Form 8-K HESS CORP For: Jan 27
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): January 27, 2016
HESS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
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DELAWARE |
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No. 1-1204 |
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No. 13-4921002 |
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(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
1185 Avenue of the Americas
New York, New York 10036
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (212) 997-8500
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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£ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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£ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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£ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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£ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On January 27, 2016, Hess Corporation issued a news release reporting estimated results for the fourth quarter of 2015. A copy of this news release is attached hereto as Exhibit 99(1) and is hereby incorporated by reference.
Item 9.01. Financial Statements and Exhibits.
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(d) |
Exhibit |
99(1)News release dated January 27, 2016 reporting estimated results for the fourth quarter of 2015.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Date: January 27, 2016 |
HESS CORPORATION |
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By: |
/s/John P. Rielly |
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Name: |
John P. Rielly |
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Title: |
Senior Vice President and |
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Chief Financial Officer |
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Exhibit No. |
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Description |
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99(1) |
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News release dated January 27, 2016 reporting estimated results for the fourth quarter of 2015. |
Exhibit 99.1
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HESS CORPORATION
HESS REPORTS ESTIMATED RESULTS FOR THE FOURTH QUARTER OF 2015
Fourth Quarter Highlights:
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● |
Adjusted net loss was $396 million or $1.40 per share compared to adjusted net income of $53 million or $0.18 per share in the prior-year quarter; lower realized selling prices reduced fourth quarter 2015 adjusted net income by approximately $420 million |
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● |
Net loss was $1,821 million, including noncash impairment charges of $1,359 million after tax |
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● |
Oil and gas production was 368,000 barrels of oil equivalent per day (boepd) compared to 362,000 boepd in the fourth quarter of 2014 |
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● |
E&P capital and exploratory expenditures were $943 million. Full year E&P capital and exploratory expenditures were $4.0 billion, down 25 percent from $5.3 billion in 2014 |
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● |
Year-end 2015 cash and cash equivalents totaled $2.7 billion |
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● |
Year-end total proved reserves were 1,086 million barrels of oil equivalent (boe), down from 1,431 million boe in the prior year, primarily due to negative revisions to proved undeveloped reserves resulting from lower crude oil prices |
2016 Guidance:
|
● |
E&P capital and exploratory expenditures are expected to be $2.4 billion, down 40 percent from 2015 E&P capital and exploratory expenditures |
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● |
Oil and gas production is forecast to be in the range of 330,000 to 350,000 boepd compared to full year 2015 net production of 368,000 boepd, excluding Libya and asset sales |
NEW YORK, January 27, 2016, — Hess Corporation (NYSE: HES) today reported an adjusted net loss, which excludes items affecting comparability, of $396 million or $1.40 per common share, for the fourth quarter of 2015 compared with adjusted net income of $53 million or $0.18 per share in the
1
fourth quarter of 2014. Lower realized selling prices reduced adjusted net income by approximately $420 million compared with the prior-year quarter. On an unadjusted basis, the Corporation reported a net loss of $1,821 million for the fourth quarter of 2015 compared with a net loss of $8 million in the fourth quarter of last year. Fourth quarter 2015 results included noncash goodwill and other impairment related charges totaling $1,359 million after tax.
“We finished 2015 with one of the strongest balance sheets and liquidity positions among our E&P peers,” Chief Executive Officer John Hess said. “Looking forward, our top priority is to continue to keep our balance sheet strong. Our 2016 capital and exploratory budget is 40 percent below our 2015 spend and we will continue to pursue further cost reductions. At the same time, we plan to continue to invest in future growth.”
2
After-tax income (loss) by major operating activity was as follows:
|
|
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Three Months Ended |
|
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Year Ended |
|
||||||||||
|
|
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December 31, |
|
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December 31, |
|
||||||||||
|
|
|
(unaudited) |
|
|
(unaudited) |
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||||||||||
|
|
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2015 |
|
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2014 |
|
|
2015 |
|
|
2014 |
|
||||
|
|
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(In millions, except per share amounts) |
|
|||||||||||||
|
Net Income (Loss) Attributable to Hess Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production |
|
$ |
(1,713 |
) |
|
$ |
83 |
|
|
$ |
(2,717 |
) |
|
$ |
2,086 |
|
|
Bakken Midstream |
|
|
11 |
|
|
|
8 |
|
|
|
86 |
|
|
|
10 |
|
|
Corporate, Interest and Other |
|
|
(111 |
) |
|
|
(96 |
) |
|
|
(377 |
) |
|
|
(404 |
) |
|
Net income (loss) from continuing operations |
|
|
(1,813 |
) |
|
|
(5 |
) |
|
|
(3,008 |
) |
|
|
1,692 |
|
|
Discontinued operations |
|
|
(8 |
) |
|
|
(3 |
) |
|
|
(48 |
) |
|
|
625 |
|
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(1,821 |
) |
|
$ |
(8 |
) |
|
$ |
(3,056 |
) |
|
$ |
2,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share (diluted) |
|
$ |
(6.43 |
) |
|
$ |
(0.03 |
) |
|
$ |
(10.78 |
) |
|
$ |
7.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income (Loss) Attributable to Hess Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and Production |
|
$ |
(328 |
) |
|
$ |
138 |
|
|
$ |
(866 |
) |
|
$ |
1,544 |
|
|
Bakken Midstream |
|
|
11 |
|
|
|
8 |
|
|
|
86 |
|
|
|
10 |
|
|
Corporate, Interest and Other |
|
|
(79 |
) |
|
|
(93 |
) |
|
|
(333 |
) |
|
|
(330 |
) |
|
Adjusted net income (loss) from continuing operations |
|
|
(396 |
) |
|
|
53 |
|
|
|
(1,113 |
) |
|
|
1,224 |
|
|
Discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
84 |
|
|
Adjusted net income (loss) attributable to Hess Corporation |
|
$ |
(396 |
) |
|
$ |
53 |
|
|
$ |
(1,113 |
) |
|
$ |
1,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) per share (diluted) |
|
$ |
(1.40 |
) |
|
$ |
0.18 |
|
|
$ |
(3.93 |
) |
|
$ |
4.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted average number of shares (diluted) |
|
283.2 |
|
|
|
289.0 |
|
|
|
283.6 |
|
|
|
307.7 |
|
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Exploration and Production:
The Exploration and Production adjusted net loss in the fourth quarter of 2015 was $328 million compared with adjusted net income of $138 million in the fourth quarter of 2014. On an unadjusted basis, Exploration and Production had a net loss of $1,713 million in the fourth quarter of 2015, compared with net income of $83 million in the fourth quarter of 2014.
The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was down 42 percent to $43.73 per barrel in the fourth quarter of 2015 from $75.34 per barrel in the fourth quarter of 2014. The average worldwide natural gas liquids selling price was $9.61 per barrel, down
3
from $22.37 per barrel in the year-ago quarter while the average worldwide natural gas selling price was $3.44 per mcf in the fourth quarter of 2015 compared with $5.24 per mcf in the fourth quarter a year ago.
Excluding production from assets sold and Libya, pro forma net production in the fourth quarter of 2015 was 358,000 boepd, up 4 percent from 343,000 boepd in the fourth quarter of 2014. Production growth at the Utica shale play (17,000 boepd), the Bakken shale play (7,000 boepd) and the Gulf of Mexico (5,000 boepd) was offset by lower production from the Joint Development area of Malaysia/Thailand (10,000 boepd) and Denmark (5,000 boepd). Our Algeria operations, which had production of 10,000 boepd in the fourth quarter of 2015 (9,000 boepd in the fourth quarter of 2014) were sold in December. The Corporation expects 2016 net production, excluding Libya, to average between 330,000 boepd and 350,000 boepd compared with 2015 net production of 368,000 boepd, excluding Libya and asset sales.
Oil and Gas Reserve Estimates:
Oil and gas proved reserves were 1,086 million barrels of oil equivalent (boe) at December 31, 2015, compared with 1,431 million boe at December 31, 2014. Lower crude oil prices and reduced drilling plans resulted in negative revisions to proved reserves of 282 million boe. Proved reserve additions and other technical revisions added 84 million boe in 2015, primarily from Bakken drilling activity in 2015. Proved developed reserves at December 31, 2015 were 795 million boe, up from 762 million boe at December 31, 2014.
Operational Highlights for the Fourth Quarter of 2015:
Bakken (Onshore U.S.): Net production from the Bakken increased approximately 7 percent to 109,000 boepd from the prior-year quarter due to continued drilling activities. The Corporation brought 34 gross operated wells on production in the fourth quarter of 2015 increasing the year-to-date total to 219 wells. Drilling and completion costs per operated well averaged $5.1 million in the fourth quarter of 2015, down 28 percent from the year-ago quarter.
Utica (Onshore U.S.): On the Corporation’s joint venture acreage, 8 wells were brought on production and net production averaged 30,000 boepd in the fourth quarter of 2015 compared with 13,000 boepd in the prior-year quarter.
Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 72,000 boepd compared to 67,000 boepd in the prior-year quarter, with higher volumes from Tubular Bells, which totaled 17,000 boepd in the fourth quarter of 2015, being partially offset by lower production from the
4
Conger, Llano and Shenzi Fields. Drilling at the ConocoPhillips operated Melmar exploration project (Hess 35 percent) in the Alaminos Canyon area of the Gulf of Mexico commenced in December.
North Malay Basin (Offshore Malaysia): Development drilling commenced in December 2015 with full field development anticipated to be completed in 2017.
Guyana (Offshore): On the Stabroek Block (Hess 30 percent), the operator, Esso Exploration and Production Guyana Limited, announced a significant oil discovery at the Liza #1 well in the second quarter of 2015. The operator is currently in the process of acquiring approximately 17,000 square kilometers of 3D seismic on the block and is expected to commence drilling of the Liza #2 well in the first quarter of 2016.
Bakken Midstream:
The Corporation’s Bakken Midstream segment had net income of $11 million in the fourth quarter of 2015 compared to $8 million in the prior-year quarter.
Capital and Exploratory Expenditures:
Exploration and Production capital and exploratory expenditures were $943 million in the fourth quarter of 2015 down from $1,575 million in the prior-year quarter reflecting reduced activities primarily in the United States, Norway and Equatorial Guinea. Full year 2016 E&P capital and exploratory expenditures are forecast to be $2.4 billion or 40 percent lower than 2015.
Bakken Midstream capital expenditures were $103 million in the fourth quarter of 2015 and $133 million in the year-ago quarter. In 2016, the Bakken Midstream capital budget is $340 million up from full year 2015 capital expenditures of $296 million.
Liquidity:
Cash provided by operating activities was $623 million in the fourth quarter of 2015, compared with $1,074 million in the fourth quarter of 2014. At December 31, 2015, cash and cash equivalents, excluding Bakken Midstream, were $2,713 million compared with $2,444 million at December 31, 2014. Total debt, excluding Bakken Midstream, was $5,920 million at December 31, 2015 compared with $5,987 million at December 31, 2014. The Corporation’s debt to capitalization ratio, excluding Bakken Midstream, at December 31, 2015 was 24.4 percent. The debt to capitalization ratio at December 31, 2014 was 21.2 percent.
5
Items Affecting Comparability of Earnings Between Periods:
The following table reflects the total after‑tax income (expense) of items affecting comparability of earnings between periods:
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||||||||||
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
||||
|
|
|
(In millions) |
|
|||||||||||||
|
Exploration and Production |
|
$ |
(1,385 |
) |
|
$ |
(55 |
) |
|
$ |
(1,851 |
) |
|
$ |
542 |
|
|
Bakken Midstream |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Corporate, Interest and Other |
|
|
(32 |
) |
|
|
(3 |
) |
|
|
(44 |
) |
|
|
(74 |
) |
|
Discontinued operations |
|
|
(8 |
) |
|
|
(3 |
) |
|
|
(48 |
) |
|
|
541 |
|
|
Total items affecting comparability of earnings between periods |
|
$ |
(1,425 |
) |
|
$ |
(61 |
) |
|
$ |
(1,943 |
) |
|
$ |
1,009 |
|
Fourth quarter 2015 Exploration and Production results contained noncash charges of $1,359 million resulting from the low commodity price environment, including a nontaxable goodwill impairment charge related to the E&P segment of $1,098 million that was allocated in our financial results to U.S. and international operations. In addition, exploration costs include charges totaling $178 million after tax ($271 million pre tax) for the write-off of previously capitalized gas wells in Ghana, three previously capitalized wells in Australia that are not included in the most recent development concept, and the impairment of certain leasehold costs in the Gulf of Mexico. The Corporation also recognized an asset impairment charge of $83 million after tax ($133 million pre tax) associated with our legacy conventional assets in North Dakota.
Corporate, Interest and Other fourth quarter results include after tax charges of $41 million ($66 million pre tax) for the Corporation’s estimated liability resulting from Hovensa LLC’s bankruptcy settlement.
6
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 |
|
|
Year Ended |
|
||||||||||
|
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||||||||||
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
||||
|
|
|
(In millions) |
|
|||||||||||||
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(1,821 |
) |
|
$ |
(8 |
) |
|
$ |
(3,056 |
) |
|
$ |
2,317 |
|
|
Less: Total items affecting comparability of earnings between periods |
|
|
(1,425 |
) |
|
|
(61 |
) |
|
|
(1,943 |
) |
|
|
1,009 |
|
|
Adjusted net income (loss) attributable to Hess Corporation |
|
$ |
(396 |
) |
|
$ |
53 |
|
|
$ |
(1,113 |
) |
|
$ |
1,308 |
|
The reconciliations of net cash flow provided by operating activities before working capital changes to net cash provided by (used in) operating activities are detailed on pages 8 and 9.
Hess Corporation will review fourth quarter financial and operating results and other matters on a webcast at 10 a.m. today. 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
Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data. Estimates and projections contained in this release are based on the Company’s current understanding and assessment based on reasonable assumptions. Actual results may differ materially from these estimates and projections due to certain risk factors discussed in the Corporation’s periodic filings with the Securities and Exchange Commission and other factors.
Non-GAAP financial measure
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 operating activities before working capital change” is defined as Cash provided by operating activities excluding changes in working capital. We believe that investors’ understanding of our performance is enhanced by disclosing these measures. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income (loss) or cash provided by operating activities. A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss) as well as a reconciliation of cash provided by operating activities (U.S. GAAP) to cash provided by operating activities before working capital change are provided in the release.
For Hess Corporation
Investor Contact:
Jay Wilson
(212) 536-8940
Media Contact:
Michael Henson/Patrick Scanlan
Sard Verbinnen & Co
(212) 687-8080
7
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Fourth |
|
|
Fourth |
|
|
Third |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and Non - operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
1,474 |
|
|
$ |
2,557 |
|
|
$ |
1,671 |
|
|
Other, net |
|
|
(87 |
) |
|
|
(29 |
) |
|
|
18 |
|
|
Total revenues and non - operating income |
|
|
1,387 |
|
|
|
2,528 |
|
|
|
1,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below) |
|
|
304 |
|
|
|
511 |
|
|
|
356 |
|
|
Operating costs and expenses |
|
|
512 |
|
|
|
483 |
|
|
|
508 |
|
|
Production and severance taxes |
|
|
36 |
|
|
|
66 |
|
|
|
29 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
378 |
|
|
|
171 |
|
|
|
144 |
|
|
General and administrative expenses |
|
|
140 |
|
|
|
164 |
|
|
|
119 |
|
|
Interest expense |
|
|
86 |
|
|
|
82 |
|
|
|
84 |
|
|
Depreciation, depletion and amortization |
|
|
983 |
|
|
|
875 |
|
|
|
988 |
|
|
Impairments |
|
|
1,231 |
|
|
|
— |
|
|
|
— |
|
|
Total costs and expenses |
|
|
3,670 |
|
|
|
2,352 |
|
|
|
2,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes |
|
|
(2,283 |
) |
|
|
176 |
|
|
|
(539 |
) |
|
Provision (benefit) for income taxes |
|
|
(492 |
) |
|
|
181 |
|
|
|
(300 |
) |
|
Income (loss) from continuing operations |
|
|
(1,791 |
) |
|
|
(5 |
) |
|
|
(239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of income taxes |
|
|
(8 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(1,799 |
) |
|
|
(7 |
) |
|
|
(252 |
) |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
22 |
|
|
|
1 |
|
|
|
27 |
|
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(1,821 |
) |
|
$ |
(8 |
) |
|
$ |
(279 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities before working capital changes |
|
$ |
222 |
|
|
$ |
967 |
|
|
$ |
489 |
|
|
Changes in working capital |
|
|
401 |
|
|
|
107 |
|
|
|
(207 |
) |
|
Net cash provided by (used in) operating activities |
|
|
623 |
|
|
|
1,074 |
|
|
|
282 |
|
|
Net cash provided by (used in) investing activities |
|
|
(909 |
) |
|
|
(1,555 |
) |
|
|
(956 |
) |
|
Net cash provided by (used in) financing activities |
|
|
(11 |
) |
|
|
(1,195 |
) |
|
|
2,756 |
|
|
Net increase (decrease) in cash and cash equivalents |
|
$ |
(297 |
) |
|
$ |
(1,676 |
) |
|
$ |
2,082 |
|
8
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Year Ended December 31, |
|
|||||
|
|
|
2015 |
|
|
2014 |
|
||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and Non-operating Income |
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
6,636 |
|
|
$ |
10,737 |
|
|
Gains on asset sales, net |
|
|
51 |
|
|
|
823 |
|
|
Other, net |
|
|
(126 |
) |
|
|
(121 |
) |
|
Total revenues and non-operating income |
|
|
6,561 |
|
|
|
11,439 |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below) |
|
|
1,294 |
|
|
|
1,719 |
|
|
Operating costs and expenses |
|
|
2,029 |
|
|
|
2,034 |
|
|
Production and severance taxes |
|
|
146 |
|
|
|
275 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
881 |
|
|
|
840 |
|
|
General and administrative expenses |
|
|
557 |
|
|
|
588 |
|
|
Interest expense |
|
|
341 |
|
|
|
323 |
|
|
Depreciation, depletion and amortization |
|
|
3,955 |
|
|
|
3,224 |
|
|
Impairments |
|
|
1,616 |
|
|
|
— |
|
|
Total costs and expenses |
|
|
10,819 |
|
|
|
9,003 |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes |
|
|
(4,258 |
) |
|
|
2,436 |
|
|
Provision (benefit) for income taxes |
|
|
(1,299 |
) |
|
|
744 |
|
|
Income (loss) from continuing operations |
|
|
(2,959 |
) |
|
|
1,692 |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of income taxes |
|
|
(48 |
) |
|
|
682 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(3,007 |
) |
|
|
2,374 |
|
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
49 |
|
|
|
57 |
|
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(3,056 |
) |
|
$ |
2,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities before working capital changes |
|
$ |
1,892 |
|
|
$ |
5,195 |
|
|
Changes in working capital |
|
|
89 |
|
|
|
(738 |
) |
|
Net cash provided by (used in) operating activities |
|
|
1,981 |
|
|
|
4,457 |
|
|
Net cash provided by (used in) investing activities |
|
|
(4,206 |
) |
|
|
8 |
|
|
Net cash provided by (used in) financing activities |
|
|
2,497 |
|
|
|
(3,835 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
$ |
272 |
|
|
$ |
630 |
|
9
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
December 31, |
|
|||||
|
|
|
2015 |
|
|
2014 |
|
||
|
Balance Sheet Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,716 |
|
|
$ |
2,444 |
|
|
Other current assets |
|
|
1,688 |
|
|
|
3,869 |
|
|
Property, plant and equipment – net |
|
|
26,352 |
|
|
|
27,517 |
|
|
Other long-term assets |
|
|
3,439 |
|
|
|
4,577 |
|
|
Total assets |
|
$ |
34,195 |
|
|
$ |
38,407 |
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of long-term debt |
|
$ |
86 |
|
|
$ |
68 |
|
|
Other current liabilities |
|
|
2,542 |
|
|
|
4,783 |
|
|
Long-term debt |
|
|
6,544 |
|
|
|
5,919 |
|
|
Other long-term liabilities |
|
|
4,622 |
|
|
|
5,317 |
|
|
Total equity excluding other comprehensive income (loss) |
|
|
21,050 |
|
|
|
23,615 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(1,664 |
) |
|
|
(1,410 |
) |
|
Noncontrolling interests |
|
|
1,015 |
|
|
|
115 |
|
|
Total liabilities and equity |
|
$ |
34,195 |
|
|
$ |
38,407 |
|
|
|
|
December 31, 2015 |
|
|||||||||
|
|
|
Hess |
|
|
Bakken Midstream |
|
|
Hess Consolidated |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
$ |
5,920 |
|
|
$ |
710 |
|
|
$ |
6,630 |
|
10
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Fourth |
|
|
Fourth |
|
|
Third |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|||
|
E&P Capital and Exploratory Expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken |
|
$ |
248 |
|
|
$ |
564 |
|
|
$ |
295 |
|
|
Other Onshore |
|
|
72 |
|
|
|
179 |
|
|
|
70 |
|
|
Total Onshore |
|
|
320 |
|
|
|
743 |
|
|
|
365 |
|
|
Offshore |
|
|
257 |
|
|
|
241 |
|
|
|
199 |
|
|
Total United States |
|
|
577 |
|
|
|
984 |
|
|
|
564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
43 |
|
|
|
122 |
|
|
|
58 |
|
|
Africa |
|
|
2 |
|
|
|
91 |
|
|
|
13 |
|
|
Asia and other |
|
|
321 |
|
|
|
378 |
|
|
|
214 |
|
|
E&P Capital and Exploratory Expenditures |
|
$ |
943 |
|
|
$ |
1,575 |
|
|
$ |
849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total exploration expenses charged to income included above |
|
$ |
105 |
|
|
$ |
144 |
|
|
$ |
79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken Midstream capital expenditures |
|
$ |
103 |
|
|
$ |
133 |
|
|
$ |
88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|||||
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
||
|
E&P Capital and Exploratory Expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken |
|
|
|
|
|
$ |
1,308 |
|
|
$ |
1,854 |
|
|
Other Onshore |
|
|
|
|
|
|
332 |
|
|
|
725 |
|
|
Total Onshore |
|
|
|
|
|
|
1,640 |
|
|
|
2,579 |
|
|
Offshore |
|
|
|
|
|
|
923 |
|
|
|
765 |
|
|
Total United States |
|
|
|
|
|
|
2,563 |
|
|
|
3,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
298 |
|
|
|
540 |
|
|
Africa |
|
|
|
|
|
|
161 |
|
|
|
435 |
|
|
Asia and other |
|
|
|
|
|
|
1,020 |
|
|
|
986 |
|
|
E&P Capital and Exploratory Expenditures |
|
|
|
|
|
$ |
4,042 |
|
|
$ |
5,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total exploration expenses charged to income included above |
|
|
|
|
|
$ |
289 |
|
|
$ |
332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken Midstream capital expenditures |
|
|
|
|
|
$ |
296 |
|
|
$ |
301 |
|
11
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
|
|
|
Fourth Quarter 2015 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
932 |
|
|
$ |
542 |
|
|
$ |
1,474 |
|
|
Other, net |
|
|
(15 |
) |
|
|
(36 |
) |
|
|
(51 |
) |
|
Total revenues and non-operating income |
|
|
917 |
|
|
|
506 |
|
|
|
1,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below)(c) |
|
|
342 |
|
|
|
(11 |
) |
|
|
331 |
|
|
Operating costs and expenses |
|
|
199 |
|
|
|
244 |
|
|
|
443 |
|
|
Production and severance taxes |
|
|
32 |
|
|
|
4 |
|
|
|
36 |
|
|
Bakken Midstream tariffs |
|
|
114 |
|
|
|
— |
|
|
|
114 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
84 |
|
|
|
294 |
|
|
|
378 |
|
|
General and administrative expenses |
|
|
60 |
|
|
|
14 |
|
|
|
74 |
|
|
Depreciation, depletion and amortization |
|
|
602 |
|
|
|
351 |
|
|
|
953 |
|
|
Impairments |
|
|
601 |
|
|
|
630 |
|
|
|
1,231 |
|
|
Total costs and expenses |
|
|
2,034 |
|
|
|
1,526 |
|
|
|
3,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
(1,117 |
) |
|
|
(1,020 |
) |
|
|
(2,137 |
) |
|
Provision (benefit) for income taxes |
|
|
(234 |
) |
|
|
(190 |
) |
|
|
(424 |
) |
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(883 |
) |
(a) |
$ |
(830 |
) |
(b) |
$ |
(1,713 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2014 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
1,443 |
|
|
$ |
1,114 |
|
|
$ |
2,557 |
|
|
Other, net |
|
|
— |
|
|
|
(29 |
) |
|
|
(29 |
) |
|
Total revenues and non-operating income |
|
|
1,443 |
|
|
|
1,085 |
|
|
|
2,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below)(c) |
|
|
484 |
|
|
|
58 |
|
|
|
542 |
|
|
Operating costs and expenses |
|
|
175 |
|
|
|
247 |
|
|
|
422 |
|
|
Production and severance taxes |
|
|
53 |
|
|
|
13 |
|
|
|
66 |
|
|
Bakken Midstream tariffs |
|
|
70 |
|
|
|
— |
|
|
|
70 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
70 |
|
|
|
101 |
|
|
|
171 |
|
|
General and administrative expenses |
|
|
83 |
|
|
|
5 |
|
|
|
88 |
|
|
Depreciation, depletion and amortization |
|
|
462 |
|
|
|
389 |
|
|
|
851 |
|
|
Total costs and expenses |
|
|
1,397 |
|
|
|
813 |
|
|
|
2,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
46 |
|
|
|
272 |
|
|
|
318 |
|
|
Provision (benefit) for income taxes |
|
|
36 |
|
|
|
199 |
|
|
|
235 |
|
|
Net income (loss) attributable to Hess Corporation |
|
$ |
10 |
|
(a) |
$ |
73 |
|
(b) |
$ |
83 |
|
|
(a) |
After-tax realized net gains from crude oil hedging activities were $18 million in the fourth quarter of 2015 and $31 million in the fourth quarter of 2014. |
|
(b) |
After‑tax realized net gains from crude oil hedging activities were $37 million in the fourth quarter of 2015 and $75 million in the fourth quarter of 2014. |
|
(c) |
Includes amounts charged from the Bakken Midstream. |
12
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
|
|
|
Third Quarter 2015 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
1,022 |
|
|
$ |
649 |
|
|
$ |
1,671 |
|
|
Other, net |
|
|
46 |
|
|
|
(19 |
) |
|
|
27 |
|
|
Total revenues and non-operating income |
|
|
1,068 |
|
|
|
630 |
|
|
|
1,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below)(c) |
|
|
350 |
|
|
|
36 |
|
|
|
386 |
|
|
Operating costs and expenses |
|
|
193 |
|
|
|
250 |
|
|
|
443 |
|
|
Production and severance taxes |
|
|
28 |
|
|
|
1 |
|
|
|
29 |
|
|
Bakken Midstream tariffs |
|
|
117 |
|
|
|
— |
|
|
|
117 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
87 |
|
|
|
57 |
|
|
|
144 |
|
|
General and administrative expenses |
|
|
47 |
|
|
|
13 |
|
|
|
60 |
|
|
Depreciation, depletion and amortization |
|
|
622 |
|
|
|
341 |
|
|
|
963 |
|
|
Total costs and expenses |
|
|
1,444 |
|
|
|
698 |
|
|
|
2,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
(376 |
) |
|
|
(68 |
) |
|
|
(444 |
) |
|
Provision (benefit) for income taxes |
|
|
(129 |
) |
|
|
(127 |
) |
|
|
(256 |
) |
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(247 |
) |
(a) |
$ |
59 |
|
(b) |
$ |
(188 |
) |
|
(a) |
The after-tax realized results from crude oil hedging activities amounted to a net gain of $13 million in the third quarter of 2015. |
|
(b) |
The after‑tax realized results from crude oil hedging activities amounted to a net gain of $19 million in the third quarter of 2015. |
|
(c) |
Includes amounts charged from the Bakken Midstream. |
13
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
|
|
|
Year Ended December 31, 2015 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
4,150 |
|
|
$ |
2,486 |
|
|
$ |
6,636 |
|
|
Other, net |
|
|
11 |
|
|
|
(41 |
) |
|
|
(30 |
) |
|
Total revenues and non-operating income |
|
|
4,161 |
|
|
|
2,445 |
|
|
|
6,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below)(c) |
|
|
1,418 |
|
|
|
(9 |
) |
|
|
1,409 |
|
|
Operating costs and expenses |
|
|
786 |
|
|
|
978 |
|
|
|
1,764 |
|
|
Production and severance taxes |
|
|
138 |
|
|
|
8 |
|
|
|
146 |
|
|
Bakken Midstream tariffs |
|
|
449 |
|
|
|
— |
|
|
|
449 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
255 |
|
|
|
626 |
|
|
|
881 |
|
|
General and administrative expenses |
|
|
262 |
|
|
|
55 |
|
|
|
317 |
|
|
Depreciation, depletion and amortization |
|
|
2,361 |
|
|
|
1,491 |
|
|
|
3,852 |
|
|
Impairment |
|
|
986 |
|
|
|
630 |
|
|
|
1,616 |
|
|
Total costs and expenses |
|
|
6,655 |
|
|
|
3,779 |
|
|
|
10,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
(2,494 |
) |
|
|
(1,334 |
) |
|
|
(3,828 |
) |
|
Provision (benefit) for income taxes |
|
|
(574 |
) |
|
|
(537 |
) |
|
|
(1,111 |
) |
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(1,920 |
) |
(a) |
$ |
(797 |
) |
(b) |
$ |
(2,717 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
6,270 |
|
|
$ |
4,467 |
|
|
$ |
10,737 |
|
|
Gains on asset sales, net |
|
|
69 |
|
|
|
748 |
|
|
|
817 |
|
|
Other, net |
|
|
(26 |
) |
|
|
(20 |
) |
|
|
(46 |
) |
|
Total revenues and non-operating income |
|
|
6,313 |
|
|
|
5,195 |
|
|
|
11,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below)(c) |
|
|
1,737 |
|
|
|
89 |
|
|
|
1,826 |
|
|
Operating costs and expenses |
|
|
731 |
|
|
|
1,084 |
|
|
|
1,815 |
|
|
Production and severance taxes |
|
|
240 |
|
|
|
35 |
|
|
|
275 |
|
|
Bakken Midstream tariffs |
|
|
212 |
|
|
|
— |
|
|
|
212 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
359 |
|
|
|
481 |
|
|
|
840 |
|
|
General and administrative expenses |
|
|
270 |
|
|
|
55 |
|
|
|
325 |
|
|
Depreciation, depletion and amortization |
|
|
1,681 |
|
|
|
1,459 |
|
|
|
3,140 |
|
|
Total costs and expenses |
|
|
5,230 |
|
|
|
3,203 |
|
|
|
8,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
1,083 |
|
|
|
1,992 |
|
|
|
3,075 |
|
|
Provision for income taxes |
|
|
439 |
|
|
|
550 |
|
|
|
989 |
|
|
Net income (loss) attributable to Hess Corporation |
|
$ |
644 |
|
(a) |
$ |
1,442 |
|
(b) |
$ |
2,086 |
|
|
(a) |
After-tax realized net gains from crude oil hedging activities were $30 million for the year ended December 31, 2015 and $33 million for the year ended December 31, 2014. |
|
(b) |
After‑tax realized net gains from crude oil hedging activities amounted to $49 million for the year ended December 31, 2015 and $88 million for the year ended December 31, 2014. |
|
(c) |
Includes amounts charged from the Bakken Midstream. |
14
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Fourth |
|
|
Fourth |
|
|
Third |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|||
|
Operating Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Production Per Day (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken |
|
|
78 |
|
|
|
78 |
|
|
|
82 |
|
|
Other Onshore |
|
|
11 |
|
|
|
10 |
|
|
|
10 |
|
|
Total Onshore |
|
|
89 |
|
|
|
88 |
|
|
|
92 |
|
|
Offshore |
|
|
52 |
|
|
|
48 |
|
|
|
60 |
|
|
Total United States |
|
|
141 |
|
|
|
136 |
|
|
|
152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
38 |
|
|
|
40 |
|
|
|
40 |
|
|
Africa |
|
|
52 |
|
|
|
63 |
|
|
|
50 |
|
|
Asia |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
Total |
|
|
233 |
|
|
|
241 |
|
|
|
244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids - barrels |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken |
|
|
21 |
|
|
|
16 |
|
|
|
20 |
|
|
Other Onshore |
|
|
12 |
|
|
|
9 |
|
|
|
12 |
|
|
Total Onshore |
|
|
33 |
|
|
|
25 |
|
|
|
32 |
|
|
Offshore |
|
|
6 |
|
|
|
6 |
|
|
|
7 |
|
|
Total United States |
|
|
39 |
|
|
|
31 |
|
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
Total |
|
|
40 |
|
|
|
32 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas - mcf |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken |
|
|
60 |
|
|
|
50 |
|
|
|
65 |
|
|
Other Onshore |
|
|
138 |
|
|
|
60 |
|
|
|
125 |
|
|
Total Onshore |
|
|
198 |
|
|
|
110 |
|
|
|
190 |
|
|
Offshore |
|
|
90 |
|
|
|
74 |
|
|
|
93 |
|
|
Total United States |
|
|
288 |
|
|
|
184 |
|
|
|
283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
48 |
|
|
|
43 |
|
|
|
45 |
|
|
Asia and other |
|
|
235 |
|
|
|
304 |
|
|
|
246 |
|
|
Total |
|
|
571 |
|
|
|
531 |
|
|
|
574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of oil equivalent |
|
|
368 |
|
|
|
362 |
|
|
|
380 |
|
15
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Year Ended December 31, |
|
|||||
|
|
|
2015 |
|
|
2014 |
|
||
|
Operating Data |
|
|
|
|
|
|
|
|
|
Net Production Per Day (in thousands) |
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Bakken |
|
|
81 |
|
|
|
66 |
|
|
Other Onshore |
|
|
10 |
|
|
|
10 |
|
|
Total Onshore |
|
|
91 |
|
|
|
76 |
|
|
Offshore |
|
|
56 |
|
|
|
51 |
|
|
Total United States |
|
|
147 |
|
|
|
127 |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
38 |
|
|
|
36 |
|
|
Africa |
|
|
51 |
|
|
|
54 |
|
|
Asia |
|
|
2 |
|
|
|
3 |
|
|
Total |
|
|
238 |
|
|
|
220 |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids - barrels |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Bakken |
|
|
20 |
|
|
|
10 |
|
|
Other Onshore |
|
|
12 |
|
|
|
7 |
|
|
Total Onshore |
|
|
32 |
|
|
|
17 |
|
|
Offshore |
|
|
6 |
|
|
|
6 |
|
|
Total United States |
|
|
38 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
1 |
|
|
|
1 |
|
|
Total |
|
|
39 |
|
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas - mcf |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Bakken |
|
|
64 |
|
|
|
40 |
|
|
Other Onshore |
|
|
109 |
|
|
|
47 |
|
|
Total Onshore |
|
|
173 |
|
|
|
87 |
|
|
Offshore |
|
|
87 |
|
|
|
78 |
|
|
Total United States |
|
|
260 |
|
|
|
165 |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
43 |
|
|
|
36 |
|
|
Asia and other |
|
|
282 |
|
|
|
312 |
|
|
Total |
|
|
585 |
|
|
|
513 |
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of oil equivalent |
|
|
375 |
|
|
|
329 |
|
16
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Fourth |
|
|
Fourth |
|
|
Third |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|||
|
Sales Volumes Per Day (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
221 |
|
|
|
252 |
|
|
|
245 |
|
|
Natural gas liquids - barrels |
|
|
41 |
|
|
|
32 |
|
|
|
40 |
|
|
Natural gas - mcf |
|
|
572 |
|
|
|
531 |
|
|
|
574 |
|
|
Barrels of oil equivalent |
|
|
357 |
|
|
|
373 |
|
|
|
381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volumes (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
20,316 |
|
|
|
23,207 |
|
|
|
22,592 |
|
|
Natural gas liquids - barrels |
|
|
3,732 |
|
|
|
2,957 |
|
|
|
3,701 |
|
|
Natural gas - mcf |
|
|
52,591 |
|
|
|
48,851 |
|
|
|
52,784 |
|
|
Barrels of oil equivalent |
|
|
32,813 |
|
|
|
34,306 |
|
|
|
35,090 |
|
|
|
|
Year Ended December 31, |
|
|||||
|
|
|
2015 |
|
|
2014 |
|
||
|
Sales Volumes Per Day (in thousands) |
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
234 |
|
|
|
222 |
|
|
Natural gas liquids - barrels |
|
|
39 |
|
|
|
24 |
|
|
Natural gas - mcf |
|
|
584 |
|
|
|
513 |
|
|
Barrels of oil equivalent |
|
|
371 |
|
|
|
331 |
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volumes (in thousands) |
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
85,344 |
|
|
|
80,869 |
|
|
Natural gas liquids - barrels |
|
|
14,400 |
|
|
|
8,793 |
|
|
Natural gas - mcf |
|
|
213,195 |
|
|
|
187,381 |
|
|
Barrels of oil equivalent |
|
|
135,277 |
|
|
|
120,892 |
|
17
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Fourth |
|
|
Fourth |
|
|
Third |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|||
|
Operating Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling Prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - per barrel (including hedging) |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
40.48 |
|
|
$ |
61.96 |
|
|
$ |
40.43 |
|
|
Offshore |
|
|
37.88 |
|
|
|
82.22 |
|
|
|
42.70 |
|
|
Total United States |
|
|
39.52 |
|
|
|
69.20 |
|
|
|
41.33 |
|
|
Europe |
|
|
52.81 |
|
|
|
89.44 |
|
|
|
53.49 |
|
|
Africa |
|
|
49.99 |
|
|
|
79.55 |
|
|
|
51.98 |
|
|
Asia |
|
|
40.89 |
|
|
|
63.91 |
|
|
|
— |
|
|
Worldwide |
|
|
43.73 |
|
|
|
75.34 |
|
|
|
45.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - per barrel (excluding hedging) |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
36.93 |
|
|
$ |
61.96 |
|
|
$ |
37.91 |
|
|
Offshore |
|
|
37.88 |
|
|
|
70.99 |
|
|
|
42.70 |
|
|
Total United States |
|
|
37.28 |
|
|
|
65.19 |
|
|
|
39.81 |
|
|
Europe |
|
|
44.49 |
|
|
|
74.58 |
|
|
|
50.12 |
|
|
Africa |
|
|
41.98 |
|
|
|
69.99 |
|
|
|
48.60 |
|
|
Asia |
|
|
40.89 |
|
|
|
63.91 |
|
|
|
— |
|
|
Worldwide |
|
|
39.40 |
|
|
|
68.05 |
|
|
|
43.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids - per barrel |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
8.34 |
|
|
$ |
21.26 |
|
|
$ |
5.45 |
|
|
Offshore |
|
|
13.74 |
|
|
|
23.25 |
|
|
|
12.56 |
|
|
Total United States |
|
|
9.13 |
|
|
|
21.64 |
|
|
|
6.69 |
|
|
Europe |
|
|
22.19 |
|
|
|
39.69 |
|
|
|
21.44 |
|
|
Worldwide |
|
|
9.61 |
|
|
|
22.37 |
|
|
|
7.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas - per mcf |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
1.31 |
|
|
$ |
2.34 |
|
|
$ |
1.70 |
|
|
Offshore |
|
|
1.37 |
|
|
|
3.09 |
|
|
|
2.37 |
|
|
Total United States |
|
|
1.33 |
|
|
|
2.62 |
|
|
|
1.92 |
|
|
Europe |
|
|
5.55 |
|
|
|
8.63 |
|
|
|
6.43 |
|
|
Asia and other |
|
|
5.60 |
|
|
|
6.34 |
|
|
|
5.98 |
|
|
Worldwide |
|
|
3.44 |
|
|
|
5.24 |
|
|
|
4.02 |
|
18
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Year Ended December 31, |
|
|||||
|
|
|
2015 |
|
|
2014 |
|
||
|
Operating Data |
|
|
|
|
|
|
|
|
|
Average Selling Prices |
|
|
|
|
|
|
|
|
|
Crude oil - per barrel (including hedging) |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
42.67 |
|
|
$ |
81.89 |
|
|
Offshore |
|
|
46.21 |
|
|
|
95.05 |
|
|
Total United States |
|
|
44.01 |
|
|
|
87.21 |
|
|
Europe |
|
|
55.10 |
|
|
|
104.21 |
|
|
Africa |
|
|
53.89 |
|
|
|
97.31 |
|
|
Asia |
|
|
52.74 |
|
|
|
89.71 |
|
|
Worldwide |
|
|
47.85 |
|
|
|
92.59 |
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - per barrel (excluding hedging) |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
41.22 |
|
|
$ |
81.89 |
|
|
Offshore |
|
|
46.21 |
|
|
|
92.22 |
|
|
Total United States |
|
|
43.11 |
|
|
|
86.06 |
|
|
Europe |
|
|
52.37 |
|
|
|
99.20 |
|
|
Africa |
|
|
51.57 |
|
|
|
93.70 |
|
|
Asia |
|
|
52.74 |
|
|
|
89.71 |
|
|
Worldwide |
|
|
46.37 |
|
|
|
90.20 |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids - per barrel |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
9.18 |
|
|
$ |
28.92 |
|
|
Offshore |
|
|
14.40 |
|
|
|
30.40 |
|
|
Total United States |
|
|
10.02 |
|
|
|
29.32 |
|
|
Europe |
|
|
24.59 |
|
|
|
52.66 |
|
|
Worldwide |
|
|
10.52 |
|
|
|
30.59 |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas - per mcf |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
1.64 |
|
|
$ |
3.18 |
|
|
Offshore |
|
|
2.03 |
|
|
|
3.79 |
|
|
Total United States |
|
|
1.77 |
|
|
|
3.47 |
|
|
Europe |
|
|
6.72 |
|
|
|
10.00 |
|
|
Asia and other |
|
|
5.97 |
|
|
|
6.94 |
|
|
Worldwide |
|
|
4.16 |
|
|
|
6.04 |
|
19
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
BAKKEN MIDSTREAM EARNINGS (UNAUDITED)
(IN MILLIONS)
|
|
|
Fourth |
|
|
Fourth |
|
|
Third |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and Non-operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and non-operating income |
|
$ |
141 |
|
|
$ |
101 |
|
|
$ |
148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
|
69 |
|
|
|
61 |
|
|
|
65 |
|
|
General and administrative expenses |
|
|
5 |
|
|
|
4 |
|
|
|
4 |
|
|
Depreciation, depletion and amortization |
|
|
23 |
|
|
|
22 |
|
|
|
22 |
|
|
Interest expense |
|
|
4 |
|
|
|
1 |
|
|
|
4 |
|
|
Total costs and expenses |
|
|
101 |
|
|
|
88 |
|
|
|
95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
40 |
|
|
|
13 |
|
|
|
53 |
|
|
Provision (benefit) for income taxes |
|
|
7 |
|
|
|
5 |
|
|
|
10 |
|
|
Net income (loss) |
|
|
33 |
|
|
|
8 |
|
|
|
43 |
|
|
Less: Net income attributable to noncontrolling interests* |
|
|
22 |
|
|
|
— |
|
|
|
27 |
|
|
Net income (loss) attributable to Hess Corporation |
|
$ |
11 |
|
|
$ |
8 |
|
|
$ |
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* - On July 1, 2015, the Corporation completed the sale of a 50 percent interest in its Bakken Midstream segment. Our partner’s 50 percent share of net income is presented as a noncontrolling interest charge in the Bakken Midstream income statements effective from the third quarter of 2015.
|
|
|
Fourth |
|
|
Fourth |
|
|
Third |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|||
|
Bakken Midstream - Operating Volumes (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tioga gas plant – mcf of natural gas per day |
|
|
186 |
|
|
|
160 |
|
|
|
210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Export |
|
|
|
|
|
|
|
|
|
|
|
|
|
Terminal throughput – bopd (a) |
|
|
62 |
|
|
|
72 |
|
|
|
72 |
|
|
Tioga rail terminal crude loading – bopd (b) |
|
|
42 |
|
|
|
43 |
|
|
|
47 |
|
|
Rail services – bopd (c) |
|
|
43 |
|
|
|
41 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipelines |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil gathering – bopd |
|
|
50 |
|
|
|
27 |
|
|
|
41 |
|
|
Gas gathering – mcf of natural gas per day |
|
|
198 |
|
|
|
176 |
|
|
|
226 |
|
(a) Volume of crude oil received at the Ramburg Truck Facility for transportation to the Tioga Rail Terminal or third party pipelines.
(b) Volume of crude oil loaded to Hess Midstream and third party rail cars at the Tioga Rail Terminal.
(c) Volume of crude oil transported by Hess Midstream rail cars from the Tioga Rail Terminal and third party terminals.
20
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
BAKKEN MIDSTREAM EARNINGS (UNAUDITED)
(IN MILLIONS)
|
|
|
Year Ended December 31, |
|
|||||
|
|
|
2015 |
|
|
2014 |
|
||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and Non-operating Income |
|
|
|
|
|
|
|
|
|
Total revenues and non-operating income |
|
$ |
564 |
|
|
$ |
319 |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
|
265 |
|
|
|
219 |
|
|
General and administrative expenses |
|
|
14 |
|
|
|
11 |
|
|
Depreciation, depletion and amortization |
|
|
88 |
|
|
|
70 |
|
|
Interest expense |
|
|
10 |
|
|
|
2 |
|
|
Total costs and expenses |
|
|
377 |
|
|
|
302 |
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
187 |
|
|
|
17 |
|
|
Provision (benefit) for income taxes |
|
|
52 |
|
|
|
7 |
|
|
Net income (loss) |
|
|
135 |
|
|
|
10 |
|
|
Less: Net income attributable to noncontrolling interests* |
|
|
49 |
|
|
|
— |
|
|
Net income (loss) attributable to Hess Corporation |
|
$ |
86 |
|
|
$ |
10 |
|
* - On July 1, 2015, the Corporation completed the sale of a 50 percent interest in its Bakken Midstream segment. Our partner’s 50 percent share of net income is presented as a noncontrolling interest charge in the Bakken Midstream income statements effective from the third quarter of 2015.
|
|
|
Year Ended December 31, |
|
|||||
|
|
|
2015 |
|
|
2014 |
|
||
|
Bakken Midstream - Operating Volumes (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
|
|
|
|
|
|
|
Tioga gas plant – mcf of natural gas per day |
|
|
194 |
|
|
|
107 |
|
|
|
|
|
|
|
|
|
|
|
|
Export |
|
|
|
|
|
|
|
|
|
Terminal throughput – bopd (a) |
|
|
73 |
|
|
|
61 |
|
|
Tioga rail terminal crude loading – bopd (b) |
|
|
47 |
|
|
|
38 |
|
|
Rail services – bopd (c) |
|
|
43 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
Pipelines |
|
|
|
|
|
|
|
|
|
Oil gathering – bopd |
|
|
39 |
|
|
|
25 |
|
|
Gas gathering – mcf of natural gas per day |
|
|
214 |
|
|
|
129 |
|
(a) Volume of crude oil received at the Ramburg Truck Facility for transportation to the Tioga Rail Terminal or third party pipelines.
(b) Volume of crude oil loaded to Hess Midstream and third party rail cars at the Tioga Rail Terminal.
(c) Volume of crude oil transported by Hess Midstream rail cars from the Tioga Rail Terminal and third party terminals.
21
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