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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
Form 10-Q 
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 2021
or
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number 1-1204 
HESS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation or Organization)
13-4921002
(I.R.S. Employer Identification Number)

1185 AVENUE OF THE AMERICAS, NEW YORK, NY
(Address of Principal Executive Offices)
10036
(Zip Code)
(Registrant’s Telephone Number, Including Area Code is (212) 997-8500)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common StockHESNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company     
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes    No  ý
At September 30, 2021, there were 309,726,894 shares of Common Stock outstanding.




HESS CORPORATION
Form 10-Q
TABLE OF CONTENTS
 
Item
No.
 Page
Number
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
  
 
 
Unless the context indicates otherwise, references to “Hess”, the “Corporation”, “Registrant”, “we”, “us”, “our” and “its” refer to the consolidated business operations of Hess Corporation and its subsidiaries.




PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (UNAUDITED)
September 30,
2021
December 31,
2020
(In millions,
except share amounts)
Assets  
Current Assets:  
Cash and cash equivalents$2,419 $1,739 
Accounts receivable:
From contracts with customers930 710 
Joint venture and other164 150 
Inventories262 378 
Other current assets117 104 
Total current assets3,892 3,081 
Property, plant and equipment:
Total — at cost30,560 30,519 
Less: Reserves for depreciation, depletion, amortization and lease impairment16,606 16,404 
Property, plant and equipment — net13,954 14,115 
Operating lease right-of-use assets — net364 426 
Finance lease right-of-use assets — net150 168 
Goodwill360 360 
Deferred income taxes26 59 
Other assets744 612 
Total Assets$19,490 $18,821 
Liabilities
Current Liabilities:
Accounts payable$210 $200 
Accrued liabilities1,578 1,251 
Taxes payable359 81 
Current portion of long-term debt514 10 
Current portion of operating and finance lease obligations88 81 
Total current liabilities2,749 1,623 
Long-term debt7,993 8,286 
Long-term operating lease obligations410 478 
Long-term finance lease obligations205 220 
Deferred income taxes346 342 
Asset retirement obligations838 894 
Other liabilities and deferred credits693 643 
Total Liabilities13,234 12,486 
Equity
Hess Corporation stockholders’ equity:
Common stock, par value $1.00; Authorized — 600,000,000 shares
Issued — 309,726,894 shares (2020: 306,980,092)
310 307 
Capital in excess of par value5,903 5,684 
Retained earnings192 130 
Accumulated other comprehensive income (loss)(796)(755)
Total Hess Corporation stockholders’ equity5,609 5,366 
Noncontrolling interests647 969 
Total Equity6,256 6,335 
Total Liabilities and Equity$19,490 $18,821 
See accompanying Notes to Consolidated Financial Statements.
2


PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT OF CONSOLIDATED INCOME (UNAUDITED)
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
 (In millions, except per share amounts)
Revenues and Non-Operating Income  
Sales and other operating revenues$1,759 $1,159 $5,236 $3,346 
Gains (losses) on asset sales, net29  29 8 
Other, net23 17 63 33 
Total revenues and non-operating income1,811 1,176 5,328 3,387 
Costs and Expenses
Marketing, including purchased oil and gas522 221 1,362 655 
Operating costs and expenses333 308 913 905 
Production and severance taxes42 34 123 92 
Exploration expenses, including dry holes and lease impairment36 71 117 291 
General and administrative expenses76 84 254 275 
Interest expense125 118 360 350 
Depreciation, depletion and amortization349 518 1,130 1,588 
Impairment and other  147 2,126 
Total costs and expenses1,483 1,354 4,406 6,282 
Income (Loss) Before Income Taxes328 (178)922 (2,895)
Provision (benefit) for income taxes143 5 388 (83)
Net Income (Loss)185 (183)534 (2,812)
Less: Net income (loss) attributable to noncontrolling interests70 60 240 184 
Net Income (Loss) Attributable to Hess Corporation$115 $(243)$294 $(2,996)
Net Income (Loss) Attributable to Hess Corporation Per Common Share:
Basic$0.37 $(0.80)$0.96 $(9.83)
Diluted$0.37 $(0.80)$0.95 $(9.83)
Weighted Average Number of Common Shares Outstanding:
Basic308.1 305.0 307.1 304.7 
Diluted309.9 305.0 309.1 304.7 
Common Stock Dividends Per Share$0.25 $0.25 $0.75 $0.75 
See accompanying Notes to Consolidated Financial Statements.

3


PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
 (In millions)
Net Income (Loss)$185 $(183)$534 $(2,812)
Other Comprehensive Income (Loss):
Derivatives designated as cash flow hedges
Effect of hedge (gains) losses reclassified to income64 (143)179 (435)
Income taxes on effect of hedge (gains) losses reclassified to income    
Net effect of hedge (gains) losses reclassified to income64 (143)179 (435)
Change in fair value of cash flow hedges(40)(44)(271)732 
Income taxes on change in fair value of cash flow hedges    
Net change in fair value of cash flow hedges(40)(44)(271)732 
Change in derivatives designated as cash flow hedges, after taxes24 (187)(92)297 
Pension and other postretirement plans
(Increase) reduction in unrecognized actuarial losses  3 4 
Income taxes on actuarial changes in plan liabilities    
(Increase) reduction in unrecognized actuarial losses, net  3 4 
Amortization of net actuarial losses16 11 48 35 
Income taxes on amortization of net actuarial losses    
Net effect of amortization of net actuarial losses16 11 48 35 
Change in pension and other postretirement plans, after taxes16 11 51 39 
Other Comprehensive Income (Loss)40 (176)(41)336 
Comprehensive Income (Loss)225 (359)493 (2,476)
Less: Comprehensive income (loss) attributable to noncontrolling interests70 60 240 184 
Comprehensive Income (Loss) Attributable to Hess Corporation$155 $(419)$253 $(2,660)
See accompanying Notes to Consolidated Financial Statements.

4


PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT OF CONSOLIDATED CASH FLOWS (UNAUDITED)
Nine Months Ended
September 30,
 20212020
 (In millions)
Cash Flows From Operating Activities  
Net income (loss)$534 $(2,812)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
(Gains) losses on asset sales, net(29)(8)
Depreciation, depletion and amortization1,130 1,588 
Impairment and other147 2,126 
Exploratory dry hole costs11 166 
Exploration lease and other impairment15 48 
Pension settlement loss5  
Stock compensation expense61 63 
Noncash (gains) losses on commodity derivatives, net152 187 
Provision (benefit) for deferred income taxes and other tax accruals79 (87)
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable(533)539 
(Increase) decrease in inventories97 (161)
Increase (decrease) in accounts payable and accrued liabilities169 (681)
Increase (decrease) in taxes payable278 (52)
Changes in other operating assets and liabilities(125)(69)
Net cash provided by (used in) operating activities1,991 847 
Cash Flows From Investing Activities
Additions to property, plant and equipment - E&P(1,118)(1,577)
Additions to property, plant and equipment - Midstream(120)(246)
Proceeds from asset sales, net of cash sold427 11 
Other, net(4)(2)
Net cash provided by (used in) investing activities(815)(1,814)
Cash Flows From Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less(32)146 
Debt with maturities of greater than 90 days:
Borrowings750 1,000 
Repayments(508) 
Proceeds from sale of Class A shares of Hess Midstream LP70  
Payments on finance lease obligations(7)(6)
Cash dividends paid(234)(233)
Employee stock options exercised75 15 
Noncontrolling interests, net(589)(194)
Other, net(21)(21)
Net cash provided by (used in) financing activities(496)707 
Net Increase (Decrease) in Cash and Cash Equivalents680 (260)
Cash and Cash Equivalents at Beginning of Year1,739 1,545 
Cash and Cash Equivalents at End of Period$2,419 $1,285 
See accompanying Notes to Consolidated Financial Statements.

5


PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT OF CONSOLIDATED EQUITY (UNAUDITED)
 Common StockCapital in Excess of ParRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Hess Stockholders' EquityNoncontrolling InterestsTotal Equity
 
For the Three Months Ended September 30, 2021       
Balance at July 1, 2021$310 $5,859 $155 $(836)$5,488 $1,044 $6,532 
Net income (loss)— — 115 — 115 70 185 
Other comprehensive income (loss)— — — 40 40 — 40 
Share-based compensation— 16 — — 16 — 16 
Dividends on common stock— — (78)— (78)— (78)
Repurchase of Class B units of Hess Midstream Operations LP— 28 — — 28 (390)(362)
Noncontrolling interests, net— — — — — (77)(77)
Balance at September 30, 2021$310 $5,903 $192 $(796)$5,609 $647 $6,256 
For the Three Months Ended September 30, 2020
Balance at July 1, 2020$307 $5,650 $625 $(187)6,395 $971 $7,366 
Net income (loss)— — (243)— (243)60 (183)
Other comprehensive income (loss)— — — (176)(176)— (176)
Share-based compensation— 18 — — 18 — 18 
Dividends on common stock— — (78)— (78)— (78)
Noncontrolling interests, net— — — — — (65)(65)
Balance at September 30, 2020$307 $5,668 $304 $(363)$5,916 $966 $6,882 
For the Nine Months Ended September 30, 2021
Balance at January 1, 2021$307 $5,684 $130 $(755)5,366 $969 $6,335 
Net income (loss)— — 294 — 294 240 534 
Other comprehensive income (loss)— — — (41)(41)— (41)
Share-based compensation3 135 — — 138 — 138 
Dividends on common stock— — (232)— (232)— (232)
Sale of Class A shares of Hess Midstream LP— 56 — — 56 41 97 
Repurchase of Class B units of Hess Midstream Operations LP— 28 — — 28 (390)(362)
Noncontrolling interests, net— — — — — (213)(213)
Balance at September 30, 2021$310 $5,903 $192 $(796)$5,609 $647 $6,256 
For the Nine Months Ended September 30, 2020
Balance at January 1, 2020$305 $5,591 $3,535 $(699)8,732 $974 $9,706 
Net income (loss)— — (2,996)— (2,996)184 (2,812)
Other comprehensive income (loss)— — — 336 336 — 336 
Share-based compensation2 77 (5)— 74 — 74 
Dividends on common stock— — (230)— (230)— (230)
Noncontrolling interests, net— — — — — (192)(192)
Balance at September 30, 2020$307 $5,668 $304 $(363)$5,916 $966 $6,882 
See accompanying Notes to Consolidated Financial Statements.


6

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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 September 30, 2021 and December 31, 2020, the consolidated results of operations for the three and nine months ended September 30, 2021 and 2020, and consolidated cash flows for the nine months ended September 30, 2021 and 2020.  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, 2020.
 2.  Inventories
Inventories consisted of the following:
September 30,
2021
December 31,
2020
 (In millions)
Crude oil and natural gas liquids$76 $226 
Materials and supplies186 152 
Total Inventories$262 $378 
At December 31, 2020, crude oil inventories included $164 million associated with the cost of 4.2 million barrels of crude oil transported and stored on two chartered very large crude carriers (VLCCs) for sale in Asian markets. The two VLCC cargos were sold in the first quarter of 2021.
In the first quarter of 2020, we recognized charges of $53 million ($52 million after income taxes) in Marketing, including purchased oil and gas to reflect crude oil inventories at net realizable value.
3.  Property, Plant and Equipment
Dispositions:
In August 2021, we completed the sale of our interests in Denmark for net cash consideration of approximately $130 million, after closing adjustments, and recognized a pre-tax gain of $29 million ($29 million after income taxes).
In April 2021, we completed the sale of our Little Knife and Murphy Creek nonstrategic acreage interests in the Bakken for net cash consideration of $297 million, after closing adjustments. The sale included approximately 78,700 net acres, which are located in the southernmost portion of the Corporation's Bakken position. The acreage constituted part of a larger amortization base and the sale was treated as a normal retirement. Accordingly, no gain or loss was recognized upon sale.
Capitalized Exploratory Well Costs:  
The following table discloses the net changes in capitalized exploratory well costs pending determination of proved reserves during the nine months ended September 30, 2021 (in millions):

Balance at January 1, 2021$459 
Additions to capitalized exploratory well costs pending the determination of proved reserves162 
Balance at September 30, 2021$621 
Capitalized exploratory well costs capitalized for greater than one year following completion of drilling were $451 million at September 30, 2021 and primarily related to:
Guyana: Approximately 90% of the capitalized well costs in excess of one year relate to successful exploration wells where hydrocarbons were encountered on the Stabroek Block (Hess 30%), offshore Guyana.  The operator plans further appraisal drilling and is conducting pre-development planning for additional phases of development beyond the three previously sanctioned development projects on the Block.
7

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Joint Development Area (JDA):  Approximately 5% of the capitalized well costs in excess of one year relates 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:  Approximately 5% 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 one successful exploration well.  Subsurface evaluation and pre-development studies are ongoing.
4.  Hess Midstream LP
In March 2021, the Corporation received net proceeds of $70 million from the public offering of 3.45 million Hess-owned Class A shares of Hess Midstream LP. The transaction resulted in an increase in Capital in Excess of Par of $56 million and Noncontrolling Interests of $41 million including $14 million from the change in ownership and $27 million from the recognition of a deferred tax asset due to an increase in tax basis of Hess Midstream LP's investment in Hess Midstream Operations LP (HESM Opco).
In August 2021, HESM Opco, a consolidated subsidiary of Hess Midstream LP, repurchased 31.25 million HESM Opco Class B units held by a subsidiary of Hess Corporation and an affiliate of General Infrastructure Partners (GIP) for $750 million. HESM Opco issued $750 million in aggregate principal amount of 4.250% fixed-rate senior unsecured notes due 2030 in a private offering to finance the repurchase. The transaction resulted in an increase in Capital in Excess of Par and a decrease in Noncontrolling Interests of $28 million, and an increase in deferred tax assets and Noncontrolling Interests of $15 million due to a decrease in the book basis of Hess Midstream LP's investment in HESM Opco. The $375 million paid to GIP reduced Noncontrolling Interests. The Corporation owned an approximate 45% interest in Hess Midstream LP, on a consolidated basis, at September 30, 2021. See Note 14, Subsequent Events.
At September 30, 2021 Hess Midstream LP, a variable interest entity that is fully consolidated by Hess Corporation, had liabilities totaling $2,753 million (December 31, 2020: $2,026 million) that are on a nonrecourse basis to Hess Corporation, while Hess Midstream LP assets available to settle the obligations of Hess Midstream LP include cash and cash equivalents totaling $3 million (December 31, 2020: $3 million), property, plant and equipment with a carrying value of $3,118 million (December 31, 2020: $3,111 million) and an equity-method investment in the Little Missouri 4 gas processing plant of $102 million (December 31, 2020: $108 million).
5.  Accrued Liabilities
Accrued Liabilities consisted of the following:
September 30,
2021
December 31,
2020
(In millions)
Accrued operating and marketing expenditures$511 $325 
Accrued capital expenditures381 345 
Accrued payments to royalty and working interest owners232 170 
Current portion of asset retirement obligations193 105 
Accrued interest on debt101 126 
Accrued compensation and benefits97 117 
Other accruals63 63 
Total Accrued Liabilities$1,578 $1,251 
6.  Debt
In July 2021, we repaid $500 million principal amount of Hess Corporation's $1 billion term loan, which matures in March 2023. The remaining $500 million has been classified as Current portion of long-term debt in our Consolidated Balance Sheet at September 30, 2021 due to management's intent to repay the remaining $500 million within the next twelve months.
In August 2021, HESM Opco issued $750 million in aggregate principal amount of 4.250% fixed-rate senior unsecured notes due 2030 in a private offering to finance the repurchase of 31.25 million HESM Opco Class B units held by a subsidiary of Hess Corporation and an affiliate of GIP.
8

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
7.  Revenue
Revenue from contracts with customers on a disaggregated basis was as follows:
 Exploration and ProductionMidstreamEliminationsTotal
 United StatesGuyanaMalaysia & JDAOther (a)E&P Total   
 (In millions)
Three Months Ended September 30, 2021        
Sales of our net production volumes:        
Crude oil revenue$654 $214 $2 $104 $974 $ $— $974 
Natural gas liquids revenue143    143  — 143 
Natural gas revenue77  143 2 222  — 222 
Sales of purchased oil and gas457 4  23 484  — 484 
Intercompany revenue     304 (304)— 
Total revenues from contracts with customers1,331 218 145 129 1,823 304 (304)1,823 
Other operating revenues (b)(51)(9) (4)(64)  (64)
Total sales and other operating revenues$1,280 $209 $145 $125 $1,759 $304 $(304)$1,759 
Three Months Ended September 30, 2020        
Sales of our net production volumes:        
Crude oil revenue$471 $80 $13 $11 $575 $ $— $575 
Natural gas liquids revenue68    68  — 68 
Natural gas revenue34  116 1 151  — 151 
Sales of purchased oil and gas220 1   221  — 221 
Intercompany revenue     264 (264)— 
Total revenues from contracts with customers793 81 129 12 1,015 264 (264)1,015 
Other operating revenues (b)125 18  1 144   144 
Total sales and other operating revenues$918 $99 $129 $13 $1,159 $264 $(264)$1,159 
Nine Months Ended September 30, 2021
Sales of our net production volumes:
Crude oil revenue$2,200 $529 $51 $355 $3,135 $