UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): October 26, 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:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On October 26, 2016, Hess Corporation issued a news release reporting estimated results for the third quarter of 2016. 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 October 26, 2016 reporting estimated results for the third quarter of 2016.
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: October 26, 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 October 26, 2016 reporting estimated results for the third quarter of 2016. |
Exhibit 99.1
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HESS CORPORATION
HESS REPORTS ESTIMATED RESULTS FOR THE THIRD QUARTER OF 2016
Third Quarter Highlights:
|
• |
Net loss was $339 million, or $1.12 per common share, compared with a net loss of $279 million, or $0.98 per common share, in the prior-year quarter |
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• |
Adjusted net loss was $340 million, or $1.12 per common share, compared to an adjusted net loss of $291 million, or $1.03 per common share, in the third quarter of last year |
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• |
Reduced E&P capital and exploratory expenditures by 49 percent to $435 million from $849 million in the prior-year quarter |
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• |
Oil and gas production was 314,000 barrels of oil equivalent per day (boepd); Bakken net production was 107,000 boepd |
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• |
Successful Liza-3 well in the Stabroek block, offshore Guyana (Hess 30 percent), confirms world class oil discovery; estimated recoverable resources for Liza now expected to be at the upper end of the previously announced range of 800 million to 1.4 billion barrels of oil equivalent |
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• |
Issued $1 billion of 4.30% notes due in 2027 and $500 million of 5.80% notes due in 2047; proceeds to be used primarily to purchase or redeem higher-coupon bonds and near-term maturities ($750 million of proceeds used through September 30, 2016) |
|
• |
Cash and cash equivalents were $3.5 billion at September 30, 2016 ($625 million committed for debt retirement in October) |
NEW YORK, October 26, 2016 — Hess Corporation (NYSE: HES) today reported a net loss of $339 million, or $1.12 per common share, in the third quarter of 2016 compared with a net loss of $279 million, or $0.98 per common share, in the third quarter of 2015. On an adjusted basis, the Corporation reported a net loss of $340 million, or $1.12 per common share, in the third quarter of 2016 compared with an adjusted net loss of $291 million, or $1.03 per common share, in the prior-
1
year quarter. Third quarter 2016 after-tax results reflect lower production and realized selling prices compared with the third quarter of 2015, as well as lower operating costs and depreciation, depletion and amortization expenses.
“Our company continues to take steps to maintain a strong balance sheet and materially reduce our spending,” Chief Executive Officer John Hess said. “We also are investing in growth projects including the world-class Liza oil discovery in Guyana that we believe will create significant value for our shareholders. Based on the positive results of the Liza-3 well, we now expect Liza to be at the upper end of the previously announced estimated recoverable resources range of 800 million to 1.4 billion barrels of oil equivalent.”
After-tax income (loss) by major operating activity was as follows:
|
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Three Months Ended |
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Nine Months Ended |
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||||||||||
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September 30, |
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September 30, |
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||||||||||
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(unaudited) |
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(unaudited) |
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||||||||||
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2016 |
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2015 |
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2016 |
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2015 |
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||||
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(In millions, except per share amounts) |
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|||||||||||||
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Net Income (Loss) Attributable to Hess Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Exploration and Production |
|
$ |
(234 |
) |
|
$ |
(188 |
) |
|
$ |
(1,013 |
) |
|
$ |
(1,004 |
) |
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Bakken Midstream |
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13 |
|
|
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16 |
|
|
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38 |
|
|
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75 |
|
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Corporate, Interest and Other |
|
|
(118 |
) |
|
|
(94 |
) |
|
|
(265 |
) |
|
|
(266 |
) |
|
Net income (loss) from continuing operations |
|
|
(339 |
) |
|
|
(266 |
) |
|
|
(1,240 |
) |
|
|
(1,195 |
) |
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Discontinued operations |
|
|
— |
|
|
|
(13 |
) |
|
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— |
|
|
|
(40 |
) |
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Net income (loss) attributable to Hess Corporation |
|
$ |
(339 |
) |
|
$ |
(279 |
) |
|
$ |
(1,240 |
) |
|
$ |
(1,235 |
) |
|
|
|
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|
|
|
|
|
|
|
|
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Net income (loss) per common share (diluted) (a) |
|
$ |
(1.12 |
) |
|
$ |
(0.98 |
) |
|
$ |
(4.11 |
) |
|
$ |
(4.35 |
) |
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Adjusted Net Income (Loss) Attributable to Hess Corporation (b) |
|
|
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|
|
|
|
|
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|
|
|
|
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Exploration and Production |
|
$ |
(285 |
) |
|
$ |
(221 |
) |
|
$ |
(1,007 |
) |
|
$ |
(538 |
) |
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Bakken Midstream |
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13 |
|
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16 |
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38 |
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75 |
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Corporate, Interest and Other |
|
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(68 |
) |
|
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(86 |
) |
|
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(215 |
) |
|
|
(254 |
) |
|
Adjusted net income (loss) from continuing operations |
|
|
(340 |
) |
|
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(291 |
) |
|
|
(1,184 |
) |
|
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(717 |
) |
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Discontinued operations |
|
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— |
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|
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— |
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|
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— |
|
|
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— |
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Adjusted net income (loss) attributable to Hess Corporation |
|
$ |
(340 |
) |
|
$ |
(291 |
) |
|
$ |
(1,184 |
) |
|
$ |
(717 |
) |
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|
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|
|
|
|
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|
|
|
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Adjusted net income (loss) per common share (diluted) (a) |
|
$ |
(1.12 |
) |
|
$ |
(1.03 |
) |
|
$ |
(3.93 |
) |
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$ |
(2.53 |
) |
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Weighted average number of shares (diluted) |
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313.2 |
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283.5 |
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308.7 |
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283.8 |
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(a) |
Calculated as net income (loss) attributable to Hess Corporation or, as applicable, adjusted net income (loss) attributable to Hess Corporation, less preferred stock dividends, divided by weighted average number of diluted shares. |
|
(b) |
Adjusted net income (loss) attributable to Hess Corporation excludes items affecting comparability summarized on page 5. A reconciliation of net income (loss) attributable to Hess Corporation to adjusted net income (loss) attributable to Hess Corporation is provided on page 6. |
2
The Exploration and Production net loss in the third quarter of 2016 was $234 million compared to a net loss of $188 million in the prior-year quarter. On an adjusted basis, the third quarter 2016 adjusted net loss was $285 million compared to $221 million in the prior-year quarter.
The Corporation’s average realized crude oil selling price was $41.50 per barrel in the third quarter of 2016, down 9 percent from $45.66 per barrel in the year-ago quarter, including the effect of hedging. The average realized natural gas liquids selling price in the third quarter of 2016 was $9.23 per barrel compared to $7.17 per barrel in the prior-year quarter while the average realized natural gas selling price was $3.20 per mcf, down from $4.02 per mcf in the third quarter of 2015.
Net production in the third quarter of 2016 was 314,000 boepd compared to pro forma net production, which excludes assets sold, of 372,000 boepd in the third quarter of 2015. Lower volumes were primarily due to a reduced drilling program across our portfolio, planned and unplanned downtime, and natural field declines.
Operational Highlights for the Third Quarter of 2016:
Bakken (Onshore U.S.): Net production from the Bakken was 107,000 boepd compared to 113,000 boepd in the prior-year quarter, due to a reduced drilling program. The Corporation operated an average of three rigs in the quarter and brought 22 gross operated wells on production. Drilling and completion costs averaged $4.7 million per operated well in the third quarter, down 11 percent from the year-ago quarter, while increasing our standard well design to a 50-stage completion from the previous 35-stage completion design.
Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 61,000 boepd compared to 83,000 boepd in the prior-year quarter, primarily as a result of unplanned well downtime due to subsurface valve failures at two fields and natural field declines.
Valhall (Offshore Norway): Net production from the Valhall Field (Hess 64 percent) averaged 31,000 boepd in the third quarter of 2016, down from 35,000 boepd in the year-ago quarter, primarily due to a reduced drilling program.
South Arne (Offshore Denmark): Net production from the South Arne Field (Hess 62 percent) averaged 11,000 boepd in the third quarter of 2016, down from 14,000 boepd in the year-ago quarter, as a result of a planned maintenance shutdown during the third quarter of 2016.
3
Joint Development Area of Malaysia / Thailand (Offshore): At the Joint Development Area of Malaysia / Thailand (Hess 50 percent), the operator shut down the field in the third quarter to commission the booster compressor project. Net production averaged 24,000 boepd in the third quarter of 2016, down from 36,000 boepd in the prior-year quarter due to the shut down and lower entitlement.
Development Projects: At the North Malay Basin project, offshore Malaysia (Hess operated - 50 percent), we completed installation of the topsides at three remote wellhead platforms and development drilling operations continued. First gas from the full field development is projected for the third quarter of 2017. At the Stampede project in the Gulf of Mexico (Hess operated - 25 percent), the topsides deck was installed on the hull and drilling operations in the field continued. First production is targeted for 2018.
Guyana (Offshore): The Liza-3 appraisal well on the Stabroek Block (Hess 30 percent), operated by Esso Exploration and Production Guyana Limited, was successfully completed. Based on the Liza-3 results, we now expect the estimated recoverable resources to be at the upper end of the previously announced range of 800 million to 1.4 billion barrels of oil equivalent. On a separate prospect 25 miles northwest of the Liza discovery, the operator completed drilling of the Skipjack exploration well, which was unsuccessful and expensed in the quarter.
Bakken Midstream:
The Corporation’s share of Bakken Midstream segment net income was $13 million in the third quarter of 2016 compared to $16 million in the prior-year quarter, primarily due to lower throughput volumes.
Capital and Exploratory Expenditures:
Exploration and Production capital and exploratory expenditures were $435 million in the third quarter of 2016 down 49 percent from $849 million in the prior-year quarter reflecting reduced activities in response to the weak commodity price environment. Bakken Midstream capital expenditures were $88 million in the third quarter of both 2016 and 2015.
4
Net cash provided by operating activities before changes in operating assets and liabilities was $309 million in the third quarter of 2016 compared to $509 million in the prior-year quarter. In the third quarter, the Corporation issued $1 billion of senior notes with a 4.30% coupon due in 2027 and $500 million of senior notes with a 5.80% coupon due in 2047, with proceeds to be used primarily to purchase or redeem higher-coupon bonds and near-term maturities. Through September 30, 2016, $750 million has been used to purchase the tendered 8.125% notes, due in 2019.
The Corporation had cash and cash equivalents of $3,529 million and total debt, excluding the Bakken Midstream, of $6,654 million at September 30, 2016. The Corporation’s debt to capitalization ratio was 26.0 percent at September 30, 2016.
In October, the Corporation expects to purchase and redeem notes for $625 million to complete the debt refinancing. Pro forma for the notes to be purchased or redeemed in October and excluding the Bakken Midstream, debt amounted to $6,095 million at September 30, 2016. The Corporation’s pro forma debt to capitalization ratio was 24.5 percent.
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:
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Three Months Ended |
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Nine Months Ended |
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||||||||||
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|
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September 30, |
|
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September 30, |
|
||||||||||
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|
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(unaudited) |
|
|
(unaudited) |
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||||||||||
|
|
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2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
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||||
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(In millions) |
|
|||||||||||||
|
Exploration and Production |
|
$ |
51 |
|
|
$ |
33 |
|
|
$ |
(6 |
) |
|
$ |
(466 |
) |
|
Bakken Midstream |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Corporate, Interest and Other |
|
|
(50 |
) |
|
|
(8 |
) |
|
|
(50 |
) |
|
|
(12 |
) |
|
Discontinued operations |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
(40 |
) |
|
Total items affecting comparability of earnings between periods |
|
$ |
1 |
|
|
$ |
12 |
|
|
$ |
(56 |
) |
|
$ |
(518 |
) |
Third quarter 2016 Exploration and Production results include a tax benefit of $51 million related to the resolution of certain international tax matters. Third quarter 2016 Corporate, Interest and Other results include an after-tax charge of $50 million ($80 million pre-tax) for the premium paid to purchase 65 percent of the principal amount of our 8.125% notes, due in 2019.
5
Third quarter 2015 Exploration and Production results include an after-tax gain of $31 million ($49 million pre-tax) from the sale of dry gas acreage in the Utica shale play and a tax benefit of $50 million associated with an international investment incentive. Exploration and Production results also include after-tax charges totaling $48 million ($74 million pre-tax) for undeveloped leasehold impairment and other exit costs. Third quarter 2015 Corporate, Interest and Other results include an after-tax charge of $8 million ($10 million pre-tax) related to the HOVENSA bankruptcy.
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):
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|
|
Three Months Ended |
|
|
Nine Months Ended |
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||||||||||
|
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||||||||||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
|
|
|
(In millions) |
|
|||||||||||||
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(339 |
) |
|
$ |
(279 |
) |
|
$ |
(1,240 |
) |
|
$ |
(1,235 |
) |
|
Less: Total items affecting comparability of earnings between periods |
|
|
1 |
|
|
|
12 |
|
|
|
(56 |
) |
|
|
(518 |
) |
|
Adjusted net income (loss) attributable to Hess Corporation |
|
$ |
(340 |
) |
|
$ |
(291 |
) |
|
$ |
(1,184 |
) |
|
$ |
(717 |
) |
The following table reconciles reported net cash provided by (used in) operating activities to cash provided by continuing operating activities before changes in operating assets and liabilities:
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
|
(unaudited) |
|
|
(unaudited) |
|
||||||||||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
|
|
|
(In millions) |
|
|||||||||||||
|
Cash provided by continuing operating activities before changes in operating assets and liabilities |
|
$ |
309 |
|
|
$ |
509 |
|
|
$ |
714 |
|
|
$ |
1,720 |
|
|
Changes in operating assets and liabilities |
|
|
23 |
|
|
|
(217 |
) |
|
|
(245 |
) |
|
|
(331 |
) |
|
Cash provided by (used in) continuing operating activities |
|
|
332 |
|
|
|
292 |
|
|
|
469 |
|
|
|
1,389 |
|
|
Cash used in discontinued operating activities |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
(31 |
) |
|
Net cash provided by (used in) operating activities |
|
$ |
332 |
|
|
$ |
282 |
|
|
$ |
469 |
|
|
$ |
1,358 |
|
A reconciliation of pro forma debt to total debt on a GAAP basis is provided on page 10.
6
Hess Corporation will review third 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 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 operating activities before changes in operating assets and liabilities” is defined as Cash provided by 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 operating activities before changes in operating assets and liabilities demonstrates the company’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 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 net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by operating activities before changes in operating assets and liabilities are provided in the release. In addition, “Pro forma debt” presented in this release is defined as reported debt less debt balances that we have committed to repurchase or redeem at September 30, 2016. Management used pro forma debt to evaluate the Corporation’s financing structure and believes that investors’ understanding of our liquidity and debt is enhanced by disclosing this measure.
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’ Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.
For Hess Corporation
Investor Contact:
Jay Wilson
(212) 536-8940
Media Contact:
Michael Henson/Patrick Scanlan
Sard Verbinnen & Co
(212) 687-8080
7
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Third |
|
|
Third |
|
|
Second |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
1,177 |
|
|
$ |
1,671 |
|
|
$ |
1,224 |
|
|
Other, net |
|
|
19 |
|
|
|
18 |
|
|
|
45 |
|
|
Total revenues and non-operating income |
|
|
1,196 |
|
|
|
1,689 |
|
|
|
1,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below) |
|
|
222 |
|
|
|
356 |
|
|
|
277 |
|
|
Operating costs and expenses |
|
|
421 |
|
|
|
508 |
|
|
|
455 |
|
|
Production and severance taxes |
|
|
27 |
|
|
|
29 |
|
|
|
28 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
78 |
|
|
|
144 |
|
|
|
199 |
|
|
General and administrative expenses |
|
|
106 |
|
|
|
119 |
|
|
|
106 |
|
|
Interest expense |
|
|
84 |
|
|
|
84 |
|
|
|
85 |
|
|
Loss on debt extinguishment |
|
|
80 |
|
|
|
— |
|
|
|
— |
|
|
Depreciation, depletion and amortization |
|
|
811 |
|
|
|
988 |
|
|
|
797 |
|
|
Total costs and expenses |
|
|
1,829 |
|
|
|
2,228 |
|
|
|
1,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes |
|
|
(633 |
) |
|
|
(539 |
) |
|
|
(678 |
) |
|
Provision (benefit) for income taxes |
|
|
(316 |
) |
|
|
(300 |
) |
|
|
(305 |
) |
|
Income (loss) from continuing operations |
|
|
(317 |
) |
|
|
(239 |
) |
|
|
(373 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of income taxes |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(317 |
) |
|
|
(252 |
) |
|
|
(373 |
) |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
22 |
|
|
|
27 |
|
|
|
19 |
|
|
Net income (loss) attributable to Hess Corporation |
|
|
(339 |
) |
|
|
(279 |
) |
|
|
(392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Preferred stock dividends |
|
|
12 |
|
|
|
— |
|
|
|
12 |
|
|
Net income (loss) applicable to Hess Corporation common stockholders |
|
$ |
(351 |
) |
|
$ |
(279 |
) |
|
$ |
(404 |
) |
8
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2016 |
|
|
2015 |
|
||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and non-operating income |
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
3,374 |
|
|
$ |
5,162 |
|
|
Other, net |
|
|
84 |
|
|
|
12 |
|
|
Total revenues and non-operating income |
|
|
3,458 |
|
|
|
5,174 |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below) |
|
|
688 |
|
|
|
990 |
|
|
Operating costs and expenses |
|
|
1,312 |
|
|
|
1,517 |
|
|
Production and severance taxes |
|
|
74 |
|
|
|
110 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
409 |
|
|
|
503 |
|
|
General and administrative expenses |
|
|
310 |
|
|
|
417 |
|
|
Interest expense |
|
|
254 |
|
|
|
255 |
|
|
Loss on debt extinguishment |
|
|
80 |
|
|
|
— |
|
|
Depreciation, depletion and amortization |
|
|
2,476 |
|
|
|
2,972 |
|
|
Impairments |
|
|
— |
|
|
|
385 |
|
|
Total costs and expenses |
|
|
5,603 |
|
|
|
7,149 |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes |
|
|
(2,145 |
) |
|
|
(1,975 |
) |
|
Provision (benefit) for income taxes |
|
|
(967 |
) |
|
|
(807 |
) |
|
Income (loss) from continuing operations |
|
|
(1,178 |
) |
|
|
(1,168 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of income taxes |
|
|
— |
|
|
|
(40 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(1,178 |
) |
|
|
(1,208 |
) |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
62 |
|
|
|
27 |
|
|
Net income (loss) attributable to Hess Corporation |
|
|
(1,240 |
) |
|
|
(1,235 |
) |
|
|
|
|
|
|
|
|
|
|
|
Less: Preferred stock dividends |
|
|
30 |
|
|
|
— |
|
|
Net income (loss) applicable to Hess Corporation common stockholders |
|
$ |
(1,270 |
) |
|
$ |
(1,235 |
) |
9
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
September 30, |
|
|
December 31, |
|
||
|
|
|
2016 |
|
|
2015 |
|
||
|
Balance Sheet Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,529 |
|
|
$ |
2,716 |
|
|
Other current assets |
|
|
1,364 |
|
|
|
1,688 |
|
|
Property, plant and equipment – net |
|
|
25,537 |
|
|
|
26,352 |
|
|
Other long-term assets |
|
|
4,029 |
|
|
|
3,401 |
|
|
Total assets |
|
$ |
34,459 |
|
|
$ |
34,157 |
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of long-term debt |
|
$ |
666 |
|
|
$ |
86 |
|
|
Other current liabilities |
|
|
1,951 |
|
|
|
2,542 |
|
|
Long-term debt |
|
|
6,671 |
|
|
|
6,506 |
|
|
Other long-term liabilities |
|
|
4,256 |
|
|
|
4,622 |
|
|
Total equity excluding other comprehensive income (loss) |
|
|
21,210 |
|
|
|
21,050 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(1,372 |
) |
|
|
(1,664 |
) |
|
Noncontrolling interests |
|
|
1,077 |
|
|
|
1,015 |
|
|
Total liabilities and equity |
|
$ |
34,459 |
|
|
$ |
34,157 |
|
|
|
|
September 30, |
|
|
December 31, |
|
||
|
|
|
2016 |
|
|
2015 |
|
||
|
Total Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hess |
|
$ |
6,654 |
|
|
$ |
5,888 |
|
|
Bakken Midstream (a) |
|
|
683 |
|
|
|
704 |
|
|
Hess Consolidated |
|
$ |
7,337 |
|
|
$ |
6,592 |
|
|
|
|
|
|
|
|
|
|
|
|
Debt to capitalization ratio |
|
|
|
|
|
|
|
|
|
Hess Consolidated |
|
26.0% |
|
|
24.4% |
|
||
|
|
|
September 30, |
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
Pro forma Debt (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hess excluding Bakken Midstream |
|
|
|
|
|
|
|
Total debt – GAAP |
|
$ |
6,654 |
|
|
|
|
Less: October 2016 debt purchases and redemptions (a) |
|
|
559 |
|
|
|
|
Hess excluding Bakken Midstream pro forma debt |
|
$ |
6,095 |
|
|
|
|
|
|
|
|
|
|
|
|
Hess Consolidated |
|
|
|
|
|
|
|
Total debt – GAAP |
|
$ |
7,337 |
|
|
|
|
Less: October 2016 debt purchases and redemptions (a) |
|
|
559 |
|
|
|
|
Hess pro forma debt |
|
$ |
6,778 |
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma Debt to capitalization ratio |
|
|
|
|
|
|
|
Hess Consolidated |
|
24.5% |
|
|
|
|
|
(a) |
At September 30, 2016, current maturities of long-term debt include $559 million of notes that will be purchased or redeemed in October 2016 associated with the debt refinancing transaction. |
10
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Third |
|
|
Third |
|
|
Second |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|||
|
Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(317 |
) |
|
$ |
(252 |
) |
|
$ |
(373 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) losses on asset sales, net |
|
|
— |
|
|
|
(50 |
) |
|
|
(27 |
) |
|
Depreciation, depletion and amortization |
|
|
811 |
|
|
|
988 |
|
|
|
797 |
|
|
Exploratory dry hole costs |
|
|
16 |
|
|
|
4 |
|
|
|
133 |
|
|
Exploration lease impairment |
|
|
9 |
|
|
|
61 |
|
|
|
15 |
|
|
Loss from equity affiliates |
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
Stock compensation expense |
|
|
22 |
|
|
|
20 |
|
|
|
22 |
|
|
Provision (benefit) for deferred income taxes and other tax accruals |
|
|
(312 |
) |
|
|
(285 |
) |
|
|
(310 |
) |
|
Loss on debt extinguishment |
|
|
80 |
|
|
|
— |
|
|
|
— |
|
|
(Income) loss from discontinued operations, net of income taxes |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
Cash provided by operating activities before changes in operating assets and liabilities |
|
|
309 |
|
|
|
509 |
|
|
|
257 |
|
|
Changes in operating assets and liabilities |
|
|
23 |
|
|
|
(217 |
) |
|
|
(60 |
) |
|
Cash provided by (used in) continuing operating activities |
|
|
332 |
|
|
|
292 |
|
|
|
197 |
|
|
Cash provided by (used in) discontinued operating activities |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
Net cash provided by (used in) operating activities |
|
|
332 |
|
|
|
282 |
|
|
|
197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment - E&P |
|
|
(463 |
) |
|
|
(918 |
) |
|
|
(547 |
) |
|
Additions to property, plant and equipment - Bakken Midstream |
|
|
(66 |
) |
|
|
(45 |
) |
|
|
(68 |
) |
|
Proceeds from asset sales |
|
|
— |
|
|
|
25 |
|
|
|
80 |
|
|
Other, net |
|
|
3 |
|
|
|
(31 |
) |
|
|
8 |
|
|
Cash provided by (used in) continuing investing activities |
|
|
(526 |
) |
|
|
(969 |
) |
|
|
(527 |
) |
|
Cash provided by (used in) discontinued investing activities |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
Net cash provided by (used in) investing activities |
|
|
(526 |
) |
|
|
(956 |
) |
|
|
(527 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt with maturities of greater than 90 days |
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
1,496 |
|
|
|
600 |
|
|
|
— |
|
|
Repayments |
|
|
(765 |
) |
|
|
(17 |
) |
|
|
(43 |
) |
|
Common stock acquired and retired |
|
|
— |
|
|
|
(64 |
) |
|
|
— |
|
|
Cash dividends paid |
|
|
(91 |
) |
|
|
(71 |
) |
|
|
(89 |
) |
|
Noncontrolling interests, net |
|
|
— |
|
|
|
2,329 |
|
|
|
— |
|
|
Other, net |
|
|
(12 |
) |
|
|
(21 |
) |
|
|
— |
|
|
Cash provided by (used in) continued financing activities |
|
|
628 |
|
|
|
2,756 |
|
|
|
(132 |
) |
|
Cash provided by (used in) discontinued financing activities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net cash provided by (used in) financing activities |
|
|
628 |
|
|
|
2,756 |
|
|
|
(132 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Cash and Cash Equivalents |
|
|
434 |
|
|
|
2,082 |
|
|
|
(462 |
) |
|
Cash and Cash Equivalents at Beginning of Period |
|
|
3,095 |
|
|
|
931 |
|
|
|
3,557 |
|
|
Cash and Cash Equivalents at End of Period |
|
$ |
3,529 |
|
|
$ |
3,013 |
|
|
$ |
3,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to Property, plant and equipment included within Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures incurred |
|
$ |
(471 |
) |
|
$ |
(858 |
) |
|
$ |
(501 |
) |
|
Increase (decrease) in related liabilities |
|
|
(58 |
) |
|
|
(105 |
) |
|
|
(114 |
) |
|
Additions to Property, plant and equipment |
|
$ |
(529 |
) |
|
$ |
(963 |
) |
|
$ |
(615 |
) |
11
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2016 |
|
|
2015 |
|
||
|
Cash Flow Information |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Cash flows From Operating Activities |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(1,178 |
) |
|
$ |
(1,208 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
|
|
(Gains) losses on asset sales, net |
|
|
(27 |
) |
|
|
(50 |
) |
|
Depreciation, depletion and amortization |
|
|
2,476 |
|
|
|
2,972 |
|
|
Exploratory dry hole costs |
|
|
234 |
|
|
|
180 |
|
|
Exploration lease impairment |
|
|
33 |
|
|
|
139 |
|
|
Impairments |
|
|
— |
|
|
|
385 |
|
|
Loss from equity affiliates |
|
|
— |
|
|
|
10 |
|
|
Stock compensation expense |
|
|
69 |
|
|
|
71 |
|
|
Provision (benefit) for deferred income taxes and other tax accruals |
|
|
(973 |
) |
|
|
(819 |
) |
|
Loss on debt extinguishment |
|
|
80 |
|
|
|
— |
|
|
(Income) loss from discontinued operations, net of income taxes |
|
|
— |
|
|
|
40 |
|
|
Cash provided by operating activities before changes in operating assets and liabilities |
|
|
714 |
|
|
|
1,720 |
|
|
Changes in operating assets and liabilities |
|
|
(245 |
) |
|
|
(331 |
) |
|
Cash provided by (used in) continuing operating activities |
|
|
469 |
|
|
|
1,389 |
|
|
Cash provided by (used in) discontinued operating activities |
|
|
— |
|
|
|
(31 |
) |
|
Net cash provided by (used in) operating activities |
|
|
469 |
|
|
|
1,358 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment - E&P |
|
|
(1,578 |
) |
|
|
(3,232 |
) |
|
Additions to property, plant and equipment - Bakken Midstream |
|
|
(186 |
) |
|
|
(154 |
) |
|
Proceeds from asset sales |
|
|
80 |
|
|
|
25 |
|
|
Other, net |
|
|
18 |
|
|
|
(44 |
) |
|
Cash provided by (used in) continuing investing activities |
|
|
(1,666 |
) |
|
|
(3,405 |
) |
|
Cash provided by (used in) discontinued investing activities |
|
|
— |
|
|
|
108 |
|
|
Net cash provided by (used in) investing activities |
|
|
(1,666 |
) |
|
|
(3,297 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
|
|
|
Debt with maturities of greater than 90 days |
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
1,501 |
|
|
|
600 |
|
|
Repayments |
|
|
(825 |
) |
|
|
(51 |
) |
|
Proceeds from issuance of preferred stock |
|
|
557 |
|
|
|
— |
|
|
Proceeds from issuance of common stock |
|
|
1,087 |
|
|
|
— |
|
|
Common stock acquired and retired |
|
|
— |
|
|
|
(142 |
) |
|
Cash dividends paid |
|
|
(260 |
) |
|
|
(215 |
) |
|
Noncontrolling interests, net |
|
|
— |
|
|
|
2,329 |
|
|
Other, net |
|
|
(50 |
) |
|
|
(13 |
) |
|
Cash provided by (used in) continued financing activities |
|
|
2,010 |
|
|
|
2,508 |
|
|
Cash provided by (used in) discontinued financing activities |
|
|
— |
|
|
|
— |
|
|
Net cash provided by (used in) financing activities |
|
|
2,010 |
|
|
|
2,508 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Cash and Cash Equivalents |
|
|
813 |
|
|
|
569 |
|
|
Cash and Cash Equivalents at Beginning of Year |
|
|
2,716 |
|
|
|
2,444 |
|
|
Cash and Cash Equivalents at End of Period |
|
$ |
3,529 |
|
|
$ |
3,013 |
|
|
|
|
|
|
|
|
|
|
|
|
Additions to Property, plant and equipment included within Investing activities: |
|
|
|
|
|
|
|
|
|
Capital expenditures incurred |
|
$ |
(1,512 |
) |
|
$ |
(3,108 |
) |
|
Increase (decrease) in related liabilities |
|
|
(252 |
) |
|
|
(278 |
) |
|
Additions to Property, plant and equipment |
|
$ |
(1,764 |
) |
|
$ |
(3,386 |
) |
12
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Third |
|
|
Third |
|
|
Second |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|||
|
Capital and Exploratory Expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P Capital and exploratory expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken |
|
$ |
126 |
|
|
$ |
295 |
|
|
$ |
88 |
|
|
Other Onshore |
|
|
4 |
|
|
|
70 |
|
|
|
22 |
|
|
Total Onshore |
|
|
130 |
|
|
|
365 |
|
|
|
110 |
|
|
Offshore |
|
|
191 |
|
|
|
199 |
|
|
|
168 |
|
|
Total United States |
|
|
321 |
|
|
|
564 |
|
|
|
278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
1 |
|
|
|
58 |
|
|
|
14 |
|
|
Africa |
|
|
4 |
|
|
|
13 |
|
|
|
— |
|
|
Asia and other |
|
|
109 |
|
|
|
214 |
|
|
|
193 |
|
|
E&P Capital and exploratory expenditures |
|
$ |
435 |
|
|
$ |
849 |
|
|
$ |
485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total exploration expenses charged to income included above |
|
$ |
52 |
|
|
$ |
79 |
|
|
$ |
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken Midstream Capital expenditures |
|
$ |
88 |
|
|
$ |
88 |
|
|
$ |
67 |
|
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2016 |
|
|
2015 |
|
||
|
Capital and Exploratory Expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P Capital and exploratory expenditures |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Bakken |
|
$ |
330 |
|
|
$ |
1,060 |
|
|
Other Onshore |
|
|
48 |
|
|
|
260 |
|
|
Total Onshore |
|
|
378 |
|
|
|
1,320 |
|
|
Offshore |
|
|
564 |
|
|
|
666 |
|
|
Total United States |
|
|
942 |
|
|
|
1,986 |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
63 |
|
|
|
255 |
|
|
Africa |
|
|
7 |
|
|
|
159 |
|
|
Asia and other |
|
|
452 |
|
|
|
699 |
|
|
E&P Capital and exploratory expenditures |
|
$ |
1,464 |
|
|
$ |
3,099 |
|
|
|
|
|
|
|
|
|
|
|
|
Total exploration expenses charged to income included above |
|
$ |
142 |
|
|
$ |
184 |
|
|
|
|
|
|
|
|
|
|
|
|
Bakken Midstream Capital expenditures |
|
$ |
190 |
|
|
$ |
193 |
|
13
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Third Quarter 2016 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
791 |
|
|
$ |
386 |
|
|
$ |
1,177 |
|
|
Other, net |
|
|
(5 |
) |
|
|
12 |
|
|
|
7 |
|
|
Total revenues and non-operating income |
|
|
786 |
|
|
|
398 |
|
|
|
1,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below) (a) |
|
|
234 |
|
|
|
(5 |
) |
|
|
229 |
|
|
Operating costs and expenses |
|
|
180 |
|
|
|
198 |
|
|
|
378 |
|
|
Production and severance taxes |
|
|
24 |
|
|
|
3 |
|
|
|
27 |
|
|
Bakken Midstream tariffs |
|
|
113 |
|
|
|
— |
|
|
|
113 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
29 |
|
|
|
49 |
|
|
|
78 |
|
|
General and administrative expenses |
|
|
57 |
|
|
|
4 |
|
|
|
61 |
|
|
Depreciation, depletion and amortization |
|
|
522 |
|
|
|
262 |
|
|
|
784 |
|
|
Total costs and expenses |
|
|
1,159 |
|
|
|
511 |
|
|
|
1,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
(373 |
) |
|
|
(113 |
) |
|
|
(486 |
) |
|
Provision (benefit) for income taxes |
|
|
(139 |
) |
|
|
(113 |
) |
|
|
(252 |
) |
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(234 |
) |
|
$ |
— |
|
|
$ |
(234 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2015 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
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) (a) |
|
|
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 |
) |
(b) |
$ |
59 |
|
(c) |
$ |
(188 |
) |
|
(a) |
Includes amounts charged from the Bakken Midstream. |
|
(b) |
After-tax results from crude oil hedging activities amounted to realized gains of $13 million and unrealized losses of $5 million. |
|
(c) |
After-tax results from crude oil hedging activities amounted to realized gains of $19 million and unrealized losses of $0.3 million. |
14
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Second Quarter 2016 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
752 |
|
|
$ |
472 |
|
|
$ |
1,224 |
|
|
Other, net |
|
|
22 |
|
|
|
15 |
|
|
|
37 |
|
|
Total revenues and non-operating income |
|
|
774 |
|
|
|
487 |
|
|
|
1,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below) (a) |
|
|
230 |
|
|
|
57 |
|
|
|
287 |
|
|
Operating costs and expenses |
|
|
230 |
|
|
|
179 |
|
|
|
409 |
|
|
Production and severance taxes |
|
|
27 |
|
|
|
1 |
|
|
|
28 |
|
|
Bakken Midstream tariffs |
|
|
109 |
|
|
|
— |
|
|
|
109 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
164 |
|
|
|
35 |
|
|
|
199 |
|
|
General and administrative expenses |
|
|
54 |
|
|
|
6 |
|
|
|
60 |
|
|
Depreciation, depletion and amortization |
|
|
497 |
|
|
|
273 |
|
|
|
770 |
|
|
Total costs and expenses |
|
|
1,311 |
|
|
|
551 |
|
|
|
1,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
(537 |
) |
|
|
(64 |
) |
|
|
(601 |
) |
|
Provision (benefit) for income taxes |
|
|
(203 |
) |
|
|
(70 |
) |
|
|
(273 |
) |
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(334 |
) |
|
$ |
6 |
|
|
$ |
(328 |
) |
|
(a) |
Includes amounts charged from the Bakken Midstream. |
15
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS DATA (UNAUDITED)
(IN MILLIONS)
|
|
|
Nine Months Ended September 30, 2016 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
2,142 |
|
|
$ |
1,232 |
|
|
$ |
3,374 |
|
|
Other, net |
|
|
23 |
|
|
|
31 |
|
|
|
54 |
|
|
Total revenues and non-operating income |
|
|
2,165 |
|
|
|
1,263 |
|
|
|
3,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below)(a) |
|
|
648 |
|
|
|
64 |
|
|
|
712 |
|
|
Operating costs and expenses |
|
|
631 |
|
|
|
547 |
|
|
|
1,178 |
|
|
Production and severance taxes |
|
|
68 |
|
|
|
6 |
|
|
|
74 |
|
|
Bakken Midstream tariffs |
|
|
334 |
|
|
|
— |
|
|
|
334 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
301 |
|
|
|
108 |
|
|
|
409 |
|
|
General and administrative expenses |
|
|
162 |
|
|
|
15 |
|
|
|
177 |
|
|
Depreciation, depletion and amortization |
|
|
1,556 |
|
|
|
840 |
|
|
|
2,396 |
|
|
Total costs and expenses |
|
|
3,700 |
|
|
|
1,580 |
|
|
|
5,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
(1,535 |
) |
|
|
(317 |
) |
|
|
(1,852 |
) |
|
Provision (benefit) for income taxes |
|
|
(583 |
) |
|
|
(256 |
) |
|
|
(839 |
) |
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(952 |
) |
|
$ |
(61 |
) |
|
$ |
(1,013 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2015 |
|
|||||||||
|
|
|
United States |
|
|
International |
|
|
Total |
|
|||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
|
$ |
3,218 |
|
|
$ |
1,944 |
|
|
$ |
5,162 |
|
|
Other, net |
|
|
26 |
|
|
|
(5 |
) |
|
|
21 |
|
|
Total revenues and non-operating income |
|
|
3,244 |
|
|
|
1,939 |
|
|
|
5,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding items shown separately below)(a) |
|
|
1,076 |
|
|
|
2 |
|
|
|
1,078 |
|
|
Operating costs and expenses |
|
|
587 |
|
|
|
734 |
|
|
|
1,321 |
|
|
Production and severance taxes |
|
|
106 |
|
|
|
4 |
|
|
|
110 |
|
|
Bakken Midstream tariffs |
|
|
335 |
|
|
|
— |
|
|
|
335 |
|
|
Exploration expenses, including dry holes and lease impairment |
|
|
171 |
|
|
|
332 |
|
|
|
503 |
|
|
General and administrative expenses |
|
|
202 |
|
|
|
41 |
|
|
|
243 |
|
|
Depreciation, depletion and amortization |
|
|
1,759 |
|
|
|
1,140 |
|
|
|
2,899 |
|
|
Impairments |
|
|
385 |
|
|
|
— |
|
|
|
385 |
|
|
Total costs and expenses |
|
|
4,621 |
|
|
|
2,253 |
|
|
|
6,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
(1,377 |
) |
|
|
(314 |
) |
|
|
(1,691 |
) |
|
Provision (benefit) for income taxes |
|
|
(340 |
) |
|
|
(347 |
) |
|
|
(687 |
) |
|
Net income (loss) attributable to Hess Corporation |
|
$ |
(1,037 |
) |
(b) |
$ |
33 |
|
(c) |
$ |
(1,004 |
) |
|
(a) |
Includes amounts charged from the Bakken Midstream. |
|
(b) |
After-tax results from crude oil hedging activities amounted to realized gains of $12 million and unrealized losses of $2 million. |
|
(c) |
After-tax results from crude oil hedging activities amounted to realized gains of $12 million and unrealized losses of $6 million. |
16
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Third |
|
|
Third |
|
|
Second |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|||
|
Net Production Per Day (in thousands) |
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken |
|
|
67 |
|
|
|
82 |
|
|
|
69 |
|
|
Other Onshore |
|
|
9 |
|
|
|
10 |
|
|
|
8 |
|
|
Total Onshore |
|
|
76 |
|
|
|
92 |
|
|
|
77 |
|
|
Offshore |
|
|
46 |
|
|
|
60 |
|
|
|
41 |
|
|
Total United States |
|
|
122 |
|
|
|
152 |
|
|
|
118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
34 |
|
|
|
40 |
|
|
|
26 |
|
|
Africa (a) |
|
|
33 |
|
|
|
50 |
|
|
|
33 |
|
|
Asia |
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
Total |
|
|
190 |
|
|
|
244 |
|
|
|
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids - barrels |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken |
|
|
29 |
|
|
|
20 |
|
|
|
27 |
|
|
Other Onshore |
|
|
11 |
|
|
|
12 |
|
|
|
12 |
|
|
Total Onshore |
|
|
40 |
|
|
|
32 |
|
|
|
39 |
|
|
Offshore |
|
|
4 |
|
|
|
7 |
|
|
|
4 |
|
|
Total United States |
|
|
44 |
|
|
|
39 |
|
|
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
Total |
|
|
45 |
|
|
|
40 |
|
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas - mcf |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakken |
|
|
66 |
|
|
|
65 |
|
|
|
59 |
|
|
Other Onshore |
|
|
139 |
|
|
|
125 |
|
|
|
134 |
|
|
Total Onshore |
|
|
205 |
|
|
|
190 |
|
|
|
193 |
|
|
Offshore |
|
|
65 |
|
|
|
93 |
|
|
|
52 |
|
|
Total United States |
|
|
270 |
|
|
|
283 |
|
|
|
245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
41 |
|
|
|
45 |
|
|
|
40 |
|
|
Asia |
|
|
161 |
|
|
|
246 |
|
|
|
254 |
|
|
Total |
|
|
472 |
|
|
|
574 |
|
|
|
539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of oil equivalent |
|
|
314 |
|
|
|
380 |
|
|
|
313 |
|
|
(a) |
The Corporation sold its Algerian operations on December 31, 2015. Production was 8,000 barrels of oil per day (bopd) in the third quarter of 2015 in Algeria. |
17
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2016 |
|
|
2015 |
|
||
|
Net Production Per Day (in thousands) |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Bakken |
|
|
70 |
|
|
|
82 |
|
|
Other Onshore |
|
|
9 |
|
|
|
11 |
|
|
Total Onshore |
|
|
79 |
|
|
|
93 |
|
|
Offshore |
|
|
46 |
|
|
|
57 |
|
|
Total United States |
|
|
125 |
|
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
32 |
|
|
|
38 |
|
|
Africa (a) |
|
|
34 |
|
|
|
50 |
|
|
Asia |
|
|
2 |
|
|
|
2 |
|
|
Total |
|
|
193 |
|
|
|
240 |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids - barrels |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Bakken |
|
|
27 |
|
|
|
21 |
|
|
Other Onshore |
|
|
12 |
|
|
|
11 |
|
|
Total Onshore |
|
|
39 |
|
|
|
32 |
|
|
Offshore |
|
|
5 |
|
|
|
6 |
|
|
Total United States |
|
|
44 |
|
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
1 |
|
|
|
1 |
|
|
Total |
|
|
45 |
|
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas - mcf |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Bakken |
|
|
64 |
|
|
|
65 |
|
|
Other Onshore |
|
|
136 |
|
|
|
100 |
|
|
Total Onshore |
|
|
200 |
|
|
|
165 |
|
|
Offshore |
|
|
64 |
|
|
|
85 |
|
|
Total United States |
|
|
264 |
|
|
|
250 |
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
42 |
|
|
|
41 |
|
|
Asia |
|
|
221 |
|
|
|
297 |
|
|
Total |
|
|
527 |
|
|
|
588 |
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of oil equivalent |
|
|
326 |
|
|
|
377 |
|
|
(a) |
The Corporation sold its Algerian operations on December 31, 2015. Production was 6,000 bopd for the nine months ended September 30, 2015 in Algeria. |
18
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Third |
|
|
Third |
|
|
Second |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|||
|
Sales Volumes Per Day (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
190 |
|
|
|
245 |
|
|
|
198 |
|
|
Natural gas liquids - barrels |
|
|
45 |
|
|
|
40 |
|
|
|
44 |
|
|
Natural gas - mcf |
|
|
472 |
|
|
|
574 |
|
|
|
539 |
|
|
Barrels of oil equivalent |
|
|
314 |
|
|
|
381 |
|
|
|
332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volumes (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
17,528 |
|
|
|
22,592 |
|
|
|
18,053 |
|
|
Natural gas liquids - barrels |
|
|
4,167 |
|
|
|
3,701 |
|
|
|
3,968 |
|
|
Natural gas - mcf |
|
|
43,413 |
|
|
|
52,784 |
|
|
|
48,998 |
|
|
Barrels of oil equivalent |
|
|
28,931 |
|
|
|
35,090 |
|
|
|
30,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2016 |
|
|
2015 |
|
||
|
Sales Volumes Per Day (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
201 |
|
|
|
238 |
|
|
Natural gas liquids - barrels |
|
|
45 |
|
|
|
39 |
|
|
Natural gas - mcf |
|
|
527 |
|
|
|
588 |
|
|
Barrels of oil equivalent |
|
|
334 |
|
|
|
375 |
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volumes (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - barrels |
|
|
55,030 |
|
|
|
65,028 |
|
|
Natural gas liquids - barrels |
|
|
12,389 |
|
|
|
10,668 |
|
|
Natural gas - mcf |
|
|
144,381 |
|
|
|
160,604 |
|
|
Barrels of oil equivalent |
|
|
91,483 |
|
|
|
102,463 |
|
19
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Third |
|
|
Third |
|
|
Second |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|||
|
Average Selling Prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - per barrel (including hedging) |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
39.19 |
|
|
$ |
40.43 |
|
|
$ |
39.96 |
|
|
Offshore |
|
|
39.55 |
|
|
|
42.70 |
|
|
|
40.15 |
|
|
Total United States |
|
|
39.33 |
|
|
|
41.33 |
|
|
|
40.02 |
|
|
Europe |
|
|
46.01 |
|
|
|
53.49 |
|
|
|
45.28 |
|
|
Africa |
|
|
44.22 |
|
|
|
51.98 |
|
|
|
44.66 |
|
|
Asia |
|
|
47.36 |
|
|
|
— |
|
|
|
38.96 |
|
|
Worldwide |
|
|
41.50 |
|
|
|
45.66 |
|
|
|
41.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - per barrel (excluding hedging) |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
39.19 |
|
|
$ |
37.91 |
|
|
$ |
39.96 |
|
|
Offshore |
|
|
39.55 |
|
|
|
42.70 |
|
|
|
40.15 |
|
|
Total United States |
|
|
39.33 |
|
|
|
39.81 |
|
|
|
40.02 |
|
|
Europe |
|
|
46.01 |
|
|
|
50.12 |
|
|
|
45.28 |
|
|
Africa |
|
|
44.22 |
|
|
|
48.60 |
|
|
|
44.66 |
|
|
Asia |
|
|
47.36 |
|
|
|
— |
|
|
|
38.96 |
|
|
Worldwide |
|
|
41.50 |
|
|
|
43.43 |
|
|
|
41.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids - per barrel |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
8.48 |
|
|
$ |
5.45 |
|
|
$ |
8.34 |
|
|
Offshore |
|
|
13.94 |
|
|
|
12.56 |
|
|
|
13.52 |
|
|
Total United States |
|
|
9.00 |
|
|
|
6.69 |
|
|
|
8.84 |
|
|
Europe |
|
|
17.68 |
|
|
|
21.44 |
|
|
|
19.23 |
|
|
Worldwide |
|
|
9.23 |
|
|
|
7.17 |
|
|
|
9.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas - per mcf |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
1.49 |
|
|
$ |
1.70 |
|
|
$ |
1.30 |
|
|
Offshore |
|
|
2.24 |
|
|
|
2.37 |
|
|
|
1.50 |
|
|
Total United States |
|
|
1.67 |
|
|
|
1.92 |
|
|
|
1.34 |
|
|
Europe |
|
|
3.74 |
|
|
|
6.43 |
|
|
|
3.74 |
|
|
Asia |
|
|
5.66 |
|
|
|
5.98 |
|
|
|
5.70 |
|
|
Worldwide |
|
|
3.20 |
|
|
|
4.02 |
|
|
|
3.58 |
|
20
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2016 |
|
|
2015 |
|
||
|
Average Selling Prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - per barrel (including hedging) |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
35.16 |
|
|
$ |
43.38 |
|
|
Offshore |
|
|
35.08 |
|
|
|
48.75 |
|
|
Total United States |
|
|
35.13 |
|
|
|
45.43 |
|
|
Europe |
|
|
40.66 |
|
|
|
55.87 |
|
|
Africa |
|
|
39.66 |
|
|
|
54.99 |
|
|
Asia |
|
|
43.11 |
|
|
|
56.85 |
|
|
Worldwide |
|
|
37.05 |
|
|
|
49.14 |
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil - per barrel (excluding hedging) |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
35.16 |
|
|
$ |
42.61 |
|
|
Offshore |
|
|
35.08 |
|
|
|
48.75 |
|
|
Total United States |
|
|
35.13 |
|
|
|
44.95 |
|
|
Europe |
|
|
40.66 |
|
|
|
55.01 |
|
|
Africa |
|
|
39.66 |
|
|
|
54.26 |
|
|
Asia |
|
|
43.11 |
|
|
|
56.85 |
|
|
Worldwide |
|
|
37.05 |
|
|
|
48.55 |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids - per barrel |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
7.89 |
|
|
$ |
9.47 |
|
|
Offshore |
|
|
12.14 |
|
|
|
14.60 |
|
|
Total United States |
|
|
8.33 |
|
|
|
10.32 |
|
|
Europe |
|
|
17.50 |
|
|
|
25.50 |
|
|
Worldwide |
|
|
8.55 |
|
|
|
10.84 |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas - per mcf |
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
Onshore |
|
$ |
1.33 |
|
|
$ |
1.78 |
|
|
Offshore |
|
|
1.74 |
|
|
|
2.26 |
|
|
Total United States |
|
|
1.43 |
|
|
|
1.95 |
|
|
Europe |
|
|
4.04 |
|
|
|
7.18 |
|
|
Asia |
|
|
5.65 |
|
|
|
6.07 |
|
|
Worldwide |
|
|
3.41 |
|
|
|
4.40 |
|
21
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
BAKKEN MIDSTREAM EARNINGS (UNAUDITED) AND OPERATING DATA
($ IN MILLIONS)
|
|
|
Third |
|
|
Third |
|
|
Second |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and non-operating income |
|
$ |
120 |
|
|
$ |
148 |
|
|
$ |
119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
|
43 |
|
|
|
65 |
|
|
|
46 |
|
|
General and administrative expenses |
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
Depreciation, depletion and amortization |
|
|
25 |
|
|
|
22 |
|
|
|
25 |
|
|
Interest expense |
|
|
4 |
|
|
|
4 |
|
|
|
6 |
|
|
Total costs and expenses |
|
|
76 |
|
|
|
95 |
|
|
|
82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
44 |
|
|
|
53 |
|
|
|
37 |
|
|
Provision (benefit) for income taxes |
|
|
9 |
|
|
|
10 |
|
|
|
7 |
|
|
Net income (loss) |
|
|
35 |
|
|
|
43 |
|
|
|
30 |
|
|
Less: Net income attributable to noncontrolling interests |
|
|
22 |
|
|
|
27 |
|
|
|
19 |
|
|
Net income (loss) attributable to Hess Corporation |
|
$ |
13 |
|
|
$ |
16 |
|
|
$ |
11 |
|
|
|
|
Third |
|
|
Third |
|
|
Second |
|
|||
|
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|||
|
Bakken Midstream - Operating Volumes (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tioga gas plant – mcf of natural gas per day |
|
|
196 |
|
|
|
210 |
|
|
|
183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Export |
|
|
|
|
|
|
|
|
|
|
|
|
|
Terminal throughput – bopd (a) |
|
|
51 |
|
|
|
72 |
|
|
|
64 |
|
|
Tioga rail terminal crude loading – bopd (b) |
|
|
43 |
|
|
|
47 |
|
|
|
39 |
|
|
Rail services – bopd (c) |
|
|
20 |
|
|
|
45 |
|
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipelines |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil gathering – bopd |
|
|
58 |
|
|
|
41 |
|
|
|
59 |
|
|
Gas gathering – mcf of natural gas per day |
|
|
208 |
|
|
|
226 |
|
|
|
199 |
|
(a) Volume of crude oil received at the Ramburg truck facility and transported through 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.
22
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
BAKKEN MIDSTREAM EARNINGS (UNAUDITED) AND OPERATING DATA
($ IN MILLIONS)
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2016 |
|
|
2015 |
|
||
|
Income Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and non-operating income |
|
|
|
|
|
|
|
|
|
Total revenues and non-operating income |
|
$ |
358 |
|
|
$ |
423 |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
|
134 |
|
|
|
196 |
|
|
General and administrative expenses |
|
|
13 |
|
|
|
9 |
|
|
Depreciation, depletion and amortization |
|
|
73 |
|
|
|
65 |
|
|
Interest expense |
|
|
14 |
|
|
|
6 |
|
|
Total costs and expenses |
|
|
234 |
|
|
|
276 |
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations before income taxes |
|
|
124 |
|
|
|
147 |
|
|
Provision (benefit) for income taxes |
|
|
24 |
|
|
|
45 |
|
|
Net income (loss) |
|
|
100 |
|
|
|
102 |
|
|
Less: Net income attributable to noncontrolling interests (a) |
|
|
62 |
|
|
|
27 |
|
|
Net income (loss) attributable to Hess Corporation |
|
$ |
38 |
|
|
$ |
75 |
|
|
(a) |
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. |
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2016 |
|
|
2015 |
|
||
|
Bakken Midstream - Operating Volumes (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing |
|
|
|
|
|
|
|
|
|
Tioga gas plant – mcf of natural gas per day |
|
|
191 |
|
|
|
197 |
|
|
|
|
|
|
|
|
|
|
|
|
Export |
|
|
|
|
|
|
|
|
|
Terminal throughput – bopd (a) |
|
|
59 |
|
|
|
78 |
|
|
Tioga rail terminal crude loading – bopd (b) |
|
|
38 |
|
|
|
49 |
|
|
Rail services – bopd (c) |
|
|
26 |
|
|
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
Pipelines |
|
|
|
|
|
|
|
|
|
Oil gathering – bopd |
|
|
58 |
|
|
|
35 |
|
|
Gas gathering – mcf of natural gas per day |
|
|
204 |
|
|
|
219 |
|
(a) Volume of crude oil received at the Ramburg truck facility and transported through 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.
23