Company Announcements

Hess Reports Estimated Results for the Third Quarter Of 2020

Key Developments:

  • Increased the estimate of gross discovered recoverable resources to approximately 9 billion barrels of oil equivalent (boe) for the Stabroek Block (Hess – 30%), offshore Guyana; announced oil discoveries at the Yellowtail-2 and Redtail-1 wells in September, bringing total discoveries on the Block to 18
  • Sanctioned development of Payara, the third oil development on the Stabroek Block, which will have the capacity to produce up to 220,000 gross barrels of oil per day (bopd); first oil is expected in 2024
  • Agreed to sell the Corporation's 28% working interest in the Shenzi Field in the deepwater Gulf of Mexico for total consideration of $505 million, with an effective date of July 1, 2020; the sale is expected to close prior to year-end

Third Quarter Financial and Operational Highlights:

  • Net loss was $243 million, or $0.80 per common share, compared with a net loss of $212 million, or $0.70 per common share in the third quarter of 2019
  • Adjusted net loss1 was $216 million, or $0.71 per common share, compared with an adjusted net loss of $105 million, or $0.35 per common share in the prior-year quarter
  • Oil and gas net production, excluding Libya, averaged 321,000 barrels of oil equivalent per day ( boepd), up from 290,000 boepd in the third quarter of 2019; Bakken net production was 198,000 boepd, up 21% from 163,000 boepd in the prior-year quarter
  • Crude oil put option contracts are in place for more than 80% of forecast net oil production for the remainder of 2020 with a fair value of approximately $205 million at September 30, 2020; realized settlements on crude oil put option contracts during the first nine months of 2020 were approximately $700 million
  • E&P capital and exploratory expenditures were $331 million, compared with $661 million in the prior-year quarter
  • Cash and cash equivalents, excluding Midstream, were $1.28 billion at September 30, 2020

2020 Updated Full Year Guidance:

  • Net production, excluding Libya, is expected to be approximately 325,000 boepd, down from previous guidance of approximately 330,000 boepd primarily due to hurricane-related downtime in the Gulf of Mexico
  • Bakken net production is expected to be approximately 190,000 boepd, up from the previous guidance of approximately 185,000 boepd due to strong year to date performance
  • E&P capital and exploratory expenditures are projected to be approximately $1.8 billion, down from previous guidance of approximately $1.9 billion
  1. “Adjusted net income (loss)” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 7 to 9.

NEW YORK--(BUSINESS WIRE)--Oct. 28, 2020-- Hess Corporation (NYSE: HES) today reported a net loss of $243 million, or $0.80 per common share, in the third quarter of 2020, compared with a net loss of $212 million, or $0.70 per common share, in the third quarter of 2019. On an adjusted basis, the Corporation reported a net loss of $216 million, or $0.71 per common share, in the third quarter of 2020, compared with an adjusted net loss of $105 million, or $0.35 per common share, in the prior-year quarter. The decrease in adjusted after-tax results compared with the prior-year period primarily reflects lower realized selling prices and higher exploration expenses.

     “We continue to execute our strategy and achieve strong operational performance while prioritizing the preservation of cash, capability and the long term value of our assets during this low price environment,” CEO John Hess said. “Our differentiated portfolio of assets, including multiple phases of low cost Guyana oil developments, positions us to deliver industry leading cash flow growth and drive our company’s breakeven price to under $40 per barrel Brent by mid decade.”

      After-tax income (loss) by major operating activity was as follows:

 

Three Months Ended
September 30,
(unaudited)

 

Nine Months Ended
September 30,
(unaudited)

 

2020

 

2019

 

2020

 

2019

 

(In millions, except per share amounts)

Net Income (Loss) Attributable to Hess Corporation

 

 

 

 

Exploration and Production

$

(182)

 

 

$

(60)

 

 

$

(2,802)

 

 

$

117

 

Midstream

56

 

 

39

 

 

168

 

 

111

 

Corporate, Interest and Other

(117)

 

 

(191)

 

 

(362)

 

 

(414)

 

Net income (loss) attributable to Hess Corporation

$

(243)

 

 

$

(212)

 

 

$

(2,996)

 

 

$

(186)

 

Net income (loss) per common share (diluted) (a)

$

(0.80)

 

 

$

(0.70)

 

 

$

(9.83)

 

 

$

(0.63)

 

Adjusted Net Income (Loss) Attributable to Hess Corporation

 

 

 

 

Exploration and Production

$

(156)

 

 

$

(41)

 

 

$

(525)

 

 

$

114

 

Midstream

56

 

 

39

 

 

168

 

 

111

 

Corporate, Interest and Other

(116)

 

 

(103)

 

 

(361)

 

 

(326)

 

Adjusted net income (loss) attributable to Hess Corporation

$

(216)

 

 

$

(105)

 

 

$

(718)

 

 

$

(101)

 

Adjusted net income (loss) per common share (diluted) (a)

$

(0.71)

 

 

$

(0.35)

 

 

$

(2.36)

 

 

$

(0.35)

 

 

 

 

 

 

 

 

 

Weighted average number of shares (diluted)

305.0

 

 

302.5

 

 

304.7

 

 

300.7

 

(a) Calculated as net income (loss) attributable to Hess Corporation less preferred stock dividends, divided by weighted average number of diluted shares.

Exploration and Production:

      E&P net loss was $182 million in the third quarter of 2020, compared with a net loss of $60 million in the third quarter of 2019. On an adjusted basis, E&P's third quarter 2020 net loss was $156 million, compared with an adjusted net loss of $41 million in the prior-year quarter. The Corporation’s average realized crude oil selling price, excluding the effect of hedging, was $36.17 per barrel in the third quarter of 2020, compared with $55.91 per barrel in the prior-year quarter, reflecting a decrease in benchmark oil prices and widening of crude differentials realized as a result of reduced demand caused by the global coronavirus (COVID-19) pandemic. Realized gains from crude oil hedging activities improved after-tax results by $143 million in the third quarter of 2020 and $2 million in the third quarter of 2019. Including hedging, the Corporation’s average realized crude oil selling price was $45.60 per barrel in the third quarter of 2020, compared with $56.03 per barrel in the year-ago quarter. The average realized natural gas liquids (NGL) selling price in the third quarter of 2020 was $11.63 per barrel, compared with $9.41 per barrel in the prior-year quarter, while the average realized natural gas selling price was $2.94 per mcf, compared with $3.81 per mcf in the third quarter of 2019.

      Net production, excluding Libya, was 321,000 boepd in the third quarter of 2020, up 11% from third quarter 2019 net production of 290,000 boepd. The improved performance primarily resulted from a 21% increase in Bakken production and production from the Liza Field, offshore Guyana, which commenced in December 2019, partially offset by hurricane-related downtime in the Gulf of Mexico and lower production in South East Asia. There was no net production for Libya in the third quarter of 2020 due to the declaration of force majeure by the Libyan National Oil Corporation. Net production for Libya was 22,000 boepd in the third quarter of 2019.

      Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $9.86 per boe excluding items affecting comparability of earnings between periods in the third quarter of 2020, down 19% from $12.13 per boe in the prior-year quarter due to the increased production volumes, lower production and severance taxes and the impact of cost-reduction initiatives.

Operational Highlights for the Third Quarter of 2020:

      Bakken (Onshore U.S.): Net production from the Bakken increased to 198,000 boepd from 163,000 boepd in the prior-year quarter, with net oil production up 13% to 108,000 bopd from 96,000 bopd, primarily due to increased wells online and improved well performance. Natural gas and NGL production also increased from higher wells online, additional natural gas captured and processed, and approximately 6,000 boepd of additional volumes received under percentage of proceeds contracts resulting from lower prices. The Corporation operated one rig in the third quarter, drilled 6 wells, completed 13 wells, and brought 22 new wells online.

      As previously announced in the second quarter, the Corporation chartered three very large crude carriers (VLCCs) to load a total of approximately 6 million barrels of oil in the second and third quarters for sale in Asian markets to enhance cash flow and maximize value from its Bakken production. The first VLCC cargo of 2.1 million barrels was sold in China in September with cash proceeds received in October.

      Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 49,000 boepd, compared with 59,000 boepd in the prior-year quarter reflecting hurricane-related downtime as well as higher planned maintenance. The Esox-1 well, which commenced production in February, reached its gross peak rate of approximately 17,000 boepd, or 9,000 boepd, net to Hess in the third quarter.

       In October, the Corporation entered into an agreement to sell it's 28% working interest in the Shenzi Field for total consideration of $505 million, subject to customary adjustments, with an effective date of July 1, 2020. Hess’ net share of production from the Shenzi Field during the first nine months of 2020 was 11,000 boepd. The sale is expected to close during the fourth quarter of 2020 and is subject to customary closing conditions.

      The BP operated Galapagos Deep well (Hess – 25%) in the Mississippi Canyon area of the deepwater Gulf of Mexico was not a commercial success and third quarter results include exploration expenses of $37 million, primarily for well costs incurred through September 30, 2020.

      Guyana (Offshore): At the Stabroek Block (Hess – 30%), the Corporation’s net production from the Liza Field, which commenced in December 2019, averaged 19,000 bopd in the third quarter of 2020. During the third quarter, the operator Esso Exploration and Production Guyana Limited continued work to complete the commissioning of the natural gas injection system that should enable the Liza Destiny floating production, storage and offloading vessel (FPSO) to reach its capacity of 120,000 gross bopd in the fourth quarter. Phase 2 of the Liza Field development, which will utilize the Liza Unity FPSO with an expected capacity of 220,000 gross bopd, remains on target to achieve first oil by early 2022.

     The Corporation announced it had made the final investment decision to proceed with development of the Payara Field on the Stabroek Block after the development plan received approval from the government of Guyana. Payara will utilize the Prosperity FPSO, which will have the capacity to produce up to 220,000 gross bopd and will target an estimated resource base of approximately 600 million barrels of oil. First oil is expected in 2024. Ten drill centers are planned with a total of 41 wells, including 20 production wells and 21 injection wells. Excluding pre-sanction costs and FPSO purchase cost, the Corporation’s net share of development costs is forecast to be approximately $1.8 billion.

      At the Stabroek Block, the operator announced discoveries at the Yellowtail-2 and Redtail-1 exploration wells. Yellowtail-2, the 17 th discovery on the Block, encountered approximately 69 feet of high quality oil bearing reservoirs adjacent to and below the Yellowtail-1 discovery. Redtail-1, the 18 th discovery on the Block, encountered approximately 232 feet of high quality oil bearing sandstone and is located 1.5 miles northwest of the Yellowtail discovery. The estimate of gross discovered recoverable resources on the Block has been increased to approximately 9 billion boe.

      Following the completion of appraisal work at the Yellowtail-2 well, the Stena Carron drillship began drilling the Tanager-1 well on the Kaieteur Block, located 46 miles northwest of Liza in August. Tanager-1 drilling operations are ongoing. The Noble Don Taylor drillship completed the drilling of the Redtail-1 well, and is currently drilling and completing Liza Phase 2 development wells. The other two drillships, the Noble Bob Douglas and the Noble Tom Madden, are drilling and completing Liza Phase 1 and Phase 2 development wells.

     South East Asia (Offshore): Net production at the North Malay Basin and JDA was 50,000 boepd, compared with 60,000 boepd in the prior-year quarter, reflecting COVID-19 impacts on economic activity in Malaysia which reduced natural gas nominations.

Midstream:

      The Midstream segment had net income of $56 million in the third quarter of 2020, compared with net income of $39 million in the prior-year quarter. The improved third quarter 2020 results were primarily driven by higher throughput volumes.

Corporate, Interest and Other:

     After-tax expense for Corporate, Interest and Other was $117 million in the third quarter of 2020, compared with $191 million in the third quarter of 2019. On an adjusted basis, after-tax expense for Corporate, Interest and Other was $116 million in the third quarter of 2020 compared with $103 million in the year-ago quarter. Interest expense increased $18 million compared with the prior-year quarter due to interest on the Corporation's $1.0 billion three year term loan entered into in March 2020 and a decrease in capitalized interest of $11 million.

Capital and Exploratory Expenditures:

     E&P capital and exploratory expenditures were $331 million in the third quarter of 2020, down from $661 million in the prior-year quarter. The decrease is primarily driven by the lower rig count in the Bakken and reduced development drilling in the Gulf of Mexico during the third quarter of 2020. For full year 2020, E&P capital and exploratory expenditures are expected to be approximately $1.8 billion which is down from prior guidance of approximately $1.9 billion. Midstream capital expenditures were $66 million in the third quarter of 2020, down from $112 million in the prior-year quarter.

Liquidity:

     Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $1.28 billion and debt and finance lease obligations totaling $6.6 billion at September 30, 2020. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 45.7% at September 30, 2020 and 39.6% at December 31, 2019. At September 30, 2020, the fair value of crude oil put option hedge contracts, which cover more than 80% of the Corporation’s forecasted oil production for the remainder of 2020, was approximately $205 million. Realized settlements on closed contracts during the first nine months of 2020 were approximately $700 million. Proceeds from the sale of the first VLCC cargo of 2.1 million barrels of oil was received in October and proceeds from the sale of the second and third VLCC cargos totaling 4.2 million barrels of oil are expected in the first quarter of 2021. The Corporation expects to receive proceeds in the fourth quarter from the sale of its working interest in the Shenzi Field for total consideration of $505 million based on an effective date of July 1, 2020.

      The Midstream segment had cash and cash equivalents of $4 million and total debt of $1.9 billion at September 30, 2020.

     Net cash provided by operating activities was $136 million in the third quarter of 2020, down from $443 million in the third quarter of 2019 primarily due to lower realized crude oil selling prices, the impact on cash flows from deferring sales for 2.6 million barrels of oil loaded on VLCCs in the third quarter, and receipt of cash proceeds from the sale of the first VLCC cargo occurring in October. Net cash provided by operating activities before changes in operating assets and liabilities 2 was $468 million in the third quarter of 2020, compared with $522 million in the prior-year quarter. Changes in operating assets and liabilities during the third quarter of 2020 decreased cash flow from operating activities by $332 million, primarily due to a reduction in payables reflecting reduced operating activity levels and the temporary increase in accounts receivable and inventory resulting from our VLCC transactions which will reverse over the next two quarters, compared with a net cash outflow of $79 million in the third quarter of 2019.

2.

“Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 8 and 9.

Items Affecting Comparability of Earnings Between Periods:

     The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:

 

Three Months Ended
September 30,
(unaudited)

 

Nine Months Ended
September 30,
(unaudited)

 

2020

 

2019

 

2020

 

2019

 

(In millions)

Exploration and Production

$

(26)

 

 

$

(19)

 

 

$

(2,277)

 

 

$

3

 

Midstream

 

 

 

 

 

 

 

Corporate, Interest and Other

(1)

 

 

(88)

 

 

(1)

 

 

(88)

 

Total items affecting comparability of earnings between periods

$

(27)

 

 

$

(107)

 

 

$

(2,278)

 

 

$

(85)

 

     Third Quarter 2020: Third quarter results included a pre-tax charge for severance of $27 million ($27 million after income taxes) related to cost reduction initiatives. The pre-tax amounts are reported in Operating costs and expenses ($20 million), General and administrative expenses ($6 million), and Exploration expenses ($1 million).

     Third Quarter 2019: Corporate, Interest & Other included a noncash charge to recognize unamortized pension actuarial losses of $88 million ($88 million after income taxes) resulting from the purchase of a single premium annuity contract using funds of the pension plan to settle a portion of the plan’s benefit obligations. The charge is included in Other, net nonoperating income in the income statement. E&P results included a pre-tax charge of $21 million ($19 million after income taxes) related to a settlement on historical cost recovery balances in the JDA and is included in Marketing, including purchased oil and gas in the income statement.

Reconciliation of U.S. GAAP to Non-GAAP measures:

      The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):

 

Three Months Ended
September 30,
(unaudited)

 

Nine Months Ended
September 30,
(unaudited)

 

2020

 

2019

 

2020

 

2019

 

(In millions)

Net income (loss) attributable to Hess Corporation

$

(243)

 

 

$

(212)

 

 

$

(2,996)

 

 

$

(186)

 

Less: Total items affecting comparability of earnings between periods

(27)

 

 

(107)

 

 

(2,278)

 

 

(85)

 

Adjusted net income (loss) attributable to Hess Corporation

$

(216)

 

 

$

(105)

 

 

$

(718)

 

 

$

(101)

 

The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:

 

Three Months Ended
September 30,
(unaudited)

 

Nine Months Ended
September 30,
(unaudited)

 

2020

 

2019

 

2020

 

2019

 

(In millions)

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

$

468

 

 

$

522

 

 

$

1,271

 

 

$

1,717

 

Changes in operating assets and liabilities

(332)

 

 

(79)

 

 

(424)

 

 

(361)

 

Net cash provided by (used in) operating activities

$

136

 

 

$

443

 

 

$

847

 

 

$

1,356

 

Hess Corporation will review third quarter financial and operating results and other matters on a webcast at 10 a.m. today (EDT). For details about the event, refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Forward-looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGLs and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects and proposed asset sale; and future economic and market conditions in the oil and gas industry.

Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGLs and natural gas and competition in the oil and gas exploration and production industry, including as a result of the global COVID-19 pandemic; potential disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks or health measures related to COVID-19; reduced demand for our products, including due to the global COVID-19 pandemic or the outbreak of any other public health threat or due to the impact of competing or alternative energy products and political conditions and events, such as instability, changes in governments, armed conflict, and economic sanctions; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions; potential failures or delays in achieving expected production levels given inherent uncertainties in estimating quantities of proved reserves; 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 well fracking bans; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control; the ability to satisfy the conditions to the proposed sale; 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 as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation, including heightened risks associated with being a general partner of Hess Midstream LP; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).

As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Non-GAAP financial measures

The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income (loss)” presented in this release is defined as reported net income (loss) attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income (loss) to evaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income (loss) or net cash provided by (used in) operating activities. A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss), and a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities are provided in the release.

Cautionary Note to Investors

We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 
 

 

Third
Quarter
2020

 

Third
Quarter
2019

 

Second
Quarter
2020

Income Statement

 

 

 

 

 

 

 

 

 

 

 

Revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,159

 

 

$

1,580

 

 

$

833

 

Gains (losses) on asset sales, net

 

 

 

 

8

 

Other, net

17

 

 

(65)

 

 

1

 

Total revenues and non-operating income

1,176

 

 

1,515

 

 

842

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

221

 

 

423

 

 

56

 

Operating costs and expenses

308

 

 

321

 

 

294

 

Production and severance taxes

34

 

 

47

 

 

16

 

Exploration expenses, including dry holes and lease impairment

71

 

 

50

 

 

31

 

General and administrative expenses

84

 

 

90

 

 

89

 

Interest expense

118

 

 

90

 

 

119

 

Depreciation, depletion and amortization

518

 

 

544

 

 

509

 

Total costs and expenses

1,354

 

 

1,565

 

 

1,114

 

Income (loss) before income taxes

(178)

 

 

(50)

 

 

(272)

 

Provision (benefit) for income taxes

5

 

 

116

 

 

(9)

 

Net income (loss)

(183)

 

 

(166)

 

 

(263)

 

Less: Net income (loss) attributable to noncontrolling interests

60

 

 

46

 

 

57

 

Net income (loss) attributable to Hess Corporation common stockholders

$

(243)

 

 

$

(212)

 

 

$

(320)

 

(a)

Second quarter 2020 reflects lower prices paid for purchased volumes and a reduction of $113 million for the cost of crude oil inventory capitalized for the 3.7 million barrels of oil loaded on the VLCCs.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

Nine Months Ended
September 30,

 

2020

 

2019

Income Statement

 

 

 

 

 

 

 

Revenues and non-operating income

 

 

 

Sales and other operating revenues

$

3,346

 

 

$

4,812

 

Gains (losses) on asset sales, net

8

 

 

22

 

Other, net

33

 

 

(23)

 

Total revenues and non-operating income

3,387

 

 

4,811

 

Costs and expenses

 

 

 

Marketing, including purchased oil and gas

655

 

 

1,308

 

Operating costs and expenses

905

 

 

872

 

Production and severance taxes

92

 

 

132

 

Exploration expenses, including dry holes and lease impairment

291

 

 

127

 

General and administrative expenses

275

 

 

266

 

Interest expense

350

 

 

285

 

Depreciation, depletion and amortization

1,588

 

 

1,536

 

Impairment

2,126

 

 

 

Total costs and expenses

6,282

 

 

4,526

 

Income (loss) before income taxes

(2,895)

 

 

285

 

Provision (benefit) for income taxes

(83)

 

 

342

 

Net income (loss)

(2,812)

 

 

(57)

 

Less: Net income (loss) attributable to noncontrolling interests

184

 

 

129

 

Net income (loss) attributable to Hess Corporation

(2,996)

 

 

(186)

 

Less: Preferred stock dividends

 

 

4

 

Net income (loss) attributable to Hess Corporation common stockholders

$

(2,996)

 

 

$

(190)

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

September 30,
2020

 

December 31,
2019

Balance Sheet Information

 

 

 

Assets

 

 

 

Cash and cash equivalents

$

1,285

 

 

$

1,545

 

Other current assets

1,851

 

 

1,611

 

Property, plant and equipment – net

14,235

 

 

16,814

 

Operating lease right-of-use assets – net

324

 

 

447

 

Finance lease right-of-use assets – net

175

 

 

299

 

Other long-term assets

1,099

 

 

1,066

 

Total assets

$

18,969

 

 

$

21,782

 

Liabilities and equity

 

 

 

Current maturities of long-term debt

$

8

 

 

$

 

Current portion of operating and finance lease obligations

99

 

 

199

 

Other current liabilities

1,319

 

 

2,311

 

Long-term debt

8,280

 

 

7,142

 

Long-term operating lease obligations

334

 

 

353

 

Long-term finance lease obligations

224

 

 

238

 

Other long-term liabilities

1,823

 

 

1,833

 

Total equity excluding other comprehensive income (loss)

6,279

 

 

9,431

 

Accumulated other comprehensive income (loss)

(363)

 

 

(699)

 

Noncontrolling interests

966

 

 

974

 

Total liabilities and equity

$

18,969

 

 

$

21,782

 

HESS CORPORATION AND CONSOLIDATED
SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

September 30,
2020

 

December 31,
2019

Total Debt

 

 

 

Hess Corporation

$

6,385

 

 

$

5,389

 

Midstream (a)

1,903

 

 

1,753

 

Hess Consolidated

$

8,288

 

 

$

7,142

 

(a) Midstream debt is non-recourse to Hess Corporation.

 

 

September 30,
2020

 

December 31,
2019

Debt to Capitalization Ratio (a)

 

 

 

Hess Consolidated

55.3

%

 

43.2

%

Hess Corporation as defined in debt covenants

45.7

%

 

39.6

%

(a) Includes finance lease obligations.

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Interest Expense

 

 

 

 

 

 

 

Gross interest expense – Hess Corporation

$

95

 

 

$

88

 

 

$

279

 

 

$

267

 

Less: Capitalized interest – Hess Corporation

 

 

(11)

 

 

 

 

(27)

 

Interest expense – Hess Corporation

95

 

 

77

 

 

279

 

 

240

 

Interest expense – Midstream (a)

23

 

 

13

 

 

71

 

 

45

 

Interest expense – Consolidated

$

118

 

 

$

90

 

 

$

350

 

 

$

285

 

(a) Midstream interest expense is reported in the Midstream operating segment.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

Third
Quarter
2020

 

Third
Quarter
2019

 

Second
Quarter
2020

Cash Flow Information

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

Net income (loss)

$

(183)

 

 

$

(166)

 

 

$

(263)

 

Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:

 

 

 

 

 

(Gains) losses on asset sales, net

 

 

 

 

(8)

 

Depreciation, depletion and amortization

518

 

 

544

 

 

509

 

Exploratory dry hole costs

31

 

 

10

 

 

 

Exploration lease and other impairment

10

 

 

3

 

 

6

 

Pension settlement loss

 

 

88

 

 

 

Stock compensation expense

16

 

 

18

 

 

18

 

Noncash (gains) losses on commodity derivatives, net

68

 

 

29

 

 

49

 

Provision (benefit) for deferred income taxes and other tax accruals

8

 

 

(4)

 

 

(10)

 

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

468

 

 

522

 

 

301

 

Changes in operating assets and liabilities

(332)

 

 

(79)

 

 

(35)

 

Net cash provided by (used in) operating activities

136

 

 

443

 

 

266

 

Cash Flows from Investing Activities

 

 

 

 

 

Additions to property, plant and equipment - E&P

(327)

 

 

(635)

 

 

(510)

 

Additions to property, plant and equipment - Midstream

(99)

 

 

(74)

 

 

(69)

 

Payments for Midstream equity investments

 

 

(10)

 

 

 

Proceeds from asset sales, net of cash sold

 

 

 

 

11

 

Other, net

 

 

(2)

 

 

(2)

 

Net cash provided by (used in) investing activities

(426)

 

 

(721)

 

 

(570)

 

Cash Flows from Financing Activities

 

 

 

 

 

Net borrowings (repayments) of debt with maturities of 90 days or less

74

 

 

16

 

 

12

 

Debt with maturities of greater than 90 days:

 

 

 

 

 

Borrowings

 

 

 

 

 

Repayments

 

 

(3)

 

 

 

Payments on finance lease obligations

(3)

 

 

(2)

 

 

(2)

 

Cash dividends paid

(76)

 

 

(77)

 

 

(76)

 

Noncontrolling interests, net

(66)

 

 

(14)

 

 

(65)

 

Other, net

 

 

13

 

 

1

 

Net cash provided by (used in) financing activities

(71)

 

 

(67)

 

 

(130)

 

Net Increase (Decrease) in Cash and Cash Equivalents

(361)

 

 

(345)

 

 

(434)

 

Cash and Cash Equivalents at Beginning of Period

1,646

 

 

2,208

 

 

2,080

 

Cash and Cash Equivalents at End of Period

$

1,285

 

 

$

1,863

 

 

$

1,646

 

 

 

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

(367)

 

 

$

(736)

 

 

$

(507)

 

Increase (decrease) in related liabilities

(59)

 

 

27

 

 

(72)

 

Additions to property, plant and equipment

$

(426)

 

 

$

(709)

 

 

$

(579)

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

Nine Months Ended
September 30,

 

2020

 

2019

Cash Flow Information

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

Net income (loss)

$

(2,812)

 

 

$

(57)

 

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

(Gains) losses on asset sales, net

(8)

 

 

(22)

 

Depreciation, depletion and amortization

1,588

 

 

1,536

 

Impairment

2,126

 

 

 

Exploratory dry hole costs

166

 

 

10

 

Exploration lease and other impairment

48

 

 

14

 

Pension settlement loss

 

 

88

 

Stock compensation expense

63

 

 

66

 

Noncash (gains) losses on commodity derivatives, net

187

 

 

87

 

Provision (benefit) for deferred income taxes and other tax accruals

(87)

 

 

(5)

 

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

1,271

 

 

1,717

 

Changes in operating assets and liabilities

(424)

 

 

(361)

 

Net cash provided by (used in) operating activities

847

 

 

1,356

 

Cash Flows from Investing Activities

 

 

 

Additions to property, plant and equipment - E&P

(1,577)

 

 

(1,720)

 

Additions to property, plant and equipment - Midstream

(246)

 

 

(284)

 

Payments for Midstream equity investments

 

 

(33)

 

Proceeds from asset sales, net of cash sold

11

 

 

22

 

Other, net

(2)

 

 

(3)

 

Net cash provided by (used in) investing activities

(1,814)

 

 

(2,018)

 

Cash Flows from Financing Activities

 

 

 

Net borrowings (repayments) of debt with maturities of 90 days or less

146

 

 

176

 

Debt with maturities of greater than 90 days:

 

 

 

Borrowings

1,000

 

 

 

Repayments

 

 

(8)

 

Payments on finance lease obligations

(6)

 

 

(47)

 

Common stock acquired and retired

 

 

(25)

 

Cash dividends paid

(233)

 

 

(241)

 

Noncontrolling interests, net

(194)

 

 

(41)

 

Other, net

(6)

 

 

17

 

Net cash provided by (used in) financing activities

707

 

 

(169)

 

Net Increase (Decrease) in Cash and Cash Equivalents

(260)

 

 

(831)

 

Cash and Cash Equivalents at Beginning of Period

1,545

 

 

2,694

 

Cash and Cash Equivalents at End of Period

$

1,285

 

 

$

1,863

 

 

 

 

 

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

(1,540)

 

 

$

(2,072)

 

Increase (decrease) in related liabilities

(283)

 

 

68

 

Additions to property, plant and equipment

$

(1,823)

 

 

$

(2,004)

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

 

 

Third
Quarter
2020

 

Third
Quarter
2019

 

Second
Quarter
2020

Capital and Exploratory Expenditures

 

 

 

 

 

 

 

 

 

 

 

E&P Capital and exploratory expenditures

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

86

 

 

$

350

 

 

$

181

 

Offshore and Other

61

 

 

107

 

 

64

 

Total United States

147

 

 

457

 

 

245

 

Guyana

160

 

 

161

 

 

183

 

Malaysia and JDA

21

 

 

24

 

 

21

 

Other

3

 

 

19

 

 

4

 

E&P Capital and exploratory expenditures

$

331

 

 

$

661

 

 

$

453

 

 

 

 

 

 

 

Total exploration expenses charged to income included above

$

30

 

 

$

37

 

 

$

25

 

 

 

 

 

 

 

Midstream Capital expenditures

$

66

 

 

$

112

 

 

$

79

 

 

 

Nine Months Ended
September 30,

 

2020

 

2019

Capital and Exploratory Expenditures

 

 

 

 

 

 

 

E&P Capital and exploratory expenditures

 

 

 

United States

 

 

 

North Dakota

$

589

 

 

$

943

 

Offshore and Other

218

 

 

298

 

Total United States

807

 

 

1,241

 

Guyana

519

 

 

509

 

Malaysia and JDA

74

 

 

81

 

Other

15

 

 

36

 

E&P Capital and exploratory expenditures

$

1,415

 

 

$

1,867

 

 

 

 

 

Total exploration expenses charged to income included above

$

77

 

 

$

103

 

 

 

 

 

Midstream Capital expenditures

$

202

 

 

$

308

 

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)

 

 

Third Quarter 2020

Income Statement

United States

 

International

 

Total

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

918

 

 

$

241

 

 

$

1,159

 

Other, net

6

 

 

4

 

 

10

 

Total revenues and non-operating income

924

 

 

245

 

 

1,169

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

246

 

 

(2)

 

 

244

 

Operating costs and expenses

138

 

 

90

 

 

228

 

Production and severance taxes

33

 

 

1

 

 

34

 

Midstream tariffs

237

 

 

 

 

237

 

Exploration expenses, including dry holes and lease impairment

69

 

 

2

 

 

71

 

General and administrative expenses

46

 

 

7

 

 

53

 

Depreciation, depletion and amortization

388

 

 

90

 

 

478

 

Total costs and expenses

1,157

 

 

188

 

 

1,345

 

Results of operations before income taxes

(233)

 

 

57

 

 

(176)

 

Provision (benefit) for income taxes

 

 

6

 

 

6

 

Net income (loss) attributable to Hess Corporation

$

(233)

 

(b)

$

51

 

(c)

$

(182)

 

 

 

 

 

 

 

 

Third Quarter 2019

Income Statement

United States

 

International

 

Total

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

1,212

 

 

$

368

 

 

$

1,580

 

Other, net

 

 

17

 

 

17

 

Total revenues and non-operating income

1,212

 

 

385

 

 

1,597

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

423

 

 

30

 

 

453

 

Operating costs and expenses

182

 

 

69

 

 

251

 

Production and severance taxes

46

 

 

1

 

 

47

 

Midstream tariffs

182

 

 

 

 

182

 

Exploration expenses, including dry holes and lease impairment

27

 

 

23

 

 

50

 

General and administrative expenses

42

 

 

9

 

 

51

 

Depreciation, depletion and amortization

390

 

 

117

 

 

507

 

Total costs and expenses

1,292

 

 

249

 

 

1,541

 

Results of operations before income taxes

(80)

 

 

136

 

 

56

 

Provision (benefit) for income taxes

 

 

116

 

 

116

 

Net income (loss) attributable to Hess Corporation

$

(80)

 

(d)

$

20

 

 

$

(60)

 

(a) Includes amounts charged from the Midstream segment.
(b) Includes after-tax gains from realized crude oil hedging activities of $123 million (noncash premium amortization: $61 million; cash settlement: $184 million).
(c) Includes after-tax gains from realized crude oil hedging activities of $20 million (noncash premium amortization: $7 million; cash settlement: $27 million).
(d) Includes after-tax gains from realized crude oil hedging activities of $2 million (noncash premium amortization: $29 million; cash settlement: $31 million).

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)

 

 

Second Quarter 2020

Income Statement

United States

 

International

 

Total

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

660

 

 

$

173

 

 

$

833

 

Other, net

(4)

 

 

3

 

 

(1)

 

Total revenues and non-operating income

656

 

 

176

 

 

832

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

111

 

 

(14)

 

 

97

 

Operating costs and expenses

131

 

 

72

 

 

203

 

Production and severance taxes

15

 

 

1

 

 

16

 

Midstream tariffs

225

 

 

 

 

225

 

Exploration expenses, including dry holes and lease impairment

23

 

 

8

 

 

31

 

General and administrative expenses

42

 

 

8

 

 

50

 

Depreciation, depletion and amortization

373

 

 

97

 

 

470

 

Total costs and expenses

920

 

 

172

 

 

1,092

 

Results of operations before income taxes

(264)

 

 

4

 

 

(260)

 

Provision (benefit) for income taxes

 

 

(11)

 

 

(11)

 

Net income (loss) attributable to Hess Corporation

$

(264)

 

(b)

$

15

 

(c)

$

(249)

 

(a) Includes amounts charged from the Midstream segment.
(b) Includes after-tax gains from realized crude oil hedging activities of $192 million (noncash premium amortization: $43 million; cash settlement: $235 million).
(c) Includes after-tax gains from realized crude oil hedging activities of $36 million (noncash premium amortization: $6 million; cash settlement: $42 million).

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)

 

 

Nine Months Ended September 30, 2020

Income Statement

United States

 

International

 

Total

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

2,700

 

 

$

646

 

 

$

3,346

 

Other, net

6

 

 

11

 

 

17

 

Total revenues and non-operating income

2,706

 

 

657

 

 

3,363

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

776

 

 

(10)

 

 

766

 

Operating costs and expenses

406

 

 

239

 

 

645

 

Production and severance taxes

88

 

 

4

 

 

92

 

Midstream tariffs

703

 

 

 

 

703

 

Exploration expenses, including dry holes and lease impairment

248

 

 

43

 

 

291

 

General and administrative expenses

133

 

 

22

 

 

155

 

Depreciation, depletion and amortization

1,155

 

 

314

 

 

1,469

 

Impairment

697

 

 

1,429

 

 

2,126

 

Total costs and expenses

4,206

 

 

2,041

 

 

6,247

 

Results of operations before income taxes

(1,500)

 

 

(1,384)

 

 

(2,884)

 

Provision (benefit) for income taxes

 

 

(82)

 

 

(82)

 

Net income (loss) attributable to Hess Corporation

$

(1,500)

 

(b)

$

(1,302)

 

(c)

$

(2,802)

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2019

Income Statement

United States

 

International

 

Total

 

 

 

 

 

 

Total revenues and non-operating income

 

 

 

 

 

Sales and other operating revenues

$

3,716

 

 

$

1,096

 

 

$

4,812

 

Gains (losses) on asset sales, net

22

 

 

 

 

22

 

Other, net

1

 

 

43

 

 

44

 

Total revenues and non-operating income

3,739

 

 

1,139

 

 

4,878

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

Marketing, including purchased oil and gas (a)

1,342

 

 

43

 

 

1,385

 

Operating costs and expenses

499

 

 

196

 

 

695

 

Production and severance taxes

126

 

 

6

 

 

132

 

Midstream tariffs

509

 

 

 

 

509

 

Exploration expenses, including dry holes and lease impairment

73

 

 

54

 

 

127

 

General and administrative expenses

120

 

 

21

 

 

141

 

Depreciation, depletion and amortization

1,075

 

 

355

 

 

1,430

 

Total costs and expenses

3,744

 

 

675

 

 

4,419

 

Results of operations before income taxes

(5)

 

 

464

 

 

459

 

Provision (benefit) for income taxes

 

 

342

 

 

342

 

Net income (loss) attributable to Hess Corporation

$

(5)

 

(d)

$

122

 

 

$

117

 

(a) Includes amounts charged from the Midstream segment.
(b) Includes after-tax gains from realized crude oil hedging activities of $368 million (noncash premium amortization: $167 million; cash settlement: $535 million).
(c) Includes after-tax gains from realized crude oil hedging activities of $67 million (noncash premium amortization: $20 million; cash settlement: $87 million).
(d) Includes after-tax gains from realized crude oil hedging activities of $3 million (noncash premium amortization: $87 million; cash settlement: $90 million).

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Third
Quarter
2020

 

Third
Quarter
2019

 

Second
Quarter
2020

Net Production Per Day (in thousands)

 

 

 

 

 

 

 

 

 

 

 

Crude oil - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota (a)

108

 

 

96

 

 

108

 

Offshore

34

 

 

40

 

 

45

 

Total United States

142

 

 

136

 

 

153

 

Guyana

19

 

 

 

 

22

 

Malaysia and JDA

3

 

 

4

 

 

3

 

Denmark

4

 

 

6

 

 

5

 

Libya

 

 

20

 

 

 

Total

168

 

 

166

 

 

183

 

 

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

 

 

United States

 

 

 

 

 

North Dakota (a)

58

 

 

47

 

 

57

 

Offshore

5

 

 

5

 

 

6

 

Total United States

63

 

 

52

 

 

63

 

 

 

 

 

 

 

Natural gas - mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota (a)

194

 

 

125

 

 

177

 

Offshore

60

 

 

84

 

 

101

 

Total United States

254

 

 

209

 

 

278

 

Malaysia and JDA

282

 

 

336

 

 

245

 

Denmark

4

 

 

6

 

 

5

 

Libya

 

 

12

 

 

 

Total

540

 

 

563

 

 

528

 

 

 

 

 

 

 

Barrels of oil equivalent

321

 

 

312

 

 

334

 

(a) Net production from the Bakken was 198,000 boepd in the third quarter of 2020, 163,000 boepd in the third quarter of 2019 and 194,000 boepd in the second quarter of 2020.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Nine Months Ended
September 30,

 

2020

 

2019

Net Production Per Day (in thousands)

 

 

 

 

 

 

 

Crude oil - barrels

 

 

 

United States

 

 

 

North Dakota (a)

110

 

 

89

 

Offshore

43

 

 

45

 

Total United States

153

 

 

134

 

Guyana

19

 

 

 

Malaysia and JDA

3

 

 

4

 

Denmark

5

 

 

6

 

Libya

2

 

 

19

 

Total

182

 

 

163

 

 

 

 

 

Natural gas liquids - barrels

 

 

 

United States

 

 

 

North Dakota (a)

54

 

 

40

 

Offshore

6

 

 

5

 

Total United States

60

 

 

45

 

 

 

 

 

Natural gas - mcf

 

 

 

United States

 

 

 

North Dakota (a)

178

 

 

102

 

Offshore

91

 

 

87

 

Total United States

269

 

 

189

 

Malaysia and JDA

284

 

 

349

 

Denmark

5

 

 

6

 

Libya

2

 

 

12

 

Total

560

 

 

556

 

 

 

 

 

Barrels of oil equivalent

335

 

 

301

 

(a) Net production from the Bakken was 194,000 boepd in the first nine months of 2020 and 144,000 boepd in the first nine months of 2019.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Third
Quarter
2020

 

Third
Quarter
2019

 

Second
Quarter
2020

Sales Volumes Per Day (in thousands) (a)

 

 

 

 

 

Crude oil – barrels

164

 

 

169

 

 

140

 

Natural gas liquids – barrels

63

 

 

52

 

 

63

 

Natural gas – mcf

540

 

 

563

 

 

528

 

Barrels of oil equivalent

317

 

 

315

 

 

291

 

 

 

 

 

 

 

Sales Volumes (in thousands) (a)

 

 

 

 

 

Crude oil – barrels (b)

15,134

 

 

15,593

 

 

12,764

 

Natural gas liquids – barrels

5,768

 

 

4,756

 

 

5,690

 

Natural gas – mcf

49,674

 

 

51,782

 

 

48,081

 

Barrels of oil equivalent

29,181

 

 

28,979

 

 

26,468

 

 

Nine Months Ended
September 30,

 

2020

 

2019

Sales Volumes Per Day (in thousands) (a)

 

 

 

Crude oil – barrels

161

 

 

163

 

Natural gas liquids – barrels

60

 

 

45

 

Natural gas – mcf

560

 

 

556

 

Barrels of oil equivalent

314

 

 

301

 

 

 

 

 

Sales Volumes (in thousands) (a)

 

 

 

Crude oil – barrels (b)

43,950

 

 

44,594

 

Natural gas liquids – barrels

16,555

 

 

12,318

 

Natural gas – mcf

153,375

 

 

151,855

 

Barrels of oil equivalent

86,068

 

 

82,221

 

(a) Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.
(b) Crude oil loaded on VLCCs increased by a net 0.5 million barrels in the third quarter of 2020 and 3.7 million barrels in the second quarter of 2020.

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Third
Quarter
2020

 

Third
Quarter
2019

 

Second
Quarter
2020

Average Selling Prices

 

 

 

 

 

 

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

43.20

 

 

$

53.03

 

 

$

38.23

 

Offshore

48.56

 

 

58.72

 

 

39.10

 

Total United States

44.55

 

 

54.72

 

 

38.57

 

Guyana

52.60

 

 

 

 

35.28

 

Malaysia and JDA

42.59

 

 

58.55

 

 

15.62

 

Denmark

50.38

 

 

63.13

 

 

50.29

 

Libya

 

 

62.28

 

 

 

Worldwide

45.60

 

 

56.03

 

 

38.46

 

 

 

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

33.69

 

 

$

52.88

 

 

$

18.93

 

Offshore

38.39

 

 

58.56

 

 

22.78

 

Total United States

34.87

 

 

54.57

 

 

20.48

 

Guyana (a)

42.82

 

 

 

 

19.23

 

Malaysia and JDA

42.59

 

 

58.55

 

 

15.62

 

Denmark

44.38

 

 

63.13

 

 

29.16

 

Libya

 

 

62.28

 

 

 

Worldwide

36.17

 

 

55.91

 

 

20.63

 

 

 

 

 

 

 

Natural gas liquids - per barrel

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

11.68

 

 

$

9.55

 

 

$

7.59

 

Offshore

11.03

 

 

7.93

 

 

4.71

 

Worldwide

11.63

 

 

9.41

 

 

7.32

 

 

 

 

 

 

 

Natural gas - per mcf

 

 

 

 

 

United States

 

 

 

 

 

North Dakota

$

1.18

 

 

$

1.32

 

 

$

0.94

 

Offshore

1.13

 

 

1.89

 

 

1.14

 

Total United States

1.17

 

 

1.55

 

 

1.01

 

Malaysia and JDA

4.53

 

 

5.18

 

 

3.97

 

Denmark

2.87

 

 

3.74

 

 

3.51

 

Libya

 

 

5.11

 

 

 

Worldwide

2.94

 

 

3.81

 

 

2.41

 

(a) Hess Corporation sold its second and third allocated cargos of oil from the Liza Field in April and May 2020. The realized price for the second quarter of 2020 reflects the Brent benchmark prices used in the pricing formula at the time of sale in April and May.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION OPERATING DATA

 

 

Nine Months Ended
September 30,

 

2020

 

2019

Average Selling Prices

 

 

 

 

 

 

 

 

Crude oil - per barrel (including hedging)

 

 

 

United States

 

 

 

North Dakota

$

42.61

 

 

$

53.74

 

Offshore

45.60

 

 

60.12

 

Total United States

43.54

 

 

55.88

 

Guyana

44.35

 

 

 

Malaysia and JDA

38.02

 

 

61.55

 

Denmark

52.97

 

 

67.37

 

Libya

 

 

65.08

 

Worldwide

43.88

 

 

57.48

 

 

 

 

 

Crude oil - per barrel (excluding hedging)

 

 

 

United States

 

 

 

North Dakota

$

32.95

 

 

$

53.65

 

Offshore

35.64

 

 

60.03

 

Total United States

33.79

 

 

55.79

 

Guyana

33.10

 

 

 

Malaysia and JDA

38.02

 

 

61.55

 

Denmark

41.72

 

 

67.37

 

Libya

 

 

65.08

 

Worldwide

34.02

 

 

57.41

 

 

 

 

 

Natural gas liquids - per barrel

 

 

 

United States

 

 

 

North Dakota

$

9.57

 

 

$

12.96

 

Offshore

8.27

 

 

12.95

 

Worldwide

9.44

 

 

12.96

 

 

 

 

 

Natural gas - per mcf

 

 

 

United States

 

 

 

North Dakota

$

1.13

 

 

$

1.64

 

Offshore

1.21

 

 

2.21

 

Total United States

1.16

 

 

1.90

 

Malaysia and JDA

4.44

 

 

5.18

 

Denmark

3.44

 

 

3.84

 

Libya

4.90

 

 

5.32

 

Worldwide

2.85

 

 

4.06

 

 

The following is a summary of the Corporation’s outstanding crude oil put options for the remainder of 2020:

 

WTI

 

Brent

Barrels of oil per day

130,000

 

20,000

Average monthly floor price

$55

 

$60

 

For Hess Corporation

Investors:
Jay Wilson
(212) 536-8940

Media:
Lorrie Hecker
(212) 536-8250

Jamie Tully
Sard Verbinnen & Co
(312) 895-4700

Source: Hess Corporation

For Hess Corporation

Investors:
Jay Wilson
(212) 536-8940

Media:
Lorrie Hecker
(212) 536-8250

Jamie Tully
Sard Verbinnen & Co
(312) 895-4700