Hess Reports Estimated Results for the Third Quarter of 2021

October 27, 2021 7:30 AM EDT

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Key Developments:

  • Announced an increase to the gross discovered recoverable resource estimate on the Stabroek Block, offshore Guyana, to approximately 10 billion barrels of oil equivalent (boe), up from the previous estimate of more than 9 billion boe
  • Announced the 19th, 20th and 21st significant discoveries on the Stabroek Block at Whiptail, Pinktail and Cataback
  • The Liza Unity floating production, storage and offloading vessel (FPSO) arrived at the Stabroek Block on October 25th; production from Phase 2 is on track to startup in early 2022

Third Quarter Financial and Operational Highlights:

  • Net income was $115 million, or $0.37 per common share, compared with a net loss of $243 million, or $0.80 per common share, in the third quarter of 2020
  • Adjusted net income1 was $86 million, or $0.28 per common share, compared with an adjusted net loss of $216 million, or $0.71 per common share, in the third quarter of 2020
  • Oil and gas net production, excluding Libya, was 265,000 barrels of oil equivalent per day (boepd); Bakken net production was 148,000 boepd
  • E&P capital and exploratory expenditures were $498 million compared with $331 million in the prior-year quarter
  • Cash and cash equivalents, excluding Midstream, were $2.41 billion at September 30, 2021

NEW YORK--(BUSINESS WIRE)--    Hess Corporation (NYSE: HES) today reported net income of $115 million, or $0.37 per common share, in the third quarter of 2021, compared with a net loss of $243 million, or $0.80 per common share, in the third quarter of 2020. On an adjusted basis, the Corporation reported net income of $86 million, or $0.28 per common share, in the third quarter of 2021, compared with an adjusted loss of $216 million, or $0.71 per common share, in the prior-year quarter. The improvement in adjusted after-tax results compared with the prior-year period was primarily due to higher realized selling prices in the third quarter of 2021, partially offset by the impact of lower net production, including curtailed production in the Bakken related to the Tioga Gas Plant maintenance turnaround and reduced Gulf of Mexico production due to Hurricane Ida.

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 7 and 8.

   "Our company continues to successfully execute our strategy – to grow our resource base, have a low cost of supply and sustain cash flow growth – while delivering industry leading environmental, social and governance performance and disclosure,” CEO John Hess said. “We are well positioned to deliver strong and durable cash flow growth that will allow us to significantly increase cash returns to shareholders in the coming years through dividend increases and opportunistic share repurchases."

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

 

Three Months Ended
September 30,
(unaudited)

 

Nine Months Ended
September 30,
(unaudited)

 

2021

 

2020

 

2021

 

2020

 

(In millions, except per share amounts)

Net Income (Loss) Attributable to Hess Corporation

 

 

 

 

Exploration and Production

$

178

 

 

$

(182)

 

 

$

461

 

 

$

(2,802)

 

Midstream

61

 

 

56

 

 

212

 

 

168

 

Corporate, Interest and Other

(124)

 

 

(117)

 

 

(379)

 

 

(362)

 

Net income (loss) attributable to Hess Corporation

$

115

 

 

$

(243)

 

 

$

294

 

 

$

(2,996)

 

Net income (loss) per common share (diluted)

$

0.37

 

 

$

(0.80)

 

 

$

0.95

 

 

$

(9.83)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss) Attributable to Hess Corporation

 

 

 

 

Exploration and Production

$

149

 

 

$

(156)

 

 

$

579

 

 

$

(525)

 

Midstream

61

 

 

56

 

 

212

 

 

168

 

Corporate, Interest and Other

(124)

 

 

(116)

 

 

(379)

 

 

(361)

 

Adjusted net income (loss) attributable to Hess Corporation

$

86

 

 

$

(216)

 

 

$

412

 

 

$

(718)

 

Adjusted net income (loss) per common share (diluted)

$

0.28

 

 

$

(0.71)

 

 

$

1.33

 

 

$

(2.36)

 

 

 

 

 

 

 

 

 

Weighted average number of shares (diluted)

309.9

 

 

305.0

 

 

309.1

 

 

304.7

 

 

 

 

 

 

 

 

 

Exploration and Production:

   E&P net income was $178 million in the third quarter of 2021, compared with a net loss of $182 million in the third quarter of 2020. On an adjusted basis, E&P's third quarter 2021 net income was $149 million compared with an adjusted net loss of $156 million in the prior-year quarter. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $63.17 per barrel in the third quarter of 2021, compared with $45.60 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the third quarter of 2021 was $32.88 per barrel, compared with $11.63 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.71 per mcf, compared with $2.94 per mcf in the third quarter of 2020.

   Net production, excluding Libya, was 265,000 boepd in the third quarter of 2021, compared with 321,000 boepd in the third quarter of 2020, due to lower production in the Bakken and Gulf of Mexico, partially offset by higher production in Guyana. Net production for Libya was 19,000 boepd in the third quarter of 2021 compared with zero in the third quarter of 2020 due to force majeure declared by the Libyan National Oil Corporation.

   Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $12.76 per boe (excluding Libya: $13.45 per boe) in the third quarter of 2021, compared with $9.86 per boe excluding items affecting comparability of earnings between periods (excluding Libya: $9.69 per boe) in the prior-year quarter. The change in per unit cost reflects the impact of lower production volumes, and higher workover activity and production and severance taxes in North Dakota in the third quarter of this year. Income tax expense increased in the third quarter of 2021 compared with the year-ago period primarily due to higher production in Libya.

Operational Highlights for the Third Quarter of 2021:

   Bakken (Onshore U.S.): Net production from the Bakken was 148,000 boepd compared with 198,000 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 due to higher commodity prices, curtailed production related to the planned Tioga Gas Plant maintenance turnaround completed in the quarter and the second quarter 2021 sale of Little Knife and Murphy Creek nonstrategic acreage interests. Net oil production was 78,000 barrels of oil per day (bopd) in the third quarter of 2021 and 108,000 bopd in the prior year quarter. NGL and natural gas volumes received under percentage of proceeds contracts were 9,000 boepd in the third quarter of 2021 compared with 22,000 boepd in the third quarter of 2020 due to higher realized NGL prices lowering volumes received as consideration for gas processing fees. In 2021, the Corporation added a second rig in February and a third rig in September. During the third quarter of 2021, we drilled 18 wells, completed 22 wells, and brought 19 new wells online.

   Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 32,000 boepd, compared with 49,000 boepd in the prior-year quarter, primarily due to the sale of the Corporation's interest in the Shenzi Field in the fourth quarter of 2020, higher hurricane related downtime in the third quarter of 2021, and natural field decline. Net production from the Shenzi Field was 9,000 boepd in the third quarter of 2020.

   Guyana (Offshore): At the Stabroek Block (Hess – 30%), the Corporation’s net production from the Liza Field was 32,000 bopd in the third quarter of 2021 compared with 19,000 bopd in the prior-year quarter. The Liza Unity FPSO, with an expected capacity of 220,000 gross bopd, arrived at the Stabroek Block on October 25 th, and startup of Phase 2 of the Liza Field development remains on track for early 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, has been identified on the Stabroek Block with anticipated startup in 2025, pending government approvals and project sanctioning. We expect to have at least six FPSOs on the Stabroek Block by 2027, with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base.

   Since July, the operator, Esso Exploration and Production Guyana Limited, has announced the 19th, 20th and 21st significant discoveries at Whiptail, Pinktail and Cataback, and earlier this month increased the gross discovered recoverable resource estimate for the block to approximately 10 billion boe, up from the previous estimate of more than 9 billion boe.

   The Whiptail-1 well encountered 246 feet of net pay in high quality oil bearing sandstone reservoirs, and the Whiptail-2 well, which is located 3 miles northeast of Whiptail-1 encountered 167 feet of net pay in high quality oil bearing sandstone reservoirs. The Pinktail well encountered 220 feet of net pay in high quality oil bearing sandstone reservoirs. Pinktail is located approximately 21.7 miles southeast of the Liza Phase 1 development and approximately 3.7 miles southeast of Yellowtail-1. The Cataback well encountered 243 feet of net pay in high quality hydrocarbon bearing sandstone reservoirs of which 102 feet is oil bearing. Cataback is located approximately 3.7 miles east of the Turbot-1 well.

   Following the completion of the Cataback well, the Noble Tom Madden commenced Phase 2 drilling and completion activities. The Stena Carron completed drill stem tests on Uaru-1 and Mako-2 and is currently performing a drill stem test on Longtail-2. Following the completion of the Pinktail well, the Noble Don Taylor commenced development drilling at Payara. The Noble Sam Croft and Noble Bob Douglas are currently drilling and completing Phase 2 development wells, and the Stena Drillmax left the Stabroek Block following the completion of the Whiptail-1 well and will return in the fourth quarter to drill the Fangtooth prospect.

   South East Asia (Offshore): Net production at North Malay Basin and JDA was 50,000 boepd in both the current quarter and prior-year quarter.

   Denmark (Offshore): In August, the Corporation completed the sale of its interests in Denmark for adjusted proceeds of approximately $130 million. Net production from Denmark was 3,000 boepd in the third quarter of 2021 compared with 5,000 boepd in the prior-year quarter.

Midstream:

   The Midstream segment had net income of $61 million in the third quarter of 2021, compared with net income of $56 million in the prior-year quarter, primarily due to higher revenue from minimum volume commitments and tariff rates partially offset by costs associated with the planned Tioga Gas Plant maintenance turnaround, which was safely and successfully completed.

   In August 2021, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP, completed the purchase of approximately 31 million of HESM Opco Class B units from Hess Corporation and Global Infrastructure Partners for $750 million. The Corporation received net proceeds of $375 million. The purchase was financed by the issuance of $750 million of 4.250% senior unsecured notes due 2030 by HESM Opco. 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 approximately $108 million. After giving effect to these transactions, 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 $124 million in the third quarter of 2021, compared with $117 million in the third quarter of 2020.

Capital and Exploratory Expenditures:

   E&P capital and exploratory expenditures were $498 million in the third quarter of 2021 compared with $331 million in the prior-year quarter, primarily due to higher drilling activity in the Bakken, Guyana and JDA, partially offset by lower drilling activity in the Gulf of Mexico. Midstream capital expenditures were $59 million in the third quarter of 2021, down from $66 million in the prior-year quarter.

Liquidity:

   Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.41 billion and debt and finance lease obligations totaling $6.12 billion at September 30, 2021. The Midstream segment had cash and cash equivalents of $5 million and total debt of $2.6 billion at September 30, 2021. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 44.5% at September 30, 2021 and 47.5% at December 31, 2020.

   During the quarter, the Corporation received net proceeds of approximately $130 million from the sale of its interests in Denmark and $375 million from the repurchase by HESM Opco of approximately 15.6 million Hess-owned Class B units. The Corporation also prepaid $500 million of its $1.0 billion term loan. In October, the Corporation received net proceeds of approximately $108 million from the public offering of approximately 4.3 million Hess-owned Class A shares of Hess Midstream LP.

   Net cash provided by operating activities was $615 million in the third quarter of 2021, up from $136 million in the third quarter of 2020. Net cash provided by operating activities before changes in operating assets and liabilities2 was $631 million in the third quarter of 2021, compared with $468 million in the prior-year quarter primarily due to higher realized selling prices, partially offset by the impact of lower net production. Changes in operating assets and liabilities decreased cash flow from operating activities by $16 million during the third quarter of 2021 and by $332 million during the prior-year quarter.

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
September 30,
(unaudited)

 

Nine Months Ended
September 30,
(unaudited)

 

2021

 

2020

 

2021

 

2020

 

(In millions)

Exploration and Production

$

29

 

 

$

(26)

 

 

$

(118)

 

 

$

(2,277)

 

Midstream

 

 

 

 

 

 

 

Corporate, Interest and Other

 

 

(1)

 

 

 

 

(1)

 

Total items affecting comparability of earnings between periods

$

29

 

 

$

(27)

 

 

$

(118)

 

 

$

(2,278)

 

   Third Quarter 2021: E&P results include a pre-tax gain of $29 million ($29 million after income taxes) associated with the sale of the Corporation's interests in Denmark.

   Third Quarter 2020: Third quarter results included a pre-tax charge for severance of $27 million ($27 million after income taxes) related to cost reduction initiatives. The pre-tax amounts are reported in Operating costs and expenses ($20 million), General and administrative expenses ($6 million), and Exploration expenses ($1 million).

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
September 30,
(unaudited)

 

Nine Months Ended
September 30,
(unaudited)

 

2021

 

2020

 

2021

 

2020

 

(In millions)

Net income (loss) attributable to Hess Corporation

$

115

 

 

$

(243)

 

 

$

294

 

 

$

(2,996)

 

Less: Total items affecting comparability of earnings between periods

29

 

 

(27)

 

 

(118)

 

 

(2,278)

 

Adjusted net income (loss) attributable to Hess Corporation

$

86

 

 

$

(216)

 

 

$

412

 

 

$

(718)

 

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

 

Three Months Ended
September 30,
(unaudited)

 

Nine Months Ended
September 30,
(unaudited)

 

2021

 

2020

 

2021

 

2020

 

(In millions)

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

$

631

 

 

$

468

 

 

$

2,105

 

 

$

1,271

 

Changes in operating assets and liabilities

(16)

 

 

(332)

 

 

(114)

 

 

(424)

 

Net cash provided by (used in) operating activities

$

615

 

 

$

136

 

 

$

1,991

 

 

$

847

 

Hess Corporation will review third 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 the global COVID-19 pandemic; reduced demand for our products, including due to the global COVID-19 pandemic or the outbreak of any other public health threat, or due to the impact of 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; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks or health measures related to the COVID-19 pandemic; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control; 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 exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform and 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)

 

 

Third
Quarter
2021

 

Third
Quarter
2020

 

Second
Quarter
2021

Income Statement

 

 

 

 

 

 

 

 

 

 

 

Revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,759

 

 

$

1,159

 

 

$

1,579

 

Gains (losses) on asset sales, net

29

 

 

 

 

 

Other, net

23

 

 

17

 

 

19

 

Total revenues and non-operating income

1,811

 

 

1,176

 

 

1,598

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas

522

 

 

221

 

 

322

 

Operating costs and expenses

333

 

 

308

 

 

315

 

Production and severance taxes

42

 

 

34

 

 

44

 

Exploration expenses, including dry holes and lease impairment

36

 

 

71

 

 

48

 

General and administrative expenses

76

 

 

84

 

 

84

 

Interest expense

125

 

 

118

 

 

118

 

Depreciation, depletion and amortization

349

 

 

518

 

 

385

 

Impairment and other

 

 

 

 

147

 

Total costs and expenses

1,483

 

 

1,354

 

 

1,463

 

Income (loss) before income taxes

328

 

 

(178)

 

 

135

 

Provision (benefit) for income taxes

143

 

 

5

 

 

122

 

Net income (loss)

185

 

 

(183)

 

 

13

 

Less: Net income (loss) attributable to noncontrolling interests

70

 

 

60

 

 

86

 

Net income (loss) attributable to Hess Corporation

$

115

 

 

$

(243)

 

 

$

(73)

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Nine Months Ended
September 30,

 

2021

 

2020

Income Statement

 

 

 

 

 

 

 

Revenues and non-operating income

 

 

 

Sales and other operating revenues

$

5,236

 

 

$

3,346

 

Gains (losses) on asset sales, net

29

 

 

8

 

Other, net

63

 

 

33

 

Total revenues and non-operating income

5,328

 

 

3,387

 

Costs and expenses

 

 

 

Marketing, including purchased oil and gas

1,362

 

 

655

 

Operating costs and expenses

913

 

 

905

 

Production and severance taxes

123

 

 

92

 

Exploration expenses, including dry holes and lease impairment

117

 

 

291

 

General and administrative expenses

254

 

 

275

 

Interest expense

360

 

 

350

 

Depreciation, depletion and amortization

1,130

 

 

1,588

 

Impairment and other

147

 

 

2,126

 

Total costs and expenses

4,406

 

 

6,282

 

Income (loss) before income taxes

922

 

 

(2,895)

 

Provision (benefit) for income taxes

388

 

 

(83)

 

Net income (loss)

534

 

 

(2,812)

 

Less: Net income (loss) attributable to noncontrolling interests

240

 

 

184

 

Net income (loss) attributable to Hess Corporation

$

294

 

 

$

(2,996)

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

September 30,
2021

 

December 31,
2020

Balance Sheet Information

 

 

 

Assets

 

 

 

Cash and cash equivalents

$

2,419

 

 

$

1,739

 

Other current assets

1,473

 

 

1,342

 

Property, plant and equipment – net

13,954

 

 

14,115

 

Operating lease right-of-use assets – net

364

 

 

426

 

Finance lease right-of-use assets – net

150

 

 

168

 

Other long-term assets

1,130

 

 

1,031

 

Total assets

$

19,490

 

 

$

18,821

 

Liabilities and equity

 

 

 

Current maturities of long-term debt

$

514

 

 

$

10

 

Current portion of operating and finance lease obligations

88

 

 

81

 

Other current liabilities

2,147

 

 

1,532

 

Long-term debt

7,993

 

 

8,286

 

Long-term operating lease obligations

410

 

 

478

 

Long-term finance lease obligations

205

 

 

220

 

Other long-term liabilities

1,877

 

 

1,879

 

Total equity excluding other comprehensive income (loss)

6,405

 

 

6,121

 

Accumulated other comprehensive income (loss)

(796)

 

 

(755)

 

Noncontrolling interests

647

 

 

969

 

Total liabilities and equity

$

19,490

 

 

$

18,821

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

September 30,
2021

 

December 31,
2020

Total Debt

 

 

 

Hess Corporation

$

5,894

 

 

$

6,386

 

Midstream (a)

2,613

 

 

1,910

 

Hess Consolidated

$

8,507

 

 

$

8,296

 

  1. Midstream debt is non-recourse to Hess Corporation.

 

September 30,
2021

 

December 31,
2020

Debt to Capitalization Ratio (a)

 

 

 

Hess Consolidated

58.3

%

 

57.4

%

Hess Corporation as defined in debt covenants

44.5

%

 

47.5

%

  1. Includes finance lease obligations.

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Interest Expense

 

 

 

 

 

 

 

Hess Corporation

$

97

 

 

$

95

 

 

$

286

 

 

$

279

 

Midstream (a)

28

 

 

23

 

 

74

 

 

71

 

Hess Consolidated

$

125

 

 

$

118

 

 

$

360

 

 

$

350

 

  1. Midstream interest expense is reported in the Midstream operating segment.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Third
Quarter
2021

 

Third
Quarter
2020

 

Second
Quarter
2021

Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

Net income (loss)

$

185

 

 

$

(183)

 

 

$

13

 

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

 

 

 

 

 

(Gains) losses on asset sales, net

(29)

 

 

 

 

 

Depreciation, depletion and amortization

349

 

 

518

 

 

385

 

Impairment and other

 

 

 

 

147

 

Exploratory dry hole costs

2

 

 

31

 

 

9

 

Exploration lease and other impairment

5

 

 

10

 

 

6

 

Pension settlement loss

1

 

 

 

 

3

 

Stock compensation expense

17

 

 

16

 

 

19

 

Noncash (gains) losses on commodity derivatives, net

64

 

 

68

 

 

64

 

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

37

 

 

8

 

 

13

 

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

631

 

 

468

 

 

659

 

Changes in operating assets and liabilities

(16)

 

 

(332)

 

 

126

 

Net cash provided by (used in) operating activities

615

 

 

136

 

 

785

 

Cash Flows from Investing Activities

 

 

 

 

 

Additions to property, plant and equipment - E&P

(431)

 

 

(327)

 

 

(329)

 

Additions to property, plant and equipment - Midstream

(67)

 

 

(99)

 

 

(26)

 

Proceeds from asset sales, net of cash sold

130

 

 

 

 

297

 

Other, net

(2)

 

 

 

 

(2)

 

Net cash provided by (used in) investing activities

(370)

 

 

(426)

 

 

(60)

 

Cash Flows from Financing Activities

 

 

 

 

 

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

43

 

 

74

 

 

(65)

 

Debt with maturities of greater than 90 days:

 

 

 

 

 

Borrowings

750

 

 

 

 

 

Repayments

(503)

 

 

 

 

(2)

 

Payments on finance lease obligations

(3)

 

 

(3)

 

 

(2)

 

Cash dividends paid

(77)

 

 

(76)

 

 

(77)

 

Employee stock options exercised

 

 

 

 

63

 

Noncontrolling interests, net

(452)

 

 

(66)

 

 

(70)

 

Other, net

(14)

 

 

 

 

(8)

 

Net cash provided by (used in) financing activities

(256)

 

 

(71)

 

 

(161)

 

Net Increase (Decrease) in Cash and Cash Equivalents

(11)

 

 

(361)

 

 

564

 

Cash and Cash Equivalents at Beginning of Period

2,430

 

 

1,646

 

 

1,866

 

Cash and Cash Equivalents at End of Period

$

2,419

 

 

$

1,285

 

 

$

2,430

 

 

 

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

(528)

 

 

$

(367)

 

 

$

(443)

 

Increase (decrease) in related liabilities

30

 

 

(59)

 

 

88

 

Additions to property, plant and equipment

$

(498)

 

 

$

(426)

 

 

$

(355)

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Nine Months Ended
September 30,

 

2021

 

2020

Cash Flow Information

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

Net income (loss)

$

534

 

 

$

(2,812)

 

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

 

 

 

(Gains) losses on asset sales, net

(29)

 

 

(8)

 

Depreciation, depletion and amortization

1,130

 

 

1,588

 

Impairment and other

147

 

 

2,126

 

Exploratory dry hole costs

11

 

 

166

 

Exploration lease and other impairment

15

 

 

48

 

Pension settlement loss

5

 

 

 

Stock compensation expense

61

 

 

63

 

Noncash (gains) losses on commodity derivatives, net

152

 

 

187

 

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

79

 

 

(87)

 

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

2,105

 

 

1,271

 

Changes in operating assets and liabilities

(114)

 

 

(424)

 

Net cash provided by (used in) operating activities

1,991

 

 

847

 

Cash Flows from Investing Activities

 

 

 

Additions to property, plant and equipment - E&P

(1,118)

 

 

(1,577)

 

Additions to property, plant and equipment - Midstream

(120)

 

 

(246)

 

Proceeds from asset sales, net of cash sold

427

 

 

11

 

Other, net

(4)

 

 

(2)

 

Net cash provided by (used in) investing activities

(815)

 

 

(1,814)

 

Cash Flows from Financing Activities

 

 

 

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

(32)

 

 

146

 

Debt with maturities of greater than 90 days:

 

 

 

Borrowings

750

 

 

1,000

 

Repayments

(508)

 

 

 

Proceeds from sale of Class A shares of Hess Midstream LP

70

 

 

 

Payments on finance lease obligations

(7)

 

 

(6)

 

Cash dividends paid

(234)

 

 

(233)

 

Employee stock options exercised

75

 

 

15

 

Noncontrolling interests, net

(589)

 

 

(194)

 

Other, net

(21)

 

 

(21)

 

Net cash provided by (used in) financing activities

(496)

 

 

707

 

Net Increase (Decrease) in Cash and Cash Equivalents

680

 

 

(260)

 

Cash and Cash Equivalents at Beginning of Period

1,739

 

 

1,545

 

Cash and Cash Equivalents at End of Period

$

2,419

 

 

$

1,285

 

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

(1,274)

 

 

$

(1,540)

 

Increase (decrease) in related liabilities

36

 

 

(283)

 

Additions to property, plant and equipment

$

(1,238)

 

 

$

(1,823)

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Third
Quarter
2021

 

Third
Quarter
2020

 

Second
Quarter
2021

Capital and Exploratory Expenditures

 

 

 

 

 

 

 

 

 

 

 

E&P Capital and exploratory expenditures

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

169

 

 

$

86

 

 

$

112

 

Offshore and Other

16

 

 

61

 

 

25

 

Total United States

185

 

 

147

 

 

137

 

Guyana

264

 

 

160

 

 

250

 

Malaysia and JDA

42

 

 

21

 

 

36

 

Other

7

 

 

3

 

 

6

 

E&P Capital and exploratory expenditures

$

498

 

 

$

331

 

 

$

429

 

 

 

 

 

 

 

Total exploration expenses charged to income included above

$

29

 

 

$

30

 

 

$

33

 

 

 

 

 

 

 

Midstream Capital expenditures

$

59

 

 

$

66

 

 

$

47

 

 

Nine Months Ended
September 30,

 

2021

 

2020

Capital and Exploratory Expenditures

 

 

 

 

 

 

 

E&P Capital and exploratory expenditures

 

 

 

United States

 

 

 

North Dakota

$

369

 

 

$

589

 

Offshore and Other

72

 

 

218

 

Total United States

441

 

 

807

 

Guyana

686

 

 

519

 

Malaysia and JDA

91

 

 

74

 

Other

18

 

 

15

 

E&P Capital and exploratory expenditures

$

1,236

 

 

$

1,415

 

 

 

 

 

Total exploration expenses charged to income included above

$

91

 

 

$

77

 

 

 

 

 

Midstream Capital expenditures

$

129

 

 

$

202

 

 

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 (losses) 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

 

 

 

 

 

 

 

 

Third Quarter 2020

Income Statement

United States

 

International

 

Total

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

918

 

 

$

241

 

 

$

1,159

 

Other, net

6

 

 

4

 

 

10

 

Total revenues and non-operating income

924

 

 

245

 

 

1,169

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

246

 

 

(2)

 

 

244

 

Operating costs and expenses

138

 

 

90

 

 

228

 

Production and severance taxes

33

 

 

1

 

 

34

 

Midstream tariffs

237

 

 

 

 

237

 

Exploration expenses, including dry holes and lease impairment

69

 

 

2

 

 

71

 

General and administrative expenses

46

 

 

7

 

 

53

 

Depreciation, depletion and amortization

388

 

 

90

 

 

478

 

Total costs and expenses

1,157

 

 

188

 

 

1,345

 

Results of operations before income taxes

(233)

 

 

57

 

 

(176)

 

Provision (benefit) for income taxes

 

 

6

 

 

6

 

Net income (loss) attributable to Hess Corporation

$

(233)

 

(d)

$

51

 

(e)

$

(182)

 

  1. Includes amounts charged from the Midstream segment.
  2. Includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement: $0 million).
  3. Includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement: $0 million).
  4. Includes after-tax gains from realized crude oil hedging activities of $123 million (noncash premium amortization: $61 million; cash settlement: $184 million).
  5. Includes after-tax gains from realized crude oil hedging activities of $20 million (noncash premium amortization: $7 million; cash settlement: $27 million).
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

Second Quarter 2021

Income Statement

United States

 

International

 

Total

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,088

 

 

$

491

 

 

$

1,579

 

Other, net

11

 

 

3

 

 

14

 

Total revenues and non-operating income

1,099

 

 

494

 

 

1,593

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

335

 

 

8

 

 

343

 

Operating costs and expenses

158

 

 

96

 

 

254

 

Production and severance taxes

42

 

 

2

 

 

44

 

Midstream tariffs

270

 

 

 

 

270

 

Exploration expenses, including dry holes and lease impairment

26

 

 

22

 

 

48

 

General and administrative expenses

41

 

 

8

 

 

49

 

Depreciation, depletion and amortization

260

 

 

84

 

 

344

 

Impairment and other

147

 

 

 

 

147

 

Total costs and expenses

1,279

 

 

220

 

 

1,499

 

Results of operations before income taxes

(180)

 

 

274

 

 

94

 

Provision (benefit) for income taxes

 

 

119

 

 

119

 

Net income (loss) attributable to Hess Corporation

$

(180)

 

(b)

$

155

 

(c)

$

(25)

 

  1. Includes amounts charged from the Midstream segment.
  2. Includes after-tax losses from realized crude oil hedging activities of $51 million (noncash premium amortization: $51 million; cash settlement: $0 million).
  3. Includes after-tax losses from realized crude oil hedging activities of $13 million (noncash premium amortization: $13 million; cash settlement: $0 million).
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

 

 

Nine Months Ended September 30, 2021

Income Statement

United States

 

International

 

Total

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

3,766

 

 

$

1,470

 

 

$

5,236

 

Gains (losses) on asset sales, net

 

 

29

 

 

29

 

Other, net

35

 

 

14

 

 

49

 

Total revenues and non-operating income

3,801

 

 

1,513

 

 

5,314

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

1,397

 

 

30

 

 

1,427

 

Operating costs and expenses

443

 

 

268

 

 

711

 

Production and severance taxes

119

 

 

4

 

 

123

 

Midstream tariffs

802

 

 

 

 

802

 

Exploration expenses, including dry holes and lease impairment

77

 

 

40

 

 

117

 

General and administrative expenses

118

 

 

22

 

 

140

 

Depreciation, depletion and amortization

757

 

 

250

 

 

1,007

 

Impairment and other

147

 

 

 

 

147

 

Total costs and expenses

3,860

 

 

614

 

 

4,474

 

Results of operations before income taxes

(59)

 

 

899

 

 

840

 

Provision (benefit) for income taxes

 

 

379

 

 

379

 

Net income (loss) attributable to Hess Corporation

$

(59)

 

(b)

$

520

 

(c)

$

461

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2020

Income Statement

United States

 

International

 

Total

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

2,700

 

 

$

646

 

 

$

3,346

 

Other, net

6

 

 

11

 

 

17

 

Total revenues and non-operating income

2,706

 

 

657

 

 

3,363

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

776

 

 

(10)

 

 

766

 

Operating costs and expenses

406

 

 

239

 

 

645

 

Production and severance taxes

88

 

 

4

 

 

92

 

Midstream tariffs

703

 

 

 

 

703

 

Exploration expenses, including dry holes and lease impairment

248

 

 

43

 

 

291

 

General and administrative expenses

133

 

 

22

 

 

155

 

Depreciation, depletion and amortization

1,155

 

 

314

 

 

1,469

 

Impairment and other

697

 

 

1,429

 

 

2,126

 

Total costs and expenses

4,206

 

 

2,041

 

 

6,247

 

Results of operations before income taxes

(1,500)

 

 

(1,384)

 

 

(2,884)

 

Provision (benefit) for income taxes

 

 

(82)

 

 

(82)

 

Net income (loss) attributable to Hess Corporation

$

(1,500)

 

(d)

$

(1,302)

 

(e)

$

(2,802)

 

  1. Includes amounts charged from the Midstream segment.
  2. Includes after-tax losses from realized crude oil hedging activities of $140 million (noncash premium amortization: $140 million; cash settlement: $0 million).
  3. Includes after-tax losses from realized crude oil hedging activities of $35 million (noncash premium amortization: $35 million; cash settlement: $0 million).
  4. Includes after-tax gains from realized crude oil hedging activities of $368 million (noncash premium amortization: $167 million; cash settlement: $535 million).
  5. Includes after-tax gains from realized crude oil hedging activities of $67 million (noncash premium amortization: $20 million; cash settlement: $87 million).
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Third
Quarter
2021

 

Third
Quarter
2020

 

Second
Quarter
2021

Net Production Per Day (in thousands)

 

 

 

 

 

 

 

 

 

 

 

Crude oil - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

78

 

 

108

 

 

79

 

Offshore (a)

20

 

 

34

 

 

33

 

Total United States

98

 

 

142

 

 

112

 

Guyana

32

 

 

19

 

 

26

 

Malaysia and JDA

3

 

 

3

 

 

4

 

Other (b)

20

 

 

4

 

 

24

 

Total

153

 

 

168

 

 

166

 

 

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

44

 

 

58

 

 

52

 

Offshore (a)

3

 

 

5

 

 

5

 

Total United States

47

 

 

63

 

 

57

 

 

 

 

 

 

 

Natural gas - mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

158

 

 

194

 

 

167

 

Offshore

52

 

 

60

 

 

85

 

Total United States

210

 

 

254

 

 

252

 

Malaysia and JDA

284

 

 

282

 

 

371

 

Other (b)

9

 

 

4

 

 

9

 

Total

503

 

 

540

 

 

632

 

 

 

 

 

 

 

Barrels of oil equivalent

284

 

 

321

 

 

328

 

  1. 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 the third quarter of 2020.
  2. Other includes production from Denmark and Libya. Denmark net production was 3,000 boepd in the third quarter of 2021, 5,000 boepd in the third quarter of 2020 and 4,000 boepd in the second quarter of 2021. Libya net production was 19,000 boepd in the third quarter of 2021, 0 boepd in the third quarter of 2020 and 21,000 boepd in the second quarter of 2021.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Nine Months Ended
September 30,

 

2021

 

2020

Net Production Per Day (in thousands)

 

 

 

 

 

 

 

Crude oil - barrels

 

 

 

United States

 

 

 

North Dakota

80

 

 

110

 

Offshore (a)

30

 

 

43

 

Total United States

110

 

 

153

 

Guyana

30

 

 

19

 

Malaysia and JDA

4

 

 

3

 

Other (b)

22

 

 

7

 

Total

166

 

 

182

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

United States

 

 

 

North Dakota

48

 

 

54

 

Offshore (a)

4

 

 

6

 

Total United States

52

 

 

60

 

 

 

 

 

Natural gas - mcf

 

 

 

United States

 

 

 

North Dakota

159

 

 

178

 

Offshore

77

 

 

91

 

Total United States

236

 

 

269

 

Malaysia and JDA

339

 

 

284

 

Other (b)

9

 

 

7

 

Total

584

 

 

560

 

 

 

 

 

Barrels of oil equivalent

315

 

 

335

 

  1. 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 11,000 boepd in the first nine months of 2020.
  2. Other includes production from Denmark and Libya. Denmark net production was 4,000 boepd in the first nine months of 2021 and 6,000 boepd in the first nine months of 2020. Libya net production was 19,000 boepd in the first nine months of 2021 and 2,000 boepd in the first nine months of 2020.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Third
Quarter
2021

 

Third
Quarter
2020

 

Second
Quarter
2021

Sales Volumes Per Day (in thousands) (a)

 

 

 

 

 

Crude oil – barrels

148

 

 

164

 

 

157

 

Natural gas liquids – barrels

47

 

 

63

 

 

57

 

Natural gas – mcf

503

 

 

540

 

 

632

 

Barrels of oil equivalent

279

 

 

317

 

 

319

 

 

 

 

 

 

 

Sales Volumes (in thousands) (a)

 

 

 

 

 

Crude oil – barrels

13,627

 

 

15,134

 

 

14,293

 

Natural gas liquids – barrels

4,338

 

 

5,768

 

 

5,142

 

Natural gas – mcf

46,317

 

 

49,674

 

 

57,557

 

Barrels of oil equivalent

25,685

 

 

29,181

 

 

29,028

 

 

Nine Months Ended
September 30,

 

2021

 

2020

Sales Volumes Per Day (in thousands) (a)

 

 

 

Crude oil – barrels

177

 

 

161

 

Natural gas liquids – barrels

52

 

 

60

 

Natural gas – mcf

584

 

 

560

 

Barrels of oil equivalent

326

 

 

314

 

 

 

 

 

Sales Volumes (in thousands) (a)

 

 

 

Crude oil – barrels (b)

48,315

 

 

43,950

 

Natural gas liquids – barrels

14,282

 

 

16,555

 

Natural gas – mcf

159,387

 

 

153,375

 

Barrels of oil equivalent

89,162

 

 

86,068

 

  1. Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.
  2. Sales volumes for the first nine months of 2021 include 4.2 million barrels of crude oil that were stored on VLCCs at December 31, 2020 and sold in the first quarter of 2021.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Third
Quarter
2021

 

Third
Quarter
2020

 

Second
Quarter
2021

Average Selling Prices

 

 

 

 

 

 

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

59.65

 

 

$

43.20

 

 

$

56.75

 

Offshore

62.23

 

 

48.56

 

 

59.33

 

Total United States

60.14

 

 

44.55

 

 

57.52

 

Guyana

70.05

 

 

52.60

 

 

65.63

 

Malaysia and JDA

69.87

 

 

42.59

 

 

65.88

 

Other (a)

68.36

 

 

50.38

 

 

64.16

 

Worldwide

63.17

 

 

45.60

 

 

59.79

 

 

 

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

65.11

 

 

$

33.69

 

 

$

61.88

 

Offshore

67.88

 

 

38.39

 

 

64.42

 

Total United States

65.64

 

 

34.87

 

 

62.63

 

Guyana

73.12

 

 

42.82

 

 

68.44

 

Malaysia and JDA

69.87

 

 

42.59

 

 

65.88

 

Other (a)

71.43

 

 

44.38

 

 

68.08

 

Worldwide

67.88

 

 

36.17

 

 

64.27

 

 

 

 

 

 

 

Natural gas liquids - per barrel

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

32.94

 

 

$

11.68

 

 

$

23.23

 

Offshore

32.00

 

 

11.03

 

 

21.84

 

Worldwide

32.88

 

 

11.63

 

 

23.12

 

 

 

 

 

 

 

Natural gas - per mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

3.75

 

 

$

1.18

 

 

$

2.40

 

Offshore

3.76

 

 

1.13

 

 

2.35

 

Total United States

3.75

 

 

1.17

 

 

2.38

 

Malaysia and JDA

5.45

 

 

4.53

 

 

5.22

 

Other (a)

3.62

 

 

2.87

 

 

2.96

 

Worldwide

4.71

 

 

2.94

 

 

4.05

 

  1. Other includes prices related to production from Denmark and Libya.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Nine Months Ended
September 30,

 

2021

 

2020

Average Selling Prices

 

 

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

United States

 

 

 

North Dakota (a)

$

52.27

 

 

$

42.61

 

Offshore

57.36

 

 

45.60

 

Total United States

53.46

 

 

43.54

 

Guyana

65.31

 

 

44.35

 

Malaysia and JDA

64.94

 

 

38.02

 

Other (b)

62.93

 

 

52.97

 

Worldwide

56.62

 

 

43.88

 

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

United States

 

 

 

North Dakota (a)

$

56.37

 

 

$

32.95

 

Offshore

61.91

 

 

35.64

 

Total United States

57.66

 

 

33.79

 

Guyana

67.72

 

 

33.10

 

Malaysia and JDA

64.94

 

 

38.02

 

Other (b)

65.91

 

 

41.72

 

Worldwide

60.33

 

 

34.02

 

 

 

 

 

Natural gas liquids - per barrel

 

 

 

United States

 

 

 

North Dakota

$

28.59

 

 

$

9.57

 

Offshore

24.08

 

 

8.27

 

Worldwide

28.23

 

 

9.44

 

 

 

 

 

Natural gas - per mcf

 

 

 

United States

 

 

 

North Dakota

$

3.96

 

 

$

1.13

 

Offshore

2.91

 

 

1.21

 

Total United States

3.62

 

 

1.16

 

Malaysia and JDA

5.22

 

 

4.44

 

Other (b)

3.05

 

 

3.81

 

Worldwide

4.54

 

 

2.85

 

  1. Excluding the two VLCC cargo sales in the first quarter of 2021 totaling 4.2 million barrels, the North Dakota crude oil price for the first nine months of 2021 excluding hedging was $59.99 per barrel and $55.29 per barrel including hedging.
  2. Other includes prices related to production from Denmark and Libya.

The following is a summary of the Corporation’s outstanding commodity hedging program at September 30, 2021:

 

WTI

 

Brent

2021 (Put options)

 

 

 

Barrels of oil per day

120,000

 

30,000

Average monthly floor price

$55

 

$60

Contract period

January 1 - December 31

2022 (Collars) (a)

 

 

 

Barrels of oil per day

80,000

 

30,000

Average monthly ceiling price

$90

 

$95

Average monthly floor price

$60

 

$65

Contract period

January 1 - December 31

  1. Subsequent to quarter end, we acquired additional calendar 2022 collars with the same contract terms shown above, increasing the volumes hedged for 2022 to 90,000 bopd for WTI and 60,000 bopd for Brent.

 

For Hess Corporation

Investor Contact:

Jay Wilson
(212) 536-8940

Media Contacts:

Lorrie Hecker
(212) 536-8250

Jamie Tully
Sard Verbinnen & Co
(917) 679-7908

Source: Hess Corporation



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