Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2024 |
Document Transition Report | false |
Entity File Number | 1-1204 |
Entity Registrant Name | HESS CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-4921002 |
Entity Address, Address Line One | 1185 AVENUE OF THE AMERICAS |
Entity Address, City or Town | NEW YORK |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10036 |
City Area Code | 212 |
Local Phone Number | 997-8500 |
Title of 12(b) Security | Common Stock |
Trading Symbol | HES |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 308,111,879 |
Amendment Flag | false |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0000004447 |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 1,438 | $ 1,688 |
Accounts receivable: | ||
From contracts with customers | 1,524 | 1,180 |
Joint venture and other | 165 | 150 |
Inventories | 382 | 304 |
Other current assets | 115 | 108 |
Total current assets | 3,624 | 3,430 |
Property, plant and equipment: | ||
Total — at cost | 37,706 | 36,771 |
Less: Reserves for depreciation, depletion, amortization and lease impairment | 19,879 | 19,339 |
Property, plant and equipment — net | 17,827 | 17,432 |
Operating lease right-of-use assets — net | 658 | 720 |
Finance lease right-of-use assets — net | 104 | 108 |
Goodwill | 360 | 360 |
Deferred income taxes | 408 | 320 |
Post-retirement benefit assets | 695 | 685 |
Other assets | 1,043 | 952 |
Total Assets | 24,719 | 24,007 |
Current Liabilities: | ||
Accounts payable | 403 | 402 |
Accrued liabilities | 1,774 | 2,102 |
Taxes payable | 95 | 85 |
Current portion of long-term debt | 314 | 311 |
Current portion of operating and finance lease obligations | 365 | 370 |
Total current liabilities | 2,951 | 3,270 |
Long-term debt | 8,415 | 8,302 |
Long-term operating lease obligations | 398 | 459 |
Long-term finance lease obligations | 151 | 156 |
Deferred income taxes | 657 | 608 |
Asset retirement obligations | 1,192 | 1,186 |
Other liabilities and deferred credits | 424 | 424 |
Total Liabilities | 14,188 | 14,405 |
Hess Corporation stockholders’ equity: | ||
Common stock, par value $1.00; Authorized - 600,000,000 shares, Issued - 308,111,879 shares (2023: 307,158,272) | 308 | 307 |
Capital in excess of par value | 6,545 | 6,495 |
Retained earnings | 3,149 | 2,318 |
Accumulated other comprehensive income (loss) | (134) | (134) |
Total Hess Corporation stockholders’ equity | 9,868 | 8,986 |
Noncontrolling interests | 663 | 616 |
Total Equity | 10,531 | 9,602 |
Total Liabilities and Equity | $ 24,719 | $ 24,007 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 308,111,879 | 307,158,272 |
STATEMENT OF CONSOLIDATED INCOM
STATEMENT OF CONSOLIDATED INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues and Non-Operating Income | ||
Sales and other operating revenues | $ 3,309 | $ 2,411 |
Other, net | 32 | 42 |
Total revenues and non-operating income | 3,341 | 2,453 |
Costs and Expenses | ||
Marketing, including purchased oil and gas | 622 | 603 |
Operating costs and expenses | 412 | 382 |
Production and severance taxes | 56 | 48 |
Exploration expenses, including dry holes and lease impairment | 42 | 66 |
General and administrative expenses | 124 | 136 |
Interest expense | 113 | 123 |
Depreciation, depletion and amortization | 557 | 491 |
Total costs and expenses | 1,926 | 1,849 |
Income Before Income Taxes | 1,415 | 604 |
Provision for income taxes | 348 | 176 |
Net Income | 1,067 | 428 |
Less: Net income attributable to noncontrolling interests | 95 | 82 |
Net Income Attributable to Hess Corporation | $ 972 | $ 346 |
Net Income Attributable to Hess Corporation Per Common Share: | ||
Basic (in dollars per share) | $ 3.17 | $ 1.13 |
Diluted (in dollars per share) | $ 3.16 | $ 1.13 |
Weighted Average Number of Common Shares Outstanding: | ||
Basic (in shares) | 306.4 | 305.4 |
Diluted (in shares) | 307.9 | 307.3 |
Common Stock Dividends Per Share (in dollars per share) | $ 0.4375 | $ 0.4375 |
STATEMENT OF CONSOLIDATED COMPR
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 1,067 | $ 428 |
Derivatives designated as cash flow hedges | ||
Effect of hedge (gains) losses reclassified to income | 0 | 34 |
Income taxes on effect of hedge (gains) losses reclassified to income | 0 | 0 |
Net effect of hedge (gains) losses reclassified to income | 0 | 34 |
Change in fair value of cash flow hedges | 0 | (17) |
Income taxes on change in fair value of cash flow hedges | 0 | 0 |
Net change in fair value of cash flow hedges | 0 | (17) |
Change in derivatives designated as cash flow hedges, after taxes | 0 | 17 |
Pension and other postretirement plans | ||
(Increase) reduction in unrecognized actuarial losses | 0 | 0 |
Income taxes on actuarial changes in plan liabilities | 0 | 0 |
(Increase) reduction in unrecognized actuarial losses, net | 0 | 0 |
Amortization of net actuarial losses | 0 | 0 |
Income taxes on amortization of net actuarial losses | 0 | 0 |
Net effect of amortization of net actuarial losses | 0 | 0 |
Change in pension and other postretirement plans, after taxes | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 17 |
Comprehensive Income | 1,067 | 445 |
Less: Comprehensive income attributable to noncontrolling interests | 95 | 82 |
Comprehensive Income Attributable to Hess Corporation | $ 972 | $ 363 |
STATEMENT OF CONSOLIDATED CASH
STATEMENT OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows From Operating Activities | ||
Net income | $ 1,067 | $ 428 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, depletion and amortization | 557 | 491 |
Exploratory dry hole costs | 0 | 31 |
Exploration lease impairment | 3 | 5 |
Stock compensation expense | 39 | 35 |
Provision for deferred income taxes and other tax accruals | 63 | 42 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (359) | (202) |
(Increase) decrease in inventories | (78) | (12) |
Increase (decrease) in accounts payable and accrued liabilities | (294) | (23) |
Increase (decrease) in taxes payable | 10 | 12 |
Changes in other operating assets and liabilities | (123) | (169) |
Net cash provided by (used in) operating activities | 885 | 638 |
Cash Flows From Investing Activities | ||
Additions to property, plant and equipment - E&P | (902) | (773) |
Additions to property, plant and equipment - Midstream | (55) | (64) |
Other, net | 1 | 4 |
Net cash provided by (used in) investing activities | (958) | (841) |
Cash Flows From Financing Activities | ||
Net borrowings (repayments) of debt with maturities of 90 days or less | 115 | 103 |
Debt with maturities of greater than 90 days – Borrowings | 0 | 0 |
Debt with maturities of greater than 90 days - Repayments | (3) | 0 |
Cash dividends paid | (137) | (137) |
Payments for Repurchase of Common Stock | 0 | (20) |
Noncontrolling interests, net | (151) | (131) |
Employee stock options exercised | 11 | 3 |
Payments on finance lease obligations | (3) | (2) |
Other, net | (9) | 1 |
Net cash provided by (used in) financing activities | (177) | (183) |
Net Increase (Decrease) in Cash and Cash Equivalents | (250) | (386) |
Cash and Cash Equivalents at Beginning of Year | 1,688 | 2,486 |
Cash and Cash Equivalents at End of Period | $ 1,438 | $ 2,100 |
STATEMENT OF CONSOLIDATED EQUIT
STATEMENT OF CONSOLIDATED EQUITY - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Hess Stockholders’ Equity | Noncontrolling Interests |
Balance at Dec. 31, 2022 | $ 8,496 | $ 306 | $ 6,206 | $ 1,474 | $ (131) | $ 7,855 | $ 641 |
Net Income | 428 | 346 | 346 | 82 | |||
Other comprehensive income (loss) | 17 | 17 | 17 | ||||
Share-based compensation | 41 | 1 | 40 | 41 | |||
Dividends on common stock | (134) | (134) | (134) | ||||
Repurchase of Class B units of Hess Midstream Operations LP | (46) | 8 | 8 | (54) | |||
Noncontrolling interests, net | (81) | (81) | |||||
Balance at Mar. 31, 2023 | 8,721 | 307 | 6,254 | 1,686 | (114) | 8,133 | 588 |
Balance at Dec. 31, 2023 | 9,602 | 307 | 6,495 | 2,318 | (134) | 8,986 | 616 |
Net Income | 1,067 | 972 | 972 | 95 | |||
Other comprehensive income (loss) | 0 | ||||||
Share-based compensation | 45 | 1 | 50 | (6) | 45 | ||
Dividends on common stock | (135) | (135) | (135) | ||||
Sale of Class A shares of Hess Midstream LP | 94 | 94 | |||||
Repurchase of Class B units of Hess Midstream Operations LP | (53) | (53) | |||||
Noncontrolling interests, net | (89) | (89) | |||||
Balance at Mar. 31, 2024 | $ 10,531 | $ 308 | $ 6,545 | $ 3,149 | $ (134) | $ 9,868 | $ 663 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. 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, 2024 and December 31, 2023, the consolidated results of operations for the three months ended March 31, 2024 and 2023, and consolidated cash flows for the three months ended March 31, 2024 and 2023. 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, 2023. On October 22, 2023, we entered into an Agreement and Plan of Merger (the Merger Agreement) with Chevron Corporation (Chevron) and Yankee Merger Sub Inc. (Merger Subsidiary), a direct, wholly-owned subsidiary of Chevron. The Merger Agreement provides that, among other things and subject to the terms and conditions of the Merger Agreement, Merger Subsidiary will be merged with and into Hess, and Hess will be the surviving corporation in the Merger as a direct, wholly-owned subsidiary of Chevron (such transaction, the Merger). Under the terms of the Merger Agreement, if the Merger is completed, our stockholders will receive at the effective time of the Merger consideration consisting of 1.025 shares of Chevron common stock for each share of our common stock. Chevron and Hess are working to complete the Merger as soon as practicable and continue to anticipate obtaining all requisite stockholder and regulatory approvals by the middle of 2024. The filing of the arbitration relating to a right of first refusal (the Stabroek ROFR) contained in the operating agreement (the Stabroek JOA) among Hess Guyana Exploration Limited (HGEL) and affiliates of Exxon Mobil Corporation (Exxon Mobil) and China National Offshore Oil Corporation (CNOOC), however, may cause the transaction to be completed at a later time or to fail to be completed. Hess is seeking to have the merits of the arbitration heard by the third quarter of 2024 and to complete the arbitration by the end of 2024. Neither Chevron nor Hess can predict the actual date on which the transaction will be completed because it is subject to conditions beyond each company’s control. New Accounting Pronouncements: In November 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-07, Improvements to Reportable Segments Disclosures . The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU does not change how an entity identifies its operating segments. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently assessing the impact of adopting the ASU on our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures , which enhances the disclosure requirements within ASC Topic 740. The ASU requires, among other disclosures, greater disaggregation of information and the use of certain categories in the rate reconciliation, and the disaggregation of income taxes paid by jurisdiction. The ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. We are currently assessing the impact of adopting this ASU on our consolidated financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories Inventories consisted of the following: March 31, December 31, (In millions) Crude oil and natural gas liquids $ 100 $ 72 Materials and supplies 282 232 Total Inventories $ 382 $ 304 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 3. Property, Plant and Equipment 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, 2024 (in millions): Balance at January 1, 2024 $ 952 Additions to capitalized exploratory well costs pending the determination of proved reserves 65 Balance at March 31, 2024 $ 1,017 In the first three months, additions to capitalized exploratory well costs pending determination of proved reserves primarily related to wells drilled on the Stabroek Block (Hess 30%), offshore Guyana. At March 31, 2024, 37 exploration and appraisal wells on the Stabroek Block, with a total cost of $904 million, were capitalized pending determination of proved reserves. At March 31, 2024, exploratory well costs capitalized for greater than one year following completion of drilling of $812 million was comprised of the following: Guyana: 88% of the capitalized well costs in excess of one year relate to successful exploration and appraisal wells where hydrocarbons were encountered on the Stabroek Block. In April 2024, the Government of Guyana and the partners sanctioned the development of the Whiptail project, the sixth sanctioned project on the block. Approximately $115 million of capitalized exploratory well costs at March 31, 2024 related to the Whiptail project will be reclassified to wells, facilities and equipment in the second quarter of 2024. The operator also plans further appraisal drilling on the block and is conducting pre-development planning for additional phases of development. Suriname: 5% of the capitalized well costs in excess of one year relate to the Zanderij-1 well on Block 42 (Hess 33%). Exploration and appraisal activities are ongoing. Joint Development Area (JDA): 5% of the capitalized well costs in excess of one year relate to the JDA (Hess 50%) in the Gulf of Thailand, 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 ongoing commercial negotiations for an extension of the existing gas sales contract to include development of the western part of the block. Malaysia: 2% of the capitalized well costs in excess of one year relate to the North Malay Basin (Hess 50%), offshore Peninsular Malaysia, where hydrocarbons were encountered in two successful exploration wells. Pre-development studies are ongoing. |
Hess Midstream LP
Hess Midstream LP | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Hess Midstream LP | 4. Hess Midstream LP At March 31, 2024, Hess Midstream LP, a variable interest entity that is fully consolidated by Hess Corporation, had liabilities totaling $3,460 million (December 31, 2023: $3,385 million) that are on a nonrecourse basis to Hess Corporation, while Hess Midstream LP assets available to settle the obligations of Hess Midstream LP included cash and cash equivalents totaling $4 million (December 31, 2023: $5 million), property, plant and equipment with a carrying value of $3,215 million (December 31, 2023: $3,229 million) and an equity-method investment in the Little Missouri 4 (LM4) gas processing plant of $89 million (December 31, 2023: $90 million). At March 31, 2024, we have an approximate 38% consolidated ownership interest in Hess Midstream LP on an as-exchanged basis, primarily through our ownership of Class B units in Hess Midstream Operations LP (HESM Opco), the operating subsidiary of Hess Midstream LP, which are exchangeable into Class A shares of Hess Midstream LP on a one-for-one basis. LM4 is a 200 million standard cubic feet per day gas processing plant located south of the Missouri River in McKenzie County, North Dakota, that was constructed as part of a 50/50 joint venture between Hess Midstream LP and Targa Resources Corp. Hess Midstream LP has a natural gas processing agreement with LM4 under which it pays a processing fee and reimburses LM4 for its proportionate share of electricity costs. The processing fees included in Operating costs and expenses in the Statement of Consolidated Income for the three months ended March 31, 2024 were $7 million (2023: $5 million). In February 2024, Hess Midstream LP completed an underwritten public equity offering of 11.5 million Hess Midstream LP Class A shares held by an affiliate of Global Infrastructure Partners (GIP). Hess Corporation did not receive any proceeds from this public equity offering. The transaction resulted in an increase in Noncontrolling interests and deferred tax assets of $94 million resulting from a step-up in the tax basis of Hess Midstream LP’s investment in HESM Opco. In March 2024, HESM Opco repurchased approximately 2.8 million HESM Opco Class B units held by affiliates of Hess Corporation and GIP for $100 million, which was financed by HESM Opco's revolving credit facility. The transaction resulted in an increase in deferred tax assets and Noncontrolling interests of $9 million due to an adjustment in the carrying value of Hess Midstream LP’s investment in HESM Opco without a corresponding adjustment in the tax basis. The $62 million paid to GIP reduced Noncontrolling interests . In March 2023, HESM Opco repurchased approximately 3.6 million HESM Opco Class B units held by affiliates of Hess Corporation and GIP for $100 million, which was financed by HESM Opco's revolving credit facility. The transaction resulted in an increase in Capital in excess of par and a decrease in Noncontrolling interests of $8 million, and an increase in deferred tax assets and Noncontrolling interests of $4 million due to an adjustment in the carrying value of Hess Midstream LP’s investment in HESM Opco without a corresponding adjustment in the tax basis. The $50 million paid to GIP reduced Noncontrolling interests . |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 5. Accrued Liabilities Accrued Liabilities consisted of the following: March 31, December 31, (In millions) Accrued capital expenditures $ 636 $ 670 Accrued operating and marketing expenditures 579 593 Accrued payments to royalty and working interest owners 189 178 Current portion of asset retirement obligations 163 160 Accrued interest on debt 111 144 Accrued compensation and benefits 73 193 Other accruals 23 164 Total Accrued Liabilities $ 1,774 $ 2,102 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 6. Revenue Revenue from contracts with customers on a disaggregated basis was as follows (in millions): Exploration and Production Midstream Eliminations Total United States Guyana Malaysia and JDA E&P Total Three Months Ended March 31, 2024 Sales of net production volumes: Crude oil revenue $ 789 $ 1,510 $ 29 $ 2,328 $ — $ — $ 2,328 Natural gas liquids revenue 153 — — 153 — — 153 Natural gas revenue 48 — 211 259 — — 259 Sales of purchased oil and gas 533 30 — 563 — — 563 Third-party services — — — — 5 — 5 Intercompany revenue — — — — 350 (350) — Total sales (a) 1,523 1,540 240 3,303 355 (350) 3,308 Other operating revenues (b) — — — — 1 — 1 Total sales and other operating revenues $ 1,523 $ 1,540 $ 240 $ 3,303 $ 356 $ (350) $ 3,309 Three Months Ended March 31, 2023 Sales of net production volumes: Crude oil revenue $ 669 $ 825 $ 29 $ 1,523 $ — $ — $ 1,523 Natural gas liquids revenue 141 — — 141 — — 141 Natural gas revenue 54 — 180 234 — — 234 Sales of purchased oil and gas 527 17 — 544 — — 544 Intercompany revenue — — — — 303 (303) — Total sales (a) 1,391 842 209 2,442 303 (303) 2,442 Other operating revenues (b) (26) (7) — (33) 2 — (31) Total sales and other operating revenues $ 1,365 $ 835 $ 209 $ 2,409 $ 305 $ (303) $ 2,411 (a) Guyana crude oil revenue includes $252 million of revenue from non-customers for the three months ended March 31, 2024 (2023: $108 million). (b) Other operating revenues are not a component of revenues from contracts with customers. Included within other operating revenues are gains (losses) on commodity derivative There have been no significant changes to contracts with customers or the composition thereof during the three months ended March 31, 2024. Generally, we receive payments from customers on a monthly basis, shortly after the physical delivery of the crude oil, natural gas liquids, or natural gas. At March 31, 2024 and December 31, 2023, there were no contract assets or liabilities. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Retirement Plans | 7. Retirement Plans Components of net periodic benefit cost consisted of the following: Three Months Ended 2024 2023 (In millions) Service cost $ 10 $ 9 Interest cost (a) 23 25 Expected return on plan assets (a) (38) (39) Amortization of unrecognized net actuarial losses (a) — — Net periodic benefit cost (income) $ (5) $ (5) ( a) Net non-service cost, which is included in Other, net in the Statement of Consolidated Income, was income of $15 million for the three months ended March 31, 2024, compared with income of $14 million for the three months ended March 31, 2023. The board of trustees for our U.K. pension plan is evaluating various alternatives to settle all or a portion of the plan’s projected benefit obligation. A decision to proceed will occur only after the board of trustees receives and evaluates proposals and determines that the transaction is in the best interest of plan participants. Should a settlement be completed, a material noncash settlement loss may be recorded reflecting any difference between the settlement value and projected benefit obligation, and the acceleration of the recognition of unrecognized actuarial losses. At March 31, 2024, pre-tax unrecognized net actuarial losses related to the U.K. pension plan were $179 million. |
Weighted Average Common Shares
Weighted Average Common Shares | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | 8. Weighted Average Common Shares The Net income and weighted average number of common shares used in the basic and diluted earnings per share computations were as follows: Three Months Ended 2024 2023 (In millions) Net income attributable to Hess Corporation: Net income $ 1,067 $ 428 Less: Net income attributable to noncontrolling interests 95 82 Net income attributable to Hess Corporation $ 972 $ 346 Weighted average number of common shares outstanding: Basic 306.4 305.4 Effect of dilutive securities Restricted common stock 0.4 0.7 Stock options 0.6 0.7 Performance share units 0.5 0.5 Diluted 307.9 307.3 The following table summarizes the number of antidilutive shares excluded from the computation of diluted shares: Three Months Ended 2024 2023 Restricted common stock 174 121,189 Stock options 189,260 52,973 Performance share units — — During the three months ended March 31, 2024, we granted 732,691 shares of restricted stock (2023: 446,508), no performance share units (2023: 130,272) and no stock options (2023: 189,479). |
Guarantees and Contingencies
Guarantees and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Contingencies | 9. 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. 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 United States 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 two remaining active cases, filed by Pennsylvania 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 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 March 2014, we received an Administrative Order from the 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. Our alleged liability derives from our former ownership and operation of a fuel oil terminal and connected shipbuilding and repair facility adjacent to the Canal. The remedy selected by the EPA 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. The EPA’s original estimate was that this remedy would cost $506 million; however, the ultimate costs that will be incurred in connection with the design and implementation of the remedy remain uncertain. We have complied with the EPA’s March 2014 Administrative Order and contributed funding for the Remedial Design based on an allocation of costs among the parties determined by a third-party expert. In January 2020, we received an additional Administrative Order from the EPA requiring us and several other parties to begin Remedial Action along the uppermost portion of the Canal. We intend to comply with this Administrative Order. The remediation work began in the fourth quarter of 2020. Based on currently known facts and circumstances, we do not believe that this matter will result in a significant liability to us, and the costs will continue to be allocated amongst the parties, as they were for the Remedial Design. From time to time, we are involved in other judicial and administrative proceedings relating to environmental matters. 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. Beginning in 2017, certain states, municipalities and private associations in California, Delaware, Maryland, Rhode Island and South Carolina separately filed lawsuits against oil, gas and coal producers, including us, for alleged damages purportedly caused by climate change. These proceedings include claims for monetary damages and injunctive relief. Beginning in 2013, various parishes in Louisiana filed suit against approximately 100 oil and gas companies, including us, alleging that the companies’ operations and activities in certain fields violated the State and Local Coastal Resource Management Act of 1978, as amended, and caused contamination, subsidence and other environmental damages to land and water bodies located in the coastal zone of Louisiana. The plaintiffs seek, among other things, the payment of the costs necessary to clear, re-vegetate and otherwise restore the allegedly impacted areas. The ultimate impact of such climate and other aforementioned environmental 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. We are also involved in six claims in federal and state courts in North Dakota related to post-production deductions from royalty and working interest payments. The plaintiffs in these cases assert that we take unauthorized or excessive post-production deductions from royalty or working interest payments for various oil and gas processing and transportation related costs and expenses. These plaintiffs seek reimbursement for allegedly underpaid revenue. It is our position that these costs and expenses are actual, reasonable, necessary, and authorized by the respective leases and North Dakota law. We believe that based on the facts and circumstances of these claims and because we have viable defenses, loss is not probable and the ultimate impact of these claims on our business or accounts cannot be estimated at this time due to the early stages of the proceedings and the speculative and indeterminate damages. We may also be exposed to future decommissioning liabilities for divested assets in the event the current or future owners of facilities previously owned by us are determined to be unable to perform such actions, whether due to bankruptcy or otherwise. 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 lawsuits, claims and proceedings, including the matters disclosed above, is not expected to have a material adverse effect on our financial condition, results of operations or cash flows. 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. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | 10. 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, 2024 Sales and other operating revenues $ 3,303 $ 6 $ — $ — $ 3,309 Intersegment revenues — 350 — (350) — Total sales and other operating revenues $ 3,303 $ 356 $ — $ (350) $ 3,309 Net income (loss) attributable to Hess Corporation $ 997 $ 67 $ (92) $ — $ 972 Depreciation, depletion and amortization 507 50 — — 557 Provision for income taxes 334 14 — — 348 Capital expenditures 888 35 — — 923 For the Three Months Ended March 31, 2023 Sales and other operating revenues $ 2,409 $ 2 $ — $ — $ 2,411 Intersegment revenues — 303 — (303) — Total sales and other operating revenues $ 2,409 $ 305 $ — $ (303) $ 2,411 Net income (loss) attributable to Hess Corporation $ 405 $ 61 $ (120) $ — $ 346 Depreciation, depletion and amortization 443 47 1 — 491 Provision for income taxes 170 6 — — 176 Capital expenditures 735 57 — — 792 Corporate, Interest and Other had interest income of $17 million for the three months ended March 31, 2024 (2023: $20 million) which is included in Other, net in the Statement of Consolidated Income . Identifiable assets by operating segment were as follows: March 31, December 31, (In millions) Exploration and Production $ 18,826 $ 17,931 Midstream 4,055 3,984 Corporate, Interest and Other 1,838 2,092 Total $ 24,719 $ 24,007 |
Financial Risk Management Activ
Financial Risk Management Activities | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Risk Management Activities | 11. 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 reduce our exposure to foreign currency or interest rate movements. Generally, futures, swaps or option strategies may be used to fix the forward selling price, or establish a floor price or a range banded with a floor and ceiling price, for a portion of our crude oil or natural gas production. Such strategies are subject to certain limitations under the Merger Agreement. Forward contracts or swaps 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, 2024, these forward contracts and swaps relate to the British Pound and Malaysian Ringgit. Interest rate swaps may be used to convert interest payments on certain long-term debt from fixed to floating rates. The notional amounts of outstanding financial risk management derivative contracts were as follows: March 31, December 31, (In millions) Foreign exchange forwards / swaps $ 259 $ 226 Interest rate swaps $ 100 $ 100 Derivative contracts designated as hedging instruments: Crude oil derivatives designated as cash flow hedges: Crude oil hedging contracts decreased Sales and other operating revenues by $34 million in the three months ended March 31, 2023. There were no open crude oil hedging contracts at March 31, 2024 or December 31, 2023, or during the three months ended March 31, 2024. Interest rate swaps designated as fair value hedges: At March 31, 2024 and December 31, 2023, 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 from fixed to floating rates. Changes in the fair value of interest rate swaps and the hedged fixed-rate debt are recorded in Interest expense in the Statement of Consolidated Income . The fair value of our interest rate swaps was a liability of $1 million and a liability of $2 million at March 31, 2024 and December 31, 2023, respectively. Derivative contracts not designated as hedging instruments: Foreign exchange: Foreign exchange gains and losses, which are reported in Other, net in Revenues and non-operating income in the Statement of Consolidated Income, were net losses of $2 million in the three months ended March 31, 2024 (2023: net gains of $2 million). A component of foreign exchange gains and losses is the result of foreign exchange derivative contracts that are not designated as hedges, which amounted to net gains of $5 million in the three months ended March 31, 2024 (2023: net losses of $2 million). The fair value of our foreign exchange forwards and swaps was nil at March 31, 2024 and a liability of $6 million at December 31, 2023. Fair Value Measurement: At March 31, 2024, our total long-term debt, which was substantially comprised of fixed-rate debt instruments, had a carrying value of $8,729 million and a fair value of $8,965 million based on Level 2 inputs in the fair value measurement hierarchy. We also have short-term financial instruments, primarily cash equivalents, accounts receivable and accounts payable, for which the carrying value approximated fair value at March 31, 2024 and December 31, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) attributable to Hess Corporation | $ 972 | $ 346 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: In November 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-07, Improvements to Reportable Segments Disclosures . The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU does not change how an entity identifies its operating segments. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently assessing the impact of adopting the ASU on our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following: March 31, December 31, (In millions) Crude oil and natural gas liquids $ 100 $ 72 Materials and supplies 282 232 Total Inventories $ 382 $ 304 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [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, 2024 (in millions): Balance at January 1, 2024 $ 952 Additions to capitalized exploratory well costs pending the determination of proved reserves 65 Balance at March 31, 2024 $ 1,017 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued Liabilities consisted of the following: March 31, December 31, (In millions) Accrued capital expenditures $ 636 $ 670 Accrued operating and marketing expenditures 579 593 Accrued payments to royalty and working interest owners 189 178 Current portion of asset retirement obligations 163 160 Accrued interest on debt 111 144 Accrued compensation and benefits 73 193 Other accruals 23 164 Total Accrued Liabilities $ 1,774 $ 2,102 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 Guyana Malaysia and JDA E&P Total Three Months Ended March 31, 2024 Sales of net production volumes: Crude oil revenue $ 789 $ 1,510 $ 29 $ 2,328 $ — $ — $ 2,328 Natural gas liquids revenue 153 — — 153 — — 153 Natural gas revenue 48 — 211 259 — — 259 Sales of purchased oil and gas 533 30 — 563 — — 563 Third-party services — — — — 5 — 5 Intercompany revenue — — — — 350 (350) — Total sales (a) 1,523 1,540 240 3,303 355 (350) 3,308 Other operating revenues (b) — — — — 1 — 1 Total sales and other operating revenues $ 1,523 $ 1,540 $ 240 $ 3,303 $ 356 $ (350) $ 3,309 Three Months Ended March 31, 2023 Sales of net production volumes: Crude oil revenue $ 669 $ 825 $ 29 $ 1,523 $ — $ — $ 1,523 Natural gas liquids revenue 141 — — 141 — — 141 Natural gas revenue 54 — 180 234 — — 234 Sales of purchased oil and gas 527 17 — 544 — — 544 Intercompany revenue — — — — 303 (303) — Total sales (a) 1,391 842 209 2,442 303 (303) 2,442 Other operating revenues (b) (26) (7) — (33) 2 — (31) Total sales and other operating revenues $ 1,365 $ 835 $ 209 $ 2,409 $ 305 $ (303) $ 2,411 (a) Guyana crude oil revenue includes $252 million of revenue from non-customers for the three months ended March 31, 2024 (2023: $108 million). (b) Other operating revenues are not a component of revenues from contracts with customers. Included within other operating revenues are gains (losses) on commodity derivative |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost | Components of net periodic benefit cost consisted of the following: Three Months Ended 2024 2023 (In millions) Service cost $ 10 $ 9 Interest cost (a) 23 25 Expected return on plan assets (a) (38) (39) Amortization of unrecognized net actuarial losses (a) — — Net periodic benefit cost (income) $ (5) $ (5) ( |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) and Weighted Average Number of Common Shares Used in Computation of Basic and Diluted Earnings Per Share | The Net income and weighted average number of common shares used in the basic and diluted earnings per share computations were as follows: Three Months Ended 2024 2023 (In millions) Net income attributable to Hess Corporation: Net income $ 1,067 $ 428 Less: Net income attributable to noncontrolling interests 95 82 Net income attributable to Hess Corporation $ 972 $ 346 Weighted average number of common shares outstanding: Basic 306.4 305.4 Effect of dilutive securities Restricted common stock 0.4 0.7 Stock options 0.6 0.7 Performance share units 0.5 0.5 Diluted 307.9 307.3 |
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 2024 2023 Restricted common stock 174 121,189 Stock options 189,260 52,973 Performance share units — — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Operating Segment | 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, 2024 Sales and other operating revenues $ 3,303 $ 6 $ — $ — $ 3,309 Intersegment revenues — 350 — (350) — Total sales and other operating revenues $ 3,303 $ 356 $ — $ (350) $ 3,309 Net income (loss) attributable to Hess Corporation $ 997 $ 67 $ (92) $ — $ 972 Depreciation, depletion and amortization 507 50 — — 557 Provision for income taxes 334 14 — — 348 Capital expenditures 888 35 — — 923 For the Three Months Ended March 31, 2023 Sales and other operating revenues $ 2,409 $ 2 $ — $ — $ 2,411 Intersegment revenues — 303 — (303) — Total sales and other operating revenues $ 2,409 $ 305 $ — $ (303) $ 2,411 Net income (loss) attributable to Hess Corporation $ 405 $ 61 $ (120) $ — $ 346 Depreciation, depletion and amortization 443 47 1 — 491 Provision for income taxes 170 6 — — 176 Capital expenditures 735 57 — — 792 Corporate, Interest and Other had interest income of $17 million for the three months ended March 31, 2024 (2023: $20 million) which is included in Other, net in the Statement of Consolidated Income . Identifiable assets by operating segment were as follows: March 31, December 31, (In millions) Exploration and Production $ 18,826 $ 17,931 Midstream 4,055 3,984 Corporate, Interest and Other 1,838 2,092 Total $ 24,719 $ 24,007 |
Financial Risk Management Act_2
Financial Risk Management Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts of Outstanding Financial Risk Management Derivative Contracts | The notional amounts of outstanding financial risk management derivative contracts were as follows: March 31, December 31, (In millions) Foreign exchange forwards / swaps $ 259 $ 226 Interest rate swaps $ 100 $ 100 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Mar. 31, 2024 shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Hess common stock conversion rate to the right to receive Chevron common stock | 1.025 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas liquids | $ 100 | $ 72 |
Materials and supplies | 282 | 232 |
Total Inventories | $ 382 | $ 304 |
Property, Plant and Equipment -
Property, Plant and Equipment - Net Changes in Capitalized Exploratory Well Costs (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Property, Plant and Equipment [Abstract] | |
Beginning balance | $ 952 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 65 |
Ending balance | $ 1,017 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) well | Dec. 31, 2023 USD ($) | |
Capitalized Exploratory Well Costs [Line Items] | ||
Capitalized exploratory well costs | $ 1,017 | $ 952 |
Capitalized exploratory well costs that have been capitalized for period greater than one year | $ 812 | |
Stabroek Block, Offshore Guyana | ||
Capitalized Exploratory Well Costs [Line Items] | ||
Project interest percentage | 30% | |
Exploration and appraisal wells | well | 37 | |
Capitalized exploratory well costs | $ 904 | |
Capitalized exploratory well costs that have been capitalized for period greater than one year | $ 115 | |
Capitalized well costs percentage | 88% | |
Block 42, Suriname | ||
Capitalized Exploratory Well Costs [Line Items] | ||
Project interest percentage | 33% | |
Capitalized well costs percentage | 5% | |
JDA, Gulf of Thailand | ||
Capitalized Exploratory Well Costs [Line Items] | ||
Project interest percentage | 50% | |
Capitalized well costs percentage | 5% | |
Number of successful exploration wells drilled | well | 3 | |
North Malay Basin, Offshore Peninsular Malaysia | ||
Capitalized Exploratory Well Costs [Line Items] | ||
Project interest percentage | 50% | |
Capitalized well costs percentage | 2% | |
Number of successful exploration wells drilled | well | 2 |
Hess Midstream LP (Detail)
Hess Midstream LP (Detail) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) shares ft³ | Mar. 31, 2023 USD ($) shares | Dec. 31, 2023 USD ($) | |
Variable Interest Entity [Line Items] | |||
Liabilities | $ 14,188 | $ 14,405 | |
Cash and cash equivalents | 1,438 | 1,688 | |
Property, plant and equipment, net | $ 17,827 | 17,432 | |
Joint venture percentage owned by Targa Resources Corp | 50% | ||
Processing fees incurred | $ 7 | $ 5 | |
Number of Class A shares of subsidiary public offering (in shares) | shares | 11.5 | ||
Deferred tax impact to noncontrolling interests from sale of units held by parent by consolidated subsidiary | $ 94 | ||
Number of Class B units repurchased by Hess Midstream LP (in shares) | shares | 2.8 | 3.6 | |
Proceeds from repurchase of units held by Hess Corporation and Global Infrastructure Partners, by Hess Midstream Operations LP | $ 100 | $ 100 | |
Deferred tax impact to noncontrolling interests from repurchase of units held by parent by consolidated subsidiary | 9 | 4 | |
Proceeds to noncontrolling interests from repurchase of units held by parent by consolidated subsidiary | 62 | 50 | |
Repurchase of Class B units of Hess Midstream Operations LP | $ (53) | (46) | |
Capital in Excess of Par | |||
Variable Interest Entity [Line Items] | |||
Repurchase of Class B units of Hess Midstream Operations LP | $ 8 | ||
Little Missouri Four | |||
Variable Interest Entity [Line Items] | |||
Gas processing capacity of LM4 | ft³ | 200,000,000 | ||
Equity Method Investment, Ownership Percentage | 50% | ||
Hess Midstream LP | |||
Variable Interest Entity [Line Items] | |||
Percent interest in consolidated entity | 38% | ||
Variable Interest Entity | Hess Midstream LP | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 4 | 5 | |
Property, plant and equipment, net | 3,215 | 3,229 | |
Variable Interest Entity | Hess Midstream LP | Nonrecourse | |||
Variable Interest Entity [Line Items] | |||
Liabilities | 3,460 | 3,385 | |
Variable Interest Entity | Hess Midstream LP | Little Missouri Four | |||
Variable Interest Entity [Line Items] | |||
Equity method investment in LM4 | $ 89 | $ 90 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued capital expenditures | $ 636 | $ 670 |
Accrued operating and marketing expenditures | 579 | 593 |
Accrued payments to royalty and working interest owners | 189 | 178 |
Current portion of asset retirement obligations | 163 | 160 |
Accrued interest on debt | 111 | 144 |
Accrued compensation and benefits | 73 | 193 |
Other accruals | 23 | 164 |
Accrued liabilities | $ 1,774 | $ 2,102 |
Revenue - Summary of Revenue fr
Revenue - Summary of Revenue from Contracts with Customers on a Disaggregated Basis (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from both contract with customer and not from contract with customer | $ 3,308,000,000 | $ 2,442,000,000 |
Other operating revenues | 1,000,000 | (31,000,000) |
Total revenues and non-operating income | 3,309,000,000 | 2,411,000,000 |
Gain (loss) on commodity derivatives | $ 0 | $ (34,000,000) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total revenues and non-operating income | Total revenues and non-operating income |
Crude oil revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from both contract with customer and not from contract with customer | $ 2,328,000,000 | $ 1,523,000,000 |
Natural gas liquids revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 153,000,000 | 141,000,000 |
Natural gas revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 259,000,000 | 234,000,000 |
Sales of purchased oil and gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 563,000,000 | 544,000,000 |
Third-party services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 5,000,000 | |
Exploration and Production | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues and non-operating income | 3,303,000,000 | 2,409,000,000 |
Exploration and Production | Crude oil revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from both contract with customer and not from contract with customer | 2,328,000,000 | 1,523,000,000 |
Exploration and Production | Crude oil revenue | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 789,000,000 | 669,000,000 |
Exploration and Production | Crude oil revenue | Guyana | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from both contract with customer and not from contract with customer | 1,510,000,000 | 825,000,000 |
Revenue not from contract with customer | 252,000,000 | 108,000,000 |
Exploration and Production | Crude oil revenue | Malaysia and JDA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 29,000,000 | 29,000,000 |
Exploration and Production | Natural gas liquids revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 153,000,000 | 141,000,000 |
Exploration and Production | Natural gas liquids revenue | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 153,000,000 | 141,000,000 |
Exploration and Production | Natural gas liquids revenue | Guyana | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Exploration and Production | Natural gas liquids revenue | Malaysia and JDA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Exploration and Production | Natural gas revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 259,000,000 | 234,000,000 |
Exploration and Production | Natural gas revenue | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 48,000,000 | 54,000,000 |
Exploration and Production | Natural gas revenue | Guyana | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Exploration and Production | Natural gas revenue | Malaysia and JDA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 211,000,000 | 180,000,000 |
Exploration and Production | Sales of purchased oil and gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 563,000,000 | 544,000,000 |
Exploration and Production | Sales of purchased oil and gas | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 533,000,000 | 527,000,000 |
Exploration and Production | Sales of purchased oil and gas | Guyana | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 30,000,000 | 17,000,000 |
Exploration and Production | Sales of purchased oil and gas | Malaysia and JDA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Exploration and Production | Third-party services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | |
Exploration and Production | Third-party services | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | |
Exploration and Production | Third-party services | Guyana | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | |
Exploration and Production | Third-party services | Malaysia and JDA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | |
Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues and non-operating income | 6,000,000 | 2,000,000 |
Midstream | Crude oil revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Midstream | Natural gas liquids revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Midstream | Natural gas revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Midstream | Sales of purchased oil and gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Midstream | Third-party services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 5,000,000 | |
Operating Segments | Exploration and Production | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from both contract with customer and not from contract with customer | 3,303,000,000 | 2,442,000,000 |
Other operating revenues | 0 | (33,000,000) |
Total revenues and non-operating income | 3,303,000,000 | 2,409,000,000 |
Operating Segments | Exploration and Production | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 1,523,000,000 | 1,391,000,000 |
Other operating revenues | 0 | (26,000,000) |
Total revenues and non-operating income | 1,523,000,000 | 1,365,000,000 |
Operating Segments | Exploration and Production | Guyana | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from both contract with customer and not from contract with customer | 1,540,000,000 | 842,000,000 |
Other operating revenues | 0 | (7,000,000) |
Total revenues and non-operating income | 1,540,000,000 | 835,000,000 |
Operating Segments | Exploration and Production | Malaysia and JDA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 240,000,000 | 209,000,000 |
Other operating revenues | 0 | 0 |
Total revenues and non-operating income | 240,000,000 | 209,000,000 |
Operating Segments | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 355,000,000 | 303,000,000 |
Other operating revenues | 1,000,000 | 2,000,000 |
Total revenues and non-operating income | 356,000,000 | 305,000,000 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | (350,000,000) | (303,000,000) |
Other operating revenues | 0 | 0 |
Total revenues and non-operating income | (350,000,000) | (303,000,000) |
Eliminations | Exploration and Production | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Total revenues and non-operating income | 0 | 0 |
Eliminations | Exploration and Production | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Eliminations | Exploration and Production | Guyana | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Eliminations | Exploration and Production | Malaysia and JDA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 0 | 0 |
Eliminations | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 350,000,000 | 303,000,000 |
Total revenues and non-operating income | $ 350,000,000 | $ 303,000,000 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, asset | $ 0 | $ 0 |
Contract with customer, liability | $ 0 | $ 0 |
Retirement Plans - Components o
Retirement Plans - Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 10 | $ 9 |
Interest cost | 23 | 25 |
Expected return on plan assets | (38) | (39) |
Amortization of unrecognized net actuarial losses | 0 | 0 |
Pension (income) expense | (5) | (5) |
Net non-service pension (income) costs included in other, net | $ (15) | $ (14) |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Millions | Mar. 31, 2024 USD ($) |
Retirement Benefits [Abstract] | |
Unrecognized net actuarial losses related to the U.K. pension plan | $ 179 |
Weighted Average Common Share_2
Weighted Average Common Shares - Net Income (Loss) and Weighted Average Number of Common Shares Used in Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income attributable to Hess Corporation: | ||
Net income | $ 1,067 | $ 428 |
Less: Net income attributable to noncontrolling interests | 95 | 82 |
Net Income Attributable to Hess Corporation | $ 972 | $ 346 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 306.4 | 305.4 |
Diluted (in shares) | 307.9 | 307.3 |
Restricted common stock | ||
Weighted average number of common shares outstanding: | ||
Effect of dilutive securities (in shares) | 0.4 | 0.7 |
Stock options | ||
Weighted average number of common shares outstanding: | ||
Effect of dilutive securities (in shares) | 0.6 | 0.7 |
Performance share units | ||
Weighted average number of common shares outstanding: | ||
Effect of dilutive securities (in shares) | 0.5 | 0.5 |
Weighted Average Common Share_3
Weighted Average Common Shares - Summary of Antidilutive Shares Excluded from Computation of Diluted Shares (Detail) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares (in shares) | 174 | 121,189 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares (in shares) | 189,260 | 52,973 |
Performance share units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares (in shares) | 0 | 0 |
Weighted Average Common Share_4
Weighted Average Common Shares - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Shares granted, restricted stock (in shares) | 732,691 | 446,508 |
Shares granted, performance share units (in shares) | 0 | 130,272 |
Shares granted, stock options (in shares) | 0 | 189,479 |
Guarantees and Contingencies (D
Guarantees and Contingencies (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) case claim | |
MTBE Cases | |
Loss Contingencies [Line Items] | |
Total number of remaining active cases filed | case | 2 |
Gowanus Canal Superfund Site | |
Loss Contingencies [Line Items] | |
Estimated remediation cost | $ | $ 506 |
Post-production Deductions from Royalty and Working Interest Payments | |
Loss Contingencies [Line Items] | |
Total number of remaining active cases filed | claim | 6 |
Segment Information - Schedule
Segment Information - Schedule of Financial Data by Operating Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | $ 3,309 | $ 2,411 | |
Net income (loss) attributable to Hess Corporation | 972 | 346 | |
Depreciation, depletion and amortization | 557 | 491 | |
Provision for income taxes | 348 | 176 | |
Capital expenditures | 923 | 792 | |
Assets | 24,719 | $ 24,007 | |
Exploration and Production | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 3,303 | 2,409 | |
Midstream | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 6 | 2 | |
Operating Segments | Exploration and Production | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 3,303 | 2,409 | |
Net income (loss) attributable to Hess Corporation | 997 | 405 | |
Depreciation, depletion and amortization | 507 | 443 | |
Provision for income taxes | 334 | 170 | |
Capital expenditures | 888 | 735 | |
Assets | 18,826 | 17,931 | |
Operating Segments | Midstream | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 356 | 305 | |
Net income (loss) attributable to Hess Corporation | 67 | 61 | |
Depreciation, depletion and amortization | 50 | 47 | |
Provision for income taxes | 14 | 6 | |
Capital expenditures | 35 | 57 | |
Assets | 4,055 | 3,984 | |
Corporate, Interest and Other | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) attributable to Hess Corporation | (92) | (120) | |
Depreciation, depletion and amortization | 0 | 1 | |
Provision for income taxes | 0 | 0 | |
Capital expenditures | 0 | 0 | |
Interest income | 17 | 20 | |
Assets | 1,838 | $ 2,092 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | (350) | (303) | |
Net income (loss) attributable to Hess Corporation | 0 | 0 | |
Depreciation, depletion and amortization | 0 | 0 | |
Provision for income taxes | 0 | 0 | |
Capital expenditures | 0 | 0 | |
Eliminations | Exploration and Production | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 0 | 0 | |
Eliminations | Midstream | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | $ 350 | $ 303 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Financial Risk Management Act_3
Financial Risk Management Activities - Notional Amounts of Outstanding Financial Risk Management Derivative Contracts (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Foreign Exchange Forwards / Swaps | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 259 | $ 226 |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 100 | $ 100 |
Financial Risk Management Act_4
Financial Risk Management Activities - Derivative Contracts - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Interest Rate Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Outstanding gross notional amount | $ 100,000,000 | $ 100,000,000 | |
Foreign Exchange Forwards / Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Outstanding gross notional amount | 259,000,000 | 226,000,000 | |
Designated as Hedging Instrument | Commodity Options / Collars | Designated as Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Increase (decrease) in sales and other operating revenues due to hedging instruments | $ (34,000,000) | ||
Designated as Hedging Instrument | Interest Rate Swaps | Designated as Fair Value Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Outstanding gross notional amount | 100,000,000 | 100,000,000 | |
Liabilities - Gross fair value of derivative contracts | 1,000,000 | 2,000,000 | |
Not Designated as Hedging Instrument | Foreign Exchange Forwards / Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Liabilities - Gross fair value of derivative contracts | 6,000,000 | $ 0 | |
Foreign exchange gains (losses) reported in Other, net in the Statement of Consolidated Income | 2,000,000 | 2,000,000 | |
Net gains (losses) on foreign exchange contracts not designated as hedging instruments | $ 5,000,000 | $ (2,000,000) |
Financial Risk Management Act_5
Financial Risk Management Activities - Fair Value Measurements - Additional Information (Detail) $ in Millions | Mar. 31, 2024 USD ($) |
Fair Value Disclosures [Abstract] | |
Long-term debt | $ 8,729 |
Long-term debt, fair value | $ 8,965 |