UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM SD
SPECIALIZED DISCLOSURE REPORT
HESS CORPORATION
(Exact name of the registrant as specified in its charter)
| Delaware | 1-1204 | 13-4921002 | ||||||||||||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
1185 Avenue of the Americas
New York, N.Y.
10036
(Address of principal executive offices and zip code)
John P. Rielly
Executive Vice President
and Chief Financial Officer
212-997-8500
(Name and telephone number, including area code, of the person to contact in connection with this report)
Check the appropriate box to indicate the rule pursuant to which this Form is being submitted, and provide the period to which the information in this Form applies:
¨ | Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, ______. | ||||
ý | Rule 13q-1 under the Securities Exchange Act (17 CFR 240.13q-1) for the fiscal year ended December 31, 2023. | ||||
Section 2 – Resource Extraction Issuer Disclosure
Item 2.01 Resource Extraction Issuer Disclosure and Report
Disclosure of Payments by Resource Extraction Issuers
The specified payment disclosure required by this Form is included in Exhibit 2.01 to this Form SD. Pursuant to Instruction (1) of Instructions to Item 2.01 of Form SD, Hess Corporation is hereby submitting the required disclosure for Hess Midstream LP, a publicly traded limited partnership and consolidated subsidiary of Hess Corporation.
Section 3 – Exhibits
Item 3.01 Exhibits
The following exhibits are filed as part of this report.
| Exhibit number | Description | |||||||
| 2.01(INS) | XBRL Instance Document | |||||||
| 2.01(SCH) | XBRL Schema 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 duly authorized undersigned.
| HESS CORPORATION | |||||||||||
| (Registrant) | |||||||||||
| By: | /s/ John P. Rielly | Date: September 24, 2024 | |||||||||
| Name: | John P. Rielly | ||||||||||
| Title: | Executive Vice President and | ||||||||||
| Chief Financial Officer | |||||||||||
Exhibit 2.01
| Resource Extraction Payment Report | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reporting Entity: Hess Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reporting Fiscal Year: From 01/01/2023 to 12/31/2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reporting Currency: United States Dollar (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment: Exploration and Production (unless otherwise indicated) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payments by Government | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Country / Government | Taxes (a) | Royalties | Fees | Production Entitlements (b) | Bonuses | Dividends | Infrastructure Improvements | Community & Social Responsibility | Total | ||||||||||||||||||||||||||||||||||||||||||||
| United States | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Office of Natural Resources Revenue | $ | — | $ | 128,608 | $ | 3,921 | $ | — | $ | 25,792 | $ | — | $ | — | $ | — | $ | 158,321 | |||||||||||||||||||||||||||||||||||
| Internal Revenue Service (c) | 190 | — | — | — | — | — | — | — | 190 | ||||||||||||||||||||||||||||||||||||||||||||
| Total United States | $ | 190 | $ | 128,608 | $ | 3,921 | $ | — | $ | 25,792 | $ | — | $ | — | $ | — | $ | 158,511 | |||||||||||||||||||||||||||||||||||
| Malaysia | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inland Revenue Board of Malaysia (d) | $ | 50,373 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 50,373 | |||||||||||||||||||||||||||||||||||
| Petroliam Nasional Berhad (e) | — | 7,925 | — | 492,521 | — | — | — | — | 500,446 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Malaysia | $ | 50,373 | $ | 7,925 | $ | — | $ | 492,521 | $ | — | $ | — | $ | — | $ | — | $ | 550,819 | |||||||||||||||||||||||||||||||||||
| Thailand | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Revenue Department (f) | $ | 18,372 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 18,372 | |||||||||||||||||||||||||||||||||||
| Total Payments to Governments | $ | 68,935 | $ | 136,533 | $ | 3,921 | $ | 492,521 | $ | 25,792 | $ | — | $ | — | $ | — | $ | 727,702 | |||||||||||||||||||||||||||||||||||
| Payments by Project | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxes (a) | Royalties | Fees | Production Entitlements (b) | Bonuses | Dividends | Infrastructure Improvements | Community & Social Responsibility | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Projects | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Offshore-Gulf of Mexico/Louisiana/Oil/Natural Gas/Well | $ | — | $ | 106,566 | $ | 3,921 | $ | — | $ | 25,792 | $ | — | $ | — | $ | — | $ | 136,279 | |||||||||||||||||||||||||||||||||||
| Onshore/North Dakota/Oil/Natural Gas/Well | — | 22,042 | — | — | — | — | — | — | 22,042 | ||||||||||||||||||||||||||||||||||||||||||||
| Offshore-Gulf of Thailand/Kelantan/Oil/Natural Gas/Well (e) | — | 7,925 | — | 492,521 | — | — | — | — | 500,446 | ||||||||||||||||||||||||||||||||||||||||||||
| Entity Level Payments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hess Infrastructure Partners Holdings, LLC (c) | $ | 190 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 190 | |||||||||||||||||||||||||||||||||||
| Hess Oil Company of Thailand (JDA), Ltd (f) | 32,160 | — | — | — | — | — | — | — | 32,160 | ||||||||||||||||||||||||||||||||||||||||||||
| Hess Oil Company of Thailand, Ltd (f) | 326 | — | — | — | — | — | — | — | 326 | ||||||||||||||||||||||||||||||||||||||||||||
| Hess Exploration and Production Malaysia, BV (d) | 36,259 | — | — | — | — | — | — | — | 36,259 | ||||||||||||||||||||||||||||||||||||||||||||
| Total Payments by Project | $ | 68,935 | $ | 136,533 | $ | 3,921 | $ | 492,521 | $ | 25,792 | $ | — | $ | — | $ | — | $ | 727,702 | |||||||||||||||||||||||||||||||||||
Notes:
In accordance with the Securities and Exchange Commission's (SEC) final rule regarding the "Disclosure of Payments by Resource Extraction Issuers", where we are the operator of an unincorporated oil and gas joint venture or arrangement that we proportionately consolidate, and make payments to governments for the entire venture or arrangement on behalf of non-operator members, we report all of the payments. Where we are not the operator of an unincorporated oil and gas joint venture or arrangement that we proportionately consolidate, we only report payments made directly by us to governments. We do not report reimbursements paid by us to operators for our proportionate share of payments made by the operator to governments.
(a)At the Stabroek Block, offshore Guyana, we have a 30% working interest in the block and ExxonMobil Guyana Ltd is the operator. A portion of gross production from the Stabroek Block, separate from the joint venture partners’ cost recovery and profit share entitlement, is used to satisfy the joint venture partners’ income tax liability. Delivery of this production to the government in satisfaction of the joint venture partners’ income tax liability is administered by ExxonMobil Guyana Ltd. as the operator, and therefore is not included in this report as a payment. Our income tax liability was $433 million for the year ended December 31, 2023.
(b)Production entitlements are paid in-kind. Where we are the operator, we report the host government’s production entitlement along with the production entitlement of nationally owned companies (NOCs) that participate as a joint venture partner in the project. The production entitlement of NOCs that participate as a joint venture partner includes both cost recovery and profit share. Production entitlements are valued at cost, which is calculated using the total unit production cost for the project, comprised of cash operating costs and depreciation, depletion, and amortization expenses, multiplied by the production entitlement volume. Production entitlements of NOCs that participate as a joint venture partner arising from activities or interests outside of their home country are excluded.
(c)Hess Infrastructure Partners Holdings, LLC (HIPH) is an indirect, wholly owned subsidiary of Hess Midstream LP. Hess Midstream LP is a separate SEC registrant, and is fully consolidated in the financial statements of Hess Corporation. Taxes paid by HIPH are included in the Midstream business segment of Hess Corporation.
(d)Taxes paid in Malaysian Ringgit were converted to USD at the exchange rate at the date of payment.
(e)Royalties were paid in Malaysian Ringgit, and the amount reported was converted to USD at the exchange rate at the date of payment.
(f)Taxes paid in Thai Baht were converted to USD at the exchange rate at the date of payment. These taxes arise from our interest in Block A-18 of the Malaysia/Thailand Joint Development Area.