hes-20211027
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):  October 27, 2021
HESS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
DENo.1-1204No.13-4921002
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common StockHESNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 



Item 2.02.  Results of Operations and Financial Condition.
On October 27, 2021, Hess Corporation issued a news release reporting estimated results for the third quarter of 2021.  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.
(d)Exhibit
104Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURE
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.
Date:  October 27, 2021
HESS CORPORATION
By:/s/John P. Rielly
Name:John P. Rielly
Title:Executive Vice President and
Chief Financial Officer

Document
Exhibit 99.1


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HESS CORPORATION
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HESS REPORTS ESTIMATED RESULTS FOR THE THIRD QUARTER OF 2021
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, October 27, 2021 — 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.
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"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)
2021202020212020
(In millions, except per share amounts)
Net Income (Loss) Attributable to Hess Corporation
Exploration and Production$178 $(182)$461 $(2,802)
Midstream61 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)
Midstream61 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
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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.
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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 25th, 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.


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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.
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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.
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)
2021202020212020
(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).

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.
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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)
 2021202020212020
 (In millions)
Net income (loss) attributable to Hess Corporation$115 $(243)$294 $(2,996)
Less: Total items affecting comparability of earnings between periods29 (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)
2021202020212020
(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;
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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.

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

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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, net29 — — 
Other, net23 17 19 
Total revenues and non-operating income1,811 1,176 1,598 
Costs and expenses
Marketing, including purchased oil and gas522 221 322 
Operating costs and expenses333 308 315 
Production and severance taxes42 34 44 
Exploration expenses, including dry holes and lease impairment36 71 48 
General and administrative expenses76 84 84 
Interest expense125 118 118 
Depreciation, depletion and amortization349 518 385 
Impairment and other— — 147 
Total costs and expenses1,483 1,354 1,463 
Income (loss) before income taxes328 (178)135 
Provision (benefit) for income taxes143 122 
Net income (loss)185 (183)13 
Less: Net income (loss) attributable to noncontrolling interests70 60 86 
Net income (loss) attributable to Hess Corporation$115 $(243)$(73)

9


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Nine Months Ended
 September 30,
20212020
Income Statement
Revenues and non-operating income
Sales and other operating revenues$5,236 $3,346 
Gains (losses) on asset sales, net29 
Other, net63 33 
Total revenues and non-operating income5,328 3,387 
Costs and expenses
Marketing, including purchased oil and gas1,362 655 
Operating costs and expenses913 905 
Production and severance taxes123 92 
Exploration expenses, including dry holes and lease impairment117 291 
General and administrative expenses254 275 
Interest expense360 350 
Depreciation, depletion and amortization1,130 1,588 
Impairment and other147 2,126 
Total costs and expenses4,406 6,282 
Income (loss) before income taxes922 (2,895)
Provision (benefit) for income taxes388 (83)
Net income (loss)534 (2,812)
Less: Net income (loss) attributable to noncontrolling interests240 184 
Net income (loss) attributable to Hess Corporation$294 $(2,996)

10


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 assets1,473 1,342 
Property, plant and equipment – net13,954 14,115 
Operating lease right-of-use assets – net364 426 
Finance lease right-of-use assets – net150 168 
Other long-term assets1,130 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 obligations88 81 
Other current liabilities2,147 1,532 
Long-term debt7,993 8,286 
Long-term operating lease obligations410 478 
Long-term finance lease obligations205 220 
Other long-term liabilities1,877 1,879 
Total equity excluding other comprehensive income (loss)6,405 6,121 
Accumulated other comprehensive income (loss)(796)(755)
Noncontrolling interests647 969 
Total liabilities and equity$19,490 $18,821 

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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 
(a) Midstream debt is non-recourse to Hess Corporation.
September 30,
2021
December 31,
2020
Debt to Capitalization Ratio (a)
Hess Consolidated58.3 %57.4 %
Hess Corporation as defined in debt covenants44.5 %47.5 %
(a)Includes finance lease obligations.
Three Months Ended
 September 30,
Nine Months Ended
 September 30,
2021202020212020
Interest Expense
Hess Corporation$97 $95 $286 $279 
Midstream (a)28 23 74 71 
Hess Consolidated$125 $118 $360 $350 
(a)Midstream interest expense is reported in the Midstream operating segment.
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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 amortization349 518 385 
Impairment and other— — 147 
Exploratory dry hole costs31 
Exploration lease and other impairment10 
Pension settlement loss— 
Stock compensation expense17 16 19 
Noncash (gains) losses on commodity derivatives, net64 68 64 
Provision (benefit) for deferred income taxes and other tax accruals37 13 
Net cash provided by (used in) operating activities before changes in operating assets and liabilities631 468 659 
Changes in operating assets and liabilities(16)(332)126 
Net cash provided by (used in) operating activities615 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 sold130 — 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 less43 74 (65)
Debt with maturities of greater than 90 days:
Borrowings750 — — 
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 Period2,430 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 liabilities30 (59)88 
Additions to property, plant and equipment$(498)$(426)$(355)

13


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Nine Months Ended
 September 30,
20212020
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 amortization1,130 1,588 
Impairment and other147 2,126 
Exploratory dry hole costs11 166 
Exploration lease and other impairment15 48 
Pension settlement loss— 
Stock compensation expense61 63 
Noncash (gains) losses on commodity derivatives, net152 187 
Provision (benefit) for deferred income taxes and other tax accruals79 (87)
Net cash provided by (used in) operating activities before changes in operating assets and liabilities2,105 1,271 
Changes in operating assets and liabilities(114)(424)
Net cash provided by (used in) operating activities1,991 847 
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 sold427 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:
Borrowings750 1,000 
Repayments(508)— 
Proceeds from sale of Class A shares of Hess Midstream LP70 — 
Payments on finance lease obligations(7)(6)
Cash dividends paid(234)(233)
Employee stock options exercised75 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 Equivalents680 (260)
Cash and Cash Equivalents at Beginning of Period1,739 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)$(1,540)
Increase (decrease) in related liabilities36 (283)
Additions to property, plant and equipment$(1,238)$(1,823)

14


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 Other16 61 25 
Total United States185 147 137 
Guyana264 160 250 
Malaysia and JDA42 21 36 
Other
 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,
20212020
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota$369 $589 
Offshore and Other72 218 
Total United States441 807 
Guyana686 519 
Malaysia and JDA91 74 
Other18 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 

15


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
Third Quarter 2021
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$1,280 $479  $1,759 
Gains (losses) on asset sales, net— 29 29 
Other, net12  19 
Total revenues and non-operating income1,292  515  1,807 
Costs and expenses     
Marketing, including purchased oil and gas (a)542 —  542 
Operating costs and expenses150 99  249 
Production and severance taxes41  42 
Midstream tariffs270 —  270 
Exploration expenses, including dry holes and lease impairment21 15  36 
General and administrative expenses35  42 
Depreciation, depletion and amortization229 79  308 
Total costs and expenses1,288  201  1,489 
Results of operations before income taxes 314  318 
Provision (benefit) for income taxes— 140  140 
Net income (loss) attributable to Hess Corporation$(b)$174 (c)$178 
Third Quarter 2020
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income     
Sales and other operating revenues$918 $241  $1,159 
Other, net 10 
Total revenues and non-operating income924  245  1,169 
Costs and expenses     
Marketing, including purchased oil and gas (a)246 (2) 244 
Operating costs and expenses138 90  228 
Production and severance taxes33  34 
Midstream tariffs237 —  237 
Exploration expenses, including dry holes and lease impairment69  71 
General and administrative expenses46  53 
Depreciation, depletion and amortization388 90  478 
Total costs and expenses1,157  188  1,345 
Results of operations before income taxes(233) 57  (176)
Provision (benefit) for income taxes— 
Net income (loss) attributable to Hess Corporation$(233)(d)$51 (e)$(182)
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement:  $0 million).  
(c)Includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement:  $0 million).
(d)Includes after-tax gains from realized crude oil hedging activities of $123 million (noncash premium amortization: $61 million; cash settlement: $184 million).
(e)Includes after-tax gains from realized crude oil hedging activities of $20 million (noncash premium amortization: $7 million; cash settlement: $27 million).
16


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 Second Quarter 2021
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$1,088 $491 $1,579 
Other, net11 14 
Total revenues and non-operating income1,099  494 1,593 
Costs and expenses    
Marketing, including purchased oil and gas (a)335 343 
Operating costs and expenses158 96 254 
Production and severance taxes42 44 
Midstream tariffs270 — 270 
Exploration expenses, including dry holes and lease impairment26 22 48 
General and administrative expenses41 49 
Depreciation, depletion and amortization260 84 344 
Impairment and other147 — 147 
Total costs and expenses1,279  220 1,499 
Results of operations before income taxes(180) 274 94 
Provision (benefit) for income taxes— 119 119 
Net income (loss) attributable to Hess Corporation$(180)(b)$155 (c)$(25)
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $51 million (noncash premium amortization: $51 million; cash settlement: $0 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $13 million (noncash premium amortization: $13 million; cash settlement: $0 million).

17


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
Nine Months Ended September 30, 2021
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$3,766 $1,470  $5,236 
Gains (losses) on asset sales, net— 29 29 
Other, net35 14  49 
Total revenues and non-operating income3,801  1,513  5,314 
Costs and expenses     
Marketing, including purchased oil and gas (a)1,397 30  1,427 
Operating costs and expenses443 268  711 
Production and severance taxes119  123 
Midstream tariffs802 —  802 
Exploration expenses, including dry holes and lease impairment77 40  117 
General and administrative expenses118 22  140 
Depreciation, depletion and amortization757 250  1,007 
Impairment and other147 — 147 
Total costs and expenses3,860  614  4,474 
Results of operations before income taxes(59) 899  840 
Provision (benefit) for income taxes— 379  379 
Net income (loss) attributable to Hess Corporation$(59)(b)$520 (c)$461 
Nine Months Ended September 30, 2020
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income     
Sales and other operating revenues$2,700 $646  $3,346 
Other, net11  17 
Total revenues and non-operating income2,706  657  3,363 
Costs and expenses     
Marketing, including purchased oil and gas (a)776 (10) 766 
Operating costs and expenses406 239  645 
Production and severance taxes88  92 
Midstream tariffs703 —  703 
Exploration expenses, including dry holes and lease impairment248 43  291 
General and administrative expenses133 22  155 
Depreciation, depletion and amortization1,155 314  1,469 
Impairment and other697 1,429 2,126 
Total costs and expenses4,206  2,041  6,247 
Results of operations before income taxes(1,500) (1,384) (2,884)
Provision (benefit) for income taxes— (82) (82)
Net income (loss) attributable to Hess Corporation$(1,500)(d)$(1,302)(e)$(2,802)
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $140 million (noncash premium amortization: $140 million; cash settlement:  $0 million).  
(c)Includes after-tax losses from realized crude oil hedging activities of $35 million (noncash premium amortization: $35 million; cash settlement:  $0 million).
(d)Includes after-tax gains from realized crude oil hedging activities of $368 million (noncash premium amortization: $167 million; cash settlement:  $535 million).
(e)Includes after-tax gains from realized crude oil hedging activities of $67 million (noncash premium amortization: $20 million; cash settlement:  $87 million).


18


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 Dakota78 108 79 
Offshore (a)20 34 33 
Total United States98 142 112 
Guyana32 19 26 
Malaysia and JDA
Other (b)20 24 
Total153 168 166 
Natural gas liquids - barrels
United States
North Dakota44 58 52 
Offshore (a)
Total United States47 63 57 
Natural gas - mcf
United States
North Dakota158 194 167 
Offshore52 60 85 
Total United States210 254 252 
Malaysia and JDA284 282 371 
Other (b)
Total503 540 632 
Barrels of oil equivalent284 321 328 
(a)The Corporation sold its working interest in the Shenzi Field in the deepwater Gulf of Mexico in the fourth quarter of 2020. Net production from the Shenzi Field was 9,000 boepd in the third quarter of 2020.
(b)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.


19


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Nine Months Ended
 September 30,
20212020
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota80 110 
Offshore (a)30 43 
Total United States110 153 
Guyana30 19 
Malaysia and JDA
Other (b)22 
Total166 182 
Natural gas liquids - barrels
United States
North Dakota48 54 
Offshore (a)
Total United States52 60 
Natural gas - mcf
United States
North Dakota159 178 
Offshore77 91 
Total United States236 269 
Malaysia and JDA339 284 
Other (b)
Total584 560 
Barrels of oil equivalent315 335 
(a)The Corporation sold its working interest in the Shenzi Field in the deepwater Gulf of Mexico in the fourth quarter of 2020. Net production from the Shenzi Field was 11,000 boepd in the first nine months of 2020.
(b)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.

20


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 – barrels148 164 157 
Natural gas liquids – barrels47 63 57 
Natural gas – mcf503 540 632 
Barrels of oil equivalent279 317 319 
Sales Volumes (in thousands) (a)
Crude oil – barrels13,627 15,134 14,293 
Natural gas liquids – barrels4,338 5,768 5,142 
Natural gas – mcf46,317 49,674 57,557 
Barrels of oil equivalent25,685 29,181 29,028 

Nine Months Ended
 September 30,
20212020
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels177 161 
Natural gas liquids – barrels52 60 
Natural gas – mcf584 560 
Barrels of oil equivalent326 314 
Sales Volumes (in thousands) (a)
Crude oil – barrels (b)48,315 43,950 
Natural gas liquids – barrels14,282 16,555 
Natural gas – mcf159,387 153,375 
Barrels of oil equivalent89,162 86,068 
(a)Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.
(b)Sales volumes for the 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.
21


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 
Offshore62.23 48.56 59.33 
Total United States60.14 44.55 57.52 
Guyana70.05 52.60 65.63 
Malaysia and JDA69.87 42.59 65.88 
Other (a)68.36 50.38 64.16 
Worldwide63.17 45.60 59.79 
Crude oil - per barrel (excluding hedging)
United States
North Dakota$65.11 $33.69 $61.88 
Offshore67.88 38.39 64.42 
Total United States65.64 34.87 62.63 
Guyana73.12 42.82 68.44 
Malaysia and JDA69.87 42.59 65.88 
Other (a)71.43 44.38 68.08 
Worldwide67.88 36.17 64.27 
Natural gas liquids - per barrel
United States
North Dakota$32.94 $11.68 $23.23 
Offshore32.00 11.03 21.84 
Worldwide32.88 11.63 23.12 
Natural gas - per mcf
United States
North Dakota$3.75 $1.18 $2.40 
Offshore3.76 1.13 2.35 
Total United States3.75 1.17 2.38 
Malaysia and JDA5.45 4.53 5.22 
Other (a)3.62 2.87 2.96 
Worldwide4.71 2.94 4.05 
(a)Other includes prices related to production from Denmark and Libya.

22


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Nine Months Ended
 September 30,
20212020
Average Selling Prices  
Crude oil - per barrel (including hedging)  
United States  
North Dakota (a)$52.27 $42.61 
Offshore57.36 45.60 
Total United States53.46 43.54 
Guyana65.31 44.35 
Malaysia and JDA64.94 38.02 
Other (b)62.93 52.97 
Worldwide56.62 43.88 
Crude oil - per barrel (excluding hedging)
United States
North Dakota (a)$56.37 $32.95 
Offshore61.91 35.64 
Total United States57.66 33.79 
Guyana67.72 33.10 
Malaysia and JDA64.94 38.02 
Other (b)65.91 41.72 
Worldwide60.33 34.02 
Natural gas liquids - per barrel
United States
North Dakota$28.59 $9.57 
Offshore24.08 8.27 
Worldwide28.23 9.44 
Natural gas - per mcf
United States
North Dakota$3.96 $1.13 
Offshore2.91 1.21 
Total United States3.62 1.16 
Malaysia and JDA5.22 4.44 
Other (b)3.05 3.81 
Worldwide4.54 2.85 
(a)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.
(b)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:
 WTIBrent
2021 (Put options)
Barrels of oil per day120,00030,000
Average monthly floor price$55$60
Contract periodJanuary 1 - December 31
2022 (Collars) (a)
Barrels of oil per day80,00030,000
Average monthly ceiling price$90$95
Average monthly floor price$60$65
Contract periodJanuary 1 - December 31
(a)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.
23