Exhibit 99.1
HESS CORPORATION
HESS REPORTS ESTIMATED RESULTS FOR THE SECOND QUARTER OF 2017
Second Quarter Highlights:
• | Second quarter 2017 pre-tax loss of $425 million reflects improved operating results compared to the pre-tax loss of $678 million in the year-ago quarter |
• | Net loss was $449 million, or $1.46 per common share, compared with a net loss of $392 million, or $1.29 per common share, in the second quarter of 2016, reflecting a lower effective tax rate in 2017 from the required change in deferred tax accounting |
• | Oil and gas production exceeded guidance; total production was 294,000 barrels of oil equivalent per day (boepd), excluding Libya; Bakken production was 108,000 boepd |
• | Sanctioned the first phase of development for the Liza Field, one of the industry’s largest oil discoveries of the past decade, located on the Stabroek Block offshore Guyana (Hess 30 percent); first oil expected by 2020 |
• | Successfully completed Liza-4 well; the recently announced Payara-2 well confirms a second giant oil field in Guyana and increases the Payara gross discovered recoverable resources to approximately 500 million barrels of oil equivalent (boe); gross discovered recoverable resources for the Stabroek Block now estimated between 2.25 billion and 2.75 billion boe (Hess 30 percent) |
• | Announced an agreement to sell our interests in enhanced oil recovery assets in the Permian Basin for total consideration of $600 million |
• | Hess Midstream Partners LP sold common units representing limited partner interests in an initial public offering for net proceeds of $365.5 million, of which $175 million was distributed to Hess Corporation |
• | E&P capital and exploratory expenditures were $528 million for the quarter and $921 million for the first half of 2017 |
• | Cash and cash equivalents were $2.5 billion at June 30, 2017; $2.7 billion at December 31, 2016 |
2017 Revised Full Year Guidance:
• | Net production guidance, excluding Libya, increased to 305,000 to 310,000 boepd, the upper end of previous guidance, even with the loss of 8,000 boepd of production associated with the sale of our enhanced oil recovery assets in the Permian Basin scheduled to close August 1st |
• | E&P capital and exploratory expenditures are projected to be $2.15 billion, down from original guidance of $2.25 billion |
NEW YORK, July 26, 2017 — Hess Corporation (NYSE: HES) today reported a net loss of $449 million, or $1.46 per common share, in the second quarter of 2017 compared with a net loss of
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$392 million, or $1.29 per common share, in the second quarter of 2016, reflecting a lower effective tax rate in 2017 from the required change in deferred tax accounting. Our loss before income taxes was $425 million in the second quarter of 2017, compared with a loss before income taxes of $678 million in the prior-year quarter. The improved second quarter 2017 pre-tax results reflect higher realized crude oil selling prices and lower operating costs and exploration expenses that were partially offset by lower sales volumes. On an adjusted basis, second quarter 2016 adjusted loss was $335 million, or $1.10 per common share.
“Our company delivered strong operational performance and achieved a number of major strategic milestones in the quarter,” Chief Executive Officer John Hess said. “We continue to take steps to reinforce our outstanding value-driven growth outlook and drive improving returns and lower capital and operating costs across our portfolio.”
After-tax income (loss) by major operating activity was as follows:
| | Three Months Ended | | | Six Months Ended | |
| | June 30, | | | June 30, | |
| | (unaudited) | | | (unaudited) | |
| | 2017 | | | 2016 | | | 2017 | | | 2016 | |
| | (In millions, except per share amounts) | |
Net Income (Loss) Attributable to Hess Corporation | | | | | | | | | | | | | | | | |
Exploration and Production | | $ | (354 | ) | | $ | (328 | ) | | $ | (587 | ) | | $ | (781 | ) |
Midstream | | | 16 | | | | 11 | | | | 34 | | | | 27 | |
Corporate, Interest and Other | | | (111 | ) | | | (75 | ) | | | (220 | ) | | | (147 | ) |
Net income (loss) attributable to Hess Corporation | | $ | (449 | ) | | $ | (392 | ) | | $ | (773 | ) | | $ | (901 | ) |
| | | | | | | | | | | | | | | | |
Net income (loss) per common share (diluted) (a) | | $ | (1.46 | ) | | $ | (1.29 | ) | | $ | (2.53 | ) | | $ | (3.00 | ) |
| | | | | | | | | | | | | | | | |
Adjusted Net Income (Loss) Attributable to Hess Corporation (b) | |
Exploration and Production | | $ | (354 | ) | | $ | (271 | ) | | $ | (587 | ) | | $ | (724 | ) |
Midstream | | | 16 | | | | 11 | | | | 34 | | | | 27 | |
Corporate, Interest and Other | | | (111 | ) | | | (75 | ) | | | (220 | ) | | | (147 | ) |
Adjusted net income (loss) attributable to Hess Corporation | | $ | (449 | ) | | $ | (335 | ) | | $ | (773 | ) | | $ | (844 | ) |
| | | | | | | | | | | | | | | | |
Adjusted net income (loss) per common share (diluted) (a) | | $ | (1.46 | ) | | $ | (1.10 | ) | | $ | (2.53 | ) | | $ | (2.81 | ) |
| | | | | | | | | | | | | | | | |
Weighted average number of shares (diluted) | | | 314.4 | | | | 313.2 | | | | 314.2 | | | | 306.5 | |
| (a) | Calculated as net income (loss) attributable to Hess Corporation less preferred stock dividends, divided by weighted average number of diluted shares. |
| (b) | Adjusted net income (loss) attributable to Hess Corporation excludes items affecting comparability summarized on page 5. A reconciliation of net income (loss) attributable to Hess Corporation to adjusted net income (loss) attributable to Hess Corporation is provided on page 6. |
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Exploration and Production:
The Exploration and Production net loss in the second quarter of 2017 was $354 million, compared to a net loss of $328 million in the second quarter of 2016. On an adjusted basis, second quarter 2016 net loss was $271 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $45.95 per barrel in the second quarter of 2017, up from $41.95 per barrel in the year-ago quarter. The average realized natural gas liquids selling price in the second quarter of 2017 was $14.85 per barrel, versus $9.03 per barrel in the prior-year quarter, while the average realized natural gas selling price was $3.19 per mcf, compared with $3.58 per mcf in the second quarter of 2016.
Net production, excluding Libya, was 294,000 boepd in the second quarter of 2017, compared to 313,000 boepd in the prior-year quarter. Lower volumes were due to a reduced drilling program across our portfolio, natural field declines, and planned shut-downs in the Gulf of Mexico. Net production in Libya, which recommenced in the fourth quarter of 2016, was 6,000 boepd in the second quarter of 2017.
Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $14.68 per boe in the second quarter, down 8 percent from $15.91 per boe in the prior-year quarter. Second quarter 2017 results included a charge of $15 million related to crude oil hedge ineffectiveness. The E&P effective tax rate, excluding Libya, was a benefit of 8 percent in the second quarter of 2017, down from a benefit of 47 percent, excluding special items, in the second quarter of 2016. Commencing in 2017, we do not recognize deferred tax benefit or expense in the U.S., Denmark (hydrocarbon tax only), and Malaysia until deferred tax assets are re-established in these jurisdictions. This financial reporting requirement has no cash flow or economic impact.
Operational Highlights for the Second Quarter of 2017:
Bakken (Onshore U.S.): Net production from the Bakken averaged 108,000 boepd, compared to 106,000 boepd in the prior-year quarter. The Corporation operated an average of four rigs in the second quarter, drilling 23 wells and bringing 13 new wells online.
Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 51,000 boepd, compared to 54,000 boepd in the prior-year quarter, primarily reflecting lower production as a result of planned shut-downs, partially offset by higher production at the Tubular Bells Field. At the Stampede development (Hess operated - 25 percent), the tension leg platform (TLP) was installed in the field
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and hook-up activities commenced. One well has been drilled and completed, and completion operations are underway on the second and third wells. First production from the field is expected in the first half of 2018.
North Malay Basin Full-field Development (Offshore Malaysia): At the North Malay Basin project (Hess operated - 50 percent), hook-up of the topsides for the central processing platform was completed in the quarter and first production of natural gas commenced in mid-July with commissioning activities ongoing. The field is expected to ramp up net production to approximately 165 million cubic feet per day during the third quarter.
Guyana (Offshore): At the Stabroek Block (Hess - 30 percent), operated by Esso Exploration and Production Guyana Limited, the partners sanctioned the first phase of the Liza Field development. This phase is expected to have a gross capital cost of approximately $3.2 billion for drilling and subsea infrastructure and will develop approximately 450 million barrels of oil, with first production expected by 2020. The Corporation’s net share of development costs is forecast to be approximately $955 million, of which $110 million is already included in our 2017 capital and exploratory budget. Of the remaining net development costs, approximately $250 million is expected in 2018 and approximately $330 million in 2019, with the balance expected in 2020 and 2021.
In June, the operator confirmed positive results from the Liza-4 well that encountered more than 197 feet of high-quality, oil-bearing sandstone reservoirs. On July 25th, the operator announced the successful Payara-2 well, which encountered 59 feet of high-quality, oil bearing sandstone reservoirs and confirms a second giant field containing gross discovered recoverable resources of approximately 500 million boe. Gross discovered recoverable resources for the Stabroek Block are now estimated to be 2.25 billion to 2.75 billion barrels of oil equivalent.
Midstream:
The Midstream segment, which is comprised primarily of our 50/50 midstream joint venture, Hess Infrastructure Partners (HIP), had net income of $16 million in the second quarter of 2017, compared to $11 million in the prior-year quarter.
In April, Hess Midstream Partners LP (the “Partnership”) successfully sold common units representing limited partner interests in an initial public offering for net proceeds of $365.5 million, of which $175 million was distributed to the Corporation. The Partnership owns an approximate 20 percent controlling interest in the operating assets that comprise HIP, while HIP retains ownership of
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the remaining 80 percent. The public unit holders own a 30.5 percent limited partner interest in the Partnership.
Capital and Exploratory Expenditures:
Exploration and Production capital and exploratory expenditures were $528 million in the second quarter of 2017, up from $484 million in the prior-year quarter, primarily reflecting increased drilling activity (Bakken, Stampede and Norway), partially offset by lower exploration activity and a reduction in development expenditures at North Malay Basin.
Liquidity:
Net cash provided by operating activities was $165 million in the second quarter of 2017, compared to $197 million in the second quarter of 2016. Net cash provided by operating activities before changes in working capital was $332 million in the second quarter of 2017, up from $257 million in the year-ago quarter. Changes in working capital during the second quarter of 2017 included non-recurring cash outflows totaling approximately $130 million related to crude oil provided to Dakota Access Pipeline as line fill, termination payments for an offshore drilling rig, premiums on crude oil hedging contracts, and prepayments for frac sand in North Dakota.
At June 30, 2017, the Corporation had cash and cash equivalents of $2,492 million and total debt, excluding the Midstream segment, of $6,035 million. The Corporation’s debt to capitalization ratio was 30.9 percent at June 30, 2017 and 30.4 percent at December 31, 2016.
In August, the Corporation expects to complete the sale of its enhanced oil recovery assets in the Permian Basin for total consideration of $600 million.
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 | | | Six Months Ended | |
| | June 30, | | | June 30, | |
| | (unaudited) | | | (unaudited) | |
| | 2017 | | | 2016 | | | 2017 | | | 2016 | |
| | (In millions) | |
Exploration and Production | | $ | — | | | $ | (57 | ) | | $ | — | | | $ | (57 | ) |
Midstream | | | — | | | | — | | | | — | | | | — | |
Corporate, Interest and Other | | | — | | | | — | | | | — | | | | — | |
Total items affecting comparability of earnings between periods | | $ | — | | | $ | (57 | ) | | $ | — | | | $ | (57 | ) |
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Second quarter 2016 Exploration and Production results included after-tax charges totaling $74 million ($119 million pre-tax) associated with dry-hole costs for a well completed in the prior year and termination of a drilling rig contract, partially offset by an after-tax gain of $17 million ($27 million pre-tax) related to the sale of undeveloped acreage, onshore United States.
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 | | | Six Months Ended | |
| | June 30, | | | June 30, | |
| | (unaudited) | | | (unaudited) | |
| | 2017 | | | 2016 | | | 2017 | | | 2016 | |
| | (In millions) | |
Net income (loss) attributable to Hess Corporation | | $ | (449 | ) | | $ | (392 | ) | | $ | (773 | ) | | $ | (901 | ) |
Less: Total items affecting comparability of earnings between periods | | | — | | | | (57 | ) | | | — | | | | (57 | ) |
Adjusted net income (loss) attributable to Hess Corporation | | $ | (449 | ) | | $ | (335 | ) | | $ | (773 | ) | | $ | (844 | ) |
The following table reconciles reported net cash provided by (used in) operating activities to cash provided by operating activities before changes in operating assets and liabilities:
| | Three Months Ended | | | Six Months Ended | |
| | June 30, | | | June 30, | |
| | (unaudited) | | | (unaudited) | |
| | 2017 | | | 2016 | | | 2017 | | | 2016 | |
| | (In millions) | |
Cash provided by operating activities before changes in operating assets and liabilities | | $ | 332 | | | $ | 257 | | | $ | 775 | | | $ | 405 | |
Changes in operating assets and liabilities | | | (167 | ) | | | (60 | ) | | | (261 | ) | | | (268 | ) |
Net cash provided by (used in) operating activities | | $ | 165 | | | $ | 197 | | | $ | 514 | | | $ | 137 | |
Hess Corporation will review second quarter financial and operating results and other matters on a webcast at 10 a.m. today. 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.
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Forward-looking Statements
Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data. Estimates and projections contained in this release are based on the Corporation’s current understanding and assessment based on reasonable assumptions. Actual results may differ materially from these estimates and projections due to certain risk factors discussed in the Corporation’s periodic filings with the Securities and Exchange Commission and other factors.
Non-GAAP financial measure
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 operating activities before changes in operating assets and liabilities” is defined as Cash provided by 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 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) as well as a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by 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’ Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.
For Hess Corporation
Investor Contact:
Jay Wilson
(212) 536-8940
Media Contact:
Michael Henson/Patrick Scanlan
Sard Verbinnen & Co
(212) 687-8080
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| | Second | | | Second | | | First | |
| | Quarter | | | Quarter | | | Quarter | |
| | 2017 | | | 2016 | | | 2017 | |
Income Statement | | | | | | | | | | | | |
| | | | | | | | | | | | |
Revenues and non-operating income | | | | | | | | | | | | |
Sales and other operating revenues | | $ | 1,216 | | | $ | 1,224 | | | $ | 1,277 | |
Other, net | | | 12 | | | | 45 | | | | (2 | ) |
Total revenues and non-operating income | | | 1,228 | | | | 1,269 | | | | 1,275 | |
| | | | | | | | | | | | |
Costs and expenses | | | | | | | | | | | | |
Cost of products sold (excluding items shown separately below) | | | 272 | | | | 277 | | | | 219 | |
Operating costs and expenses | | | 375 | | | | 455 | | | | 359 | |
Production and severance taxes | | | 30 | | | | 28 | | | | 31 | |
Exploration expenses, including dry holes and lease impairment | | | 53 | | | | 199 | | | | 58 | |
General and administrative expenses | | | 100 | | | | 106 | | | | 96 | |
Interest expense | | | 82 | | | | 85 | | | | 84 | |
Depreciation, depletion and amortization | | | 741 | | | | 797 | | | | 737 | |
Total costs and expenses | | | 1,653 | | | | 1,947 | | | | 1,584 | |
| | | | | | | | | | | | |
Income (loss) before income taxes | | | (425 | ) | | | (678 | ) | | | (309 | ) |
Provision (benefit) for income taxes | | | (8 | ) | | | (305 | ) | | | (13 | ) |
Net income (loss) | | | (417 | ) | | | (373 | ) | | | (296 | ) |
Less: Net income (loss) attributable to noncontrolling interests | | | 32 | | | | 19 | | | | 28 | |
Net income (loss) attributable to Hess Corporation | | | (449 | ) | | | (392 | ) | | | (324 | ) |
| | | | | | | | | | | | |
Less: Preferred stock dividends | | | 11 | | | | 12 | | | | 12 | |
Net income (loss) applicable to Hess Corporation common stockholders | | $ | (460 | ) | | $ | (404 | ) | | $ | (336 | ) |
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| | Six Months Ended June 30, | |
| | 2017 | | | 2016 | |
Income Statement | | | | | | | | |
| | | | | | | | |
Revenues and non-operating income | | | | | | | | |
Sales and other operating revenues | | $ | 2,493 | | | $ | 2,197 | |
Other, net | | | 10 | | | | 65 | |
Total revenues and non-operating income | | | 2,503 | | | | 2,262 | |
| | | | | | | | |
Costs and expenses | | | | | | | | |
Cost of products sold (excluding items shown separately below) | | | 491 | | | | 466 | |
Operating costs and expenses | | | 734 | | | | 891 | |
Production and severance taxes | | | 61 | | | | 47 | |
Exploration expenses, including dry holes and lease impairment | | | 111 | | | | 331 | |
General and administrative expenses | | | 196 | | | | 204 | |
Interest expense | | | 166 | | | | 170 | |
Depreciation, depletion and amortization | | | 1,478 | | | | 1,665 | |
Total costs and expenses | | | 3,237 | | | | 3,774 | |
| | | | | | | | |
Income (loss) before income taxes | | | (734 | ) | | | (1,512 | ) |
Provision (benefit) for income taxes | | | (21 | ) | | | (651 | ) |
Net income (loss) | | | (713 | ) | | | (861 | ) |
Less: Net income (loss) attributable to noncontrolling interests | | | 60 | | | | 40 | |
Net income (loss) attributable to Hess Corporation | | | (773 | ) | | | (901 | ) |
| | | | | | | | |
Less: Preferred stock dividends | | | 23 | | | | 18 | |
Net income (loss) applicable to Hess Corporation common stockholders | | $ | (796 | ) | | $ | (919 | ) |
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| | June 30, | | | December 31, | |
| | 2017 | | | 2016 | |
Balance Sheet Information | | | | | | | | |
| | | | | | | | |
Cash and cash equivalents | | $ | 2,492 | | | $ | 2,732 | |
Other current assets | | | 1,778 | | | | 1,544 | |
Property, plant and equipment – net | | | 22,793 | | | | 23,595 | |
Other long-term assets | | | 735 | | | | 750 | |
Total assets | | $ | 27,798 | | | $ | 28,621 | |
| | | | | | | | |
Current maturities of long-term debt | | $ | 121 | | | $ | 112 | |
Other current liabilities | | | 1,997 | | | | 2,139 | |
Long-term debt | | | 6,612 | | | | 6,694 | |
Other long-term liabilities | | | 3,990 | | | | 4,085 | |
Total equity excluding other comprehensive income (loss) | | | 15,298 | | | | 16,238 | |
Accumulated other comprehensive income (loss) | | | (1,518 | ) | | | (1,704 | ) |
Noncontrolling interests | | | 1,298 | | | | 1,057 | |
Total liabilities and equity | | $ | 27,798 | | | $ | 28,621 | |
| | June 30, | | | December 31, | |
| | 2017 | | | 2016 | |
Total Debt | | | | | | | | |
| | | | | | | | |
Hess | | $ | 6,035 | | | $ | 6,073 | |
Midstream (a) | | | 698 | | | | 733 | |
Hess Consolidated | | $ | 6,733 | | | $ | 6,806 | |
(a) Midstream debt is non-recourse to Hess Corporation.
| | June 30, | | | December 31, | |
| | 2017 | | | 2016 | |
Debt to Capitalization Ratio | | | | | | | | |
| | | | | | | | |
Hess Consolidated | | | 30.9 | % | | | 30.4 | % |
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| | Second | | | Second | | | First | |
| | Quarter | | | Quarter | | | Quarter | |
| | 2017 | | | 2016 | | | 2017 | |
Cash Flow Information | | | | | | | | | | | | |
| | | | | | | | | | | | |
Cash Flows from Operating Activities | | | | | | | | | | | | |
Net income (loss) | | $ | (417 | ) | | $ | (373 | ) | | $ | (296 | ) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | | | | | | | | | | | | |
(Gains) losses on asset sales, net | | | — | | | | (27 | ) | | | — | |
Depreciation, depletion and amortization | | | 741 | | | | 797 | | | | 737 | |
Exploratory dry hole costs | | | — | | | | 133 | | | | — | |
Exploration lease and other impairment | | | 8 | | | | 15 | | | | 7 | |
Stock compensation expense | | | 22 | | | | 22 | | | | 22 | |
Provision (benefit) for deferred income taxes and other tax accruals | | | (22 | ) | | | (310 | ) | | | (27 | ) |
Cash provided by operating activities before changes in operating assets and liabilities | | | 332 | | | | 257 | | | | 443 | |
Changes in operating assets and liabilities | | | (167 | ) | | | (60 | ) | | | (94 | ) |
Net cash provided by (used in) operating activities | | | 165 | | | | 197 | | | | 349 | |
| | | | | | | | | | | | |
Cash Flows from Investing Activities | | | | | | | | | | | | |
Additions to property, plant and equipment - E&P | | | (446 | ) | | | (547 | ) | | | (340 | ) |
Additions to property, plant and equipment - Midstream | | | (34 | ) | | | (68 | ) | | | (50 | ) |
Proceeds from asset sales | | | 79 | | | | 80 | | | | 100 | |
Other, net | | | — | | | | 8 | | | | — | |
Net cash provided by (used in) investing activities | | | (401 | ) | | | (527 | ) | | | (290 | ) |
| | | | | | | | | | | | |
Cash Flows from Financing Activities | | | | | | | | | | | | |
Net borrowings (repayments) of debt with maturities of 90 days or less | | | (1 | ) | | | (25 | ) | | | 5 | |
Debt with maturities of greater than 90 days | | | | | | | | | | | | |
Borrowings | | | — | | | | — | | | | — | |
Repayments | | | (51 | ) | | | (18 | ) | | | (26 | ) |
Proceeds from issuance of Hess Midstream Partnership units | | | 366 | | | | — | | | | — | |
Cash dividends paid | | | (90 | ) | | | (89 | ) | | | (92 | ) |
Noncontrolling interests, net | | | (175 | ) | | | — | | | | — | |
Other, net | | | (7 | ) | | | — | | | | 8 | |
Net cash provided by (used in) financing activities | | | 42 | | | | (132 | ) | | | (105 | ) |
| | | | | | | | | | | | |
Net Increase (Decrease) in Cash and Cash Equivalents | | | (194 | ) | | | (462 | ) | | | (46 | ) |
Cash and Cash Equivalents at Beginning of Period | | | 2,686 | | | | 3,557 | | | | 2,732 | |
Cash and Cash Equivalents at End of Period | | $ | 2,492 | | | $ | 3,095 | | | $ | 2,686 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Additions to Property, Plant and Equipment included within Investing Activities: | | | | | | | | | | | | |
Capital expenditures incurred | | $ | (503 | ) | | $ | (501 | ) | | $ | (370 | ) |
Increase (decrease) in related liabilities | | | 23 | | | | (114 | ) | | | (20 | ) |
Additions to property, plant and equipment | | $ | (480 | ) | | $ | (615 | ) | | $ | (390 | ) |
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| | Six Months Ended June 30, | |
| | 2017 | | | 2016 | |
Cash Flow Information | | | |
| | | | | | | | |
Cash flows From Operating Activities | | | | | | | | |
Net income (loss) | | $ | (713 | ) | | $ | (861 | ) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | | | | | | | | |
(Gains) losses on asset sales, net | | | — | | | | (27 | ) |
Depreciation, depletion and amortization | | | 1,478 | | | | 1,665 | |
Exploratory dry hole costs | | | — | | | | 218 | |
Exploration lease and other impairment | | | 15 | | | | 24 | |
Stock compensation expense | | | 44 | | | | 47 | |
Provision (benefit) for deferred income taxes and other tax accruals | | | (49 | ) | | | (661 | ) |
Cash provided by operating activities before changes in operating assets and liabilities | | | 775 | | | | 405 | |
Changes in operating assets and liabilities | | | (261 | ) | | | (268 | ) |
Net cash provided by (used in) operating activities | | | 514 | | | | 137 | |
| | | | | | | | |
Cash Flows from Investing Activities | | | | | | | | |
Additions to property, plant and equipment - E&P | | | (786 | ) | | | (1,114 | ) |
Additions to property, plant and equipment - Midstream | | | (84 | ) | | | (121 | ) |
Proceeds from asset sales | | | 179 | | | | 80 | |
Other, net | | | — | | | | 15 | |
Net cash provided by (used in) investing activities | | | (691 | ) | | | (1,140 | ) |
| | | | | | | | |
Cash Flows from Financing Activities | | | | | | | | |
Net borrowings (repayments) of debt with maturities of 90 days or less | | | 4 | | | | (20 | ) |
Debt with maturities of greater than 90 days | | | | | | | | |
Borrowings | | | — | | | | — | |
Repayments | | | (77 | ) | | | (35 | ) |
Proceeds from issuance of Hess Midstream Partnership units | | | 366 | | | | — | |
Proceeds from issuance of preferred stock | | | — | | | | 557 | |
Proceeds from issuance of common stock | | | — | | | | 1,087 | |
Cash dividends paid | | | (182 | ) | | | (169 | ) |
Noncontrolling interests, net | | | (175 | ) | | | — | |
Other, net | | | 1 | | | | (38 | ) |
Net cash provided by (used in) financing activities | | | (63 | ) | | | 1,382 | |
| | | | | | | | |
Net Increase (Decrease) in Cash and Cash Equivalents | | | (240 | ) | | | 379 | |
Cash and Cash Equivalents at Beginning of Year | | | 2,732 | | | | 2,716 | |
Cash and Cash Equivalents at End of Period | | $ | 2,492 | | | $ | 3,095 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Additions to Property, Plant and Equipment included within Investing Activities: | | | | | | | | |
Capital expenditures incurred | | $ | (873 | ) | | $ | (1,041 | ) |
Increase (decrease) in related liabilities | | | 3 | | | | (194 | ) |
Additions to property, plant and equipment | | $ | (870 | ) | | $ | (1,235 | ) |
12
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
| | Second | | | Second | | | First | |
| | Quarter | | | Quarter | | | Quarter | |
| | 2017 | | | 2016 | | | 2017 | |
Capital and Exploratory Expenditures | | | | | | | | | | | | |
| | | | | | | | | | | | |
E&P Capital and exploratory expenditures | | | | | | | | | | | | |
United States | | | | | | | | | | | | |
Bakken | | $ | 148 | | | $ | 88 | | | $ | 90 | |
Other Onshore | | | 9 | | | | 21 | | | | 8 | |
Total Onshore | | | 157 | | | | 109 | | | | 98 | |
Offshore | | | 191 | | | | 168 | | | | 158 | |
Total United States | | | 348 | | | | 277 | | | | 256 | |
Europe | | | 42 | | | | 14 | | | | 15 | |
Africa | | | 11 | | | | — | | | | 6 | |
Asia and other | | | 127 | | | | 193 | | | | 116 | |
E&P Capital and exploratory expenditures | | $ | 528 | | | $ | 484 | | | $ | 393 | |
| | | | | | | | | | | | |
Total exploration expenses charged to income included above | | $ | 45 | | | $ | 51 | | | $ | 51 | |
| | | | | | | | | | | | |
Midstream Capital expenditures | | $ | 20 | | | $ | 68 | | | $ | 28 | |
| | | | | | | | | | | | |
| | Six Months Ended June 30, | |
| | 2017 | | | 2016 | |
Capital and Exploratory Expenditures | | | | | | | | |
| | | | | | | | |
E&P Capital and exploratory expenditures | | | | | | | | |
United States | | | | | | | | |
Bakken | | $ | 238 | | | $ | 204 | |
Other Onshore | | | 17 | | | | 42 | |
Total Onshore | | | 255 | | | | 246 | |
Offshore | | | 349 | | | | 373 | |
Total United States | | | 604 | | | | 619 | |
Europe | | | 57 | | | | 62 | |
Africa | | | 17 | | | | 3 | |
Asia and other | | | 243 | | | | 343 | |
E&P Capital and exploratory expenditures | | $ | 921 | | | $ | 1,027 | |
| | | | | | | | |
Total exploration expenses charged to income included above | | $ | 96 | | | $ | 90 | |
| | | | | | | | |
Midstream Capital expenditures | | $ | 48 | | | $ | 104 | |
13
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
| | Second Quarter 2017 | |
Income Statement | | United States | | | International | | | Total | |
| | | | | | | | | | | | |
Total revenues and non-operating income | | | | | | | | | | | | |
Sales and other operating revenues | | $ | 837 | | | $ | 376 | | | $ | 1,213 | |
Other, net | | | (5 | ) | | | 11 | | | | 6 | |
Total revenues and non-operating income | | | 832 | | | | 387 | | | | 1,219 | |
| | | | | | | | | | | | |
Costs and expenses | | | | | | | | | | | | |
Cost of products sold (excluding items shown separately below) (a) | | | 283 | | | | 8 | | | | 291 | |
Operating costs and expenses | | | 171 | | | | 146 | | | | 317 | |
Production and severance taxes | | | 29 | | | | 1 | | | | 30 | |
Midstream tariffs | | | 135 | | | | — | | | | 135 | |
Exploration expenses, including dry holes and lease impairment | | | 29 | | | | 24 | | | | 53 | |
General and administrative expenses | | | 50 | | | | 3 | | | | 53 | |
Depreciation, depletion and amortization | | | 484 | | | | 224 | | | | 708 | |
Total costs and expenses | | | 1,181 | | | | 406 | | | | 1,587 | |
| | | | | | | | | | | | |
Results of operations before income taxes | | | (349 | ) | | | (19 | ) | | | (368 | ) |
Provision (benefit) for income taxes | | | (9 | ) | | | (5 | ) | | | (14 | ) |
Net income (loss) attributable to Hess Corporation | | $ | (340 | ) | (b) | $ | (14 | ) | (c) | $ | (354 | ) |
| | | | | | | | | | | | |
| | Second Quarter 2016 | |
Income Statement | | United States | | | International | | | Total | |
| | | | | | | | | | | | |
Total revenues and non-operating income | | | | | | | | | | | | |
Sales and other operating revenues | | $ | 750 | | | $ | 472 | | | $ | 1,222 | |
Other, net | | | 22 | | | | 15 | | | | 37 | |
Total revenues and non-operating income | | | 772 | | | | 487 | | | | 1,259 | |
| | | | | | | | | | | | |
Costs and expenses | | | | | | | | | | | | |
Cost of products sold (excluding items shown separately below) (a) | | | 238 | | | | 57 | | | | 295 | |
Operating costs and expenses | | | 221 | | | | 179 | | | | 400 | |
Production and severance taxes | | | 27 | | | | 1 | | | | 28 | |
Midstream tariffs | | | 113 | | | | — | | | | 113 | |
Exploration expenses, including dry holes and lease impairment | | | 164 | | | | 35 | | | | 199 | |
General and administrative expenses | | | 54 | | | | 6 | | | | 60 | |
Depreciation, depletion and amortization | | | 492 | | | | 273 | | | | 765 | |
Total costs and expenses | | | 1,309 | | | | 551 | | | | 1,860 | |
| | | | | | | | | | | | |
Results of operations before income taxes | | | (537 | ) | | | (64 | ) | | | (601 | ) |
Provision (benefit) for income taxes | | | (203 | ) | | | (70 | ) | | | (273 | ) |
Net income (loss) attributable to Hess Corporation | | $ | (334 | ) | | $ | 6 | | | $ | (328 | ) |
(a) Includes amounts charged from the Midstream.
(b) After-tax results from crude oil hedging activities amounted to realized gains of $1 million and unrealized losses of $7 million. (c) After-tax results from crude oil hedging activities amounted to realized gains of $3 million and unrealized losses of $8 million. |
14
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
| | First Quarter 2017 | |
Income Statement | | United States | | | International | | | Total | |
| | | | | | | | | | | | |
Total revenues and non-operating income | | | | | | | | | | | | |
Sales and other operating revenues | | $ | 922 | | | $ | 353 | | | $ | 1,275 | |
Other, net | | | (5 | ) | | | — | | | | (5 | ) |
Total revenues and non-operating income | | | 917 | | | | 353 | | | | 1,270 | |
| | | | | | | | | | | | |
Costs and expenses | | | | | | | | | | | | |
Cost of products sold (excluding items shown separately below) (a) | | | 295 | | | | (53 | ) | | | 242 | |
Operating costs and expenses | | | 174 | | | | 135 | | | | 309 | |
Production and severance taxes | | | 31 | | | | — | | | | 31 | |
Midstream tariffs | | | 124 | | | | — | | | | 124 | |
Exploration expenses, including dry holes and lease impairment | | | 22 | | | | 36 | | | | 58 | |
General and administrative expenses | | | 51 | | | | 5 | | | | 56 | |
Depreciation, depletion and amortization | | | 445 | | | | 258 | | | | 703 | |
Total costs and expenses | | | 1,142 | | | | 381 | | | | 1,523 | |
| | | | | | | | | | | | |
Results of operations before income taxes | | | (225 | ) | | | (28 | ) | | | (253 | ) |
Provision (benefit) for income taxes | | | (14 | ) | | | (6 | ) | | | (20 | ) |
Net income (loss) attributable to Hess Corporation | | $ | (211 | ) | | $ | (22 | ) | (b) | $ | (233 | ) |
(a) Includes amounts charged from the Midstream.
(b) After-tax results from crude oil hedging activities amounted to realized losses of $1 million and unrealized gains of $1 million.
15
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
| | Six Months Ended June 30, 2017 | |
Income Statement | | United States | | | International | | | Total | |
| | | | | | | | | | | | |
Total revenues and non-operating income | | | | | | | | | | | | |
Sales and other operating revenues | | $ | 1,759 | | | $ | 729 | | | $ | 2,488 | |
Other, net | | | (10 | ) | | | 11 | | | | 1 | |
Total revenues and non-operating income | | | 1,749 | | | | 740 | | | | 2,489 | |
| | | | | | | | | | | | |
Costs and expenses | | | | | | | | | | | | |
Cost of products sold (excluding items shown separately below) (a) | | | 578 | | | | (45 | ) | | | 533 | |
Operating costs and expenses | | | 345 | | | | 281 | | | | 626 | |
Production and severance taxes | | | 60 | | | | 1 | | | | 61 | |
Midstream tariffs | | | 259 | | | | — | | | | 259 | |
Exploration expenses, including dry holes and lease impairment | | | 51 | | | | 60 | | | | 111 | |
General and administrative expenses | | | 101 | | | | 8 | | | | 109 | |
Depreciation, depletion and amortization | | | 929 | | | | 482 | | | | 1,411 | |
Total costs and expenses | | | 2,323 | | | | 787 | | | | 3,110 | |
| | | | | | | | | | | | |
Results of operations before income taxes | | | (574 | ) | | | (47 | ) | | | (621 | ) |
Provision (benefit) for income taxes | | | (23 | ) | | | (11 | ) | | | (34 | ) |
Net income (loss) attributable to Hess Corporation | | $ | (551 | ) | (b) | $ | (36 | ) | (c) | $ | (587 | ) |
| | | | | | | | | | | | |
| | Six Months Ended June 30, 2016 | |
Income Statement | | United States | | | International | | | Total | |
| | | | | | | | | | | | |
Total revenues and non-operating income | | | | | | | | | | | | |
Sales and other operating revenues | | $ | 1,347 | | | $ | 846 | | | $ | 2,193 | |
Other, net | | | 28 | | | | 19 | | | | 47 | |
Total revenues and non-operating income | | | 1,375 | | | | 865 | | | | 2,240 | |
| | | | | | | | | | | | |
Costs and expenses | | | | | | | | | | | | |
Cost of products sold (excluding items shown separately below) (a) | | | 430 | | | | 69 | | | | 499 | |
Operating costs and expenses | | | 435 | | | | 349 | | | | 784 | |
Production and severance taxes | | | 44 | | | | 3 | | | | 47 | |
Midstream tariffs | | | 231 | | | | — | | | | 231 | |
Exploration expenses, including dry holes and lease impairment | | | 272 | | | | 59 | | | | 331 | |
General and administrative expenses | | | 104 | | | | 11 | | | | 115 | |
Depreciation, depletion and amortization | | | 1,024 | | | | 578 | | | | 1,602 | |
Total costs and expenses | | | 2,540 | | | | 1,069 | | | | 3,609 | |
| | | | | | | | | | | | |
Results of operations before income taxes | | | (1,165 | ) | | | (204 | ) | | | (1,369 | ) |
Provision (benefit) for income taxes | | | (445 | ) | | | (143 | ) | | | (588 | ) |
Net income (loss) attributable to Hess Corporation | | $ | (720 | ) | | $ | (61 | ) | | $ | (781 | ) |
(a) Includes amounts charged from the Midstream.
(b) After-tax results from crude oil hedging activities amounted to realized gains of $1 million and unrealized losses of $7 million. (c) After-tax results from crude oil hedging activities amounted to realized gains of $2 million and unrealized losses of $7 million. |
16
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA
| | Second | | | Second | | | First | |
| | Quarter | | | Quarter | | | Quarter | |
| | 2017 | | | 2016 | | | 2017 | |
Net Production Per Day (in thousands) | | | | | | | | | | | | |
| | | | | | | | | | | | |
Crude oil - barrels | | | | | | | | | | | | |
United States | | | | | | | | | | | | |
Bakken | | | 68 | | | | 69 | | | | 67 | |
Other Onshore | | | 9 | | | | 8 | | | | 8 | |
Total Onshore | | | 77 | | | | 77 | | | | 75 | |
Offshore | | | 38 | | | | 41 | | | | 47 | |
Total United States | | | 115 | | | | 118 | | | | 122 | |
| | | | | | | | | | | | |
Europe | | | 28 | | | | 26 | | | | 31 | |
Africa (a) | | | 32 | | | | 33 | | | | 35 | |
Asia | | | 2 | | | | 2 | | | | 2 | |
Total | | | 177 | | | | 179 | | | | 190 | |
| | | | | | | | | | | | |
Natural gas liquids - barrels | | | | | | | | | | | | |
United States | | | | | | | | | | | | |
Bakken | | | 29 | | | | 27 | | | | 23 | |
Other Onshore | | | 8 | | | | 12 | | | | 10 | |
Total Onshore | | | 37 | | | | 39 | | | | 33 | |
Offshore | | | 4 | | | | 4 | | | | 6 | |
Total United States | | | 41 | | | | 43 | | | | 39 | |
| | | | | | | | | | | | |
Europe | | | 1 | | | | 1 | | | | 1 | |
Total | | | 42 | | | | 44 | | | | 40 | |
| | | | | | | | | | | | |
Natural gas - mcf | | | | | | | | | | | | |
United States | | | | | | | | | | | | |
Bakken | | | 66 | | | | 59 | | | | 53 | |
Other Onshore | | | 99 | | | | 134 | | | | 106 | |
Total Onshore | | | 165 | | | | 193 | | | | 159 | |
Offshore | | | 51 | | | | 52 | | | | 75 | |
Total United States | | | 216 | | | | 245 | | | | 234 | |
| | | | | | | | | | | | |
Europe | | | 33 | | | | 40 | | | | 38 | |
Asia | | | 238 | | | | 254 | | | | 212 | |
Total | | | 487 | | | | 539 | | | | 484 | |
| | | | | | | | | | | | |
Barrels of oil equivalent | | | 300 | | | | 313 | | | | 311 | |
(a) Production from Libya recommenced in the fourth quarter of 2016. Production was 6,000 barrels of oil per day (bopd) in the second quarter of 2017 and 4,000 bopd in the first quarter of 2017.
17
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA
| | Six Months Ended June 30, | |
| | 2017 | | | 2016 | |
Net Production Per Day (in thousands) | | | | | | | | |
| | | | | | | | |
Crude oil - barrels | | | | | | | | |
United States | | | | | | | | |
Bakken | | | 68 | | | | 71 | |
Other Onshore | | | 8 | | | | 9 | |
Total Onshore | | | 76 | | | | 80 | |
Offshore | | | 43 | | | | 46 | |
Total United States | | | 119 | | | | 126 | |
| | | | | | | | |
Europe | | | 30 | | | | 30 | |
Africa (a) | | | 33 | | | | 35 | |
Asia | | | 2 | | | | 2 | |
Total | | | 184 | | | | 193 | |
| | | | | | | | |
Natural gas liquids - barrels | | | | | | | | |
United States | | | | | | | | |
Bakken | | | 26 | | | | 27 | |
Other Onshore | | | 9 | | | | 12 | |
Total Onshore | | | 35 | | | | 39 | |
Offshore | | | 5 | | | | 5 | |
Total United States | | | 40 | | | | 44 | |
| | | | | | | | |
Europe | | | 1 | | | | 1 | |
Total | | | 41 | | | | 45 | |
| | | | | | | | |
Natural gas - mcf | | | | | | | | |
United States | | | | | | | | |
Bakken | | | 59 | | | | 63 | |
Other Onshore | | | 103 | | | | 134 | |
Total Onshore | | | 162 | | | | 197 | |
Offshore | | | 63 | | | | 63 | |
Total United States | | | 225 | | | | 260 | |
| | | | | | | | |
Europe | | | 36 | | | | 43 | |
Asia | | | 225 | | | | 252 | |
Total | | | 486 | | | | 555 | |
| | | | | | | | |
Barrels of oil equivalent | | | 306 | | | | 331 | |
(a) Production from Libya recommenced in the fourth quarter of 2016. Production was 5,000 bopd in the first six months of 2017.
18
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA
| | Second | | | Second | | | First | |
| | Quarter | | | Quarter | | | Quarter | |
| | 2017 | | | 2016 | | | 2017 | |
Sales Volumes Per Day (in thousands) | | | | | | | | | | | | |
| | | | | | | | | | | | |
Crude oil - barrels | | | 174 | | | | 198 | | | | 175 | |
Natural gas liquids - barrels | | | 42 | | | | 44 | | | | 40 | |
Natural gas - mcf | | | 487 | | | | 539 | | | | 484 | |
Barrels of oil equivalent | | | 297 | | | | 332 | | | | 296 | |
| | | | | | | | | | | | |
Sales Volumes (in thousands) | | | | | | | | | | | | |
| | | | | | | | | | | | |
Crude oil - barrels | | | 15,757 | | | | 18,053 | | | | 15,744 | |
Natural gas liquids - barrels | | | 3,848 | | | | 3,968 | | | | 3,623 | |
Natural gas - mcf | | | 44,390 | | | | 48,998 | | | | 43,544 | |
Barrels of oil equivalent | | | 27,003 | | | | 30,187 | | | | 26,624 | |
| | Six Months Ended June 30, | |
| | 2017 | | | 2016 | |
Sales Volumes Per Day (in thousands) | | | | | | | | |
| | | | | | | | |
Crude oil - barrels | | | 174 | | | | 206 | |
Natural gas liquids - barrels | | | 41 | | | | 45 | |
Natural gas - mcf | | | 486 | | | | 555 | |
Barrels of oil equivalent | | | 296 | | | | 344 | |
| | | | | | | | |
Sales Volumes (in thousands) | | | | | | | | |
| | | | | | | | |
Crude oil - barrels | | | 31,501 | | | | 37,502 | |
Natural gas liquids - barrels | | | 7,471 | | | | 8,222 | |
Natural gas - mcf | | | 87,934 | | | | 100,968 | |
Barrels of oil equivalent | | | 53,628 | | | | 62,552 | |
19
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA
| | Second | | | Second | | | First | |
| | Quarter | | | Quarter | | | Quarter | |
| | 2017 | | | 2016 | | | 2017 | |
Average Selling Prices | | | | | | | | | | | | |
| | | | | | | | | | | | |
Crude oil - per barrel (including hedging) | | | | | | | | | | | | |
United States | | | | | | | | | | | | |
Onshore | | $ | 43.83 | | | $ | 39.96 | | | $ | 46.47 | |
Offshore | | | 44.60 | | | | 40.15 | | | | 47.18 | |
Total United States | | | 44.09 | | | | 40.02 | | | | 46.74 | |
Europe | | | 50.27 | | | | 45.28 | | | | 54.04 | |
Africa | | | 48.81 | | | | 44.66 | | | | 51.25 | |
Asia | | | 41.95 | | | | 38.96 | | | | 54.70 | |
Worldwide | | | 45.95 | | | | 41.95 | | | | 48.58 | |
| | | | | | | | | | | | |
Crude oil - per barrel (excluding hedging) | | | | | | | | | | | | |
United States | | | | | | | | | | | | |
Onshore | | $ | 43.72 | | | $ | 39.96 | | | $ | 46.47 | |
Offshore | | | 44.60 | | | | 40.15 | | | | 47.18 | |
Total United States | | | 44.01 | | | | 40.02 | | | | 46.74 | |
Europe | | | 49.72 | | | | 45.28 | | | | 54.18 | |
Africa | | | 48.40 | | | | 44.66 | | | | 51.37 | |
Asia | | | 41.95 | | | | 38.96 | | | | 54.70 | |
Worldwide | | | 45.74 | | | | 41.95 | | | | 48.61 | |
| | | | | | | | | | | | |
Natural gas liquids - per barrel | | | | | | | | | | | | |
United States | | | | | | | | | | | | |
Onshore | | $ | 14.25 | | | $ | 8.34 | | | $ | 18.07 | |
Offshore | | | 18.47 | | | | 13.52 | | | | 20.55 | |
Total United States | | | 14.64 | | | | 8.84 | | | | 18.43 | |
Europe | | | 23.95 | | | | 19.23 | | | | 28.06 | |
Worldwide | | | 14.85 | | | | 9.03 | | | | 18.71 | |
| | | | | | | | | | | | |
Natural gas - per mcf | | | | | | | | | | | | |
United States | | | | | | | | | | | | |
Onshore | | $ | 2.20 | | | $ | 1.30 | | | $ | 2.32 | |
Offshore | | | 2.29 | | | | 1.50 | | | | 2.40 | |
Total United States | | | 2.22 | | | | 1.34 | | | | 2.35 | |
Europe | | | 4.22 | | | | 3.74 | | | | 3.99 | |
Asia | | | 3.93 | | | | 5.70 | | | | 4.01 | |
Worldwide | | | 3.19 | | | | 3.58 | | | | 3.20 | |
The following is a summary of the Corporation’s commodity hedging program:
| | Brent | | West Texas Intermediate |
Outstanding Hedging Contracts – Oil Price Collars | | | | |
Q3 and Q4 average barrels of oil per day | | 20,000 | | 60,000 |
Ceiling price | | $75 | | $70 |
Floor price | | $55 | | $50 |
End date | | December 31, 2017 | | December 31, 2017 |
20
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA
| | Six Months Ended June 30, | |
| | 2017 | | | 2016 | |
Average Selling Prices | | | | | | | | |
| | | | | | | | |
Crude oil - per barrel (including hedging) | | | | | | | | |
United States | | | | | | | | |
Onshore | | $ | 45.13 | | | $ | 33.22 | |
Offshore | | | 46.01 | | | | 32.84 | |
Total United States | | | 45.45 | | | | 33.08 | |
Europe | | | 52.01 | | | | 37.39 | |
Africa | | | 49.84 | | | | 38.31 | |
Asia | | | 52.55 | | | | 39.11 | |
Worldwide | | | 47.25 | | | | 34.97 | |
| | | | | | | | |
Crude oil - per barrel (excluding hedging) | | | | | | | | |
United States | | | | | | | | |
Onshore | | $ | 45.07 | | | $ | 33.22 | |
Offshore | | | 46.01 | | | | 32.84 | |
Total United States | | | 45.41 | | | | 33.08 | |
Europe | | | 51.78 | | | | 37.39 | |
Africa | | | 49.66 | | | | 38.31 | |
Asia | | | 52.55 | | | | 39.11 | |
Worldwide | | | 47.16 | | | | 34.97 | |
| | | | | | | | |
Natural gas liquids - per barrel | | | | | | | | |
United States | | | | | | | | |
Onshore | | $ | 16.04 | | | $ | 7.59 | |
Offshore | | | 19.70 | | | | 11.34 | |
Total United States | | | 16.47 | | | | 8.00 | |
Europe | | | 26.19 | | | | 17.40 | |
Worldwide | | | 16.72 | | | | 8.21 | |
| | | | | | | | |
Natural gas - per mcf | | | | | | | | |
United States | | | | | | | | |
Onshore | | $ | 2.26 | | | $ | 1.25 | |
Offshore | | | 2.35 | | | | 1.48 | |
Total United States | | | 2.28 | | | | 1.31 | |
Europe | | | 4.10 | | | | 4.19 | |
Asia | | | 3.96 | | | | 5.64 | |
Worldwide | | | 3.20 | | | | 3.50 | |
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