NOV Inc. (NOV) reported first-quarter 2024 adjusted earnings of 30 cents per share, which beat the Zacks Consensus Estimate of 27 cents. The outperformance can be attributed to the better-than-expected performances of NOV’s Energy Products and Services and Energy Equipment segments. However, the bottom line declined from the year-ago quarter’s level of 32 cents.NOV’s total revenues of $2.16 billion surpassed the Zacks Consensus Estimate by 2.6%. The top line also increased 10.1% from the year-ago quarter’s ...

Hess Corporation (HES) has reported first-quarter 2024 earnings per share of $3.16, which beat the Zacks Consensus Estimate of $1.73. The bottom line significantly improved from the year-ago quarter’s $1.13.Total quarterly revenues increased to $3,341 million from $2,453 million in the year-ago period. The top line also beat the Zacks Consensus Estimate of $2,929 million.Strong quarterly results have been driven by higher oil equivalent production volumes, and increased oil and gas prices.Operational Update ...

Hess (HES) came out with quarterly earnings of $3.16 per share, beating the Zacks Consensus Estimate of $1.73 per share. This compares to earnings of $1.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 82.66%. A quarter ago, it was expected that this oil and gas producer would post earnings of $1.43 per share when it actually produced earnings of $1.63, delivering a surprise of 13.99%.Over the last four quarters, the company ...

Exhibit 99.1 HESS CORPORATION HESS REPORTS ESTIMATED RESULTS FOR THE FIRST QUARTER OF 2024 Key Development: • Sanctioned development of Whiptail, the sixth development on the Stabroek Block, offshore Guyana; expected to add gross production capacity of approximately 250,000 barrels of oil per day (bopd) by the end of 2027 First Quarter Financial and Operational Highlights: NEW YORK, April 25, 2024 — Hess Corporation (NYSE: HES) today reported net income of $972 million, or $3.16 per share, in the first quar ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Hess (HES) , which belongs to the Zacks Oil and Gas - Integrated - United States industry, could be a great candidate to consider.When looking at the last two reports, this oil and gas producer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 23.12%, on average, in the last two quarters.For the last rep ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth S ...

apomares/E+ via Getty Images Hess Corporation (NYSE:HES) has continued to see its share price approach its late-2023 highs and a market capitalization of almost $50 billion. The company's share price has been tied to Chevron's (CVX) since a proposed all-stock acquisition deal at just over 1 share of Chevron per share of Hess Corporation. That would push the acquisition price to more than $50 billion. As we'll see throughout this article, despite the risk Exxon Mobil (XOM) poses to the deal, Hess Corporation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-1204 Hess Corporation (Exact name of Registrant as specified in its charter) | DELAWARE | 13-4921002 | | --- | --- | | (State or other jurisdictio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-1204 HESS CORPORATION (Exact Name of Registrant as Specified in Its Charter) DELAWARE (State or Other Jurisdiction of Incorporation or Organizatio ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements of Hess Corporation, including the balance sheet, income statement, comprehensive income statement, cash flow statement, and equity statement, along with detailed notes providing context and breakdowns for various financial line items [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) Consolidated Balance Sheet (Unaudited) - Key Figures (In millions) | Item | June 30, 2023 | December 31, 2022 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $2,226 | $2,486 | | Total current assets | $3,704 | $3,931 | | Property, plant and equipment — net | $15,741 | $15,098 | | Total Assets | $22,230 | $21,695 | | Total current liabilities | $2,403 | $2,396 | | Long-term debt | $8,459 | $8,278 | | Total Liabilities | $13,328 | $13,199 | | Total Hess Corporation stockholders' equity | $8,272 | $7,855 | | Total Equity | $8,902 | $8,496 | | Total Liabilities and Equity | $22,230 | $21,695 | [Statement of Consolidated Income](index=5&type=section&id=Statement%20of%20Consolidated%20Income) Statement of Consolidated Income (Unaudited) - Key Figures (In millions, except per share amounts) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales and other operating revenues | $2,289 | $2,955 | $4,700 | $5,268 | | Total revenues and non-operating income | $2,320 | $2,988 | $4,773 | $5,359 | | Total costs and expenses | $1,955 | $1,906 | $3,804 | $3,575 | | Income Before Income Taxes | $365 | $1,082 | $969 | $1,784 | | Provision for income taxes | $160 | $328 | $336 | $525 | | Net Income | $205 | $754 | $633 | $1,259 | | Net Income Attributable to Hess Corporation | $119 | $667 | $465 | $1,084 | | Basic EPS | $0.39 | $2.15 | $1.52 | $3.50 | | Diluted EPS | $0.39 | $2.15 | $1.51 | $3.49 | | Common Stock Dividends Per Share | $0.4375 | $0.3750 | $0.8750 | $0.7500 | [Statement of Consolidated Comprehensive Income](index=6&type=section&id=Statement%20of%20Consolidated%20Comprehensive%20Income) Statement of Consolidated Comprehensive Income (Unaudited) - Key Figures (In millions) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income | $205 | $754 | $633 | $1,259 | | Other Comprehensive Income (Loss) | $(33) | $281 | $(16) | $(79) | | Comprehensive Income | $172 | $1,035 | $617 | $1,180 | | Comprehensive Income Attributable to Hess Corporation | $86 | $948 | $449 | $1,005 | [Statement of Consolidated Cash Flows](index=7&type=section&id=Statement%20of%20Consolidated%20Cash%20Flows) Statement of Consolidated Cash Flows (Unaudited) - Key Figures (In millions) | Item | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $1,612 | $1,353 | | Net cash provided by (used in) investing activities | $(1,662) | $(1,181) | | Net cash provided by (used in) financing activities | $(210) | $(726) | | Net Increase (Decrease) in Cash and Cash Equivalents | $(260) | $(554) | | Cash and Cash Equivalents at End of Period | $2,226 | $2,159 | [Statement of Consolidated Equity](index=8&type=section&id=Statement%20of%20Consolidated%20Equity) Statement of Consolidated Equity (Unaudited) - Key Figures (In millions) | Item | June 30, 2023 | December 31, 2022 | | :------------------------------------ | :------------ | :---------------- | | Total Hess Corporation stockholders' equity | $8,272 | $7,855 | | Noncontrolling interests | $630 | $641 | | Total Equity | $8,902 | $8,496 | - For the **six months ended June 30, 2023**, Hess Corporation's **total equity increased from $8,496 million to $8,902 million**, driven by **net income of $465 million** and **share-based compensation of $60 million**, partially offset by **dividends on common stock of $269 million** and net cash outflows to noncontrolling interests[18](index=18&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) [Note 1 - Basis of Presentation](index=9&type=section&id=Note%201%20-%20Basis%20of%20Presentation) - The **interim financial statements are prepared** in accordance with SEC requirements for interim reporting, with certain GAAP information **condensed or omitted**, and should be **read in conjunction with** the Corporation's Annual Report on Form **10-K** for the year ended **December 31, 2022**[20](index=20&type=chunk)[21](index=21&type=chunk) [Note 2 - Inventories](index=9&type=section&id=Note%202%20-%20Inventories) Inventories (In millions) | Item | June 30, 2023 | December 31, 2022 | | :-------------------------- | :------------ | :---------------- | | Crude oil and natural gas liquids | $84 | $63 | | Materials and supplies | $194 | $154 | | Total Inventories | $278 | $217 | [Note 3 - Property, Plant and Equipment](index=9&type=section&id=Note%203%20-%20Property,%20Plant%20and%20Equipment) Capitalized Exploratory Well Costs (In millions) | Item | Amount | | :---------------------------------------------------------------- | :----- | | Balance at January 1, 2023 | $886 | | Additions to capitalized exploratory well costs pending determination of proved reserves | $128 | | Reclassifications to wells, facilities and equipment based on determination of proved reserves | $(78) | | Capitalized exploratory well costs charged to expense | $(6) | | Balance at June 30, 2023 | $930 | - **Additions to capitalized exploratory well costs** in the first **six months of 2023** primarily relate to **wells** drilled on the Stabroek Block (Guyana) and the Pickerel-1 exploration **well** in the Gulf of Mexico. **Reclassifications were due to the sanction** of the Uaru Field development project on the Stabroek Block[23](index=23&type=chunk) - At **June 30, 2023**, **$653 million of exploratory well costs capitalized** for over **one year** include approximately **85%** for successful **wells** on the Stabroek Block (Guyana), **8%** for the Huron-1 **well** in the U.S. Gulf of Mexico, **6%** for the JDA in the Gulf of Thailand, and **1%** for the North Malay Basin in Malaysia[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Note 4 - Hess Midstream LP](index=11&type=section&id=Note%204%20-%20Hess%20Midstream%20LP) - Hess Midstream LP, a **fully consolidated variable interest entity**, had **$3,201 million** in **nonrecourse liabilities** to Hess Corporation at **June 30, 2023**, with **assets including $3,188 million** in property, plant and equipment[29](index=29&type=chunk) - Hess Corporation **owns an approximate 38% interest** in Hess Midstream LP on a consolidated basis[29](index=29&type=chunk) - Hess Midstream LP **completed a public equity offering** in **May 2023**, selling approximately **12.8 million Class A shares**, **generating net proceeds of $167 million** for Hess Corporation[32](index=32&type=chunk) - HESM Opco **repurchased Class B units totaling $100 million** in **June 2023** and **$100 million** in **March 2023**, with Hess Corporation **receiving $50 million in net proceeds** from the **June** repurchase[31](index=31&type=chunk)[33](index=33&type=chunk) [Note 5 - Accrued Liabilities](index=12&type=section&id=Note%205%20-%20Accrued%20Liabilities) Accrued Liabilities (In millions) | Item | June 30, 2023 | December 31, 2022 | | :------------------------------------------ | :------------ | :---------------- | | Accrued capital expenditures | $589 | $499 | | Accrued operating and marketing expenditures | $400 | $522 | | Current portion of asset retirement obligations | $241 | $207 | | Accrued payments to royalty and working interest owners | $179 | $201 | | Accrued interest on debt | $144 | $143 | | Accrued compensation and benefits | $76 | $132 | | Other accruals | $125 | $136 | | Total Accrued Liabilities | $1,754 | $1,840 | [Note 6 - Revenue](index=13&type=section&id=Note%206%20-%20Revenue) Total Sales and Other Operating Revenues by Segment (In millions) | Segment | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Exploration and Production | $2,287 | $2,955 | $4,696 | $5,268 | | Midstream | $324 | $314 | $629 | $626 | | Eliminations | $(322) | $(314) | $(625) | $(626) | | Total | $2,289 | $2,955 | $4,700 | $5,268 | - Guyana crude oil revenue from non-customers was **$88 million** for **Q2 2023** and **$196 million** for **YTD 2023**, with no such revenue in the prior-year periods[40](index=40&type=chunk) - Contract liabilities were **$27 million** at **June 30, 2023**, primarily from a **take-or-pay deficiency payment** subject to a **make-up period expiring** in **December 2023**[41](index=41&type=chunk) [Note 7 - Impairment and Other](index=15&type=section&id=Note%207%20-%20Impairment%20and%20Other) - A **pre-tax charge of $82 million** (**$82 million** after income taxes) was **recognized in Q2 2023 due to revised estimated abandonment costs** for wells, pipelines, and production facilities in the West Delta Field, Gulf of Mexico[44](index=44&type=chunk) [Note 8 - Retirement Plans](index=15&type=section&id=Note%208%20-%20Retirement%20Plans) Net Periodic Benefit Cost (Income) (In millions) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Service cost | $10 | $12 | $19 | $25 | | Interest cost | $25 | $17 | $50 | $33 | | Expected return on plan assets | $(40) | $(52) | $(79) | $(105) | | Amortization of unrecognized net actuarial losses | $1 | $3 | $1 | $6 | | Settlement loss | $0 | $2 | $0 | $2 | | Net periodic benefit cost (income) | $(4) | $(18) | $(9) | $(39) | - In **Q2 2022**, the Hess Corporation Employees' Pension Plan **settled obligations by purchasing** a **$166 million** annuity, resulting in a **$13 million noncash settlement loss**[46](index=46&type=chunk) - The HOVENSA Legacy Employees' Pension Plan was **terminated, resulting in an $11 million noncash settlement gain**[47](index=47&type=chunk) [Note 9 - Weighted Average Common Shares](index=15&type=section&id=Note%209%20-%20Weighted%20Average%20Common%20Shares) Weighted Average Number of Common Shares Outstanding (In millions) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic | 306.0 | 309.7 | 305.7 | 309.3 | | Diluted | 307.5 | 310.9 | 307.4 | 310.6 | Antidilutive Shares Excluded from Diluted EPS (Number of shares) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Restricted common stock | 1,789 | 0 | 61,489 | 48 | | Stock options | 189,479 | 269,748 | 121,226 | 172,581 | | Performance share units | 0 | 29,668 | 0 | 30,510 | [Note 10 - Guarantees and Contingencies](index=16&type=section&id=Note%2010%20-%20Guarantees%20and%20Contingencies) - The company is **involved in ongoing MTBE lawsuits** in Pennsylvania and Maryland, with the Pennsylvania suit **forwarded to multidistrict litigation**[52](index=52&type=chunk) - Hess is **complying with EPA Administrative Orders** for the Gowanus Canal Superfund Site remediation, **contributing funding for design and beginning remedial action**, **not expecting a material liability**[53](index=53&type=chunk) - HONX, Inc., a subsidiary, **initiated Chapter 11 proceedings** in **April 2022** to **resolve asbestos-related claims**, **reaching a mediated resolution** in **February 2023** with a **$116 million provision for the settlement trust**[57](index=57&type=chunk) - **Management believes the outcome of current lawsuits, claims, and proceedings is not expected to have a material adverse effect on financial condition, results of operations, or cash flows**[59](index=59&type=chunk) [Note 11 - Segment Information](index=18&type=section&id=Note%2011%20-%20Segment%20Information) Net Income (Loss) Attributable to Hess Corporation by Segment (In millions) | Segment | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Exploration and Production | $155 | $723 | $560 | $1,183 | | Midstream | $62 | $65 | $123 | $137 | | Corporate, Interest and Other | $(98) | $(121) | $(218) | $(236) | | Total | $119 | $667 | $465 | $1,084 | Capital Expenditures by Segment (In millions) | Segment | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Exploration and Production | $904 | $593 | $1,639 | $1,136 | | Midstream | $52 | $72 | $109 | $109 | | Total | $956 | $665 | $1,748 | $1,245 | Identifiable Assets by Operating Segment (In millions) | Segment | June 30, 2023 | December 31, 2022 | | :-------------------------- | :------------ | :---------------- | | Exploration and Production | $15,792 | $15,022 | | Midstream | $3,864 | $3,775 | | Corporate, Interest and Other | $2,574 | $2,898 | | Total | $22,230 | $21,695 | [Note 12 - Financial Risk Management Activities](index=19&type=section&id=Note%2012%20-%20Financial%20Risk%20Management%20Activities) - Hess Corporation is **exposed to commodity risks (crude oil, natural gas), interest rate risks, and foreign currency risks, managed through financial risk management activities**, including futures, swaps, or option strategies[64](index=64&type=chunk) Notional Amounts of Outstanding Financial Risk Management Derivative Contracts (In millions, except barrels) | Item | June 30, 2023 | December 31, 2022 | | :------------------------------------------ | :------------ | :---------------- | | Commodity - crude oil hedge contracts (millions of barrels) | 23.9 | 0 | | Foreign exchange forwards / swaps | $236 | $177 | | Interest rate swaps | $100 | $100 | - In **Q1 2023**, the company hedged **80,000 bopd** with WTI put options (average floor **$70/barrel**) and **50,000 bopd** with Brent put options (average floor **$75/barrel**) for the remainder of **2023**[65](index=65&type=chunk) Gross Fair Value of Derivative Contracts (In millions) | Item | June 30, 2023 Assets | June 30, 2023 Liabilities | December 31, 2022 Assets | December 31, 2022 Liabilities | | :------------------------------------------ | :------------------- | :---------------------- | :----------------------- | :------------------------ | | Crude oil put options | $100 | $0 | $0 | $0 | | Interest rate swaps | $0 | $(3) | $0 | $(4) | | Foreign exchange forwards and swaps | $0 | $0 | $0 | $(2) | | Gross fair value of derivative contracts | $100 | $(3) | $0 | $(6) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and cash flows for the reported periods, including an overview of business segments, key performance drivers, and future outlook, also reconciling GAAP and non-GAAP measures and discussing factors affecting comparability [Overview](index=21&type=section&id=Overview) - Hess Corporation is a **global E&P company** with production in the U.S., Guyana, Malaysia/Thailand JDA, and Malaysia, and exploration activities offshore Guyana, U.S. Gulf of Mexico, Suriname, and Canada[76](index=76&type=chunk) - The company plans for **six FPSOs** with **over 1.2 million gross bopd capacity** on the Stabroek Block by end of **2027**, with **potential for up to ten FPSOs**[76](index=76&type=chunk) - For **2023**, E&P capital and exploratory expenditures are **forecast at approximately $3.7 billion**, with oil and gas net production **expected between 385,000 and 390,000 boepd**[78](index=78&type=chunk) Second Quarter Results (In millions, except per share amounts) | Item | Q2 2023 | Q2 2022 | | :------------------------------------ | :------ | :------ | | Net Income | $119 | $667 | | Adjusted Net Income (excluding comparability items) | $201 | $667 | | E&P Net Income | $155 | $723 | | E&P Adjusted Net Income (excluding comparability items) | $237 | N/A | | Total Net Production (boepd) | 387,000 | 303,000 | | Average Realized Crude Oil Selling Price (including hedging) | $71.13/barrel | $99.16/barrel | | Average Realized NGL Selling Price | $17.95/barrel | $40.92/barrel | | Average Realized Natural Gas Selling Price | $3.82/mcf | $6.45/mcf | - Bakken **net production averaged 181,000 boepd** in **Q2 2023** (**up from 140,000 boepd** in **Q2 2022**) due to **increased drilling**, **higher NGL/natural gas volumes** from percentage of proceeds contracts, and **improved uptime**[81](index=81&type=chunk) - The Pickerel-1 exploration well in the Gulf of Mexico was an **oil discovery** in **July 2023**, with first oil expected **mid-2024**[83](index=83&type=chunk) - Guyana net production from Liza Destiny and Liza Unity FPSOs totaled **110,000 bopd** in **Q2 2023** (**up from 67,000 bopd** in **Q2 2022**), with Liza Unity expected to increase **capacity to 250,000 gross bopd** by end of **2023**[83](index=83&type=chunk) - The Payara development is **on track for startup early Q4 2023**, Yellowtail for **2025**, and Uaru for **2026**, all on the Stabroek Block[83](index=83&type=chunk) [Consolidated Results of Operations](index=23&type=section&id=Consolidated%20Results%20of%20Operations) Net Income Attributable to Hess Corporation by Segment (In millions, except per share amounts) | Segment | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Exploration and Production | $155 | $723 | $560 | $1,183 | | Midstream | $62 | $65 | $123 | $137 | | Corporate, Interest and Other | $(98) | $(121) | $(218) | $(236) | | Total | $119 | $667 | $465 | $1,084 | | Basic EPS | $0.39 | $2.15 | $1.52 | $3.50 | | Diluted EPS | $0.39 | $2.15 | $1.51 | $3.49 | Items Affecting Comparability of Earnings Between Periods, After-Tax (In millions) | Segment | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Exploration and Production | $(82) | $0 | $(82) | $0 | | Midstream | $0 | $0 | $0 | $0 | | Corporate, Interest and Other | $0 | $0 | $0 | $13 | | Total | $(82) | $0 | $(82) | $13 | Adjusted Net Income Attributable to Hess Corporation (Non-GAAP) (In millions) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Hess Corporation | $119 | $667 | $465 | $1,084 | | Less: Total items affecting comparability | $(82) | $0 | $(82) | $13 | | Adjusted Net Income Attributable to Hess Corporation | $201 | $667 | $547 | $1,071 | Net Cash Provided by (Used in) Operating Activities Before Changes in Operating Assets and Liabilities (Non-GAAP) (In millions) | Item | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $1,612 | $1,353 | | Changes in operating assets and liabilities | $394 | $1,062 | | Net cash provided by (used in) operating activities before changes in operating assets and liabilities | $2,006 | $2,415 | [Comparison of Results - Exploration and Production](index=24&type=section&id=Comparison%20of%20Results%20-%20Exploration%20and%20Production) - **Lower realized selling prices** in **Q2** and **YTD 2023 reduced after-tax earnings** by approximately **$840 million** and **$1,250 million**, respectively, compared to **2022**[98](index=98&type=chunk) Worldwide Average Selling Prices (Including Hedging) | Product | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Crude Oil – Per Barrel | $71.13 | $99.16 | $72.66 | $93.65 | | Natural Gas Liquids – Per Barrel | $17.95 | $40.92 | $21.02 | $40.33 | | Natural Gas – Per Mcf | $3.82 | $6.45 | $4.09 | $5.87 | - Crude oil hedging activities resulted in **net losses of $52 million** (**Q2 2023**) and **$86 million** (**YTD 2023**) after income taxes, compared to **losses of $163 million** (**Q2 2022**) and **$255 million** (**YTD 2022**)[100](index=100&type=chunk) Daily Worldwide Net Production (In thousands of barrels of oil equivalent per day) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Crude Oil – Barrels | 216 | 176 | 216 | 163 | | Natural Gas Liquids – Barrels | 69 | 49 | 66 | 50 | | Natural Gas – Mcf | 610 | 580 | 592 | 578 | | Barrels of Oil Equivalent | 387 | 322 | 381 | 309 | - **Higher sales volumes** in **Q2** and **YTD 2023 increased after-tax earnings** by approximately **$620 million** and **$1,210 million**, respectively, compared to **2022**[108](index=108&type=chunk) Total Production Unit Costs (Per boe) | Item | Q2 2023 Actual | Q2 2022 Actual | YTD 2023 Actual | YTD 2022 Actual | Q3 2023 Forecast Range | FY 2023 Forecast Range | | :-------------------------- | :------------- | :------------- | :-------------- | :-------------- | :--------------------- | :--------------------- | | Cash operating costs | $13.97 | $13.90 | $13.48 | $13.84 | $14.00 - $14.50 | $13.50 - $14.00 | | DD&A | $12.79 | $11.79 | $12.97 | $11.39 | $12.50 - $13.00 | $13.00 - $13.50 | | Total Production Unit Costs | $26.76 | $25.69 | $26.45 | $25.23 | $26.50 - $27.50 | $26.50 - $27.50 | Exploration Expenses (In millions) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Exploratory dry hole costs | $62 | $0 | $93 | $0 | | Exploration lease impairment | $8 | $4 | $13 | $10 | | Geological and geophysical expense and exploration overhead | $29 | $29 | $59 | $66 | | Total Exploration Expense | $99 | $33 | $165 | $76 | - **E&P income tax expense decreased** in **Q2** and **YTD 2023** compared to **2022**, primarily due to the **sale of Libya operations** in **November 2022**, partially offset by **higher income tax expense in Guyana**[116](index=116&type=chunk) - A **pre-tax charge of $82 million** (**$82 million** after income taxes) was recognized in **Q2 2023** for revised abandonment obligations in the West Delta Field[119](index=119&type=chunk) [Comparison of Results - Midstream](index=29&type=section&id=Comparison%20of%20Results%20-%20Midstream) - **Midstream sales and other operating revenues increased** in **Q2** and **YTD 2023** due to higher throughput volumes and tariff rates, partially offset by lower fees from minimum volume commitments[122](index=122&type=chunk) - **Midstream interest expense increased** in **Q2** and **YTD 2023** due to higher interest rates on term loan and revolving credit facilities, and the issuance of **$400 million** in senior unsecured notes in **April 2022**[122](index=122&type=chunk) - **Net income attributable to Hess Corporation from the Midstream segment is estimated** to be **$55 million to $60 million** in **Q3 2023** and **$240 million to $250 million** for the full year **2023**[123](index=123&type=chunk) [Comparison of Results - Corporate, Interest and Other](index=29&type=section&id=Comparison%20of%20Results%20-%20Corporate,%20Interest%20and%20Other) - **Corporate and other expenses (excluding comparability items) were lower** in **Q2** and **YTD 2023**, primarily due to **higher interest income**, partially offset by **higher legal and professional fees** in **YTD 2023**[124](index=124&type=chunk) - **Net interest expense was lower** in **Q2** and **YTD 2023**, primarily due to **capitalized interest associated with the Yellowtail and Uaru developments in Guyana**[124](index=124&type=chunk)[126](index=126&type=chunk) - In **YTD 2022**, results **included a $22 million pre-tax gain from real property sale** and a **$9 million charge for litigation costs related to former downstream business**[127](index=127&type=chunk) [Other Items Potentially Affecting Future Results](index=30&type=section&id=Other%20Items%20Potentially%20Affecting%20Future%20Results) - Future results may be **impacted by volatility in commodity prices**, reserve and production changes, asset sales, impairment charges, exploration expenses, industry cost inflation/deflation, changes in foreign exchange and income tax rates, deferred tax asset valuation allowances, **weather, crude oil storage capacity, political risk, environmental risk, and catastrophic risk**[128](index=128&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity and Capital Resources (In millions, except ratio) | Item | June 30, 2023 | December 31, 2022 | | :------------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $2,226 | $2,486 | | Total debt | $8,467 | $8,281 | | Total equity | $8,902 | $8,496 | | Debt to capitalization ratio for debt covenants | 35.1% | 36.1% | - **Net cash provided by operating activities** was **$1,612 million** in **YTD 2023**, **up from $1,353 million** in **YTD 2022**[132](index=132&type=chunk)[135](index=135&type=chunk) - **Additions to property, plant and equipment increased** by **$449 million** to **$1,658 million** in **YTD 2023**, primarily due to **development activities in Guyana and higher drilling in the Bakken**[136](index=136&type=chunk) - **Common stock dividends paid** were **$271 million** in **YTD 2023**, reflecting a **17% increase** in the dividend[136](index=136&type=chunk) - At **June 30, 2023**, Hess Corporation had **$2.2 billion** in cash and cash equivalents (excluding Midstream) and **total liquidity of approximately $5.6 billion**, **including available committed credit facilities**[138](index=138&type=chunk) - The company **plans to return up to 75%** of annual adjusted free cash flow to shareholders through dividend increases and common stock repurchases, with a **new $1 billion repurchase authorization approved** in **March 2023**[138](index=138&type=chunk) Committed and Uncommitted Credit Facilities at June 30, 2023 (In millions) | Facility | Capacity | Borrowings | Letters of Credit Issued | Total Used | Available Capacity | | :-------------------------- | :------- | :--------- | :----------------------- | :--------- | :----------------- | | Hess Corporation Revolving credit facility | $3,250 | $0 | $0 | $0 | $3,250 | | Hess Corporation Committed lines | $100 | $0 | $2 | $2 | $98 | | Hess Corporation Uncommitted lines | $87 | $0 | $87 | $87 | $0 | | Midstream Revolving credit facility | $1,000 | $198 | $0 | $198 | $802 | - Hess Corporation maintains **investment grade credit ratings** from all three major agencies (**BBB- stable** at S&P, **Baa3 stable** at Moody's, **BBB- positive** at Fitch)[144](index=144&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risks, including commodity price, interest rate, and foreign currency risks, and outlines the strategies and derivative instruments used to manage these exposures - Hess Corporation is **exposed to commodity risks (crude oil, natural gas), interest rate risks, and foreign currency risks, managed through financial risk management activities**[147](index=147&type=chunk) - **Outstanding foreign exchange contracts totaled $236 million** at **June 30, 2023**; a **10% strengthening/weakening in the U.S. Dollar exchange rate could result in a gain/loss of approximately $20 million/$25 million**[148](index=148&type=chunk) - **Long-term debt, primarily fixed-rate, had a carrying value of $8,467 million** and a **fair value of $8,374 million** at **June 30, 2023**. A **15% increase/decrease in interest rates would decrease/increase fair value by approximately $445 million/$490 million**[149](index=149&type=chunk) - At **June 30, 2023**, **crude oil put options (WTI $70/bbl, Brent $75/bbl) were in place**. A **10% increase in forward crude oil prices would reduce fair value by $50 million**, while a **10% decrease would increase fair value by $100 million**[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2023, and states that there were no material changes in internal control over financial reporting during the quarter - The CEO and CFO **concluded that the Corporation's disclosure controls and procedures were effective** as of **June 30, 2023**[157](index=157&type=chunk) - There was **no change in internal control over financial reporting that materially affected, or is reasonably likely to materially affect, internal control over financial reporting during the quarter ended June 30, 2023**[158](index=158&type=chunk) [PART II - OTHER INFORMATION](index=36&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the detailed information regarding legal proceedings from Note 10 of the Notes to Consolidated Financial Statements - **Information regarding legal proceedings is contained in Note 10, Guarantees and Contingencies, in the Notes to Consolidated Financial Statements and is incorporated by reference**[160](index=160&type=chunk) [Item 2. Share Repurchase Activities](index=36&type=section&id=Item%202.%20Share%20Repurchase%20Activities) This section reports on the Board of Directors' approval of a new $1 billion common stock repurchase authorization in March 2023, replacing the previous fully utilized authorization, with no repurchases made in Q2 2023 - On **March 1, 2023**, the **Board of Directors approved a new authorization for the repurchase of common stock up to $1 billion**, **replacing the previous fully utilized authorization**[161](index=161&type=chunk) - There were **no shares of common stock repurchased during the second quarter of 2023**[161](index=161&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This section states that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2023 - **No directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2023**[162](index=162&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including certifications, XBRL documents, and the cover page - **Exhibits include certifications (Rule 13a-14(a), Rule 13a-14(b) and Section 1350), Inline XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Label Linkbase, Presentation Linkbase, Definition Linkbase, and the Inline XBRL formatted cover page**[165](index=165&type=chunk) [SIGNATURES](index=38&type=section&id=SIGNATURES) - The **report was signed by John B. Hess, Chief Executive Officer, and John P. Rielly, Executive Vice President and Chief Financial Officer, on August 3, 2023**[168](index=168&type=chunk)