and lease impairment

   

21

 

     

15

 

     

36

General and administrative expenses

   

35

 

     

7

 

     

42

Depreciation, depletion and amortization

   

229

 

     

79

 

     

308

Total costs and expenses

   

1,288

 

     

201

 

     

1,489

Results of operations before income taxes

   

4

 

     

314

 

     

318

Provision (benefit) for income taxes

   

 

     

140

 

     

140

Net income (loss) attributable to Hess Corporation

$

 

4

(b)

 

$

 

174

(c)

 

$

 

178

(a)

 

Includes amounts charged from the Midstream segment.

(b)

 

Includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement:  $0 million).

(c)

 

Includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement:  $0 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

Year Ended December 31, 2021

Income Statement

United States

 

 

International

 

 

Total

 

   

 

 

     

 

 

     

 

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, net

   

48

 

     

16

 

     

64

Total revenues and non-operating income

   

5,426

 

     

2,140

 

     

7,566

Costs and expenses

   

 

 

     

 

 

     

 

Marketing, including purchased oil and gas (a)

   

2,065

 

     

54

 

     

2,119

Operating costs and expenses

   

610

 

     

355

 

     

965

Production and severance taxes

   

166

 

     

6

 

     

172

Midstream tariffs

   

1,094

 

     

 

     

1,094

Exploration expenses, including dry holes and lease impairment

   

102

 

     

60

 

     

162

General and administrative expenses

   

162

 

     

29

 

     

191

Depreciation, depletion and amortization

   

1,020

 

     

341

 

     

1,361

Impairment and other

   

147

 

     

 

     

147

Total costs and expenses

   

5,366

 

     

845

 

     

6,211

Results of operations before income taxes

   

60

 

     

1,295

 

     

1,355

Provision (benefit) for income taxes

   

 

     

585

 

     

585

Net income (loss) attributable to Hess Corporation

$

 

60

(b)

 

$

 

710

(c)

 

$

 

770

 

   

 

 

     

 

 

     

 

 

Year Ended December 31, 2020

Income Statement

United States

 

 

International

 

 

Total

 

   

 

 

     

 

 

     

 

Total revenues and non-operating income

   

 

 

     

 

 

     

 

Sales and other operating revenues

$

 

3,604

 

 

$

 

1,063

 

 

$

 

4,667

Gains on asset sales, net

   

79

 

     

 

     

79

Other, net

   

18

 

     

13

 

     

31

Total revenues and non-operating income

   

3,701

 

     

1,076

 

     

4,777

Costs and expenses

   

 

 

     

 

 

     

 

Marketing, including purchased oil and gas (a)

   

1,043

 

     

24

 

     

1,067

Operating costs and expenses

   

564

 

     

331

 

     

895

Production and severance taxes

   

118

 

     

6

 

     

124

Midstream tariffs

   

946

 

     

 

     

946

Exploration expenses, including dry holes and lease impairment

   

284

 

     

67

 

     

351

General and administrative expenses

   

176

 

     

30

 

     

206

Depreciation, depletion and amortization

   

1,480

 

     

435

 

     

1,915

Impairment and other

   

697

 

     

1,429

 

     

2,126

Total costs and expenses

   

5,308

 

     

2,322

 

     

7,630

Results of operations before income taxes

   

(1,607)

 

     

(1,246)

 

     

(2,853)

Provision (benefit) for income taxes

   

 

     

(12)

 

     

(12)

Net income (loss) attributable to Hess Corporation

$

 

(1,607)

(d)

 

$

 

(1,234)

(e)

 

$

 

(2,841)

(a)

 

Includes amounts charged from the Midstream segment.

(b)

 

Includes after-tax losses from realized crude oil hedging activities of $190 million (noncash premium amortization: $190 million; cash settlement:  $0 million).  

(c)

Includes after-tax losses from realized crude oil hedging activities of $49 million (noncash premium amortization: $49 million; cash settlement:  $0 million).

(d)

Includes after-tax gains from realized crude oil hedging activities of $452 million (noncash premium amortization: $230 million; cash settlement:  $682 million).

(e)

Includes after-tax gains from realized crude oil hedging activities of $95 million (noncash premium amortization: $30 million; cash settlement:  $125 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

Fourth

Quarter

2021

 

Fourth

Quarter

2020

 

Third

Quarter

2021

Net Production Per Day (in thousands)

 

 

 

 

 

 

 

 

 

 

 

Crude oil - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

79

 

97

 

78

Offshore (a)

26

 

24

 

20

Total United States

105

 

121

 

98

Guyana

31

 

26

 

32

Malaysia and JDA

3

 

3

 

3

Other (b)

19

 

17

 

20

Total

158

 

167

 

153

 

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

52

 

61

 

44

Offshore (a)

4

 

3

 

3

Total United States

56

 

64

 

47

 

 

 

 

 

 

Natural gas - mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

170

 

185

 

158

Offshore

55

 

31

 

52

Total United States

225

 

216

 

210

Malaysia and JDA

375

 

315

 

284

Other (b)

11

 

7

 

9

Total

611

 

538

 

503

 

 

 

 

 

 

Barrels of oil equivalent

316

 

321

 

284

(a)

 

The Corporation sold its working interest in the Shenzi Field in the deepwater Gulf of Mexico in the fourth quarter of 2020.  Net production from the Shenzi Field was 3,000 boepd in the fourth quarter of 2020.

(b)

 

Other includes production from Denmark and Libya.  The Corporation sold its interests in Denmark in the third quarter of 2021.  Denmark net production was 6,000 boepd in the fourth quarter of 2020 and 3,000 boepd in the third quarter of 2021.  Libya net production was 21,000 boepd in the fourth quarter of 2021, 12,000 boepd in the fourth quarter of 2020 and 19,000 boepd in the third quarter of 2021.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

Year Ended December 31,

 

2021

 

2020

Net Production Per Day (in thousands)

 

 

 

 

 

 

 

Crude oil - barrels

 

 

 

United States

 

 

 

North Dakota

80

 

107

Offshore (a)

29

 

38

Total United States

109

 

145

Guyana

30

 

20

Malaysia and JDA

3

 

4

Other (b)

21

 

9

Total

163

 

178

 

 

 

 

Natural gas liquids - barrels

 

 

 

United States

 

 

 

North Dakota

49

 

56

Offshore (a)

4

 

5

Total United States

53

 

61

 

 

 

 

Natural gas - mcf

 

 

 

United States

 

 

 

North Dakota

162

 

180

Offshore

72

 

76

Total United States

234

 

256

Malaysia and JDA

347

 

291

Other (b)

10

 

7

Total

591

 

554

 

 

 

 

Barrels of oil equivalent

315

 

331

(a)

 

The Corporation sold its working interest in the Shenzi Field in the deepwater Gulf of Mexico in the fourth quarter of 2020.  Net production from the Shenzi Field was 9,000 boepd in 2020.

(b)

 

Other includes production from Denmark and Libya.  The Corporation sold its interests in Denmark in the third quarter of 2021.  Denmark net production was 3,000 boepd in 2021 and 6,000 boepd in 2020.  Libya net production was 20,000 boepd in 2021 and 4,000 boepd in 2020.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Fourth

Quarter

2021

  Fourth

Quarter

2020
 

Third

Quarter

2021

Sales Volumes Per Day (in thousands) (a)

 

 

   

 

Crude oil - barrels

 

165

 

184

 

148

Natural gas liquids - barrels

 

56

 

64

 

47

Natural gas - mcf

 

611

 

538

 

503

Barrels of oil equivalent

 

323

 

338

 

279

 

 

 

   

 

Sales Volumes (in thousands) (a)

 

 

   

 

Crude oil - barrels

 

15,225

 

16,974

 

13,627

Natural gas liquids - barrels

 

5,124

 

5,842

 

4,338

Natural gas - mcf

 

56,202

 

49,542

 

46,317

Barrels of oil equivalent

 

29,716

 

31,073

 

25,685

         

 

   

Year Ended December 31,

 

   

2021

 

2020

Sales Volumes Per Day (in thousands) (a)

   

 

 

Crude oil - barrels

   

174

  167

Natural gas liquids - barrels

   

53

  61

Natural gas - mcf

   

591

  554

Barrels of oil equivalent

   

326

  320

 

   

 

 

Sales Volumes (in thousands) (a)

   

 

 

Crude oil - barrels (b)

   

63,540

  60,924

Natural gas liquids - barrels

   

19,406

  22,397

Natural gas - mcf

   

215,589

  202,917

Barrels of oil equivalent

   

118,878

  117,141

(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 at December 31, 2020 and sold in the first quarter of 2021.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

Fourth

Quarter

2021

 

Fourth

Quarter

2020

 

Third

Quarter

2021

Average Selling Prices

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

Crude oil - per barrel (including hedging)

   

 

 

   

 

 

   

 

United States

   

 

 

   

 

 

   

 

North Dakota

 

67.39

 

$

 

42.69

 

$

 

59.65

Offshore

   

69.04

 

   

47.59

 

   

62.23

Total United States

   

67.80

 

   

43.65

 

   

60.14

Guyana

   

77.20

 

   

49.56

 

   

70.05

Malaysia and JDA

   

83.23

 

   

37.80

 

   

69.87

Other (a)

   

75.24

 

   

50.22

 

   

68.36

Worldwide

   

71.04

 

   

45.32

 

   

63.17

 

   

 

 

   

 

 

   

 

Crude oil - per barrel (excluding hedging)

   

 

 

   

 

 

   

 

United States

   

 

 

   

 

 

   

 

North Dakota

$

 

72.54

 

$

 

36.46

 

$

 

65.11

Offshore

   

74.11

 

   

41.36

 

   

67.88

Total United States

   

72.93

 

   

37.42

 

   

65.64

Guyana

   

79.94

 

   

43.96

 

   

73.12

Malaysia and JDA

   

83.23

 

   

37.80

 

   

69.87

Other (a)

   

77.78

 

   

44.63

 

   

71.43

Worldwide

   

75.22

 

   

39.45

 

   

67.88

 

   

 

 

   

 

 

   

 

Natural gas liquids - per barrel

   

 

 

   

 

 

   

 

United States

   

 

 

   

 

 

   

 

North Dakota

$

 

36.63

 

$

 

15.93

 

$

 

32.94

Offshore

   

34.23

 

   

13.07

 

   

32.00

Worldwide

   

36.47

 

   

15.80

 

   

32.88

 

   

 

 

   

 

 

   

 

Natural gas - per mcf

   

 

 

   

 

 

   

 

United States

   

 

 

   

 

 

   

 

North Dakota

$

 

4.40

 

$

 

1.67

 

$

 

3.75

Offshore

   

4.63

 

   

1.42

 

   

3.76

Total United States

   

4.46

 

   

1.64

 

   

3.75

Malaysia and JDA

   

4.97

 

   

4.57

 

   

5.45

Other (a)

   

4.27

 

   

2.27

 

   

3.62

Worldwide

   

4.77

 

   

3.35

 

   

4.71

(a) Other includes prices related to production from Denmark, which was sold in the third quarter of 2021, and Libya.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

Year Ended December 31,

 

2021

 

2020

Average Selling Prices

   

 

 

   

 

 

   

 

 

   

 

Crude oil - per barrel (including hedging)

   

 

 

   

 

United States

   

 

 

   

 

North Dakota

$

 

55.57

 

$

 

42.63

Offshore

   

60.09

 

   

45.92

Total United States

   

56.64

 

   

43.56

Guyana

   

68.57

 

   

46.41

Malaysia and JDA

   

71.00

 

   

37.91

Other (a)

   

66.39

 

   

51.37

Worldwide

   

60.08

 

   

44.28

 

   

 

 

   

 

Crude oil - per barrel (excluding hedging)

   

 

 

   

 

United States

   

 

 

   

 

North Dakota

$

 

59.90

 

$

 

33.87

Offshore

   

64.77

 

   

36.55

Total United States

   

61.05

 

   

34.63

Guyana

   

71.07

 

   

37.40

Malaysia and JDA

   

71.00

 

   

37.91

Other (a)

   

69.25

 

   

43.42

Worldwide

   

63.90

 

   

35.52

 

   

 

 

   

 

Natural gas liquids - per barrel

   

 

 

   

 

United States

   

 

 

   

 

North Dakota

$

 

30.74

 

$

 

11.29

Offshore

   

26.40

 

   

8.94

Worldwide

   

30.40

 

   

11.10

 

   

 

 

   

 

Natural gas - per mcf

   

 

 

   

 

United States

   

 

 

   

 

North Dakota

$

 

4.08

 

$

 

1.27

Offshore

   

3.25

 

   

1.23

Total United States

   

3.82

 

   

1.26

Malaysia and JDA

   

5.15

 

   

4.47

Other (a)

   

3.40

 

   

3.41

Worldwide

   

4.60

 

   

2.98

(a) Other includes prices related to production from Denmark, which was sold in the third quarter of 2021, and Libya.

The following is a summary of the Corporation’s outstanding crude collars for calendar year 2022:

 

WTI

 

Brent

Barrels of oil per day

   

90,000

 

   

60,000

Average monthly ceiling price

$

 

100

 

$

 

105

Average monthly floor price

$

 

60

 

$

 

65

 

Contacts

For Hess Corporation

Investors:

Jay Wilson

(212) 536-8940

Media:

Lorrie Hecker

(212) 536-8250

Jamie Tully

Sard Verbinnen & Co

(917) 679-7908

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