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Hess Reports Estimated Results for the First Quarter of 2024
Hess Corporation (NYSE: HES) today reported net income of $972 million, or $3.16 per share, in the first quarter of 2024, compared with net income of $346 million, or $1.13 per share, in the first quarter of 2023. The increase in after-tax earnings compared with the prior-year quarter primarily reflects higher production volumes in the first quarter of 2024.
After-tax income (loss) by major operating activity was as follows:
Three Months Ended
March 31,
(unaudited)
---------------------------------------------------------------------------------------
2024 2023
-------------------- -------------------- -------------------- -------------------- -------
(In millions, except per share amounts)
Net Income Attributable to Hess Corporation
-----------------------------------------------
$ 997 $ $ 405
Exploration and Production
67 61
Midstream
(92) (120)
Corporate, Interest and Other
-------------------- -------------------- -------------------- -------------------- -------
$ 972 $ $ 346
Net income attributable to Hess Corporation
==================== ==================== ==================== ==================== =======
$ 3.16 $ $ 1.13
Net income per share (diluted)
==================== ==================== ==================== ==================== =======
Exploration and Production:
E&P net income was $997 million in the first quarter of 2024, compared with $405 million in the first quarter of 2023. The Corporation's average realized crude oil selling price was $80.06 per barrel in the first quarter of 2024, compared with $74.23 per barrel, including the effect of hedging, in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the first quarter of 2024 was $22.97 per barrel, compared with $24.25 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.62 per mcf, compared with $4.39 per mcf in the first quarter of 2023.
Net production was 476,000 boepd in the first quarter of 2024, compared with 374,000 boepd in the first quarter of 2023, primarily due to higher production in Guyana and the Bakken. In the second quarter of 2024, E&P net production is expected to be in the range of 465,000 boepd to 475,000 boepd, reflecting planned maintenance in the Gulf of Mexico partially offset by growth in the Bakken.
Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $10.79 per barrel of oil equivalent (boe) in the first quarter of 2024, compared with $12.96 per boe in the prior-year quarter, primarily due to higher production volumes.
Operational Highlights for the First Quarter of 2024:
Bakken (Onshore U.S.): Net production from the Bakken was 190,000 boepd in the first quarter of 2024, compared with 163,000 boepd in the prior-year quarter, primarily reflecting increased drilling and completion activity as well as higher NGL and natural gas volumes received under percentage of proceeds contracts due to lower commodity prices. NGL and natural gas volumes received under percentage of proceeds contracts were 19,000 boepd in the first quarter of 2024, compared with 14,000 boepd in the first quarter of 2023, due to increasing volumes received as consideration for gas processing fees. During the first quarter of 2024, the Corporation operated four rigs and drilled 31 wells, completed 21 wells, and brought 34 new wells online. The Corporation plans to continue operating four drilling rigs in 2024.
Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico in the first quarter of 2024 was 31,000 boepd, compared with 33,000 boepd in the prior-year quarter.
Guyana (Offshore): At the Stabroek Block (Hess - 30%), net production totaled 190,000(1)bopd in the first quarter of 2024, compared with 112,000(1) bopd in the prior-year quarter. The third development on the block, Payara, which commenced production in November 2023, reached its initial production capacity of approximately 220,000 gross bopd in January 2024. In the first quarter of 2024, 15 cargos of crude oil were sold from Guyana, compared with nine cargos in the prior-year quarter. In the second quarter of 2024, 13 cargos of crude oil are expected to be sold.
The fourth development on the block, Yellowtail, was sanctioned in April 2022 with a production capacity of approximately 250,000 gross bopd and first production expected in 2025. The fifth development, Uaru, was sanctioned in April 2023 with a production capacity of approximately 250,000 gross bopd and first production expected in 2026. The sixth development, Whiptail, was sanctioned in April 2024 and is expected to add production capacity of approximately 250,000 gross bopd by the end of 2027.
The successful Bluefin-1 exploration well encountered approximately 197 feet of high-quality hydrocarbon bearing sandstone reservoirs. The well was drilled in 4,244 feet of water and is located approximately 5 miles southeast of the Sailfin-1 discovery.
Southeast Asia (Offshore): Net production at North Malay Basin and JDA was 65,000 boepd in the first quarter of 2024, compared with 66,000 boepd in the prior-year quarter.
Midstream:
The Midstream segment had net income of $67 million in the first quarter of 2024, compared with net income of $61 million in the prior-year quarter.
In March 2024, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP (HESM), repurchased approximately 2.8 million HESM Opco Class B units held by Hess Corporation and Global Infrastructure Partners for $100 million, of which the Corporation received $38 million. The repurchase of the Class B units was financed by HESM Opco's revolving credit facility. The Corporation continues to own approximately 37.8% of HESM on a consolidated basis.
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and Other was $92 million in the first quarter of 2024, compared with $120 million in the first quarter of 2023. Corporate and other expenses decreased by $11 million in the first quarter of 2024, primarily due to lower legal and professional fees. Interest expense decreased by $17 million in the first quarter of 2024, reflecting higher capitalized interest.
Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures were $927 million in the first quarter of 2024, compared with $765 million in the prior-year quarter, primarily due to increased drilling activity in the Gulf of Mexico. Full year 2024 E&P capital and exploratory expenditures are expected to be approximately $4.2 billion.
Midstream capital expenditures were $35 million in the first quarter of 2024 and $57 million in the prior-year quarter.
Liquidity:
Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $1.4 billion and debt and finance lease obligations totaling $5.6 billion at March 31, 2024. The Midstream segment had cash and cash equivalents of $5 million and total debt of $3.3 billion at March 31, 2024. The Corporation's debt to capitalization ratio as defined in its debt covenants was 31.9% at March 31, 2024 and 33.6% at December 31, 2023.
Net cash provided by operating activities was $885 million in the first quarter of 2024, compared with $638 million in the first quarter of 2023. Net cash provided by operating activities before changes in operating assets and liabilities(2) was $1,729 million in the first quarter of 2024, compared with $1,032 million in the prior-year quarter, primarily due to higher production volumes. Changes in operating assets and liabilities decreased cash flow from operating activities by $844 million in the first quarter of 2024, primarily due to an increase in accounts receivable related to Guyana oil liftings and a decrease in accrued liabilities which includes a payment in connection with the HONX, Inc. settlement. Changes in operating assets and liabilities decreased cash flow from operating activities by $394 million in the first quarter of 2023.
1. Net production from Guyana included 33,000 bopd of tax barrels in the first quarter of 2024 and 15,000 bopd of tax barrels in the first quarter of 2023. 1. Net production from Guyana included 33,000 bopd of tax barrels in the first quarter of 2024 and 15,000 bopd of tax barrels in the first quarter of 2023. 1. Net production from Guyana included 33,000 bopd of tax barrels in the first quarter of 2024 and 15,000 bopd of tax barrels in the first quarter of 2023. 1. Net production from Guyana included 33,000 bopd of tax barrels in the first quarter of 2024 and 15,000 bopd of tax barrels in the first quarter of 2023.
Reconciliation of U.S. GAAP to Non-GAAP Measure:
The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:
Three Months Ended
March 31,
(unaudited)
----------------------------------------------------------------------
2024 2023 2023
------------------------- -------------------- -------------------------
(In millions)
Net cash provided by (used in) operating activities before changes in operating assets and liabilities $ 1,729 $ $ 1,032
Changes in operating assets and liabilities (844) (394)
-------------------- ----- -------------------- -------------------- -----
Investor Conference Call:
Due to the pending merger with Chevron Corporation (Chevron), the Corporation will not host a conference call to review its first quarter 2024 results.
Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.
Forward-looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate," "estimate," "expect," "forecast," "guidance," "could," "may," "should," "would," "believe," "intend," "project," "plan," "predict," "will," "target" and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects; information about sustainability goals and targets and planned social, safety and environmental policies, programs and initiatives; future economic and market conditions in the oil and gas industry; and expected timing and completion of our proposed merger with Chevron.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry; reduced demand for our products, including due to 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 and regulatory 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 or interruption of our operations due to catastrophic and other events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, public health measures, 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 event the 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 other personnel, 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, rising interest rates 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 HESM; risks and uncertainties associated with our proposed merger with Chevron; and other factors described in Item 1A--Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
Non-GAAP financial measure
The Corporation has used a non-GAAP financial measure in this earnings release. "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 believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation's ability to internally fund capital expenditures, pay dividends and service debt. This measure is not, and should not be viewed as, a substitute for U.S. GAAP net cash provided by (used in) operating activities. 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 is provided in the release.
Cautionary Note to Investors
We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation's Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
First First Fourth
Quarter Quarter Quarter
2024 2023 2023
------------------------------ ------------------------------ ------------------------------
Income Statement
------------------------------------------------------------------
Revenues and non-operating income
$ 3,309 $ 2,411 $ 3,011
Sales and other operating revenues
32 42 24
Other, net
-------------------- ---------- -------------------- ---------- -------------------- ----------
3,341 2,453 3,035
Total revenues and non-operating income
Costs and expenses
622 603 886
Marketing, including purchased oil and gas
412 382 473
Operating costs and expenses
56 48 61
Production and severance taxes
42 66 87
Exploration expenses, including dry holes and lease impairment
124 136 168
General and administrative expenses
113 123 116
Interest expense
557 491 559
Depreciation, depletion and amortization
-------------------- ---------- -------------------- ---------- -------------------- ----------
1,926 1,849 2,350
Total costs and expenses
-------------------- ---------- -------------------- ---------- -------------------- ----------
Income before income taxes 1,415 604 685
348 176 182
Provision for income taxes
-------------------- ---------- -------------------- ---------- -------------------- ----------
Net income 1,067 428 503
95 82 90
Less: Net income attributable to noncontrolling interests
-------------------- ---------- -------------------- ---------- -------------------- ----------
Net income attributable to Hess Corporation $ 972 $ 346 $ 413
==================== ========== ==================== ========== ==================== ==========
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
March 31, December 31,
2024 2023
------------------------------ ------------------------------
Balance Sheet Information
------------------------------------------------------------------------
Assets
$ 1,438 $ 1,688
Cash and cash equivalents
2,186 1,742
Other current assets
17,827 17,432
Property, plant and equipment - net
658 720
Operating lease right-of-use assets - net
104 108
Finance lease right-of-use assets - net
2,506 2,317
Other long-term assets
-------------------- ---------- -------------------- ----------
$ 24,719 $ 24,007
Total assets
==================== ========== ==================== ==========
Liabilities and equity
$ 314 $ 311
Current portion of long-term debt
365 370
Current portion of operating and finance lease obligations
2,272 2,589
Other current liabilities
8,415 8,302
Long-term debt
398 459
Long-term operating lease obligations
151 156
Long-term finance lease obligations
2,273 2,218
Other long-term liabilities
10,002 9,120
Total equity excluding accumulated other comprehensive income (loss)
(134) (134)
Accumulated other comprehensive income (loss)
663 616
Noncontrolling interests
-------------------- ---------- -------------------- ----------
$ 24,719 $ 24,007
Total liabilities and equity
==================== ========== ==================== ==========
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
March 31, December 31,
2024 2023
------------------------------ ------------------------------
Total Debt
-------------------------
$ 5,404 $ 5,402
Hess Corporation
3,325 3,211
Midstream (a)
-------------------- ---------- -------------------- ----------
$ 8,729 $ 8,613
Hess Consolidated
==================== ========== ==================== ==========
March 31, December 31,
2024 2023
-------------------- --------------------
Debt to Capitalization Ratio (a)
-------------------------------------------------
45.8 % 47.8 %
Hess Consolidated
31.9 % 33.6 %
Hess Corporation as defined in debt covenants
Three Months Ended
March 31,
--------------------------------------------------------------------------------
2024 2023
-------------------- ---------- -------------------- ----------
Interest Expense
--------------------------------------------------------------
$ 87 $ 86
Gross interest expense - Hess Corporation
(23) (5)
Less: Capitalized interest - Hess Corporation
-------------------- ---------- -------------------- ----------
64 81
Interest expense - Hess Corporation
49 42
Interest expense - Midstream (a)
-------------------- ---------- -------------------- ----------
$ 113 $ 123
Interest expense - Hess Consolidated
==================== ========== ==================== ==========
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
First First Fourth
Quarter Quarter Quarter
2024 2023 2023
---------------------------------- ---------------------------------- ----------------------------------
Cash Flow Information
------------------------------------------------------------------------------------------------------------
Cash Flows from Operating Activities
$ 1,067 $ 428 $ 503
Net income
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
557 491 559
Depreciation, depletion and amortization
-- 31 50
Exploratory dry hole costs
3 5 3
Exploration lease impairment
-- -- 17
Pension settlement loss
39 35 18
Stock compensation expense
-- -- 52
Noncash (gains) losses on commodity derivatives, net
63 42 37
Provision (benefit) for deferred income taxes and other tax accruals
-------------------- -------------- -------------------- -------------- -------------------- --------------
1,729 1,032 1,239
Net cash provided by (used in) operating activities before changes in operating assets and liabilities
(844) (394) 105
Changes in operating assets and liabilities
-------------------- -------------- -------------------- -------------- -------------------- --------------
885 638 1,344
Net cash provided by (used in) operating activities
-------------------- -------------- -------------------- -------------- -------------------- --------------
Cash Flows from Investing Activities
(902) (773) (1,380)
Additions to property, plant and equipment - E&P
(55) (64) (64)
Additions to property, plant and equipment - Midstream
(1) (4) (3)
Other, net
-------------------- -------------- -------------------- -------------- -------------------- --------------
(958) (841) (1,447)
Net cash provided by (used in) investing activities
-------------------- -------------- -------------------- -------------- -------------------- --------------
Cash Flows from Financing Activities
115 103 64
Net borrowings (repayments) of debt with maturities of 90 days or less
Debt with maturities of greater than 90 days:
-- -- --
Borrowings
(3) -- (3)
Repayments
(137) (137) (134)
Cash dividends paid
-- (20) --
Common stock acquired and retired
(151) (131) (151)
Noncontrolling interests, net
11 3 --
Employee stock options exercised
(3) (2) (3)
Payments on finance lease obligations
(9) 1 --
Other, net
-------------------- -------------- -------------------- -------------- -------------------- --------------
(177) (183) (227)
Net cash provided by (used in) financing activities
-------------------- -------------- -------------------- -------------- -------------------- --------------
(250) (386) (330)
Net Increase (Decrease) in Cash and Cash Equivalents
1,688 2,486 2,018
Cash and Cash Equivalents at Beginning of Period
-------------------- -------------- -------------------- -------------- -------------------- --------------
$ 1,438 $ 2,100 $ 1,688
Cash and Cash Equivalents at End of Period
==================== ============== ==================== ============== ==================== ==============
Additions to Property, Plant and Equipment included within Investing Activities
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
$ (923) $ (792) $ (1,518)
Capital expenditures incurred
(34) (45) 74
Increase (decrease) in related liabilities
-------------------- -------------- -------------------- -------------- -------------------- --------------
$ (957) $ (837) $ (1,444)
Additions to property, plant and equipment
==================== ============== ==================== ============== ==================== ==============
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
First First Fourth
Quarter Quarter Quarter
2024 2023 2023
------------------------------ ------------------------------ ------------------------------
Capital and Exploratory Expenditures
-----------------------------------------------------------
E&P Capital and exploratory expenditures
United States
$ 288 $ 232 $ 313
North Dakota
159 29 64
Offshore and Other
-------------------- ---------- -------------------- ---------- -------------------- ----------
447 261 377
Total United States
447 454 1,047
Guyana
28 47 55
Malaysia and JDA
5 3 1
Other
-------------------- ---------- -------------------- ---------- -------------------- ----------
E&P Capital and exploratory expenditures $ 927 $ 765 $ 1,480
==================== ========== ==================== ========== ==================== ==========
Total exploration expenses charged to income included above $ 39 $ 30 $ 34
==================== ========== ==================== ========== ==================== ==========
Midstream Capital expenditures $ 35 $ 57 $ 72
==================== ========== ==================== ========== ==================== ==========
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
First Quarter 2024
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Income Statement United States International Total
------------------------------------------------------------------ ----------------------------------- ----------------------------------- -----------------------------------
Total revenues and non-operating income
$ 1,523 $ 1,780 $ 3,303
Sales and other operating revenues
10 1 11
Other, net
-------------------- --------------- -------------------- --------------- -------------------- ---------------
1,533 1,781 3,314
Total revenues and non-operating income
-------------------- --------------- -------------------- --------------- -------------------- ---------------
Costs and expenses
589 51 640
Marketing, including purchased oil and gas (a)
205 133 338
Operating costs and expenses
54 2 56
Production and severance taxes
328 -- 328
Midstream tariffs
34 8 42
Exploration expenses, including dry holes and lease impairment
64 8 72
General and administrative expenses
244 263 507
Depreciation, depletion and amortization
-------------------- --------------- -------------------- --------------- -------------------- ---------------
1,518 465 1,983
Total costs and expenses
-------------------- --------------- -------------------- --------------- -------------------- ---------------
Results of operations before income taxes 15 1,316 1,331
-- 334 334
Provision for income taxes
-------------------- --------------- -------------------- --------------- -------------------- ---------------
Net income (loss) attributable to Hess Corporation $ 15 $ 982 $ 997
==================== =============== ==================== =============== ==================== ===============
First Quarter 2023
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Income Statement United States International Total
------------------------------------------------------------------ ----------------------------------- ----------------------------------- -----------------------------------
Total revenues and non-operating income
$ 1,365 $ 1,044 $ 2,409
Sales and other operating revenues
9 5 14
Other, net
-------------------- --------------- -------------------- --------------- -------------------- ---------------
1,374 1,049 2,423
Total revenues and non-operating income
-------------------- --------------- -------------------- --------------- -------------------- ---------------
Costs and expenses
584 35 619
Marketing, including purchased oil and gas (a)
205 118 323
Operating costs and expenses
46 2 48
Production and severance taxes
283 -- 283
Midstream tariffs
20 46 66
Exploration expenses, including dry holes and lease impairment
54 12 66
General and administrative expenses
203 240 443
Depreciation, depletion and amortization
-------------------- --------------- -------------------- --------------- -------------------- ---------------
1,395 453 1,848
Total costs and expenses
-------------------- --------------- -------------------- --------------- -------------------- ---------------
Results of operations before income taxes (21) 596 575
-- 170 170
Provision for income taxes
-------------------- --------------- -------------------- --------------- -------------------- ---------------
Net income (loss) attributable to Hess Corporation $ (21) (b) $ 426 (c) $ 405
==================== =============== ==================== =============== ==================== ===============
(a) Includes amounts charged from the Midstream segment.
(b) Includes after-tax losses from realized crude oil hedging activities of $27 million (noncash premium amortization: $27 million; cash settlement: $0 million).
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
Fourth Quarter 2023
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Income Statement United States International Total
------------------------------------------------------------------ ----------------------------------- ----------------------------------- -----------------------------------
Total revenues and non-operating income
$ 1,766 $ 1,240 $ 3,006
Sales and other operating revenues
11 5 16
Other, net
-------------------- --------------- -------------------- --------------- -------------------- ---------------
1,777 1,245 3,022
Total revenues and non-operating income
-------------------- --------------- -------------------- --------------- -------------------- ---------------
Costs and expenses
867 40 907
Marketing, including purchased oil and gas (a)
229 159 388
Operating costs and expenses
56 5 61
Production and severance taxes
328 -- 328
Midstream tariffs
82 5 87
Exploration expenses, including dry holes and lease impairment
53 8 61
General and administrative expenses
255 253 508
Depreciation, depletion and amortization
-------------------- --------------- -------------------- --------------- -------------------- ---------------
1,870 470 2,340
Total costs and expenses
-------------------- --------------- -------------------- --------------- -------------------- ---------------
Results of operations before income taxes (93) 775 682
-- 170 170
Provision for income taxes
-------------------- --------------- -------------------- --------------- -------------------- ---------------
Net income (loss) attributable to Hess Corporation $ (93) (b) $ 605 (c) $ 512
==================== =============== ==================== =============== ==================== ===============
(a) Includes amounts charged from the Midstream segment.
(b) Includes after-tax losses from realized crude oil hedging activities of $34 million (noncash premium amortization: $34 million; cash settlement: $0 million).
HESS CORPORATION AND CONSOLIDATE