Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2019shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | HES |
Entity Registrant Name | HESS CORP |
Entity Central Index Key | 0000004447 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 304,280,819 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 2,300 | $ 2,694 |
Accounts receivable: | ||
From contracts with customers | 868 | 771 |
Joint venture and other | 248 | 230 |
Inventories | 274 | 245 |
Other current assets | 144 | 519 |
Total current assets | 3,834 | 4,459 |
Property, plant and equipment: | ||
Total — at cost | 33,446 | 33,222 |
Less: Reserves for depreciation, depletion, amortization and lease impairment | 17,548 | 17,139 |
Property, plant and equipment — net | 15,898 | 16,083 |
Operating lease right-of-use assets — net | 713 | 0 |
Finance lease right-of-use assets — net | 332 | 0 |
Goodwill | 360 | 360 |
Deferred income taxes | 22 | 21 |
Other assets | 557 | 510 |
Total Assets | 21,716 | 21,433 |
Current Liabilities: | ||
Accounts payable | 399 | 495 |
Accrued liabilities | 1,369 | 1,560 |
Taxes payable | 89 | 81 |
Current maturities of long-term debt | 12 | 67 |
Current portion of operating and finance lease obligations | 402 | 0 |
Total current liabilities | 2,271 | 2,203 |
Long-term debt | 6,550 | 6,605 |
Long-term operating lease obligations | 436 | 0 |
Long-term finance lease obligations | 250 | 0 |
Deferred income taxes | 420 | 421 |
Asset retirement obligations | 745 | 741 |
Other liabilities and deferred credits | 491 | 575 |
Total Liabilities | 11,163 | 10,545 |
Hess Corporation stockholders’ equity: | ||
Preferred stock, par value $1.00; Authorized - 20,000,000 shares, Series A 8% Cumulative Mandatory Convertible; $1,000 per share liquidation preference; Issued - 0 shares (2018: 574,997) | 0 | 1 |
Common stock, par value $1.00; Authorized -600,000,000 shares; Issued - 304,280,819 shares (2018: 291,434,534) | 304 | 291 |
Capital in excess of par value | 5,481 | 5,386 |
Retained earnings | 4,207 | 4,257 |
Accumulated other comprehensive income (loss) | (650) | (306) |
Total Hess Corporation stockholders’ equity | 9,342 | 9,629 |
Noncontrolling interests | 1,211 | 1,259 |
Total equity | 10,553 | 10,888 |
Total Liabilities and Equity | $ 21,716 | $ 21,433 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 574,997 |
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 |
Series A, cumulative mandatory convertible preferred stock - dividend rate | 8.00% | 8.00% |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 304,280,819 | 291,434,534 |
Statement of Consolidated Incom
Statement of Consolidated Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues and Non-Operating Income | ||
Sales and other operating revenues | $ 1,572 | $ 1,346 |
Gains on asset sales, net | 0 | 7 |
Other, net | 27 | 37 |
Total revenues and non-operating income | 1,599 | 1,390 |
Costs and Expenses | ||
Marketing, including purchased oil and gas | 408 | 358 |
Operating costs and expenses | 266 | 288 |
Production and severance taxes | 39 | 39 |
Exploration expenses, including dry holes and lease impairment | 34 | 40 |
General and administrative expenses | 87 | 110 |
Interest expense | 98 | 103 |
Loss on debt extinguishment | 0 | 27 |
Depreciation, depletion and amortization | 498 | 417 |
Total costs and expenses | 1,430 | 1,382 |
Income (Loss) Before Income Taxes | 169 | 8 |
Provision (benefit) for income taxes | 94 | 73 |
Net Income (Loss) | 75 | (65) |
Less: Net income (loss) attributable to noncontrolling interests | 43 | 41 |
Net Income (Loss) Attributable to Hess Corporation | 32 | (106) |
Less: Preferred stock dividends | 4 | 11 |
Net Income (Loss) Attributable to Hess Corporation Common Stockholders | $ 28 | $ (117) |
Net Income (Loss) Attributable to Hess Corporation Per Common Share: | ||
Basic | $ 0.09 | $ (0.38) |
Diluted | $ 0.09 | $ (0.38) |
Weighted Average Number of Common Shares Outstanding: | ||
Basic | 297.4 | 309.5 |
Diluted | 299.7 | 309.5 |
Common Stock Dividends Per Share | $ 0.25 | $ 0.25 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 75 | $ (65) |
Derivatives designated as cash flow hedges | ||
Effect of hedge (gains) losses reclassified to income | (15) | 31 |
Income taxes on effect of hedge (gains) losses reclassified to income | 0 | 0 |
Net effect of hedge (gains) losses reclassified to income | (15) | 31 |
Change in fair value of cash flow hedges | (346) | (22) |
Income taxes on change in fair value of cash flow hedges | 0 | 0 |
Net change in fair value of cash flow hedges | (346) | (22) |
Change in derivatives designated as cash flow hedges, after taxes | (361) | 9 |
Pension and other postretirement plans | ||
(Increase) reduction in unrecognized actuarial losses | 6 | 125 |
Income taxes on actuarial changes in plan liabilities | 0 | (30) |
(Increase) reduction in unrecognized actuarial losses, net | 6 | 95 |
Amortization of net actuarial losses | 11 | 12 |
Income taxes on amortization of net actuarial losses | 0 | 0 |
Net effect of amortization of net actuarial losses | 11 | 12 |
Change in pension and other postretirement plans, after taxes | 17 | 107 |
Other Comprehensive Income (Loss) | (344) | 116 |
Comprehensive Income (Loss) | (269) | 51 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 43 | 41 |
Comprehensive Income (Loss) Attributable to Hess Corporation | $ (312) | $ 10 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 75 | $ (65) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Gains on asset sales, net | 0 | (7) |
Depreciation, depletion and amortization | 498 | 417 |
Exploration lease and other impairment | 7 | 10 |
Stock compensation expense | 27 | 13 |
Noncash (gains) losses on commodity derivatives, net | 29 | 38 |
Provision (benefit) for deferred income taxes and other tax accruals | (1) | (36) |
Loss on debt extinguishment | 0 | 27 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (117) | (11) |
(Increase) decrease in inventories | (29) | (7) |
Increase (decrease) in accounts payable and accrued liabilities | (204) | (135) |
Increase (decrease) in taxes payable | 8 | (1) |
Changes in other operating assets and liabilities | (55) | (33) |
Net cash provided by (used in) operating activities | 238 | 210 |
Cash Flows From Investing Activities | ||
Additions to property, plant and equipment - E&P | (521) | (363) |
Additions to property, plant and equipment - Midstream | (150) | (37) |
Payments for Midstream equity investments | (7) | (24) |
Proceeds from asset sales, net of cash sold | 0 | 6 |
Other, net | (2) | (4) |
Net cash provided by (used in) investing activities | (680) | (422) |
Cash Flows From Financing Activities | ||
Net borrowings (repayments) of debt with maturities of 90 days or less | 199 | 0 |
Debt with maturities of greater than 90 days – Repayments | (3) | (434) |
Payments on finance lease obligations | (23) | 0 |
Common stock acquired and retired | (25) | (371) |
Cash dividends paid | (88) | (89) |
Noncontrolling interests, net | (13) | (12) |
Other, net | 1 | (3) |
Net cash provided by (used in) financing activities | 48 | (909) |
Net Increase (Decrease) in Cash and Cash Equivalents | (394) | (1,121) |
Cash and Cash Equivalents at Beginning of Year | 2,694 | 4,847 |
Cash and Cash Equivalents at End of Period | $ 2,300 | $ 3,726 |
Statement of Consolidated Equit
Statement of Consolidated Equity - USD ($) $ in Millions | Total | Mandatory Convertible Preferred Stock | Common Stock | Capital in Excess of Par | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Hess Stockholders' Equity | Noncontrolling Interests |
Balance at Dec. 31, 2017 | $ 12,354 | $ 1 | $ 315 | $ 5,824 | $ 5,597 | $ (686) | $ 11,051 | $ 1,303 |
Cumulative effect of adoption of new accounting standards at Dec. 31, 2017 | 0 | 0 | 0 | 0 | 1 | (1) | 0 | 0 |
Net income (loss) | (65) | 0 | 0 | 0 | (106) | 0 | (106) | 41 |
Other comprehensive income (loss) | 116 | 0 | 0 | 0 | 0 | 116 | 116 | 0 |
Share-based compensation activity | 13 | 0 | 1 | 12 | 0 | 0 | 13 | 0 |
Dividends on preferred stock | (11) | 0 | 0 | 0 | (11) | 0 | (11) | 0 |
Dividends on common stock | (78) | 0 | 0 | 0 | (78) | 0 | (78) | 0 |
Common stock acquired and retired | (380) | 0 | (8) | (135) | (237) | 0 | (380) | 0 |
Noncontrolling interests, net | (12) | 0 | 0 | 0 | 0 | 0 | 0 | (12) |
Balance at Mar. 31, 2018 | 11,937 | 1 | 308 | 5,701 | 5,166 | (571) | 10,605 | 1,332 |
Balance at Dec. 31, 2018 | 10,888 | 1 | 291 | 5,386 | 4,257 | (306) | 9,629 | 1,259 |
Net income (loss) | 75 | 0 | 0 | 0 | 32 | 0 | 32 | 43 |
Other comprehensive income (loss) | (344) | 0 | 0 | 0 | 0 | (344) | (344) | 0 |
Preferred stock conversion | 0 | (1) | 12 | (11) | 0 | 0 | 0 | 0 |
Share-based compensation activity | 29 | 0 | 1 | 28 | 0 | 0 | 29 | 0 |
Dividends on preferred stock | (4) | 0 | 0 | 0 | (4) | 0 | (4) | 0 |
Dividends on common stock | (78) | 0 | 0 | 0 | (78) | 0 | (78) | 0 |
Sale of water business to Hess Infrastructure Partners | 0 | 0 | 0 | 78 | 0 | 0 | 78 | (78) |
Noncontrolling interests, net | (13) | 0 | 0 | 0 | 0 | 0 | 0 | (13) |
Balance at Mar. 31, 2019 | $ 10,553 | $ 0 | $ 304 | $ 5,481 | $ 4,207 | $ (650) | $ 9,342 | $ 1,211 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | The financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our consolidated financial position at March 31, 2019 and December 31, 2018, the consolidated results of operations for the three months ended March 31, 2019 and 2018, and consolidated cash flows for the three months ended March 31, 2019 and 2018. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. The financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by generally accepted accounting principles (GAAP) in the United States have been condensed or omitted from these interim financial statements. These statements, therefore, should be read in conjunction with the consolidated financial statements and related notes included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018. On January 1, 2019, we adopted Accounting Standards Codification (ASC) Topic 842, Leases Extractive Activities – Oil and Gas The adoption of ASC 842 did not have an impact on our Statement of Consolidated Income Statement of Consolidated Cash Flows Consolidated Balance Sheet December 31, 2018 Adjustment for Finance Leases Adjustment for Operating Leases January 1, 2019 (In Millions) Assets Property, plant and equipment — net $ 16,083 $ (346 ) $ — $ 15,737 Operating lease right-of-use assets — net — — 804 804 Finance lease right-of-use assets — net — 346 — 346 Liabilities Accrued liabilities 1,560 — (2 ) 1,558 Current maturities of long-term debt 67 (55 ) — 12 Current portion of operating and finance lease obligations — 55 382 437 Long-term debt 6,605 (254 ) — 6,351 Long-term operating lease obligations — — 516 516 Long-term finance lease obligations — 254 — 254 Other liabilities and deferred credits 575 — (92 ) 483 New Accounting Pronouncements: In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses. This ASU makes changes to the impairment model for trade receivables, net investments in leases, debt securities, loans and certain other instruments. The standard requires the use of a forward-looking "expected loss" model compared to the current "incurred loss" model. We expect to adopt this ASU in the first quarter of 2020 when the standard becomes effective. We continue to evaluate this ASU but do not believe it will have a material impact on our Consolidated Financial Statements. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | We determine if an arrangement is an operating lease or a finance lease at inception by evaluating whether the contract conveys the right to control an identified asset during the period of use. Right-of use (ROU) assets represent our right to use an identified asset for the lease term and lease obligations represent our obligation to make payments as set forth in the lease arrangement. ROU assets and liabilities are recognized in the Consolidated Balance Sheet Finance lease cost is recognized as amortization of the ROU asset and interest expense on the lease liability. Operating lease cost is generally recognized on a straight-line basis. Operating lease costs for drilling rigs used to drill development wells and successful exploration wells are capitalized. Operating lease cost for other ROU assets used in oil and gas producing activities are either capitalized or expensed on a straight-line basis based on the nature of operation for which the ROU asset is utilized. Leases with an initial term of 12 months or less are not recorded on the balance sheet as permitted under ASC 842. We recognize lease cost for short-term leases on a straight-line basis over the term of the lease. Some of our leases include one or more options to renew. The renewal option is at our sole discretion and is not included in the lease term for measurement of the lease obligation unless we are reasonably certain, at the commencement date of the lease, to renew the lease. Operating and finance leases presented on the Consolidated Balance Sheet Operating Leases Finance Leases (In millions) Right-of-use assets — net (a) $ 713 $ 332 Lease obligations: Current $ 366 $ 36 Long-term 436 250 Total lease obligations $ 802 $ 286 (a) Finance lease Right-of-use assets have a cost of $384 million and accumulated amortization of $52 million. Lease obligations represent 100% of the present value of future minimum lease payments in the lease arrangement. Where we have contracted directly with a lessor in our role as operator of an unincorporated oil and gas venture, we bill our partners their proportionate share for reimbursements as payments under lease agreements become due pursuant to the terms of our joint operating and other agreements. The nature of our leasing arrangements at March 31, 2019 was as follows: Operating leases : In the normal course of business, we primarily lease drilling rigs, office space, logistical assets (offshore vessels, aircraft, and shorebases), and equipment. Finance leases: In 2018, we entered into a sale and lease-back arrangement for a floating storage and offloading vessel (FSO) to handle produced condensate at North Malay Basin, offshore Peninsular Malaysia (Hess operated – 50%). No gain or loss was recognized from the sale transaction. The remaining lease term utilized in the lease obligation is 14.5 years. At March 31, 2019, the carrying value of the Finance lease asset is $256 million and the carrying value of the Finance lease obligation is $266 million. We have another finance lease obligation of $20 million at March 31, 2019 that will be settled in the second quarter of 2019. Operating Leases Finance Leases (In millions) 2019 $ 308 $ 48 2020 183 36 2021 71 36 2022 64 36 2023 64 36 Remaining years 197 248 Total lease payments 887 440 Less: Imputed interest (85 ) (154 ) Total lease obligations $ 802 $ 286 The following information relates to the Operating and Finance leases recorded at March 31, 2019: Operating Leases Finance Leases Weighted average remaining lease term 4.7 years 13.5 years Range of remaining lease terms 0.1 - 9.3 years 0.2 - 14.5 years Weighted average discount rate 4.3% 7.8% The components of lease costs in the first quarter of 2019 were as follows (in millions): Operating lease cost $ 103 Finance lease cost: Amortization of leased assets 13 Interest on lease obligations 6 Short-term lease cost (a) 32 Variable lease cost (b) 19 Sublease income (c) (3 ) Total lease cost $ 170 (a) Short-term lease cost is primarily attributable to equipment used in global exploration, development, and production activities. Future short-term lease costs will vary based on activity levels of our operated assets. (b) Variable lease costs for the drilling rig leases result from differences in the minimum rate and the actual usage of the ROU asset during the lease period. Variable lease costs for logistical assets result from differences in stated monthly rates and total charges reflecting the actual usage of the ROU asset during the lease period. Variable lease costs for our office leases represent common area maintenance charges which have not been separated from lease components. (c) We sublease certain of our office space to third parties under our head lease. The above lease costs represent 100% of the lease payments due for the period, including where we as operator have contracted directly with suppliers. As the payments under lease agreements where we are operator become due, we bill our partners their proportionate share for reimbursement pursuant to the terms of our joint operating agreements. Reimbursements are not reflected in the table above. Certain lease costs above associated with exploration and development activities are included in capital expenditures. Supplemental cash flow information related to leases for the first quarter of 2019 was as follows: Operating Leases Finance Leases (In millions) Cash paid for amounts included in the measurement of lease obligations: Operating cash flows $ 106 $ 6 Financing cash flows — 23 Noncash transactions: Leased assets recognized for new lease obligations incurred 3 — |
Preferred Stock Conversion
Preferred Stock Conversion | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Preferred Stock Conversion | On January 31, 2019, the Corporation’s 8.00% Series A Mandatory Convertible Preferred Stock (Preferred Stock) automatically converted into shares of common stock at a rate of 21.822 shares of common stock per share of Preferred Stock. In total, the Preferred Stock was converted into approximately 12.5 million shares of common stock. In connection with the Preferred Stock offering in 2016, the Company entered into capped call transactions to reduce the potential dilution to the Company’s common stock upon conversion of the Preferred Stock, subject to a cap. The Company received approximately 0.9 million shares of common stock upon settlement of the capped call transactions. As a result, the net number of common shares issued by the Company upon conversion of the Preferred Stock was approximately 11.6 million shares. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Revenue from contracts with customers on a disaggregated basis was as follows (in $ millions): Exploration and Production Midstream Eliminations Total United States Denmark Libya Malaysia & JDA E&P Total Three Months Ended March 31, 2019 Sales of our net production volumes: Crude oil revenue $ 682 $ 16 $ 91 $ 21 $ 810 $ — $ — $ 810 Natural gas liquids revenue 68 — — — 68 — — 68 Natural gas revenue 42 3 6 180 231 — — 231 Sales of purchased oil and gas 426 — 22 — 448 — — 448 Intercompany revenue — — — — — 190 (190 ) — Total revenues from contracts with customers 1,218 19 119 201 1,557 190 (190 ) 1,557 Other operating revenues (a) 15 — — — 15 — — 15 Total sales and other operating revenues $ 1,233 $ 19 $ 119 $ 201 $ 1,572 $ 190 $ (190 ) $ 1,572 Three Months Ended March 31, 2018 Sales of our net production volumes: Crude oil revenue $ 593 $ 33 $ 99 $ 43 $ 768 $ — $ — $ 768 Natural gas liquids revenue 71 — — — 71 — — 71 Natural gas revenue 39 3 8 128 178 — — 178 Sales of purchased oil and gas 325 — 24 14 363 — — 363 Intercompany revenue — — — — — 167 (167 ) — Total revenues from contracts with customers 1,028 36 131 185 1,380 167 (167 ) 1,380 Other operating revenues (a) (34 ) — — — (34 ) — — (34 ) Total sales and other operating revenues $ 994 $ 36 $ 131 $ 185 $ 1,346 $ 167 $ (167 ) $ 1,346 (a) Includes gains (losses) on commodity derivatives. There have been no significant changes to contracts with customers or composition thereof during the first quarter of 2019. Generally, we receive payments from customers on a monthly basis, shortly after the physical delivery of the crude oil, NGLs, or natural gas. We did not recognize any credit losses on receivables with customers in the first quarter of 2019 or 2018. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: March 31, December 31, 2019 2018 (In millions) Crude oil and natural gas liquids $ 96 $ 74 Materials and supplies 178 171 Total Inventories $ 274 $ 245 |
Capitalized Exploratory Well Co
Capitalized Exploratory Well Costs | 3 Months Ended |
Mar. 31, 2019 | |
Capitalized Exploratory Well Costs [Abstract] | |
Capitalized Exploratory Well Costs | The following table discloses the net changes in capitalized exploratory well costs pending determination of proved reserves during the three months ended March 31, 2019 (in millions): Balance at January 1, 2019 $ 418 Additions to capitalized exploratory well costs pending the determination of proved reserves 48 Balance at March 31, 2019 $ 466 Capitalized exploratory well costs capitalized for greater than one year following completion of drilling were $309 million at March 31, 2019 and primarily related to: Guyana: Approximately 45% of the capitalized well costs in excess of one year relates to the Liza-4, Pacora-1, Payara-1, Payara-2, Ranger-1 and Snoek-1 wells on the Stabroek Block, offshore Guyana (Hess 30%), where hydrocarbons were encountered. The operator plans to integrate the Liza-4 discovery into the second phase of development, which is expected to commence production by mid-2022. The operator plans to integrate the Pacora-1, Payara-1 and Payara-2 discoveries into the third phase of development, which is expected to commence production as early as 2023. The Snoek discovery is expected to produce into the Liza Phase 1 floating, production storage and offloading (FPSO) vessel under a subsequent phase of development, and the operator is planning further drilling at the Ranger discovery. Gulf of Mexico: Approximately 40% of the capitalized well costs in excess of one year relates to the appraisal of the northern portion of the Shenzi Field (Hess 28%) in the Gulf of Mexico, where hydrocarbons were encountered in the fourth quarter of 2015. Following exploration and appraisal drilling activities completed by the operator in prior years on adjacent blocks to the north of our Shenzi blocks, the operator is planning to acquire 3D seismic in 2019 for use in development planning of the northern portion of the Shenzi Field. JDA: Approximately 10% of the capitalized well costs in excess of one year relates to the JDA in the Gulf of Thailand (Hess 50%), where hydrocarbons were encountered in three successful exploration wells drilled in the western part of Block A-18. The operator has submitted a development plan concept to the regulator to facilitate commercial negotiations for an extension of the existing gas sales contract to include development of the western part of the Block. Malaysia: Approximately 5% of the capitalized well costs in excess of one year relates to the North Malay Basin, offshore Peninsular Malaysia (Hess 50%), where hydrocarbons were encountered in one successful exploration well drilled in the fourth quarter of 2015. In 2018, we completed four exploration wells and are conducting subsurface evaluations for consideration in future phases of field development. |
Hess Infrastructure Partners LP
Hess Infrastructure Partners LP | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Hess Infrastructure Partners LP | We consolidate the activities of Hess Infrastructure Partners LP (HIP), a 50/50 joint venture between Hess Corporation and Global Infrastructure Partners (GIP), which qualifies as a variable interest entity (VIE) under U.S. GAAP. We have concluded that we are the primary beneficiary of the VIE, as defined in the accounting standards, since we have the power, through our 50% ownership, to direct those activities that most significantly impact the economic performance of HIP. As of March 31, 2019, the Midstream segment is comprised of HIP, which owns the general partner of Hess Midstream Partners LP (HESM). HESM owns an approximate 20% controlling interest in the operating companies that comprise our midstream joint venture while HIP owns the remaining 80%, other than the water services business that is wholly owned by HIP as described below. At March 31, 2019, HIP liabilities totaling $1,273 million (December 31, 2018: $1,105 million) are on a nonrecourse basis to Hess Corporation, while HIP assets available to settle the obligations of HIP include cash and cash equivalents totaling $6 million (December 31, 2018: $109 million) and property, plant and equipment with a carrying value of $2,829 million (December 31, 2018: $2,664 million). On March 1, 2019, HIP completed the acquisition of Hess’ water services business for $225 million in cash. As a result of this transaction between entities under common control, we recorded an after-tax gain of $78 million in additional paid-in- with an offsetting reduction to noncontrolling interest to reflect the adjustment to GIP’s noncontrolling interest in HIP. On March 22, 2019, HIP and HESM acquired crude oil and gas gathering assets, and HIP acquired water gathering assets of Summit Midstream Partners LP’s Tioga Gathering System for aggregate cash consideration of approximately $90 million, with the potential for an additional $10 million of contingent payments in future periods subject to certain future performance metrics. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Components of net periodic pension cost consisted of the following: Three Months Ended March 31, 2019 2018 (In millions) Service cost $ 10 $ 14 Interest cost (a) 24 23 Expected return on plan assets (a) (45 ) (49 ) Amortization of unrecognized net actuarial losses (a) 11 12 Curtailment gains (a) — (2 ) Pension (income) expense (a) $ — $ (2 ) (a) Net non-service pension cost included in Other, net in the Statement of Consolidated Income in the first quarter of 2019 was income of $10 million (2018: $16 million of income). In 2019, we expect to contribute $40 million to our funded pension plans. Through March 31, 2019, we have contributed $10 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | In the first quarter of 2019, HIP and HESM borrowed a total of $199 million from their revolving credit facilities. In the first quarter of 2018, we paid $415 million to redeem $350 million principal amount of 8.125% notes due 2019 with a carrying value of $349 million at December 31, 2017, and to purchase other notes with a carrying value of $38 million at December 31, 2017. Concurrent with the redemption of the 2019 notes, we terminated interest rate swaps with a notional amount of $350 million. First quarter 2018 results included a pre-tax charge of $27 million for the loss on extinguishment of the redeemed and purchased notes. |
Weighted Average Common Shares
Weighted Average Common Shares | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | The Net income (loss) and weighted average number of common shares used in the basic and diluted earnings per share computations were as follows: Three Months Ended March 31, 2019 2018 (In millions) Net income (loss) attributable to Hess Corporation Common Stockholders: Net income (loss) $ 75 $ (65 ) Less: Net income (loss) attributable to noncontrolling interests 43 41 Less: Preferred stock dividends 4 11 Net income (loss) attributable to Hess Corporation Common Stockholders $ 28 $ (117 ) Weighted average number of common shares outstanding: Basic 297.4 309.5 Effect of dilutive securities Restricted common stock 1.2 — Stock options 0.2 — Performance share units 0.9 — Diluted 299.7 309.5 The following table summarizes the number of antidilutive shares excluded from the computation of diluted shares: Three Months Ended March 31, 2019 2018 Restricted common stock 57,252 2,922,316 Stock options 3,394,418 5,807,579 Performance share units 65,661 623,088 Common shares from conversion of preferred stocks 3,930,663 12,584,974 During the first quarter of 2019, we granted 941,082 shares of restricted stock (2018: 1,081,923), 234,866 performance share units (2018: 278,003) and 526,968 stock options (2018: 683,167). |
Guarantees and Contingencies
Guarantees and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Guarantees and Contingencies | We are subject to loss contingencies with respect to various claims, lawsuits and other proceedings. A liability is recognized in our consolidated financial statements when it is probable that a loss has been incurred and the amount can be reasonably estimated. If the risk of loss is probable, but the amount cannot be reasonably estimated or the risk of loss is only reasonably possible, a liability is not accrued; however, we disclose the nature of those contingencies. We cannot predict with certainty if, how or when existing claims, lawsuits and proceedings will be resolved or what the eventual relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues may need to be resolved, including through lengthy discovery, conciliation and/or arbitration proceedings, or litigation before a loss or range of loss can be reasonably estimated. Subject to the foregoing, in management’s opinion, based upon currently known facts and circumstances, the outcome of such lawsuits, claims and proceedings, including the matters described below, is not expected to have a material adverse effect on our financial condition. However, we could incur judgments, enter into settlements, or revise our opinion regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations in the period in which the amounts are accrued and our cash flows in the period in which the amounts are paid. We, along with many companies that have been or continue to be engaged in refining and marketing of gasoline, have been a party to lawsuits and claims related to the use of methyl tertiary butyl ether (MTBE) in gasoline. A series of similar lawsuits, many involving water utilities or governmental entities, were filed in jurisdictions across the U.S. against producers of MTBE and petroleum refiners who produced gasoline containing MTBE, including us. The principal allegation in all cases was that gasoline containing MTBE was a defective product and that these producers and refiners are strictly liable in proportion to their share of the gasoline market for damage to groundwater resources and are required to take remedial action to ameliorate the alleged effects on the environment of releases of MTBE. The majority of the cases asserted against us have been settled. There are three remaining active cases, filed by Pennsylvania, Rhode Island, and Maryland. In June 2014, the Commonwealth of Pennsylvania filed a lawsuit alleging that we and all major oil companies with operations in Pennsylvania, have damaged the groundwater by introducing thereto gasoline with MTBE. The Pennsylvania suit has been forwarded to the existing MTBE multidistrict litigation pending in the Southern District of New York. In September 2016, the State of Rhode Island also filed a lawsuit alleging that we and other major oil companies damaged the groundwater in Rhode Island by introducing thereto gasoline with MTBE. The suit filed in Rhode Island is proceeding in Federal court. In December 2017, the State of Maryland filed a lawsuit alleging that we and other major oil companies damaged the groundwater in Maryland by introducing thereto gasoline with MTBE. The suit filed in Maryland state court, was served on us in January 2018 and has been removed to Federal court by the defendants. In September 2003, we received a directive from the New Jersey Department of Environmental Protection (NJDEP) to remediate contamination in the sediments of the Lower Passaic River. The NJDEP is also seeking natural resource damages. The directive, insofar as it affects us, relates to alleged releases from a petroleum bulk storage terminal in Newark, New Jersey we previously owned. We and over 70 companies entered into an Administrative Order on Consent with the Environmental Protection Agency (EPA) to study the same contamination; this work remains ongoing. We and other parties settled a cost recovery claim by the State of New Jersey and also agreed with EPA to fund remediation of a portion of the site. On March 4, 2016, the EPA issued a Record of Decision (ROD) in respect of the lower eight miles of the Lower Passaic River, selecting a remedy that includes bank-to-bank dredging at an estimated cost of $1.38 billion. In March 2014, we received an Administrative Order from EPA requiring us and 26 other parties to undertake the Remedial Design for the remedy selected by the EPA for the Gowanus Canal Superfund Site in Brooklyn, New York. The remedy includes dredging of surface sediments and the placement of a cap over the deeper sediments throughout the Canal and in-situ stabilization of certain contaminated sediments that will remain in place below the cap. EPA’s original estimate was that this remedy would cost $506 million On September 28, 2017, we received a general notice letter and offer to settle from the U.S. Environmental Protection Agency relating to Superfund claims for the Ector Drum, Inc. Superfund Site in Odessa, Texas. The EPA and Texas Commission on Environmental Quality (TCEQ) took clean-up and response action at the site commencing in 2014 and concluded in December 2015. The site was determined to have improperly stored industrial waste, including drums with oily liquids. The total clean-up cost incurred by the EPA was approximately $3.5 million. We periodically receive notices from the EPA that we are a “potential responsible party” under the Superfund legislation with respect to various waste disposal sites. Under this legislation, all potentially responsible parties may be jointly and severally liable. For any site for which we have received such a notice, the EPA’s claims or assertions of liability against us relating to these sites have not been fully developed, or the EPA’s claims have been settled or a settlement is under consideration, in all cases for amounts that are not material. The ultimate impact of these proceedings, and of any related proceedings by private parties, on our business or accounts cannot be predicted at this time due to the large number of other potentially responsible parties and the speculative nature of clean-up cost estimates, but is not expected to be material. From time to time, we are involved in other judicial and administrative proceedings, including proceedings relating to other environmental matters. We cannot predict with certainty if, how or when such proceedings will be resolved or what the eventual relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters before a loss or range of loss can be reasonably estimated for any proceeding. Subject to the foregoing, in management’s opinion, based upon currently known facts and circumstances, the outcome of the aforementioned proceedings is not expected to have a material adverse effect on our financial condition, results of operations or cash flows. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | We currently have two operating segments, Exploration and Production, and Midstream. All unallocated costs are reflected under Corporate, Interest and Other. The following table presents operating segment financial data: Exploration and Production Midstream Corporate, Interest and Other Eliminations Total (In millions) For the Three Months Ended March 31, 2019 Sales and Other Operating Revenues - Third-parties $ 1,572 $ — $ — $ — $ 1,572 Intersegment Revenues — 190 — (190 ) — Sales and Other Operating Revenues $ 1,572 $ 190 $ — $ (190 ) $ 1,572 Net Income (Loss) attributable to Hess Corporation $ 109 $ 37 $ (114 ) $ — $ 32 Depreciation, Depletion and Amortization 464 34 — — 498 Provision (Benefit) for Income Taxes (a) 95 — (1 ) — 94 Capital Expenditures 515 127 — — 642 For the Three Months Ended March 31, 2018 Sales and Other Operating Revenues - Third-parties $ 1,346 $ — $ — $ — $ 1,346 Intersegment Revenues — 167 — (167 ) — Sales and Other Operating Revenues $ 1,346 $ 167 $ — $ (167 ) $ 1,346 Net Income (Loss) attributable to Hess Corporation $ (25 ) $ 28 $ (109 ) $ — $ (106 ) Depreciation, Depletion and Amortization 385 31 1 — 417 Provision (Benefit) for Income Taxes (a) 95 9 (31 ) — 73 Capital Expenditures 354 37 — — 391 (a) Commencing January 1, 2019, management changed its measurement of segment earnings to reflect income taxes on a post U.S. tax consolidation and valuation allowance assessment basis. In 2018, the provision for income taxes in the Midstream segment was presented before consolidating its operations with other U.S. activities of the Company and prior to evaluating realizability of net U.S. deferred taxes. An offsetting impact was presented in the E&P segment. If 2018 segment results were prepared on a basis consistent with 2019, Midstream segment net income attributable to Hess Corporation would have been $37 million and E&P segment net losses would have been $34 million in the first quarter of 2018. Identifiable assets by operating segment were as follows: March 31, December 31, 2019 2018 (In millions) Exploration and Production $ 16,978 $ 16,109 Midstream 3,280 3,285 Corporate, Interest and Other 1,458 2,039 Total $ 21,716 $ 21,433 |
Financial Risk Management Activ
Financial Risk Management Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Risk Management Activities | In the normal course of our business, we are exposed to commodity risks related to changes in the prices of crude oil and natural gas as well as changes in interest rates and foreign currency values. Financial risk management activities include transactions designed to reduce risk in the selling prices of crude oil or natural gas we produce or by reducing our exposure to foreign currency or interest rate movements. Generally, futures, swaps or option strategies may be used to fix the forward selling price of a portion of our crude oil or natural gas production. Forward contracts may also be used to purchase certain currencies in which we conduct business with the intent of reducing exposure to foreign currency fluctuations. At March 31, 2019, these forward contracts relate to the British Pound. Interest rate swaps may be used to convert interest payments on certain long-term debt from fixed to floating rates. We present gross notional amounts of both long and short positions in the table below. These amounts include long and short positions that offset in closed positions and have not reached contractual maturity. Gross notional amounts do not quantify risk or represent assets or liabilities of the Corporation but are used in the calculation of cash settlements under the contracts. The gross notional amounts of outstanding financial risk management derivative contracts related to West Texas Intermediate (WTI) instruments as of the dates shown below were as follows: March 31, 2019 December 31, 2018 Calendar year program 2019 2019 Instrument type Puts Puts Effective date Apr. 1, 2019 Jan. 1, 2019 End date Dec. 31, 2019 Dec. 31, 2019 Crude oil volumes (millions of barrels) 26.1 34.7 Floor price $ 60 $ 60 The gross notional amounts of outstanding financial risk management derivative contracts, excluding commodity contracts, were as follows: March 31, 2019 December 31, 2018 (In millions) Foreign exchange $ 43 $ 16 Interest rate swaps $ 100 $ 100 The table below reflects the gross and net fair values of risk management derivative instruments and their respective financial statement caption in the Consolidated Balance Sheet Assets Liabilities (In millions) March 31, 2019 Derivative Contracts Designated as Hedging Instruments: Commodity - Other current assets $ 96 $ — Interest rate - Other liabilities and deferred credits (noncurrent) — (1 ) Total derivative contracts designated as hedging instruments 96 (1 ) Gross fair value of derivative contracts 96 (1 ) Master netting arrangements — — Net Fair Value of Derivative Contracts $ 96 $ (1 ) December 31, 2018 Derivative Contracts Designated as Hedging Instruments: Commodity - Other current assets $ 484 $ — Interest rate - Other liabilities and deferred credits (noncurrent) — (2 ) Total derivative contracts designated as hedging instruments 484 (2 ) Gross fair value of derivative contracts 484 (2 ) Master netting arrangements — — Net Fair Value of Derivative Contracts $ 484 $ (2 ) All fair values in the table above are based on Level 2 inputs. Derivative contracts designated as hedging instruments: Crude oil derivatives: Crude oil price hedging contracts increased Sales and other operating revenues by $15 million in the first quarter of 2019 and decreased Sales and other operating revenue by $30 million i n the first quarter of 2018. At March 31, 2019, pre-tax deferred gains in related to outstanding crude oil price hedging contracts were $3 million, all of which will be reclassified into earnings during the remainder of 2019 as the originally hedged crude oil sales are recognized in earnings. Interest rate swaps designated as fair value hedges: At March 31, 2019 and December 31, 2018, we had interest rate swaps with gross notional amounts totaling $100 million, which were designated as fair value hedges and relate to debt where we have converted interest payments on certain long-term debt from fixed to floating rates. Changes in the fair value of interest rate swaps and the hedged fixed - rate debt are recorded in in the . In the first quarter of 2019, the change in fair value of interest rate swaps was a decrease in the liability of $1 million (Q1 2018: increase in liability of $3 million) with a corresponding adjustment in the carrying value of the hedged fixed ‑ rate debt. In the first quarter of 2018, we paid $3 million, to terminate interest rate swaps with a gross notional amount of $350 million. Derivative contracts not designated as hedging instruments: Foreign exchange: Foreign exchange gains which are reported in Other, net in Revenues and non-operating income in the Statement of Consolidated Income were $5 million in the first quarter of 2019 (2018 Q1: $4 million). A component of foreign exchange gain is the result of foreign exchange derivative contracts that are not designated as hedges which amounted to a loss of less than $1 million in the first quarter of 2019 (2018 Q1: gain of $2 million). Crude oil derivatives: In the first quarter of 2018, noncash adjustments to de-designated crude oil price hedging contracts decreased Sales and other operating revenues by $8 million. Fair Value Measurement: We have other short-term financial instruments, primarily cash equivalents, accounts receivable and accounts payable, for which the carrying value approximated fair value at March 31, 2019. At March 31, 2019, total long-term debt, which was substantially comprised of fixed-rate debt instruments, had a carrying value of $6,562 million and a fair value of $6,987 million based on Level 2 inputs. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | On April 18, 2019 the Corporation terminated its existing revolving credit facility maturing in January 2021 and entered into a new fully undrawn $3.5 billion revolving credit facility with a maturity date of May 15, 2023. This facility can be used for borrowings and letters of credit. Borrowings on the new facility will generally bear interest at 1.30% above the London Interbank Offered Rate (LIBOR), though the interest rate is subject to adjustment if the Corporation’s credit rating changes. The facility is subject to customary representations, warranties and covenants, including a financial covenant limiting the ratio of Total Consolidated Debt to Total Capitalization (as such terms are defined in the credit agreement for the facility) of the Corporation and its consolidated subsidiaries to 0.650 to 1.000, and customary events of default. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses. This ASU makes changes to the impairment model for trade receivables, net investments in leases, debt securities, loans and certain other instruments. The standard requires the use of a forward-looking "expected loss" model compared to the current "incurred loss" model. We expect to adopt this ASU in the first quarter of 2020 when the standard becomes effective. We continue to evaluate this ASU but do not believe it will have a material impact on our Consolidated Financial Statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Impact of adoption on Consolidated Balance Sheet | The adoption of ASC 842 did not have an impact on our Statement of Consolidated Income Statement of Consolidated Cash Flows Consolidated Balance Sheet December 31, 2018 Adjustment for Finance Leases Adjustment for Operating Leases January 1, 2019 (In Millions) Assets Property, plant and equipment — net $ 16,083 $ (346 ) $ — $ 15,737 Operating lease right-of-use assets — net — — 804 804 Finance lease right-of-use assets — net — 346 — 346 Liabilities Accrued liabilities 1,560 — (2 ) 1,558 Current maturities of long-term debt 67 (55 ) — 12 Current portion of operating and finance lease obligations — 55 382 437 Long-term debt 6,605 (254 ) — 6,351 Long-term operating lease obligations — — 516 516 Long-term finance lease obligations — 254 — 254 Other liabilities and deferred credits 575 — (92 ) 483 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information Related to Operating and Finance Leases | Operating and finance leases presented on the Consolidated Balance Sheet Operating Leases Finance Leases (In millions) Right-of-use assets — net (a) $ 713 $ 332 Lease obligations: Current $ 366 $ 36 Long-term 436 250 Total lease obligations $ 802 $ 286 (a) Finance lease Right-of-use assets have a cost of $384 million and accumulated amortization of $52 million. |
Schedule of Maturities of Lease Obligations | Operating Leases Finance Leases (In millions) 2019 $ 308 $ 48 2020 183 36 2021 71 36 2022 64 36 2023 64 36 Remaining years 197 248 Total lease payments 887 440 Less: Imputed interest (85 ) (154 ) Total lease obligations $ 802 $ 286 |
Summary of Information Relates to Operating and Finance Leases Recorded | The following information relates to the Operating and Finance leases recorded at March 31, 2019: Operating Leases Finance Leases Weighted average remaining lease term 4.7 years 13.5 years Range of remaining lease terms 0.1 - 9.3 years 0.2 - 14.5 years Weighted average discount rate 4.3% 7.8% |
Schedule of Components of Lease Cost | The components of lease costs in the first quarter of 2019 were as follows (in millions): Operating lease cost $ 103 Finance lease cost: Amortization of leased assets 13 Interest on lease obligations 6 Short-term lease cost (a) 32 Variable lease cost (b) 19 Sublease income (c) (3 ) Total lease cost $ 170 (a) Short-term lease cost is primarily attributable to equipment used in global exploration, development, and production activities. Future short-term lease costs will vary based on activity levels of our operated assets. (b) Variable lease costs for the drilling rig leases result from differences in the minimum rate and the actual usage of the ROU asset during the lease period. Variable lease costs for logistical assets result from differences in stated monthly rates and total charges reflecting the actual usage of the ROU asset during the lease period. Variable lease costs for our office leases represent common area maintenance charges which have not been separated from lease components. (c) We sublease certain of our office space to third parties under our head lease. |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the first quarter of 2019 was as follows: Operating Leases Finance Leases (In millions) Cash paid for amounts included in the measurement of lease obligations: Operating cash flows $ 106 $ 6 Financing cash flows — 23 Noncash transactions: Leased assets recognized for new lease obligations incurred 3 — |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue from Contracts with Customers on a Disaggregated Basis | Revenue from contracts with customers on a disaggregated basis was as follows (in $ millions): Exploration and Production Midstream Eliminations Total United States Denmark Libya Malaysia & JDA E&P Total Three Months Ended March 31, 2019 Sales of our net production volumes: Crude oil revenue $ 682 $ 16 $ 91 $ 21 $ 810 $ — $ — $ 810 Natural gas liquids revenue 68 — — — 68 — — 68 Natural gas revenue 42 3 6 180 231 — — 231 Sales of purchased oil and gas 426 — 22 — 448 — — 448 Intercompany revenue — — — — — 190 (190 ) — Total revenues from contracts with customers 1,218 19 119 201 1,557 190 (190 ) 1,557 Other operating revenues (a) 15 — — — 15 — — 15 Total sales and other operating revenues $ 1,233 $ 19 $ 119 $ 201 $ 1,572 $ 190 $ (190 ) $ 1,572 Three Months Ended March 31, 2018 Sales of our net production volumes: Crude oil revenue $ 593 $ 33 $ 99 $ 43 $ 768 $ — $ — $ 768 Natural gas liquids revenue 71 — — — 71 — — 71 Natural gas revenue 39 3 8 128 178 — — 178 Sales of purchased oil and gas 325 — 24 14 363 — — 363 Intercompany revenue — — — — — 167 (167 ) — Total revenues from contracts with customers 1,028 36 131 185 1,380 167 (167 ) 1,380 Other operating revenues (a) (34 ) — — — (34 ) — — (34 ) Total sales and other operating revenues $ 994 $ 36 $ 131 $ 185 $ 1,346 $ 167 $ (167 ) $ 1,346 (a) Includes gains (losses) on commodity derivatives. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: March 31, December 31, 2019 2018 (In millions) Crude oil and natural gas liquids $ 96 $ 74 Materials and supplies 178 171 Total Inventories $ 274 $ 245 |
Capitalized Exploratory Well _2
Capitalized Exploratory Well Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Capitalized Exploratory Well Costs [Abstract] | |
Net Changes in Capitalized Exploratory Well Costs | The following table discloses the net changes in capitalized exploratory well costs pending determination of proved reserves during the three months ended March 31, 2019 (in millions): Balance at January 1, 2019 $ 418 Additions to capitalized exploratory well costs pending the determination of proved reserves 48 Balance at March 31, 2019 $ 466 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Cost | Components of net periodic pension cost consisted of the following: Three Months Ended March 31, 2019 2018 (In millions) Service cost $ 10 $ 14 Interest cost (a) 24 23 Expected return on plan assets (a) (45 ) (49 ) Amortization of unrecognized net actuarial losses (a) 11 12 Curtailment gains (a) — (2 ) Pension (income) expense (a) $ — $ (2 ) (a) Net non-service pension cost included in Other, net in the Statement of Consolidated Income in the first quarter of 2019 was income of $10 million (2018: $16 million of income). |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) and Weighted Average Number of Common Shares Used in the Computation of Basic and Diluted Earnings Per Share | The Net income (loss) and weighted average number of common shares used in the basic and diluted earnings per share computations were as follows: Three Months Ended March 31, 2019 2018 (In millions) Net income (loss) attributable to Hess Corporation Common Stockholders: Net income (loss) $ 75 $ (65 ) Less: Net income (loss) attributable to noncontrolling interests 43 41 Less: Preferred stock dividends 4 11 Net income (loss) attributable to Hess Corporation Common Stockholders $ 28 $ (117 ) Weighted average number of common shares outstanding: Basic 297.4 309.5 Effect of dilutive securities Restricted common stock 1.2 — Stock options 0.2 — Performance share units 0.9 — Diluted 299.7 309.5 |
Summary of Antidilutive Shares Excluded from Computation of Diluted Shares | The following table summarizes the number of antidilutive shares excluded from the computation of diluted shares: Three Months Ended March 31, 2019 2018 Restricted common stock 57,252 2,922,316 Stock options 3,394,418 5,807,579 Performance share units 65,661 623,088 Common shares from conversion of preferred stocks 3,930,663 12,584,974 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Financial Data and Identifiable Assets by Operating Segment | Exploration and Production Midstream Corporate, Interest and Other Eliminations Total (In millions) For the Three Months Ended March 31, 2019 Sales and Other Operating Revenues - Third-parties $ 1,572 $ — $ — $ — $ 1,572 Intersegment Revenues — 190 — (190 ) — Sales and Other Operating Revenues $ 1,572 $ 190 $ — $ (190 ) $ 1,572 Net Income (Loss) attributable to Hess Corporation $ 109 $ 37 $ (114 ) $ — $ 32 Depreciation, Depletion and Amortization 464 34 — — 498 Provision (Benefit) for Income Taxes (a) 95 — (1 ) — 94 Capital Expenditures 515 127 — — 642 For the Three Months Ended March 31, 2018 Sales and Other Operating Revenues - Third-parties $ 1,346 $ — $ — $ — $ 1,346 Intersegment Revenues — 167 — (167 ) — Sales and Other Operating Revenues $ 1,346 $ 167 $ — $ (167 ) $ 1,346 Net Income (Loss) attributable to Hess Corporation $ (25 ) $ 28 $ (109 ) $ — $ (106 ) Depreciation, Depletion and Amortization 385 31 1 — 417 Provision (Benefit) for Income Taxes (a) 95 9 (31 ) — 73 Capital Expenditures 354 37 — — 391 (a) Commencing January 1, 2019, management changed its measurement of segment earnings to reflect income taxes on a post U.S. tax consolidation and valuation allowance assessment basis. In 2018, the provision for income taxes in the Midstream segment was presented before consolidating its operations with other U.S. activities of the Company and prior to evaluating realizability of net U.S. deferred taxes. An offsetting impact was presented in the E&P segment. If 2018 segment results were prepared on a basis consistent with 2019, Midstream segment net income attributable to Hess Corporation would have been $37 million and E&P segment net losses would have been $34 million in the first quarter of 2018. Identifiable assets by operating segment were as follows: March 31, December 31, 2019 2018 (In millions) Exploration and Production $ 16,978 $ 16,109 Midstream 3,280 3,285 Corporate, Interest and Other 1,458 2,039 Total $ 21,716 $ 21,433 |
Financial Risk Management Act_2
Financial Risk Management Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments Gain Loss [Line Items] | |
Gross and Net Fair Values of Financial Risk Management Derivative Instruments | The table below reflects the gross and net fair values of risk management derivative instruments and their respective financial statement caption in the Consolidated Balance Sheet Assets Liabilities (In millions) March 31, 2019 Derivative Contracts Designated as Hedging Instruments: Commodity - Other current assets $ 96 $ — Interest rate - Other liabilities and deferred credits (noncurrent) — (1 ) Total derivative contracts designated as hedging instruments 96 (1 ) Gross fair value of derivative contracts 96 (1 ) Master netting arrangements — — Net Fair Value of Derivative Contracts $ 96 $ (1 ) December 31, 2018 Derivative Contracts Designated as Hedging Instruments: Commodity - Other current assets $ 484 $ — Interest rate - Other liabilities and deferred credits (noncurrent) — (2 ) Total derivative contracts designated as hedging instruments 484 (2 ) Gross fair value of derivative contracts 484 (2 ) Master netting arrangements — — Net Fair Value of Derivative Contracts $ 484 $ (2 ) |
Related to West Texas Intermediate (WTI) Instruments | |
Derivative Instruments Gain Loss [Line Items] | |
Gross Notional Amounts of Outstanding Financial Risk Management Derivative Contracts | The gross notional amounts of outstanding financial risk management derivative contracts related to West Texas Intermediate (WTI) instruments as of the dates shown below were as follows: March 31, 2019 December 31, 2018 Calendar year program 2019 2019 Instrument type Puts Puts Effective date Apr. 1, 2019 Jan. 1, 2019 End date Dec. 31, 2019 Dec. 31, 2019 Crude oil volumes (millions of barrels) 26.1 34.7 Floor price $ 60 $ 60 |
Excluding West Texas Intermediate (WTI) | |
Derivative Instruments Gain Loss [Line Items] | |
Gross Notional Amounts of Outstanding Financial Risk Management Derivative Contracts | The gross notional amounts of outstanding financial risk management derivative contracts, excluding commodity contracts, were as follows: March 31, 2019 December 31, 2018 (In millions) Foreign exchange $ 43 $ 16 Interest rate swaps $ 100 $ 100 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) | Jan. 31, 2019 | Dec. 31, 2017 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cumulative effect of retained earnings | $ 0 | |
ASC 842 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cumulative effect of retained earnings | $ 0 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Impact of adoption on Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Property, plant and equipment — net | $ 15,898 | $ 16,083 | |
Operating lease right-of-use assets — net | 713 | 0 | |
Finance lease right-of-use assets — net | 332 | 0 | |
Liabilities | |||
Accrued liabilities | 1,369 | 1,560 | |
Current maturities of long-term debt | 12 | 67 | |
Current portion of operating and finance lease obligations | 402 | 0 | |
Long-term debt | 6,550 | 6,605 | |
Long-term operating lease obligations | 436 | 0 | |
Long-term finance lease obligations | 250 | 0 | |
Other liabilities and deferred credits | $ 491 | $ 575 | |
ASC 842 | |||
Assets | |||
Property, plant and equipment — net | $ 15,737 | ||
Operating lease right-of-use assets — net | 804 | ||
Finance lease right-of-use assets — net | 346 | ||
Liabilities | |||
Accrued liabilities | 1,558 | ||
Current maturities of long-term debt | 12 | ||
Current portion of operating and finance lease obligations | 437 | ||
Long-term debt | 6,351 | ||
Long-term operating lease obligations | 516 | ||
Long-term finance lease obligations | 254 | ||
Other liabilities and deferred credits | 483 | ||
ASC 842 | Adjustment For Finance Leases | |||
Assets | |||
Property, plant and equipment — net | (346) | ||
Operating lease right-of-use assets — net | 0 | ||
Finance lease right-of-use assets — net | 346 | ||
Liabilities | |||
Accrued liabilities | 0 | ||
Current maturities of long-term debt | (55) | ||
Current portion of operating and finance lease obligations | 55 | ||
Long-term debt | (254) | ||
Long-term operating lease obligations | 0 | ||
Long-term finance lease obligations | 254 | ||
Other liabilities and deferred credits | 0 | ||
ASC 842 | Adjustment For Operating Leases | |||
Assets | |||
Property, plant and equipment — net | 0 | ||
Operating lease right-of-use assets — net | 804 | ||
Finance lease right-of-use assets — net | 0 | ||
Liabilities | |||
Accrued liabilities | (2) | ||
Current maturities of long-term debt | 0 | ||
Current portion of operating and finance lease obligations | 382 | ||
Long-term debt | 0 | ||
Long-term operating lease obligations | 516 | ||
Long-term finance lease obligations | 0 | ||
Other liabilities and deferred credits | $ (92) |
Leases - Schedule of Consolidat
Leases - Schedule of Consolidated Balance Sheet Information Related to Operating and Finance Leases (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets — net | $ 713 | $ 0 |
Operating Leases, Lease obligations: | ||
Operating Leases, Lease Liabilities, Current | 366 | |
Long-term operating lease obligations | 436 | 0 |
Operating Leases, Total lease obligations | 802 | |
Finance lease right-of-use assets — net | 332 | 0 |
Financing Leases, Lease obligations: | ||
Financing Leases, Lease liabilities, Current | 36 | |
Financing Leases, Lease liabilities, Long-term | 250 | $ 0 |
Financing Leases, Total lease obligations | $ 286 |
Leases - Schedule of Consolid_2
Leases - Schedule of Consolidated Balance Sheet Information Related to Operating and Finance Leases (Parenthetical) (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Finance lease, right-of-use assets, amortization cost | $ 384 |
Finance lease, right-of-use assets, accumulated amortization | $ 52 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Leases [Line Items] | ||
Lease obligations as percentage of present value of future minimum lease payments in lease arrangement | 100.00% | |
Carrying value of finance lease asset | $ 332,000,000 | $ 0 |
Carrying value of finance lease obligation | $ 286,000,000 | |
Lease payments as percentage of lease costs | 100.00% | |
Floating, Storage and Offloading Vessel | ||
Leases [Line Items] | ||
North Malay Basin, offshore Peninsular Malaysia - Hess operated interest | 50.00% | |
Gain or loss on sale of transaction | $ 0 | |
Finance lease term | 14 years 6 months | |
Carrying value of finance lease asset | $ 256,000,000 | |
Carrying value of finance lease obligation | 266,000,000 | |
Floating, Storage and Offloading Vessel | Additional Finance Lease Obligation | ||
Leases [Line Items] | ||
Finance lease obligation to be settlement in future | $ 20,000,000 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Obligations (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, 2019 | $ 308 |
Operating Leases, 2020 | 183 |
Operating Leases, 2021 | 71 |
Operating Leases, 2022 | 64 |
Operating Leases, 2023 | 64 |
Operating Leases, Remaining years | 197 |
Total lease payments | 887 |
Less: Imputed interest | (85) |
Total lease obligations | 802 |
Financing Leases, 2019 | 48 |
Financing Leases, 2020 | 36 |
Financing Leases, 2021 | 36 |
Financing Leases, 2022 | 36 |
Financing Leases, 2023 | 36 |
Financing Leases, Remaining years | 248 |
Total lease payments | 440 |
Less: Imputed interest | (154) |
Total lease obligations | $ 286 |
Leases - Summary of Information
Leases - Summary of Information Relates to Operating and Finance Leases Recorded (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Line Items] | |
Operating leases, Weighted average remaining lease term | 4 years 8 months 12 days |
Operating leases, Weighted average discount rate | 4.30% |
Finance leases, Weighted average remaining lease term | 13 years 6 months |
Finance leases, Weighted average discount rate | 7.80% |
Minimum | |
Leases [Line Items] | |
Operating leases, Range of remaining lease terms | 1 month 6 days |
Finance leases, Range of remaining lease terms | 2 months 12 days |
Maximum | |
Leases [Line Items] | |
Operating leases, Range of remaining lease terms | 9 years 3 months 18 days |
Finance leases, Range of remaining lease terms | 14 years 6 months |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 103 |
Finance lease cost: | |
Amortization of leased assets | 13 |
Interest on lease obligations | 6 |
Short-term lease cost | 32 |
Variable lease cost | 19 |
Sublease income | (3) |
Total lease cost | $ 170 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash paid for amounts included in the measurement of lease obligations: | ||
Operating Leases, Operating cash flows | $ 106 | |
Operating Leases, Financing cash flows | 0 | |
Finance Leases, Operating cash flows | 6 | |
Finance Leases, Financing cash flows | 23 | $ 0 |
Noncash transactions: | ||
Operating Leases, Leased assets recognized for new lease obligations incurred | 3 | |
Finance Leases, Leased assets recognized for new lease obligations incurred | $ 0 |
Preferred Stock Conversion - Ad
Preferred Stock Conversion - Additional Information (Detail) - shares shares in Millions | Jan. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Class Of Stock [Line Items] | |||
Series A, cumulative mandatory convertible preferred stock - dividend rate | 8.00% | 8.00% | |
Series A Mandatory Convertible Preferred Stock | |||
Class Of Stock [Line Items] | |||
Common stock issuance following preferred stock conversion | 12.5 | ||
Series A, cumulative mandatory convertible preferred stock - dividend rate | 8.00% | ||
Number of common shares received from capped call upon conversion of preferred stocks | 0.9 | ||
Net number of common shares issued upon conversion of preferred stocks | 11.6 | ||
Convertible preferred stock conversion in to common stock converted shares | 21.822 |
Revenue - Summary of Revenue fr
Revenue - Summary of Revenue from Contracts with Customers on a Disaggregated Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | $ 1,557 | $ 1,380 |
Other operating revenues (a) | 15 | (34) |
Total sales and other operating revenues | 1,572 | 1,346 |
Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Crude Oil Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 810 | 768 |
Natural Gas Liquids Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 68 | 71 |
Natural Gas Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 231 | 178 |
Sales of Purchased Oil and Gas | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 448 | 363 |
Operating Segments | Exploration and Production | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 1,557 | 1,380 |
Other operating revenues (a) | 15 | (34) |
Total sales and other operating revenues | 1,572 | 1,346 |
Operating Segments | Exploration and Production | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Exploration and Production | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 1,218 | 1,028 |
Other operating revenues (a) | 15 | (34) |
Total sales and other operating revenues | 1,233 | 994 |
Operating Segments | Exploration and Production | United States | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Exploration and Production | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 19 | 36 |
Other operating revenues (a) | 0 | 0 |
Total sales and other operating revenues | 19 | 36 |
Operating Segments | Exploration and Production | Denmark | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Exploration and Production | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 119 | 131 |
Other operating revenues (a) | 0 | 0 |
Total sales and other operating revenues | 119 | 131 |
Operating Segments | Exploration and Production | Libya | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Exploration and Production | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 201 | 185 |
Other operating revenues (a) | 0 | 0 |
Total sales and other operating revenues | 201 | 185 |
Operating Segments | Exploration and Production | Malaysia & JDA | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Exploration and Production | Crude Oil Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 810 | 768 |
Operating Segments | Exploration and Production | Crude Oil Revenue | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 682 | 593 |
Operating Segments | Exploration and Production | Crude Oil Revenue | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 16 | 33 |
Operating Segments | Exploration and Production | Crude Oil Revenue | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 91 | 99 |
Operating Segments | Exploration and Production | Crude Oil Revenue | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 21 | 43 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 68 | 71 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 68 | 71 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Exploration and Production | Natural Gas Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 231 | 178 |
Operating Segments | Exploration and Production | Natural Gas Revenue | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 42 | 39 |
Operating Segments | Exploration and Production | Natural Gas Revenue | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 3 | 3 |
Operating Segments | Exploration and Production | Natural Gas Revenue | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 6 | 8 |
Operating Segments | Exploration and Production | Natural Gas Revenue | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 180 | 128 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 448 | 363 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 426 | 325 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 22 | 24 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 14 |
Operating Segments | Midstream | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 190 | 167 |
Other operating revenues (a) | 0 | 0 |
Total sales and other operating revenues | 190 | 167 |
Operating Segments | Midstream | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 190 | 167 |
Operating Segments | Midstream | Crude Oil Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Midstream | Natural Gas Liquids Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Midstream | Natural Gas Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Operating Segments | Midstream | Sales of Purchased Oil and Gas | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Eliminations | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | (190) | (167) |
Other operating revenues (a) | 0 | 0 |
Total sales and other operating revenues | (190) | (167) |
Eliminations | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | (190) | (167) |
Eliminations | Crude Oil Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Eliminations | Natural Gas Liquids Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Eliminations | Natural Gas Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | 0 |
Eliminations | Sales of Purchased Oil and Gas | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | $ 0 | $ 0 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Exploration and Production | ||
Disaggregation Of Revenue [Line Items] | ||
Credit losses on receivables with customers | $ 0 | $ 0 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas liquids | $ 96 | $ 74 |
Materials and supplies | 178 | 171 |
Total Inventories | $ 274 | $ 245 |
Capitalized Exploratory Well _3
Capitalized Exploratory Well Costs - Net Changes in Capitalized Exploratory Well Costs (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Capitalized Exploratory Well Costs [Abstract] | |
Beginning balance | $ 418 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 48 |
Ending balance | $ 466 |
Capitalized Exploratory Well _4
Capitalized Exploratory Well Costs - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized exploratory well costs that have been capitalized for period greater than one year | $ 309 |
Liza-4, Pacora-1 Payara-1, Payara-2, Ranger-1 and Snoek-1 Wells on the Stabroek Block, Offshore Guyana | |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized well costs percentage | 45.00% |
Project interest percentage | 30.00% |
Northern Portion of Shenzi Field, Gulf of Mexico | |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized well costs percentage | 40.00% |
Project interest percentage | 28.00% |
JDA, Gulf of Thailand | |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized well costs percentage | 10.00% |
Project interest percentage | 50.00% |
North Malay Basin, offshore Peninsular Malaysia | |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized well costs percentage | 5.00% |
Project interest percentage | 50.00% |
Hess Infrastructure Partners _2
Hess Infrastructure Partners LP - Additional Information (Detail) - USD ($) $ in Millions | Mar. 22, 2019 | Mar. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | $ 2,300 | $ 2,694 | $ 3,726 | $ 4,847 | ||
Property, plant and equipment, net | $ 15,898 | 16,083 | ||||
Hess Infrastructure Partners LP (HIP) | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage in Hess Infrastructure Partners LP (HIP) by Hess Corporation | 50.00% | |||||
Water disposal management business, cash paid | $ 225 | |||||
Cash consideration | $ 90 | |||||
Contingent payments subject to certain future performance | $ 10 | |||||
Hess Infrastructure Partners LP (HIP) | Additional Paid-in-Capital | ||||||
Variable Interest Entity [Line Items] | ||||||
Sale of water management business, after-tax gain offset to noncontrolling interests | $ 78 | |||||
Hess Infrastructure Partners LP (HIP) | Midstream Segment | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable Interest Entity Ownership Percentage | 80.00% | |||||
Variable Interest Entity, Primary Beneficiary | Hess Infrastructure Partners LP (HIP) | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage in Hess Infrastructure Partners LP (HIP) by Hess Corporation | 50.00% | |||||
Cash and cash equivalents | $ 6 | 109 | ||||
Property, plant and equipment, net | 2,829 | 2,664 | ||||
HIP's liabilities on a nonrecourse to Hess Corporation | $ 1,273 | $ 1,105 | ||||
Variable Interest Entity, Primary Beneficiary | Hess Midstream Partners LP (HIP) | Midstream Segment | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable Interest Entity Ownership Percentage | 20.00% |
Retirement Plans - Components o
Retirement Plans - Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||
Service cost | $ 10 | $ 14 |
Interest cost | 24 | 23 |
Expected return on plan assets | (45) | (49) |
Amortization of unrecognized net actuarial losses | 11 | 12 |
Curtailment gains | 0 | (2) |
Pension (income) expense | $ 0 | $ (2) |
Retirement Plans - Components_2
Retirement Plans - Components of Net Periodic Pension Cost (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||
Net non-service pension income included in Other, net | $ 10 | $ 16 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Corporation's estimated contribution for funded pension plans in 2019 | $ 40 |
Corporation's contribution for funded pension plan during the year to date | $ 10 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument Redemption [Line Items] | |||
Terminated interest rate swaps | terminated interest rate swaps with a notional amount of $350 million | ||
Amount of terminated interest rate swaps | $ 350 | ||
Loss on debt extinguishment | $ 0 | 27 | |
Revolving Credit Facility | |||
Debt Instrument Redemption [Line Items] | |||
Borrowing from revolving credit line | $ 199 | ||
Other Notes | |||
Debt Instrument Redemption [Line Items] | |||
Carrying value of purchased debt | $ 38 | ||
8.125% Notes Due 2019 | |||
Debt Instrument Redemption [Line Items] | |||
Debt instrument redemption amount | 415 | ||
Debt instrument redemption of principal amount | $ 350 | ||
Debt instrument interest rate | 8.125% | ||
Debt instrument maturity year | 2019 | ||
Carrying value of purchased debt | $ 349 |
Weighted Average Common Share_2
Weighted Average Common Shares - Basic and Diluted Earnings Per Share (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income (loss) attributable to Hess Corporation Common Stockholders: | ||
Net Income (Loss) | $ 75 | $ (65) |
Less: Net income (loss) attributable to noncontrolling interests | 43 | 41 |
Less: Preferred stock dividends | 4 | 11 |
Net Income (Loss) Attributable to Hess Corporation Common Stockholders | $ 28 | $ (117) |
Weighted average number of common shares outstanding: | ||
Basic | 297.4 | 309.5 |
Diluted | 299.7 | 309.5 |
Restricted Common Stock | ||
Weighted average number of common shares outstanding: | ||
Effect of dilutive securities | 1.2 | 0 |
Stock Options | ||
Weighted average number of common shares outstanding: | ||
Effect of dilutive securities | 0.2 | 0 |
Performance Share Units | ||
Weighted average number of common shares outstanding: | ||
Effect of dilutive securities | 0.9 | 0 |
Weighted Average Common Share_3
Weighted Average Common Shares - Antidilutive Shares Excluded from Computation of Diluted Shares (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restricted Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares | 57,252 | 2,922,316 |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares | 3,394,418 | 5,807,579 |
Performance Share Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares | 65,661 | 623,088 |
Common Shares from Conversion of Preferred Stocks | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares | 3,930,663 | 12,584,974 |
Weighted Average Common Share_4
Weighted Average Common Shares - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Shares granted, restricted stock | 941,082 | 1,081,923 |
Shares granted, performance share units | 234,866 | 278,003 |
Shares granted, stock options | 526,968 | 683,167 |
Guarantees and Contingencies -
Guarantees and Contingencies - Additional Information (Detail) $ in Millions | Mar. 04, 2016USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2019USD ($)Case |
MTBE Cases | |||
Loss Contingencies [Line Items] | |||
Total number of remaining active cases filed | Case | 3 | ||
Lower Passaic River | |||
Loss Contingencies [Line Items] | |||
Estimated remediation cost | $ 1,380 | ||
Gowanus Canal Superfund Site | |||
Loss Contingencies [Line Items] | |||
Estimated remediation cost | $ 506 | ||
Ector Drum, Inc. Superfund Site | |||
Loss Contingencies [Line Items] | |||
Estimated remediation cost | $ 3.5 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments for the Corporation | 2 |
Segment Information - Financial
Segment Information - Financial Data by Operating Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | $ 1,572 | $ 1,346 | |
Intersegment revenues | 0 | 0 | |
Total sales and other operating revenues | 1,572 | 1,346 | |
Net Income (Loss) attributable to Hess Corporation | 32 | (106) | |
Depreciation, depletion and amortization | 498 | 417 | |
Provision (benefit) for income taxes | 94 | 73 | |
Capital Expenditures | 642 | 391 | |
Identifiable assets | 21,716 | $ 21,433 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | 0 | 0 | |
Intersegment revenues | (190) | (167) | |
Total sales and other operating revenues | (190) | (167) | |
Net Income (Loss) attributable to Hess Corporation | 0 | 0 | |
Depreciation, depletion and amortization | 0 | 0 | |
Provision (benefit) for income taxes | 0 | 0 | |
Capital Expenditures | 0 | 0 | |
Exploration and Production | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | 1,572 | 1,346 | |
Intersegment revenues | 0 | 0 | |
Total sales and other operating revenues | 1,572 | 1,346 | |
Net Income (Loss) attributable to Hess Corporation | 109 | (25) | |
Depreciation, depletion and amortization | 464 | 385 | |
Provision (benefit) for income taxes | 95 | 95 | |
Capital Expenditures | 515 | 354 | |
Identifiable assets | 16,978 | 16,109 | |
Midstream | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | 0 | 0 | |
Intersegment revenues | 190 | 167 | |
Total sales and other operating revenues | 190 | 167 | |
Net Income (Loss) attributable to Hess Corporation | 37 | 28 | |
Depreciation, depletion and amortization | 34 | 31 | |
Provision (benefit) for income taxes | 0 | 9 | |
Capital Expenditures | 127 | 37 | |
Identifiable assets | 3,280 | 3,285 | |
Corporate, Interest and Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | 0 | 0 | |
Intersegment revenues | 0 | 0 | |
Total sales and other operating revenues | 0 | 0 | |
Net Income (Loss) attributable to Hess Corporation | (114) | (109) | |
Depreciation, depletion and amortization | 0 | 1 | |
Provision (benefit) for income taxes | (1) | (31) | |
Capital Expenditures | 0 | $ 0 | |
Identifiable assets | $ 1,458 | $ 2,039 |
Segment Information - Financi_2
Segment Information - Financial Data by Operating Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net income (losses) | $ 32 | $ (106) |
Midstream Segment | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net income (losses) | 37 | 28 |
Midstream Segment | Operating Segments | Pro Forma | ||
Segment Reporting Information [Line Items] | ||
Net income (losses) | 37 | |
Exploration and Production | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net income (losses) | $ 109 | (25) |
Exploration and Production | Operating Segments | Pro Forma | ||
Segment Reporting Information [Line Items] | ||
Net income (losses) | $ (34) |
Financial Risk Management Act_3
Financial Risk Management Activities - Gross Notional Amounts of Outstanding Financial Risk Management Derivative Contracts (Detail) - WTI - 2019 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019MMBbls$ / bbl | Dec. 31, 2018MMBbls$ / bbl | |
Derivative [Line Items] | ||
Calendar year program | 2019 | 2019 |
Instrument type | Puts | |
Effective date | Apr. 1, 2019 | Jan. 1, 2019 |
End date | Dec. 31, 2019 | Dec. 31, 2019 |
Crude oil volumes (millions of barrels) | MMBbls | 26.1 | 34.7 |
Floor price | $ / bbl | 60 | 60 |
Financial Risk Management Act_4
Financial Risk Management Activities - Gross Notional Amounts of Derivative Contracts Outstanding Excluding Commodity Contracts (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Foreign Exchange | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 43,000,000 | $ 16,000,000 |
Interest Rate Swaps | Designated as Fair Value Hedges | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 100,000,000 | $ 100,000,000 |
Financial Risk Management Act_5
Financial Risk Management Activities - Gross and Net Fair Values (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | $ 96 | $ 484 |
Assets – Master netting arrangements | 0 | 0 |
Assets - Net Fair Value of Derivative Contracts | 96 | 484 |
Liabilities - Gross fair value of derivative contracts | (1) | (2) |
Liabilities - Master netting arrangements | 0 | 0 |
Liabilities - Net Fair Value of Derivative Contracts | (1) | (2) |
Derivative Contracts Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 96 | 484 |
Liabilities - Gross fair value of derivative contracts | (1) | (2) |
Derivative Contracts Designated as Hedging Instruments | Commodity | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 96 | 484 |
Liabilities - Gross fair value of derivative contracts | 0 | 0 |
Derivative Contracts Designated as Hedging Instruments | Commodity | Other Liabilities and Deferred Credits | ||
Derivatives Fair Value [Line Items] | ||
Liabilities - Gross fair value of derivative contracts | (1) | (2) |
Derivative Contracts Designated as Hedging Instruments | Interest Rate | Other Liabilities and Deferred Credits | ||
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | $ 0 | $ 0 |
Financial Risk Management Act_6
Financial Risk Management Activities - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative Instruments Gain Loss [Line Items] | |||
Amount of terminated interest rate swaps | $ 350,000,000 | ||
Interest Rate Swaps | Designated as Fair Value Hedges | |||
Derivative Instruments Gain Loss [Line Items] | |||
Outstanding gross notional amount | $ 100,000,000 | $ 100,000,000 | |
Unrealized change in fair value of interest rate swaps - (increase) decrease in derivative liability | 1,000,000 | (3,000,000) | |
Payment to terminate interest rate swaps | 3,000,000 | ||
Foreign Exchange | |||
Derivative Instruments Gain Loss [Line Items] | |||
Outstanding gross notional amount | 43,000,000 | $ 16,000,000 | |
Foreign exchange gains reported in Other, net in Revenues and Non-Operating Income in the Statement of Consolidated Income | 5,000,000 | 4,000,000 | |
Gain (Loss) on foreign exchange contracts not designated as hedging instruments | 2,000,000 | ||
Foreign Exchange | Maximum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Gain (Loss) on foreign exchange contracts not designated as hedging instruments | (1,000,000) | ||
Derivative Contracts Designated as Hedging Instruments | Crude Oil | |||
Derivative Instruments Gain Loss [Line Items] | |||
Crude oil price hedging contracts increased (decreased) Sales and other operating revenues by this amount, pre-tax | (15,000,000) | (30,000,000) | |
Pre-tax deferred income (losses) in Accumulated other comprehensive income (loss) to be reclassified into earnings during the remainder of 2019 | $ 3,000,000 | ||
Derivative Contracts Not Designated as Hedging Instruments | Crude Oil | |||
Derivative Instruments Gain Loss [Line Items] | |||
Crude oil price hedging contracts decreased sales and other operating revenues by this amount, pre-tax | $ (8,000,000) |
Financial Risk Management Act_7
Financial Risk Management Activities - Fair Value Measurements - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Carrying value | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total long-term debt | $ 6,562 |
Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total long-term debt fair value | $ 6,987 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Revolving Credit Facility - Subsequent Event $ in Billions | Apr. 18, 2019USD ($) |
Subsequent Event [Line Items] | |
Debt Instrument, undrawn borrowing capacity, amount | $ 3.5 |
Debt instrument maturity year | May 15, 2023 |
Debt instrument covenant, description | 1.30% |
Debt instrument covenant, ratio | 0.65 |
Revolving credit facility expiration date | Jan. 31, 2021 |