hes-20240131
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):  January 31, 2024
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 January 31, 2024, Hess Corporation issued a news release reporting estimated results for the fourth quarter of 2023.  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:  January 31, 2024
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
https://cdn.kscope.io/8abc0df65d25dc020968f2ae9dc397d3-newsreleasea01a.jpg
HESS REPORTS ESTIMATED RESULTS FOR THE FOURTH QUARTER OF 2023
Key Development:
Commenced production from the Payara development at the Stabroek Block, offshore Guyana, in November; Payara reached its initial production capacity of approximately 220,000 gross barrels of oil per day (bopd) in January 2024
Fourth Quarter Financial and Operational Highlights:
Net income was $413 million, or $1.34 per share, compared with $497 million, or $1.61 per share, in the fourth quarter of 2022
Adjusted net income1 was $501 million, or $1.63 per share, compared with $522 million, or $1.69 per share, in the fourth quarter of 2022
Oil and gas net production was 418,000 barrels of oil equivalent per day (boepd), up 11% from 376,000 boepd, proforma for asset sold, in the fourth quarter of 2022
Bakken net production was 194,000 boepd, up 23% from 158,000 boepd in the fourth quarter of 2022; Guyana net production was 128,000 bopd, compared with 116,000 bopd in the prior-year quarter
E&P capital and exploratory expenditures were $1,480 million and included the purchase of the Liza Unity floating production, storage and offloading vessel (FPSO) for approximately $380 million, compared with $818 million in the prior-year quarter
Year-end proved reserves are estimated to be 1.37 billion barrels of oil equivalent (boe); organic reserve replacement was 178% at a finding and development cost of $16.00 per boe
NEW YORK, January 31, 2024 — Hess Corporation (NYSE: HES) today reported net income of $413 million, or $1.34 per share, in the fourth quarter of 2023, compared with net income of $497 million, or $1.61 per share, in the fourth quarter of 2022. On an adjusted basis, the Corporation reported net income of $501 million, or $1.63 per share in the fourth quarter of 2023, compared with $522 million, or $1.69 per share, in the prior-year quarter. The decrease in adjusted after-tax results compared with the prior-year quarter reflects lower realized gas and natural gas liquids (NGL) selling prices, partially offset by higher production volumes, in the fourth quarter of 2023.


1.“Adjusted net income” is a non-GAAP financial measure. The reconciliation to its nearest GAAP equivalent measure, and its definition, appear on pages 6 and 7, respectively.
1


After-tax income (loss) by major operating activity was as follows:
Three Months Ended
December 31,
(unaudited)
Year Ended
December 31,
(unaudited)
2023202220232022
(In millions, except per share amounts)
Net Income Attributable to Hess Corporation
Exploration and Production$512 $641 $1,601 $2,396 
Midstream63 64 252 269 
Corporate, Interest and Other(162)(208)(471)(569)
Net income attributable to Hess Corporation$413 $497 $1,382 $2,096 
Net income per share (diluted)$1.34 $1.61 $4.49 $6.77 
Adjusted Net Income Attributable to Hess Corporation
Exploration and Production$531 $565 $1,702 $2,374 
Midstream63 64 252 269 
Corporate, Interest and Other(93)(107)(402)(467)
Adjusted net income attributable to Hess Corporation$501 $522 $1,552 $2,176 
Adjusted net income per share (diluted)$1.63 $1.69 $5.05 $7.03 
Weighted average number of shares (diluted)307.9 308.1 307.6 309.6 
Exploration and Production:
E&P net income was $512 million in the fourth quarter of 2023, compared with $641 million in the fourth quarter of 2022. On an adjusted basis, E&P fourth quarter 2023 net income was $531 million, compared with $565 million in the prior-year quarter. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $76.63 per barrel in the fourth quarter of 2023, compared with $76.07 per barrel in the prior-year quarter. The average realized NGL selling price in the fourth quarter of 2023 was $20.92 per barrel, compared with $26.93 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.51 per mcf, compared with $5.17 per mcf in the fourth quarter of 2022.
Net production was 418,000 boepd in the fourth quarter of 2023, compared with 376,000 boepd, proforma for asset sold, in the fourth quarter of 2022, primarily due to higher production in the Bakken and Guyana.
Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $13.29 per boe in the fourth quarter of 2023, compared with $12.72 per boe, proforma for asset sold, in the prior-year quarter.
2


Oil and Gas Reserves Estimates:
Oil and gas proved reserves at December 31, 2023, which are subject to final review, were 1.37 billion boe, compared with 1.26 billion boe at December 31, 2022. Proved reserve additions and net revisions in 2023 totaled 261 million boe, primarily from Guyana, which included sanctioning of the Uaru development, and from the Bakken. The Corporation replaced 178% of its 2023 production at a finding and development cost of $16.00 per boe.
Operational Highlights for the Fourth Quarter of 2023:
Bakken (Onshore U.S.):  Net production from the Bakken was 194,000 boepd in the fourth quarter of 2023, compared with 158,000 boepd in the prior-year quarter, reflecting increased drilling and completion activity, severe winter weather in the fourth quarter of 2022, and higher NGL and natural gas volumes received under percentage of proceeds contracts due to lower commodity prices. NGL and natural gas volumes received under percentage of proceeds contracts were 19,000 boepd in the fourth quarter of 2023, compared with 12,000 boepd in the fourth quarter of 2022, due to lower realized NGL and natural gas prices increasing volumes received as consideration for gas processing fees. During the fourth quarter of 2023, the Corporation operated four rigs and drilled 33 wells, completed 30 wells, and brought 33 new wells online. The Corporation plans to continue operating four drilling rigs in 2024.
Gulf of Mexico (Offshore U.S.):  Net production from the Gulf of Mexico in the fourth quarter of 2023 was 30,000 boepd, compared with 35,000 boepd in the prior-year quarter. In the fourth quarter, we were the high bidder on 20 leases in Lease Sale 261 for $88 million and we expect to be awarded these leases in the first quarter of 2024.
Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production totaled 128,0002 bopd in the fourth quarter of 2023, compared with 116,0002 bopd in the prior-year quarter. In November, production commenced from the Prosperity FPSO at Payara, which contributed 14,000 net bopd in the fourth quarter of 2023.
The fourth development on the block, Yellowtail, was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd and first production expected in 2025. The fifth development, Uaru, was sanctioned in April 2023 with a production capacity of approximately 250,000 gross bopd and first production expected in 2026. The operator submitted the field development plan for the sixth development, Whiptail, to the Government of Guyana in October 2023.
Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 66,000 boepd in the fourth quarter of 2023, compared with 67,000 boepd in the prior-year quarter.
3


Midstream:
The Midstream segment had net income of $63 million in the fourth quarter of 2023, compared with net income of $64 million in the prior-year quarter.
In November 2023, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP (HESM), repurchased approximately 3.4 million HESM Opco Class B units held by Hess Corporation and Global Infrastructure Partners for $100 million, of which the Corporation received $37.8 million. The repurchase of the Class B units was financed by HESM Opco’s revolving credit facility. After giving effect to the transaction, the Corporation continues to own approximately 37.8% of HESM on a consolidated basis.
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and Other was $162 million in the fourth quarter of 2023, compared with $208 million in the fourth quarter of 2022. On an adjusted basis, after-tax expense for Corporate, Interest and Other was $93 million in the fourth quarter of 2023, compared with $107 million in the fourth quarter of 2022, reflecting higher capitalized interest.
Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures were $1,480 million in the fourth quarter of 2023, compared with $818 million in the prior-year quarter, reflecting the purchase of the Liza Unity FPSO in the fourth quarter of 2023 for approximately $380 million, higher development activities in Guyana, and higher drilling activity in the Bakken. Full year 2024 E&P capital and exploratory expenditures are expected to be approximately $4.2 billion, which includes the recent acquisition of leases from the Gulf of Mexico Lease Sale 261.
Midstream capital expenditures were $72 million in the fourth quarter of 2023 and $63 million in the prior-year quarter.
Liquidity:
Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $1.7 billion and debt and finance lease obligations totaling $5.6 billion at December 31, 2023. The Midstream segment had cash and cash equivalents of $6 million and total debt of $3.2 billion at December 31, 2023. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 33.6% at December 31, 2023 and 36.1% at December 31, 2022.
Net cash provided by operating activities was $1,344 million in the fourth quarter of 2023, compared with $1,252 million in the fourth quarter of 2022. Net cash provided by operating activities
4


before changes in operating assets and liabilities3 was $1,239 million in the fourth quarter of 2023, compared with $1,301 million in the prior-year quarter.
Items Affecting Comparability of Earnings Between Periods:
The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:
Three Months Ended
December 31,
(unaudited)
Year Ended
December 31,
(unaudited)
2023202220232022
(In millions)
Exploration and Production$(19)$76 $(101)$22 
Midstream— — — — 
Corporate, Interest and Other(69)(101)(69)(102)
Total items affecting comparability of earnings between periods$(88)$(25)$(170)$(80)
Fourth Quarter 2023: E&P results included a pre-tax charge of $52 million ($52 million after income taxes) to write-off the Huron exploration well in the Gulf of Mexico which completed in 2022, based on the decision by the Corporation and its partners in the fourth quarter of 2023 to exit the project. E&P results also included a noncash income tax benefit of $33 million resulting from the reversal of a valuation allowance against net deferred tax assets in Malaysia.
Corporate and other results included a pre-tax charge of $52 million ($52 million after income taxes) for litigation related costs associated with the Corporation's former downstream business, HONX, Inc., which are included in General and administrative expenses in the income statement. Corporate and other results also included a noncash charge to recognize unamortized pension actuarial losses of $17 million ($17 million after income taxes) resulting from the payment of lump sums to certain participants in the pension plan. The charge is included in Other, net in the income statement.
Fourth Quarter 2022: E&P results included a pre-tax gain of $76 million ($76 million after income taxes) associated with the sale of the Corporation's interest in the Waha Concession in Libya. Corporate and other results included a pre-tax charge of $101 million ($101 million after income taxes) for litigation related costs associated with the Corporation's former downstream business, HONX, Inc., which are included in General and administrative expenses in the income statement.
2.Net production from Guyana included 16,000 bopd of tax barrels in the fourth quarter of 2023 and 22,000 bopd of tax barrels in the fourth quarter of 2022.
3.“Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure.  The reconciliation to its nearest GAAP equivalent measure, and its definition, appear on pages 6 and 7, respectively.
5


Reconciliation of U.S. GAAP to Non-GAAP Measures:
The following table reconciles reported net income attributable to Hess Corporation and adjusted net income:
Three Months Ended
December 31,
(unaudited)
Year Ended
December 31,
(unaudited)
 2023202220232022
 (In millions)
Net income attributable to Hess Corporation$413 $497 $1,382 $2,096 
Less: Total items affecting comparability of earnings between periods(88)(25)(170)(80)
Adjusted net income attributable to Hess Corporation$501 $522 $1,552 $2,176 
The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:
Three Months Ended
December 31,
(unaudited)
Year Ended
December 31,
(unaudited)
2023202220232022
(In millions)
Net cash provided by (used in) operating activities before changes in operating assets and liabilities$1,239 $1,301 $4,494 $5,121 
Changes in operating assets and liabilities105 (49)(552)(1,177)
Net cash provided by (used in) operating activities$1,344 $1,252 $3,942 $3,944 
Investor Conference Call:
Due to the pending merger with Chevron Corporation (Chevron), the Corporation will not host a conference call to review its fourth quarter 2023 results.
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; information about sustainability goals and targets and planned social, safety and environmental policies, programs and initiatives; future economic and market conditions in the oil and gas industry; and expected timing and completion of our proposed merger with Chevron.
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
6


statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry; reduced demand for our products, including due to perceptions regarding the oil and gas industry, competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring, fracking bans as well as restrictions on oil and gas leases; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic and other events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, public health measures, or climate change; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of limitations on investment in oil and gas activities, rising interest rates or negative outcomes within commodity and financial markets; liability resulting from environmental obligations and litigation, including heightened risks associated with being a general partner of HESM; risks and uncertainties associated with our proposed merger with Chevron; 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” presented in this release is defined as reported net income 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 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 or net cash provided by (used in) operating activities. A reconciliation of reported net income attributable to Hess Corporation (U.S. GAAP) to adjusted net income, 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
Liz James
FGS Global
(281) 881-5170
7


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Fourth
Quarter
2023
Fourth
Quarter
2022
Third
Quarter
2023
Income Statement
Revenues and non-operating income
Sales and other operating revenues$3,011 $2,934 $2,800 
Gains on asset sales, net— 76 
Other, net24 44 35 
Total revenues and non-operating income3,035 3,054 2,837 
Costs and expenses
Marketing, including purchased oil and gas886 821 696 
Operating costs and expenses473 385 467 
Production and severance taxes61 55 61 
Exploration expenses, including dry holes and lease impairment87 74 65 
General and administrative expenses168 217 115 
Interest expense116 124 117 
Depreciation, depletion and amortization559 504 499 
Total costs and expenses2,350 2,180 2,020 
Income before income taxes685 874 817 
Provision for income taxes182 292 215 
Net income503 582 602 
Less: Net income attributable to noncontrolling interests90 85 98 
Net income attributable to Hess Corporation$413 $497 $504 


8


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Year Ended
 December 31,
Income Statement20232022
Revenues and non-operating income
Sales and other operating revenues$10,511 $11,324 
Gains on asset sales, net101 
Other, net132 145 
Total revenues and non-operating income10,645 11,570 
Costs and expenses
Marketing, including purchased oil and gas2,732 3,328 
Operating costs and expenses1,776 1,452 
Production and severance taxes216 255 
Exploration expenses, including dry holes and lease impairment317 208 
General and administrative expenses527 531 
Interest expense478 493 
Depreciation, depletion and amortization2,046 1,703 
Impairment and other82 54 
Total costs and expenses8,174 8,024 
Income before income taxes2,471 3,546 
Provision for income taxes733 1,099 
Net income1,738 2,447 
Less: Net income attributable to noncontrolling interests356 351 
Net income attributable to Hess Corporation$1,382 $2,096 
9


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
December 31,
2023
December 31,
2022
Balance Sheet Information
Assets
Cash and cash equivalents$1,688 $2,486 
Other current assets1,742 1,445 
Property, plant and equipment – net17,432 15,098 
Operating lease right-of-use assets – net720 570 
Finance lease right-of-use assets – net108 126 
Other long-term assets2,317 1,970 
Total assets$24,007 $21,695 
Liabilities and equity
Current portion of long-term debt$311 $
Current portion of operating and finance lease obligations370 221 
Other current liabilities2,589 2,172 
Long-term debt8,302 8,278 
Long-term operating lease obligations459 469 
Long-term finance lease obligations156 179 
Other long-term liabilities2,218 1,877 
Total equity excluding other comprehensive income (loss)9,120 7,986 
Accumulated other comprehensive income (loss)(134)(131)
Noncontrolling interests616 641 
Total liabilities and equity$24,007 $21,695 

10


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
December 31,
2023
December 31,
2022
Total Debt
Hess Corporation$5,402 $5,395 
Midstream (a)3,211 2,886 
Hess Consolidated$8,613 $8,281 
(a) Midstream debt is non-recourse to Hess Corporation.
December 31,
2023
December 31,
2022
Debt to Capitalization Ratio (a)
Hess Consolidated47.8 %50.0 %
Hess Corporation as defined in debt covenants33.6 %36.1 %
(a)Includes finance lease obligations.
Three Months Ended
 December 31,
Year Ended
 December 31,
2023202220232022
Interest Expense
Gross interest expense – Hess Corporation$88 $87 $347 $353 
Less: Capitalized interest – Hess Corporation(19)(4)(48)(10)
Interest expense – Hess Corporation69 83 299 343 
Interest expense – Midstream (a)47 41 179 150 
Interest expense – Hess Consolidated$116 $124 $478 $493 
(a)Midstream interest expense is reported in the Midstream operating segment.
11


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Fourth
Quarter
2023
Fourth
Quarter
2022
Third
Quarter
2023
Cash Flow Information
Cash Flows from Operating Activities
Net income$503 $582 $602 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Gains) losses on asset sales, net— (76)(2)
Depreciation, depletion and amortization559 504 499 
Exploratory dry hole costs50 37 
Exploration lease impairment11 
Pension settlement loss17 — — 
Stock compensation expense18 17 16 
Noncash (gains) losses on commodity derivatives, net52 165 52 
Provision (benefit) for deferred income taxes and other tax accruals37 66 67 
Net cash provided by (used in) operating activities before changes in operating assets and liabilities1,239 1,301 1,249 
Changes in operating assets and liabilities105 (49)(263)
Net cash provided by (used in) operating activities1,344 1,252 986 
Cash Flows from Investing Activities   
Additions to property, plant and equipment - E&P(1,380)(732)(953)
Additions to property, plant and equipment - Midstream(64)(61)(53)
Proceeds from asset sales, net of cash sold— 150 
Other, net(3)(4)(1)
Net cash provided by (used in) investing activities(1,447)(647)(1,004)
Cash Flows from Financing Activities   
Net borrowings (repayments) of debt with maturities of 90 days or less64 (25)78 
Debt with maturities of greater than 90 days:
Borrowings— — — 
Repayments(3)— — 
Cash dividends paid(134)(115)(134)
Common stock acquired and retired— (290)— 
Noncontrolling interests, net(151)(80)(136)
Employee stock options exercised— 
Payments on finance lease obligations(3)(4)(3)
Other, net— (1)
Net cash provided by (used in) financing activities(227)(503)(190)
Net Increase (Decrease) in Cash and Cash Equivalents(330)102 (208)
Cash and Cash Equivalents at Beginning of Period2,018 2,384 2,226 
Cash and Cash Equivalents at End of Period$1,688 $2,486 $2,018 
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred$(1,518)$(850)$(1,013)
Increase (decrease) in related liabilities74 57 
Additions to property, plant and equipment$(1,444)$(793)$(1,006)

12


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Year Ended
 December 31,
20232022
Cash Flow Information
Cash Flows from Operating Activities
Net income$1,738 $2,447 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Gains) losses on asset sales, net(2)(101)
Depreciation, depletion and amortization2,046 1,703 
Impairment and other82 54 
Exploratory dry hole costs147 56 
Exploration lease impairment27 20 
Pension settlement loss17 
Stock compensation expense87 83 
Noncash (gains) losses on commodity derivatives, net156 548 
Provision (benefit) for deferred income taxes and other tax accruals196 309 
Net cash provided by (used in) operating activities before changes in operating assets and liabilities4,494 5,121 
Changes in operating assets and liabilities(552)(1,177)
Net cash provided by (used in) operating activities3,942 3,944 
Cash Flows from Investing Activities  
Additions to property, plant and equipment - E&P(3,884)(2,487)
Additions to property, plant and equipment - Midstream(224)(238)
Proceeds from asset sales, net of cash sold178 
Other, net(8)(8)
Net cash provided by (used in) investing activities(4,113)(2,555)
Cash Flows from Financing Activities  
Net borrowings (repayments) of debt with maturities of 90 days or less322 (86)
Debt with maturities of greater than 90 days:
Borrowings— 420 
Repayments(3)(510)
Cash dividends paid(539)(465)
Common stock acquired and retired(20)(630)
Proceeds from sale of Class A shares of Hess Midstream LP167 146 
Noncontrolling interests, net(550)(510)
Employee stock options exercised10 52 
Payments on finance lease obligations(10)(9)
Other, net(4)(24)
Net cash provided by (used in) financing activities(627)(1,616)
Net Increase (Decrease) in Cash and Cash Equivalents(798)(227)
Cash and Cash Equivalents at Beginning of Year2,486 2,713 
Cash and Cash Equivalents at End of Year$1,688 $2,486 
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred$(4,279)$(2,821)
Increase (decrease) in related liabilities171 96 
Additions to property, plant and equipment$(4,108)$(2,725)
13


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Fourth
Quarter
2023
Fourth
Quarter
2022
Third
Quarter
2023
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota$313 $258 $329 
Offshore and Other64 39 115 
Total United States377 297 444 
Guyana1,047 439 509 
Malaysia and JDA55 58 43 
Other (a)24 
 E&P Capital and exploratory expenditures$1,480 $818 $998 
Total exploration expenses charged to income included above$34 $31 $50 
Midstream Capital expenditures$72 $63 $65 
(a)Other includes capital and exploratory expenditures associated with Suriname in the fourth quarter of 2022.
Year Ended
 December 31,
20232022
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota$1,138 $807 
Offshore and Other290 224 
Total United States1,428 1,031 
Guyana2,518 1,345 
Malaysia and JDA189 275 
Other (a)41 70 
 E&P Capital and exploratory expenditures$4,176 $2,721 
Total exploration expenses charged to income included above$143 $132 
Midstream Capital expenditures$246 $232 
(a)Other includes capital and exploratory expenditures associated with Canada in 2023 and Suriname in 2022.

14


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
Fourth Quarter 2023
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$1,766 $1,240  $3,006 
Other, net11  16 
Total revenues and non-operating income1,777  1,245  3,022 
Costs and expenses     
Marketing, including purchased oil and gas (a)867 40  907 
Operating costs and expenses229 159  388 
Production and severance taxes56  61 
Midstream tariffs328 —  328 
Exploration expenses, including dry holes and lease impairment82  87 
General and administrative expenses53  61 
Depreciation, depletion and amortization255 253  508 
Total costs and expenses1,870  470  2,340 
Results of operations before income taxes(93) 775  682 
Provision for income taxes— 170  170 
Net income (loss) attributable to Hess Corporation$(93)(b)$605 (c)$512 
Fourth Quarter 2022
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income     
Sales and other operating revenues$1,628 $1,306  $2,934 
Gains on asset sales, net— 76 76 
Other, net13  21 
Total revenues and non-operating income1,641  1,390  3,031 
Costs and expenses     
Marketing, including purchased oil and gas (a)771 63  834 
Operating costs and expenses193 129  322 
Production and severance taxes52  55 
Midstream tariffs297 —  297 
Exploration expenses, including dry holes and lease impairment33 41  74 
General and administrative expenses55 11  66 
Depreciation, depletion and amortization215 243  458 
Total costs and expenses1,616  490  2,106 
Results of operations before income taxes25  900  925 
Provision for income taxes— 284 284 
Net income (loss) attributable to Hess Corporation$25 (d)$616 (e)$641 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $34 million (noncash premium amortization: $34 million; cash settlement:  $0 million).  
(c)Includes after-tax losses from realized crude oil hedging activities of $18 million (noncash premium amortization: $18 million; cash settlement:  $0 million).
(d)Includes after-tax losses from realized crude oil hedging activities of $100 million (noncash premium amortization: $100 million; cash settlement: $0 million).
(e)Includes after-tax losses from realized crude oil hedging activities of $65 million (noncash premium amortization: $65 million; cash settlement: $0 million).

15


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 Third Quarter 2023
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$1,651 $1,147 $2,798 
Other, net12 
Total revenues and non-operating income1,655  1,155 2,810 
Costs and expenses    
Marketing, including purchased oil and gas (a)693 26 719 
Operating costs and expenses226 158 384 
Production and severance taxes59 61 
Midstream tariffs332 — 332 
Exploration expenses, including dry holes and lease impairment45 20 65 
General and administrative expenses56 10 66 
Depreciation, depletion and amortization234 217 451 
Total costs and expenses1,645  433 2,078 
Results of operations before income taxes10  722 732 
Provision for income taxes— 203 203 
Net income (loss) attributable to Hess Corporation$10 (b)$519 (c)$529 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $33 million (noncash premium amortization: $33 million; cash settlement: $0 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $19 million (noncash premium amortization: $19 million; cash settlement: $0 million).



16


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 Year Ended December 31, 2023
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$6,081 $4,419 $10,500 
Other, net30 20 50 
Total revenues and non-operating income6,111  4,439 10,550 
Costs and expenses    
Marketing, including purchased oil and gas (a)2,681 128 2,809 
Operating costs and expenses901 578 1,479 
Production and severance taxes206 10 216 
Midstream tariffs1,245 — 1,245 
Exploration expenses, including dry holes and lease impairment170 147 317 
General and administrative expenses213 41 254 
Depreciation, depletion and amortization904 948 1,852 
Impairment and other82 — 82 
Total costs and expenses6,402  1,852 8,254 
Results of operations before income taxes(291) 2,587 2,296 
Provision for income taxes— 695 695 
Net income (loss) attributable to Hess Corporation$(291)(b)$1,892 (c)$1,601 
 Year Ended December 31, 2022
Income StatementUnited StatesInternationalTotal
Total revenues and non-operating income
Sales and other operating revenues$7,214 $4,110 $11,324 
Gains on asset sales, net— 76 76 
Other, net81 21 102 
Total revenues and non-operating income7,295  4,207 11,502 
Costs and expenses    
Marketing, including purchased oil and gas (a)3,271 123 3,394 
Operating costs and expenses706 480 1,186 
Production and severance taxes242 13 255 
Midstream tariffs1,193 — 1,193 
Exploration expenses, including dry holes and lease impairment122 86 208 
General and administrative expenses189 35 224 
Depreciation, depletion and amortization810 710 1,520 
Impairment and other54 — 54 
Total costs and expenses6,587  1,447 8,034 
Results of operations before income taxes708  2,760 3,468 
Provision for income taxes— 1,072 1,072 
Net income (loss) attributable to Hess Corporation$708 (d)$1,688 (e)$2,396 
(a)Includes amounts charged from the Midstream segment.
(b)Includes after-tax losses from realized crude oil hedging activities of $128 million (noncash premium amortization: $128 million; cash settlement: $0 million).
(c)Includes after-tax losses from realized crude oil hedging activities of $62 million (noncash premium amortization: $62 million; cash settlement: $0 million).
(d)Includes after-tax losses from realized crude oil hedging activities of $356 million (noncash premium amortization: $333 million; cash settlement: $23 million).
(e)Includes after-tax losses from realized crude oil hedging activities of $229 million (noncash premium amortization: $215 million; cash settlement: $14 million).

17


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Fourth
Quarter
2023
Fourth
Quarter
2022
Third
Quarter
2023
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota89 74 87 
Offshore21 25 21 
Total United States110 99 108 
Guyana (a)128 116 108 
Malaysia and JDA
Other (b)— — 
Total244 228 221 
Natural gas liquids - barrels
United States
North Dakota71 60 70 
Offshore
Total United States73 62 71 
Natural gas - mcf
United States
North Dakota204 143 195 
Offshore42 50 37 
Total United States246 193 232 
Malaysia and JDA362 377 383 
Other (b)— — 
Total608 576 615 
Barrels of oil equivalent418 386 395 
(a)Production from Guyana includes 16,000 bopd of tax barrels in the fourth quarter of 2023, 22,000 bopd of tax barrels in the fourth quarter of 2022 and 14,000 bopd of tax barrels in the third quarter of 2023.
(b)Other includes production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022. Libya net production was 10,000 boepd in the fourth quarter of 2022.


18


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Year Ended
 December 31,
20232022
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota83 75 
Offshore22 22 
Total United States105 97 
Guyana (a)115 78 
Malaysia and JDA
Other (b)— 15 
Total225 194 
Natural gas liquids - barrels
United States
North Dakota67 53 
Offshore
Total United States69 55 
Natural gas - mcf
United States
North Dakota191 156 
Offshore43 44 
Total United States234 200 
Malaysia and JDA368 360 
Other (b)— 10 
Total602 570 
Barrels of oil equivalent394 344 
(a)Production from Guyana includes 14,000 bopd of tax barrels in 2023 and 7,000 bopd in 2022.
(b)Other includes production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022. Libya net production was 17,000 boepd in 2022.




19


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Fourth
Quarter
2023
Fourth
Quarter
2022
Third
Quarter
2023
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels245 242 223 
Natural gas liquids – barrels74 63 71 
Natural gas – mcf608 576 615 
Barrels of oil equivalent420 401 397 
Sales Volumes (in thousands) (a)
Crude oil – barrels22,521 22,218 20,519 
Natural gas liquids – barrels6,839 5,825 6,500 
Natural gas – mcf55,957 52,949 56,553 
Barrels of oil equivalent38,686 36,868 36,445 
Year Ended
 December 31,
20232022
Sales Volumes Per Day (in thousands) (a)
Crude oil – barrels225 191 
Natural gas liquids – barrels69 54 
Natural gas – mcf602 570 
Barrels of oil equivalent394 340 
Sales Volumes (in thousands) (a)
Crude oil – barrels81,941 69,679 
Natural gas liquids – barrels25,184 19,843 
Natural gas – mcf219,750 208,001 
Barrels of oil equivalent143,750 124,189 
(a)Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.
20


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Fourth
Quarter
2023
Fourth
Quarter
2022
Third
Quarter
2023
Average Selling Prices   
Crude oil - per barrel (including hedging)   
United States   
North Dakota$70.69 $68.52 $76.06 
Offshore73.68 69.07 78.50 
Total United States71.28 68.65 76.56 
Guyana81.50 80.77 86.24 
Malaysia and JDA73.44 80.41 87.21 
Other (a)— 86.83 — 
Worldwide76.63 76.07 81.53 
Crude oil - per barrel (excluding hedging)
United States
North Dakota$74.03 $79.47 $79.43 
Offshore76.98 79.99 81.86 
Total United States74.62 79.60 79.92 
Guyana83.09 85.93 88.06 
Malaysia and JDA73.44 80.41 87.21 
Other (a)— 91.60 — 
Worldwide78.95 83.50 84.07 
Natural gas liquids - per barrel
United States
North Dakota$20.95 $26.95 $20.17 
Offshore19.26 26.13 20.15 
Worldwide20.92 26.93 20.17 
Natural gas - per mcf
United States
North Dakota$1.52 $4.68 $1.56 
Offshore2.26 4.98 2.35 
Total United States1.65 4.76 1.69 
Malaysia and JDA6.45 5.34 6.32 
Other (a)— 7.48 — 
Worldwide4.51 5.17 4.57 
(a)Other includes prices related to production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022.

21



HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA
Year Ended
 December 31,
20232022
Average Selling Prices  
Crude oil - per barrel (including hedging)  
United States  
North Dakota$70.44 $81.06 
Offshore72.06 81.38 
Total United States70.80 81.14 
Guyana80.72 89.86 
Malaysia and JDA75.51 89.77 
Other (a)— 93.67 
Worldwide75.97 85.76 
Crude oil - per barrel (excluding hedging)
United States
North Dakota$73.80 $91.26 
Offshore75.39 91.51 
Total United States74.15 91.32 
Guyana82.20 96.52 
Malaysia and JDA75.51 89.77 
Other (a)— 101.92 
Worldwide78.29 94.15 
Natural gas liquids - per barrel
United States
North Dakota$20.77 $35.09 
Offshore20.87 35.24 
Worldwide20.77 35.09 
Natural gas - per mcf
United States
North Dakota$1.68 $5.50 
Offshore2.16 6.21 
Total United States1.76 5.66 
Malaysia and JDA5.95 5.62 
Other (a)— 5.93 
Worldwide4.32 5.64 
(a)Other includes prices related to production from Libya. The Corporation sold its interest in the Waha Concession in Libya in November 2022.

22