HESS CORPORATIONHESS REPORTS ESTIMATED RESULTS FOR THE SECOND QUARTER OF 2022
Key Developments:•••

Commenced common stock repurchases in the quarter of approximately 1.8 million sharesfor $190 million; total cash returned to shareholders in the quarter amounted to $306
million including dividends
Announced two new discoveries at Seabob and Kiru-Kiru on the Stabroek Block, offshore
Guyana; adds to the previous gross discovered recoverable resource estimate for the
Block of approximately 11 billion barrels of oil equivalent (boe)The Liza Unity and Liza Destiny floating production, storage and offloading vessels(FPSOs) on the Stabroek Block have reached their combined production capacity of morethan 360,000 gross barrels of oil per day (bopd)

Second Quarter Financial and Operational Highlights:•

Net income was $667 million, or $2.15 per common share, compared with a net loss of $73
million, or $0.24 per common share, in the second quarter of 2021; Adjusted net income1 inthe second quarter of 2021 was $74 million, or $0.24 per common share• Oil and gas net production, excluding Libya, was 303,000 barrels of oil equivalent per day(boepd); Bakken net production was 140,000 boepd• E&P capital and exploratory expenditures were $622 million compared with $429 million in
the prior-year quarter• Cash and cash equivalents, excluding Midstream, were $2.16 billion at June 30, 2022
2022 Updated Guidance:• Net production, excluding Libya, is forecast to be in the range of 330,000 boepd to 335,000
boepd in the third quarter, in the range of 365,000 boepd to 370,000 boepd in the fourth
quarter, and approximately 320,000 boepd for the full year
• Bakken net production is forecast to be in the range of 155,000 boepd to 160,000 boepd in
the third quarter, in the range of 160,000 boepd to 165,000 boepd in the fourth quarter, andin the range of 150,000 boepd to 155,000 boepd for the full year
• Full year E&P capital and exploratory expenditures are expected to be approximately $2.7
billion; a fourth rig was added in the Bakken in JulyNEW YORK, July 27, 2022 — Hess Corporation (NYSE: HES) today reported net income of$667 million, or $2.15 per common share, in the second quarter of 2022, compared with a net loss of$73 million, or $0.24 per common share, in the second quarter of 2021. On an adjusted basis, the
1. “Adjusted net income (loss)” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest
GAAP equivalent measure appears on pages 6 and 8.

1

Corporation had net income of $74 million, or $0.24 per common share, in the second quarter of2021. The improvement in after-tax earnings compared with the prior-year quarter adjusted results
was primarily due to higher realized selling prices in the second quarter of 2022.
“In a world that needs reliable, low cost oil and gas resources now and for decades to come,Hess offers a highly differentiated value proposition,” CEO John Hess said. “As our portfolio becomesincreasingly free cash flow positive, we will continue both to invest to grow our company’s intrinsic
value and to return capital to our shareholders through further dividend increases and share
repurchases.”
After-tax income (loss) by major operating activity was as follows:
Three Months Ended
June 30,(unaudited)
2022
2021

Six Months Ended
June 30,(unaudited)
2022
2021

(In millions, except per share amounts)

Net Income (Loss) Attributable to Hess Corporation
Exploration and Production$
Midstream
Corporate, Interest and Other
Net income (loss) attributable to Hess Corporation $Net income (loss) per common share (diluted)
$

723 $
65
(121)
667 $
2.15 $(25) $
76(124)(73) $(0.24) $1,183 $
137
(236)
1,084 $
3.49 $

283
151
(255)
179
0.58

Adjusted Net Income (Loss) Attributable to Hess Corporation
Exploration and Production$
723 $Midstream
65
Corporate, Interest and Other
(121)

122 $
76
(124)

1,183 $
137
(249)

430
151
(255)

Adjusted net income (loss) attributable to Hess
Corporation
Adjusted net income (loss) per common share(diluted)
Weighted average number of shares (diluted)

$

667 $

74 $

1,071 $

326$

2.15 $

0.24 $

3.45 $

1.06

310.9

307.5

310.6

308.7

Exploration and Production:
E&P net income was $723 million in the second quarter of 2022, compared with a net loss of$25 million in the second quarter of 2021. On an adjusted basis, E&P second quarter 2021 net
income was $122 million. The Corporation’s average realized crude oil selling price, including theeffect of hedging, was $99.16 per barrel in the second quarter of 2022, compared with $59.79 per
barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in thesecond quarter of 2022 was $40.92 per barrel, compared with $23.12 per barrel in the prior-year2

quarter, while the average realized natural gas selling price was $6.45 per mcf, compared with $4.05
per mcf in the second quarter of 2021.
Net production, excluding Libya, was 303,000 boepd in the second quarter of 2022, comparedwith 307,000 boepd in the second quarter of 2021, or 302,000 boepd proforma for assets sold.
Cash operating costs, which include operating costs and expenses, production and severance
taxes, and E&P general and administrative expenses, were $13.90 per boe (excluding Libya: $14.56
per boe) in the second quarter of 2022, compared with $11.63 per boe (excluding Libya: $12.16 perboe) in the prior-year quarter. The increase in cash operating costs in the second quarter of this year,
compared with the second quarter of last year, reflects higher production and severance taxes inNorth Dakota due to higher realized selling prices, and higher workover activity in North Dakota andthe Gulf of Mexico.
Operational Highlights for the Second Quarter of 2022:
Bakken (Onshore U.S.): Net production from the Bakken was 140,000 boepd, which remained
within our guidance range for the second quarter, reflecting unplanned production shut-ins caused bysevere weather in April and May. Net production in the second quarter of 2021 was 159,000 boepd.
During the second quarter of 2022, the Corporation operated three rigs and drilled 20 wells,
completed 19 wells, and brought 19 new wells online. In July, the Corporation added a fourth drillingrig.
Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 29,000 boepd,
compared with 52,000 boepd in the prior-year quarter, primarily due to field decline and unplanned
downtime at the Stampede and Penn State fields.
Guyana (Offshore): At the Stabroek Block (Hess – 30%), net production totaled 67,000 bopd inthe second quarter of 2022 compared with 26,000 bopd in the prior-year quarter. Production from the
Liza Destiny FPSO reached its new production capacity of more than 140,000 gross bopd in thesecond quarter of 2022 following the completion of production optimization work initiated in March.
Net production from the Liza Unity FPSO, which commenced in February, was 35,000 bopd in thesecond quarter of 2022, and reached its production capacity of 220,000 gross bopd in July. In thesecond quarter, we sold 6 one-million barrel cargos of crude oil from Guyana compared with 2 onemillion barrel cargos in the prior year quarter.
Net production guidance for Guyana for the full year 2022 is expected to be approximately
75,000 bopd, which includes approximately 6,000 bopd of tax barrels. Net production guidance forthe third quarter of 2022 is expected to be in the range of 90,000 bopd to 95,000 bopd, which includes
approximately 7,000 bopd of tax barrels. There were no tax barrels in the first or second quarters.
3

The third development, Payara, will utilize the Prosperity FPSO with an expected capacity of
220,000 gross bopd, with first production expected in late 2023. The fourth development, Yellowtail,was sanctioned in April and will utilize the ONE GUYANA FPSO with an expected capacity of
approximately 250,000 gross bopd, with first production expected in 2025.
Two new discoveries were announced at Seabob and Kiru-Kiru, which add to the previously
announced gross discovered recoverable resource estimate for the Stabroek Block of approximately
11 billion boe.
reservoirs.

The Seabob-1 well encountered 131 feet of high quality oil bearing sandstone

The well was drilled in 4,660 feet of water and is located approximately 12 miles

southeast of the Yellowtail Field. Drilling operations at Kiru-Kiru are ongoing. The Kiru-Kiru-1 wellhas thus far encountered 98 feet of high quality hydrocarbon bearing sandstone reservoirs. The wellis being drilled in 5,760 feet of water and is located approximately 3 miles southeast of theCataback-1 discovery.
Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 67,000 boepd
in the second quarter of 2022 compared with 66,000 boepd in the prior-year quarter.
Midstream:
The Midstream segment had net income of $65 million in the second quarter of 2022, comparedwith net income of $76 million in the prior-year quarter.
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and Other was $121 million in the second quarter of2022, compared with $124 million in the second quarter of 2021.
Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures were $622 million in the second quarter of 2022
compared with $429 million in the prior-year quarter, primarily due to higher drilling and development
activities in the Bakken, Gulf of Mexico, Guyana, and Malaysia and JDA.

Midstream capital

expenditures were $72 million in the second quarter of 2022, up from $47 million in the prior-year
quarter.
Liquidity:
Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.16
billion and debt and finance lease obligations totaling $5.61 billion at June 30, 2022. The Midstream
segment had cash and cash equivalents of $3 million and total debt of $2.9 billion at June 30, 2022.
The Corporation’s debt to capitalization ratio as defined in its debt covenants was 37.9% at June 30,
2022 and 42.3% at December 31, 2021.

4

Net cash provided by operating activities was $1,509 million in the second quarter of 2022, up
from $785 million in the second quarter of 2021. Net cash provided by operating activities beforechanges in operating assets and liabilities2 was $1,463 million in the second quarter of 2022,
compared with $659 million in the prior-year quarter primarily due to higher realized selling prices.
Changes in operating assets and liabilities increased cash flow from operating activities by $46 million
during the second quarter of 2022 and increased cash flow from operating activities by $126 million
during the prior-year quarter.
The Corporation commenced common stock repurchases in the second quarter with thepurchase of approximately 1.8 million shares for $190 million under the Corporation’s existing $650
million board authorized stock repurchase program. The Corporation intends to utilize the remaining
amount under the stock repurchase program by the end of this year.

Total cash returned toshareholders in the second quarter amounted to $306 million including dividends.
In April 2022, the Corporation received net proceeds of $346 million from the public offering ofapproximately 5.1 million Hess Midstream LP (HESM) Class A shares held by the Corporation and therepurchase by Hess Midstream Operations LP (HESM Opco) of approximately 6.8 million HESM
Opco Class B units held by the Corporation. The repurchase of approximately 6.8 million HESM
Opco Class B units was financed by the issuance of $400 million of 5.500% senior unsecured notesdue 2030 by HESM Opco. After giving effect to the above transactions, the Corporation owns
approximately 41% of HESM on a consolidated basis.
In July 2022, the Corporation replaced its $3.5 billion revolving credit facility expiring in May
2024 with a new $3.25 billion revolving credit facility maturing in July 2027. In July 2022, HESM Opcoextended the maturity of its $1.4 billion credit facilities, consisting of a $1.0 billion revolving credit
facility and a fully drawn $400 million term loan, through July 2027. Borrowings under both revolving
credit facilities, including the fully drawn five-year term loan, will bear interest based on the Secured
Overnight Financing Rate plus an applicable margin.

2. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure. The
definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 7 and 8.

5

Items Affecting Comparability of Earnings Between Periods:
The following table reflects the total after-tax income (expense) of items affecting comparabilityof earnings between periods:
Three Months Ended
June 30,(unaudited)
2022
2021

Six Months Ended
June 30,(unaudited)
2022
2021

(In millions)

Exploration and Production
Midstream
Corporate, Interest and Other
Total items affecting comparability of earnings
between periods

$

— $
—
—

(147) $
—
—

— $
—
13

(147)
—
—

$

— $

(147) $

13 $

(147)

Second Quarter 2021: E&P results included a charge of $147 million ($147 million after income
taxes) in connection with abandonment obligations in the West Delta 79/86 field in the Gulf of Mexico.
These abandonment obligations were assigned to the Corporation as a former owner after they weredischarged from Fieldwood Energy LLC (Fieldwood) as part of Fieldwood's approved bankruptcy
plan.
Reconciliation of U.S. GAAP to Non-GAAP Measures:
The following table reconciles reported net income (loss) attributable to Hess Corporation andadjusted net income (loss):Three Months Ended
June 30,(unaudited)
2022
2021

Six Months Ended
June 30,(unaudited)
2022
2021

(In millions)

Net income (loss) attributable to Hess Corporation
Less: Total items affecting comparability of earnings
between periods
Adjusted net income (loss) attributable to Hess
Corporation

6

$

$

667 $

(73) $

—

(147)

667 $

74 $

1,084 $

179

13

(147)

1,071 $

326

The following table reconciles reported net cash provided by (used in) operating activities fromnet cash provided by (used in) operating activities before changes in operating assets and liabilities:
Three Months Ended
June 30,(unaudited)
2022
2021

Six Months Ended
June 30,(unaudited)
2022
2021

(In millions)

Net cash provided by (used in) operating activities
before changes in operating assets and liabilities$
Changes in operating assets and liabilities
Net cash provided by (used in) operating activities $1,463 $
46
1,509 $

659 $ 2,415 $
126(1,062)785 $ 1,353 $

1,474
(98)
1,376

Hess Corporation will review second quarter financial and operating results and other matters on a
webcast at 10 a.m. today (EDT). For details about the event, refer to the Investor Relations section of
our website at www.hess.com.
Hess Corporation is a leading global independent energy company engaged in the exploration andproduction of crude oil and natural gas.

More information on Hess Corporation is available atwww.hess.com.
Forward-looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,”“should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements,
which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; ourbusiness strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas
and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of ourdevelopment projects; and future economic and market conditions in the oil and gas industry.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonableassumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual
results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by theseforward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking
statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry,including as a result of COVID-19; reduced demand for our products, including due to COVID-19, perceptions regarding the oil and gas industry,competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including
as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels;changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative andregulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring, fracking bans as well as
restrictions on oil and gas leases; operational changes and expenditures due to climate change and sustainability related initiatives; disruption orinterruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyberattacks, health measures related to COVID-19, or climate change; the ability of our contractual counterparties to satisfy their obligations to us,
including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the eventthe current or future owners are unable to perform; unexpected changes in technical requirements for constructing, modifying or operating
exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and otherpersonnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital,
including as a result of limitations on investment in oil and gas activities or negative outcomes within commodity and financial markets; liability
resulting from environmental obligations and litigation, including heightened risks associated with being a general partner of Hess Midstream LP;
and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with
the Securities and Exchange Commission (SEC).
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should betaken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there canbe no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking
statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether
because of new information, future events or otherwise.

7

Non-GAAP financial measures
The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income (loss)” presented in this release is defined asreported net income (loss) attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net
cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash
provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income (loss) toevaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing thismeasure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of futurebusiness trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets andliabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, andshould not be viewed as, a substitute for U.S. GAAP net income (loss) or net cash provided by (used in) operating activities. A reconciliation ofreported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss), and a reconciliation of net cash provided by(used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities areprovided in the release.
Cautionary Note to Investors
We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged toconsider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of theAmericas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC
on the EDGAR system.

For Hess Corporation
Investor Contact:
Jay Wilson(212) 536-8940
Media Contacts:
Lorrie Hecker(212) 536-8250
Jamie Tully
Sard Verbinnen & Co(917) 679-7908

8

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)(IN MILLIONS)
SecondQuarter
2022

SecondQuarter
2021

First
Quarter
2022

Income Statement
Revenues and non-operating income
Sales and other operating revenues
Gains (losses) on asset sales, net
Other, net
Total revenues and non-operating income
Costs and expenses
Marketing, including purchased oil and gas
Operating costs and expenses
Production and severance taxes
Exploration expenses, including dry holes and lease impairment
General and administrative expenses
Interest expense
Depreciation, depletion and amortization
Impairment and otherTotal costs and expenses
Income (loss) before income taxes
Provision (benefit) for income taxes
Net income (loss)
Less: Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to Hess Corporation

9

$

$

2,955
3
30
2,988
843
356
67
33
95
121
391
—
1,906
1,082
328
754
87
667

$

$

1,579
—
19
1,598

$

2,313
22
36
2,371

322
315
44
48
84
118
385
147
1,463
135
122
13
86
(73) $

682
313
61
43
110
123
337
—
1,669
702
197
505
88
417

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)(IN MILLIONS)
Six Months Ended
June 30,
2022

2021

Income Statement
Revenues and non-operating income
Sales and other operating revenues
Gains (losses) on asset sales, net
Other, net
Total revenues and non-operating income
Costs and expenses
Marketing, including purchased oil and gas
Operating costs and expenses
Production and severance taxes
Exploration expenses, including dry holes and lease impairment
General and administrative expenses
Interest expense
Depreciation, depletion and amortization
Impairment and otherTotal costs and expenses
Income (loss) before income taxes
Provision (benefit) for income taxes
Net income (loss)
Less: Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to Hess Corporation

10

$

$

5,268
25
66
5,359
1,525
669
128
76
205
244
728
—
3,575
1,784
525
1,259
175
1,084

$

$

3,477
—
40
3,517
840
580
81
81
178
235
781
147
2,923
594
245
349
170
179

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)(IN MILLIONS)
June 30,
2022

December 31,
2021

Balance Sheet Information
AssetsCash and cash equivalents
Other current assets
Property, plant and equipment – net
Operating lease right-of-use assets – net
Finance lease right-of-use assets – net
Other long-term assets
Total assets$$

Liabilities and equity
Current maturities of long-term debt
Current portion of operating and finance lease obligations
Other current liabilities
Long-term debt
Long-term operating lease obligations
Long-term finance lease obligations
Other long-term liabilities
Total equity excluding other comprehensive income (loss)
Accumulated other comprehensive income (loss)
Noncontrolling interests
Total liabilities and equity

$

$

11

2,159
1,810
14,818
446
136
1,811
21,180

$

$

2,713
1,633
14,182
352
144
1,491
20,515

— $
114
2,241
8,332
457
190
2,088
7,621
(485)
622
21,180 $

517
89
2,458
7,941
394
200
1,890
6,706
(406)
726
20,515HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)(IN MILLIONS)
June 30,2022
Total Debt
Hess Corporation
Midstream (a)Hess Consolidated
(a)

$
$

5,395
2,937
8,332

Debt to Capitalization Ratio (a)Hess Consolidated
Hess Corporation as defined in debt covenants

$

5,894
2,564
8,458

December 31,
2021

52.4 %
37.9 %

55.3 %
42.3 %

Includes finance lease obligations.
Three Months Ended
June 30,2022
2021Interest Expense
Gross interest expense – Hess Corporation
Less: Capitalized interest – Hess Corporation
Interest expense – Hess Corporation
Interest expense – Midstream (a)Interest expense – Hess Consolidated(a)$Midstream debt is non-recourse to Hess Corporation.
June 30,2022(a)

December 31,
2021

$

$

86 $
(3)
83
38
121 $

Midstream interest expense is reported in the Midstream operating segment.

12

Six Months Ended
June 30,
2022
2021
95
—
95
23
118

$

$

178 $
(3)
175
69
244 $

189
—
189
46
235

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)(IN MILLIONS)
SecondQuarter
2022

SecondQuarter
2021

First
Quarter
2022

Cash Flow Information
Cash Flows from Operating Activities
Net income (loss)$
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:(Gains) losses on asset sales, net
Depreciation, depletion and amortization
Impairment and other
Exploratory dry hole costs
Exploration lease and other impairment
Pension settlement loss
Stock compensation expense
Noncash (gains) losses on commodity derivatives, net
Provision (benefit) for deferred income taxes and other tax accruals
Net cash provided by (used in) operating activities before changes in operating
assets and liabilities
Changes in operating assets and liabilities
Net cash provided by (used in) operating activities
Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P
Additions to property, plant and equipment - Midstream
Proceeds from asset sales, net of cash sold
Other, net
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or lessDebt with maturities of greater than 90 days:
Borrowings
Repayments
Proceeds from sale of Class A shares of Hess Midstream LP
Employee stock options exercised
Payments on finance lease obligations
Common stock acquired and retired
Cash dividends paid
Noncontrolling interests, net
Other, net
Net cash provided by (used in) financing activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period$
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred$
Increase (decrease) in related liabilities
Additions to property, plant and equipment
$

13

754

$

13

$

505

(3)
391
—
—
4
2
16
163
136

—
385
147
9
6
3
19
64
13

(22)
337
—
—
6
—
33
55
38

1,463
46
1,509

659
126
785

952
(1,108)
(156)

(607)
(56)
4
—
(659)

(329)
(26)
297
(2)
(60)

(491)
(55)
24
—
(522)

(14)

(65)

1

400
(5)
146
7
(2)
(190)
(116)
(277)
(10)
(61)
789
1,370
2,159 $

—
(2)
—
63
(2)
—
(77)
(70)
(8)
(161)
564
1,866
2,430 $

—
(505)
—
33
(2)
—
(119)
(74)
1
(665)
(1,343)
2,713
1,370

(665) $
2(663) $

(443) $
88(355) $

(580)
34
(546)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)(IN MILLIONS)
Six Months Ended
June 30,
2022
2021
Cash Flow Information
Cash Flows from Operating Activities
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:(Gains) losses on asset sales, net
Depreciation, depletion and amortization
Impairment and other
Exploratory dry hole costs
Exploration lease and other impairment
Pension settlement loss
Stock compensation expense
Noncash (gains) losses on commodity derivatives, net
Provision (benefit) for deferred income taxes and other tax accruals
Net cash provided by (used in) operating activities before changes in operating assets andliabilities
Changes in operating assets and liabilities
Net cash provided by (used in) operating activities
Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P
Additions to property, plant and equipment - Midstream
Proceeds from asset sales, net of cash sold
Other, net
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or lessDebt with maturities of greater than 90 days:
Borrowings
Repayments
Proceeds from sale of Class A shares of Hess Midstream LP
Employee stock options exercised
Payments on finance lease obligations
Common stock acquired and retired
Cash dividends paid
Noncontrolling interests, net
Other, net
Net cash provided by (used in) financing activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period
Additions to Property, Plant and Equipment included within Investing Activities
Capital expenditures incurred
Increase (decrease) in related liabilities
Additions to property, plant and equipment

14

$

$

$
$

1,259

$

349

(25)
728
—
—
10
2
49
218
174

—
781
147
9
10
4
44
88
42

2,415
(1,062)
1,353

1,474
(98)
1,376

(1,098)(111)
28—(1,181)

(687)
(53)
297
(2)
(445)

(13)

(75)

400
(510)
146
40
(4)
(190)
(235)
(351)
(9)
(726)
(554)
2,713
2,159 $

—
(5)
70
75
(4)
—
(157)
(137)
(7)
(240)
691
1,739
2,430

(1,245) $36(1,209) $

(746)
6
(740)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)(IN MILLIONS)
SecondQuarter
2022

SecondQuarter
2021

First
Quarter
2022

Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota
Offshore and Other
Total United States
GuyanaMalaysia and JDA
Other
E&P Capital and exploratory expenditures

$

$

$

188
72
260
286
66
10
622

$

$

112
25
137
250
36
6
429

$

135
56
191
319
59
11
580

Total exploration expenses charged to income included above

$

29

$

33

$

37

Midstream Capital expenditures

$

72

$

47

$

37

Six Months Ended
June 30,
2022

2021

Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
North Dakota
Offshore and Other
Total United States
GuyanaMalaysia and JDA
Other
E&P Capital and exploratory expenditures

$

$

$

323
128
451
605
125
21
1,202

$

200
56
256
422
49
11
738

Total exploration expenses charged to income included above

$

66

$

62

Midstream Capital expenditures

$

109

$

70

15

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIESEXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)(IN MILLIONS)
Income Statement

United States

Total revenues and non-operating income
Sales and other operating revenues
Other, net
Total revenues and non-operating income
Costs and expenses
Marketing, including purchased oil and gas (a)Operating costs and expenses
Production and severance taxes
Midstream tariffs
Exploration expenses, including dry holes and lease impairment
General and administrative expenses
Depreciation, depletion and amortization
Total costs and expenses
Results of operations before income taxes
Provision (benefit) for income taxes
Net income (loss) attributable to Hess Corporation

Income Statement

(c)
(d)
(e)

$

1,860
25
1,885

$

$

$

827
175
65
296
24
40
192
1,619
266
—
266 (b) $United States

Total revenues and non-operating income
Sales and other operating revenues
Other, net
Total revenues and non-operating income
Costs and expenses
Marketing, including purchased oil and gas (a)Operating costs and expenses
Production and severance taxes
Midstream tariffs
Exploration expenses, including dry holes and lease impairment
General and administrative expenses
Depreciation, depletion and amortization
Impairment and otherTotal costs and expenses
Results of operations before income taxes
Provision (benefit) for income taxes
Net income (loss) attributable to Hess Corporation
(a)
(b)

$

Second Quarter 2022
International

1,088
11
1,099

1,095
1
1,096

Total
$

2,955
26
2,981

31
116
2
—
9
7
153
318
778
321
457 (c) $

858
291
67
296
33
47
345
1,937
1,044
321
723

Second Quarter 2021
International
$

335
158
42
270
26
41
260
147
1,279
(180)
—
(180) (d) $

491
3
494

Total
$

1,579
14
1,593

8
96
2
—
22
8
84
—
220
274
119
155 (e) $

343
254
44
270
48
49
344
147
1,499
94
119
(25)

Includes amounts charged from the Midstream segment.
Includes after-tax losses from realized crude oil hedging activities of $99 million (noncash premium amortization: $99 million;
cash settlement: $0 million).
Includes after-tax losses from realized crude oil hedging activities of $64 million (noncash premium amortization: $64 million;
cash settlement: $0 million).
Includes after-tax losses from realized crude oil hedging activities of $51 million (noncash premium amortization: $51 million;
cash settlement: $0 million).
Includes after-tax losses from realized crude oil hedging activities of $13 million (noncash premium amortization: $13 million;
cash settlement: $0 million).

16

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIESEXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)(IN MILLIONS)
Income Statement

United States

Total revenues and non-operating income
Sales and other operating revenues
Other, net
Total revenues and non-operating income
Costs and expenses
Marketing, including purchased oil and gas (a)Operating costs and expenses
Production and severance taxes
Midstream tariffs
Exploration expenses, including dry holes and lease impairment
General and administrative expenses
Depreciation, depletion and amortization
Total costs and expenses
Results of operations before income taxes
Provision (benefit) for income taxes
Net income (loss) attributable to Hess Corporation
(a)
(b)
(c)

$

$

1,704
27
1,731

First Quarter 2022
International
$

701
144
58
287
32
49
195
1,466
265
—
265 (b) $

609
6
615

Total
$

2,313
33
2,346

2
107
3
—
11
8
97
228
387
192
195 (c) $

703
251
61
287
43
57
292
1,694
652
192
460

Includes amounts charged from the Midstream segment.
Includes after-tax losses from realized crude oil hedging activities of $57 million (noncash premium amortization: $34 million;
cash settlement: $23 million).
Includes after-tax losses from realized crude oil hedging activities of $35 million (noncash premium amortization: $21 million;
cash settlement: $14 million).

17

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIESEXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)(IN MILLIONS)
Six Months Ended June 30, 2022
United States
International
Total

Income Statement
Total revenues and non-operating income
Sales and other operating revenues
Other, net
Total revenues and non-operating income
Costs and expenses
Marketing, including purchased oil and gas (a)Operating costs and expenses
Production and severance taxes
Midstream tariffs
Exploration expenses, including dry holes and lease impairment
General and administrative expenses
Depreciation, depletion and amortization
Total costs and expenses
Results of operations before income taxes
Provision (benefit) for income taxes
Net income (loss) attributable to Hess Corporation$$

Total revenues and non-operating income
Sales and other operating revenues
Other, net
Total revenues and non-operating income$

Costs and expenses
Marketing, including purchased oil and gas (a)Operating costs and expenses
Production and severance taxes
Midstream tariffs
Exploration expenses, including dry holes and lease impairment
General and administrative expenses
Depreciation, depletion and amortization
Impairment and otherTotal costs and expenses
Results of operations before income taxes
Provision (benefit) for income taxes
Net income (loss) attributable to Hess Corporation

(c)
(d)
(e)

$

1,528
319
123
583
56
89
387
3,085
531
—
531 (b) $

1,704
7
1,711

$

5,268
59
5,327

33
223
5
—
20
15
250
546
1,165
513
652 (c) $

1,561
542
128
583
76
104
637
3,631
1,696
513
1,183

Six Months Ended June 30, 2021
United States
International
Total

Income Statement

(a)
(b)

3,564
52
3,616

$

2,486
23
2,509

$

855
293
78
532
56
83
528
147
2,572
(63)
—
(63) (d) $

991
7
998

$

3,477
30
3,507

30
169
3
—
25
15
171
—
413
585
239
346 (e) $

885
462
81
532
81
98
699
147
2,985
522
239
283

Includes amounts charged from the Midstream segment.
Includes after-tax losses from realized crude oil hedging activities of $156 million (noncash premium amortization: $133
million; cash settlement: $23 million).
Includes after-tax losses from realized crude oil hedging activities of $99 million (noncash premium amortization: $85 million;
cash settlement: $14 million).
Includes after-tax losses from realized crude oil hedging activities of $90 million (noncash premium amortization: $90 million;
cash settlement: $0 million).
Includes after-tax losses from realized crude oil hedging activities of $21 million (noncash premium amortization: $21 million;
cash settlement: $0 million).

18

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIESEXPLORATION AND PRODUCTION OPERATING DATA
SecondQuarter
2022

SecondQuarter
2021

First
Quarter
2022

Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota
Offshore
Total United States
GuyanaMalaysia and JDA
Other (a)
Total

68
20
88
67
4
17
176

79
33
112
26
4
24
166

77
22
99
30
3
19
151

Natural gas liquids - barrels
United States
North Dakota
Offshore
Total United States

47
2
49

52
5
57

49
1
50

Natural gas - mcf
United States
North Dakota
Offshore
Total United States
Malaysia and JDA
Other (a)
Total

147
41
188
381
11
580

167
85
252
371
9
632

158
43
201
364
12
577

Barrels of oil equivalent

322

328

297

(a)

Other includes production from Libya and the Corporation's former interests in Denmark, which were sold in the third quarterof 2021. Libya net production was 19,000 boepd in the second quarter of 2022, 21,000 boepd in the second quarter of 2021
and 21,000 boepd in the first quarter of 2022. Denmark net production was 4,000 boepd in the second quarter of 2021.

19

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIESEXPLORATION AND PRODUCTION OPERATING DATA
Six Months Ended
June 30,
2022
2021
Net Production Per Day (in thousands)
Crude oil - barrels
United States
North Dakota
Offshore
Total United States
GuyanaMalaysia and JDA
Other (a)
Total

73
20
93
49
3
18
163

82
34
116
29
4
23
172

Natural gas liquids - barrels
United States
North Dakota
Offshore
Total United States

48
2
50

50
5
55

Natural gas - mcf
United States
North Dakota
Offshore
Total United States
Malaysia and JDA
Other (a)
Total

152
41
193
373
12
578

159
90
249
366
10
625

Barrels of oil equivalent

309

331

(a)

Other includes production from Libya and the Corporation's former interests in Denmark, which were sold in the third quarterof 2021. Libya net production was 20,000 boepd in the first six months of 2022 and 20,000 boepd in the first six months of2021. Denmark net production was 5,000 boepd in the first six months of 2021.

20

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIESEXPLORATION AND PRODUCTION OPERATING DATA
SecondQuarter
2022
Sales Volumes Per Day (in thousands) (a)Crude oil – barrels
Natural gas liquids – barrels
Natural gas – mcf
Barrels of oil equivalent
Sales Volumes (in thousands) (a)Crude oil – barrels
Natural gas liquids – barrels
Natural gas – mcf
Barrels of oil equivalent

SecondQuarter
2021

First
Quarter
2022

173
46
580
316

157
57
632
319

140
50
577
286

15,763
4,180
52,811
28,745

14,293
5,142
57,55729,028

12,5804,539
51,89825,769Six Months Ended
June 30,
2022
2021
Sales Volumes Per Day (in thousands) (a)Crude oil – barrels
Natural gas liquids – barrels
Natural gas – mcf
Barrels of oil equivalent
Sales Volumes (in thousands) (a)Crude oil – barrels (b)Natural gas liquids – barrels
Natural gas – mcf
Barrels of oil equivalent
(a)
(b)

157
48
578
301

192
55
625
351

28,343
8,719
104,70954,51434,6889,944
113,070
63,477

Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.
Sales volumes for the first six months of 2021 include 4.2 million barrels of crude oil that were stored on very large crude
carriers (VLCC) at December 31, 2020 and sold in the first quarter of 2021.

21

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIESEXPLORATION AND PRODUCTION OPERATING DATA
SecondQuarter
2022

SecondQuarter
2021

First
Quarter
2022

Average Selling Prices
Crude oil - per barrel (including hedging)
United States
North Dakota
Offshore
Total United States
GuyanaMalaysia and JDA
Other (a)Worldwide
Crude oil - per barrel (excluding hedging)
United States
North Dakota
Offshore
Total United States
GuyanaMalaysia and JDA
Other (a)Worldwide
Natural gas liquids - per barrel
United States
North Dakota
Offshore
Worldwide
Natural gas - per mcf
United States
North Dakota
Offshore
Total United States
Malaysia and JDA
Other (a)Worldwide
(a)

$

93.60
95.22
93.96
104.19106.21105.21
99.16

$

56.75
59.33
57.52
65.63
65.88
64.16
59.79

$

84.77
85.17
84.85
90.90
89.27
90.91
86.75

$

106.01
107.58106.37112.57106.21114.93109.51

$

61.88
64.42
62.63
68.44
65.88
68.08
64.27

$

91.55
91.52
91.54
99.76
89.27
101.04
94.04

$

40.96
39.88
40.92

$

23.23
21.84
23.12

$

39.88
37.48
39.79

$

6.89
7.63
7.06
6.18
5.36
6.45

$

2.40
2.35
2.38
5.22
2.96
4.05

$

4.32
4.46
4.35
5.81
4.79
5.28

Other includes prices related to production from Libya and the Corporation's former interests in Denmark, which were sold in
the third quarter of 2021.

22

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIESEXPLORATION AND PRODUCTION OPERATING DATA
Six Months Ended
June 30,
2022
2021
Average Selling Prices
Crude oil - per barrel (including hedging)
United States
North Dakota (a)Offshore
Total United States
GuyanaMalaysia and JDA
Other (b)Worldwide
Crude oil - per barrel (excluding hedging)
United States
North Dakota (a)Offshore
Total United States
GuyanaMalaysia and JDA
Other (b)Worldwide
Natural gas liquids - per barrel
United States
North Dakota
Offshore
Worldwide
Natural gas - per mcf
United States
North Dakota
Offshore
Total United States
Malaysia and JDA
Other (b)Worldwide
(a)
(b)

$

88.98
90.21
89.25
100.55
97.73
98.14
93.65

$

49.35
55.99
51.00
62.48
64.69
60.94
54.04

$

98.46
99.58
98.70
109.0697.73
108.06
102.65

$

52.91
60.24
54.73
64.48
64.69
63.88
57.36

$

40.40
38.68
40.33

$

26.65
21.55
26.20

$

5.57
6.02
5.67
6.00
5.07
5.87

$

4.06
2.66
3.56
5.13
2.82
4.47

Excluding the two VLCC cargo sales totaling 4.2 million barrels sold in the first quarter of 2021, the North Dakota crude oil
price excluding hedging was $57.39 per barrel and $53.08 per barrel including hedging.
Other includes prices related to production from Libya and the Corporation's former interests in Denmark, which were sold in
the third quarter of 2021.

The following is a summary of the Corporation’s outstanding commodity hedging program for the remainder of calendar 2022:
WTI
90,000$60

Barrels of oil per day
Average monthly floor price

23

Brent
60,000$65