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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 June 30, 2022
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 June 30, 2022, there were 309,614,906 shares of Common Stock outstanding.




HESS CORPORATION
Form 10-Q
TABLE OF CONTENTS
 
Item
No.
 Page
Number
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
  
2.
 
 
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)
June 30,
2022
December 31,
2021
(In millions,
except share amounts)
Assets  
Current Assets:  
Cash and cash equivalents$2,159 $2,713 
Accounts receivable:
From contracts with customers1,265 1,062 
Joint venture and other141 149 
Inventories317 223 
Other current assets87 199 
Total current assets3,969 4,346 
Property, plant and equipment:
Total — at cost32,402 31,178 
Less: Reserves for depreciation, depletion, amortization and lease impairment17,584 16,996 
Property, plant and equipment — net14,818 14,182 
Operating lease right-of-use assets — net446 352 
Finance lease right-of-use assets — net136 144 
Goodwill360 360 
Deferred income taxes147 71 
Post-retirement benefit assets603 409 
Other assets701 651 
Total Assets$21,180 $20,515 
Liabilities
Current Liabilities:
Accounts payable$359 $220 
Accrued liabilities1,741 1,710 
Taxes payable141 528 
Current portion of long-term debt 517 
Current portion of operating and finance lease obligations114 89 
Total current liabilities2,355 3,064 
Long-term debt8,332 7,941 
Long-term operating lease obligations457 394 
Long-term finance lease obligations190 200 
Deferred income taxes544 383 
Asset retirement obligations1,028 1,005 
Other liabilities and deferred credits516 502 
Total Liabilities13,422 13,489 
Equity
Hess Corporation stockholders’ equity:
Common stock, par value $1.00; Authorized — 600,000,000 shares
Issued 309,614,906 shares (2021: 309,744,953)
310 310 
Capital in excess of par value6,236 6,017 
Retained earnings1,075 379 
Accumulated other comprehensive income (loss)(485)(406)
Total Hess Corporation stockholders’ equity7,136 6,300 
Noncontrolling interests622 726 
Total Equity7,758 7,026 
Total Liabilities and Equity$21,180 $20,515 
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
June 30,
Six Months Ended
June 30,
 2022202120222021
 (In millions, except per share amounts)
Revenues and Non-Operating Income  
Sales and other operating revenues$2,955 $1,579 $5,268 $3,477 
Gains on asset sales, net3  25  
Other, net30 19 66 40 
Total revenues and non-operating income2,988 1,598 5,359 3,517 
Costs and Expenses
Marketing, including purchased oil and gas843 322 1,525 840 
Operating costs and expenses356 315 669 580 
Production and severance taxes67 44 128 81 
Exploration expenses, including dry holes and lease impairment33 48 76 81 
General and administrative expenses95 84 205 178 
Interest expense121 118 244 235 
Depreciation, depletion and amortization391 385 728 781 
Impairment and other 147  147 
Total costs and expenses1,906 1,463 3,575 2,923 
Income (Loss) Before Income Taxes1,082 135 1,784 594 
Provision (benefit) for income taxes328 122 525 245 
Net Income (Loss)754 13 1,259 349 
Less: Net income (loss) attributable to noncontrolling interests87 86 175 170 
Net Income (Loss) Attributable to Hess Corporation$667 $(73)$1,084 $179 
Net Income (Loss) Attributable to Hess Corporation Per Common Share:
Basic$2.15 $(0.24)$3.50 $0.58 
Diluted$2.15 $(0.24)$3.49 $0.58 
Weighted Average Number of Common Shares Outstanding:
Basic309.7 307.5 309.3 306.7 
Diluted310.9 307.5 310.6 308.7 
Common Stock Dividends Per Share$0.375 $0.250 $0.750 $0.500 
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
June 30,
Six Months Ended
June 30,
 2022202120222021
 (In millions)
Net Income (Loss)$754 $13 $1,259 $349 
Other Comprehensive Income (Loss):
Derivatives designated as cash flow hedges
Effect of hedge (gains) losses reclassified to income163 64 255 115 
Income taxes on effect of hedge (gains) losses reclassified to income    
Net effect of hedge (gains) losses reclassified to income163 64 255 115 
Change in fair value of cash flow hedges(39)(129)(494)(231)
Income taxes on change in fair value of cash flow hedges    
Net change in fair value of cash flow hedges(39)(129)(494)(231)
Change in derivatives designated as cash flow hedges, after taxes124 (65)(239)(116)
Pension and other postretirement plans
(Increase) reduction in unrecognized actuarial losses152 (11)152 3 
Income taxes on actuarial changes in plan liabilities    
(Increase) reduction in unrecognized actuarial losses, net152 (11)152 3 
Amortization of net actuarial losses5 16 8 32 
Income taxes on amortization of net actuarial losses    
Net effect of amortization of net actuarial losses5 16 8 32 
Change in pension and other postretirement plans, after taxes157 5 160 35 
Other Comprehensive Income (Loss)281 (60)(79)(81)
Comprehensive Income (Loss)1,035 (47)1,180 268 
Less: Comprehensive income (loss) attributable to noncontrolling interests87 86 175 170 
Comprehensive Income (Loss) Attributable to Hess Corporation$948 $(133)$1,005 $98 
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)
Six Months Ended
June 30,
 20222021
 (In millions)
Cash Flows From Operating Activities  
Net income (loss)$1,259 $349 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
(Gains) on asset sales, net(25) 
Depreciation, depletion and amortization728 781 
Impairment and other 147 
Exploratory dry hole costs 9 
Exploration lease and other impairment10 10 
Pension settlement loss2 4 
Stock compensation expense49 44 
Noncash (gains) losses on commodity derivatives, net218 88 
Provision (benefit) for deferred income taxes and other tax accruals174 42 
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable(529)(315)
(Increase) decrease in inventories(94)137 
Increase (decrease) in accounts payable and accrued liabilities100 (56)
Increase (decrease) in taxes payable(387)187 
Changes in other operating assets and liabilities(152)(51)
Net cash provided by (used in) operating activities1,353 1,376 
Cash Flows From Investing Activities
Additions to property, plant and equipment - E&P(1,098)(687)
Additions to property, plant and equipment - Midstream(111)(53)
Proceeds from asset sales, net of cash sold28 297 
Other, net (2)
Net cash provided by (used in) investing activities(1,181)(445)
Cash Flows From Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less(13)(75)
Debt with maturities of greater than 90 days:
Borrowings400  
Repayments(510)(5)
Cash dividends paid(235)(157)
Common stock acquired and retired(190) 
Proceeds from sale of Class A shares of Hess Midstream LP146 70 
Noncontrolling interests, net(351)(137)
Employee stock options exercised40 75 
Payments on finance lease obligations(4)(4)
Other, net(9)(7)
Net cash provided by (used in) financing activities(726)(240)
Net Increase (Decrease) in Cash and Cash Equivalents(554)691 
Cash and Cash Equivalents at Beginning of Year2,713 1,739 
Cash and Cash Equivalents at End of Period$2,159 $2,430 
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 June 30, 2022       
Balance at April 1, 2022$311 $6,083 $680 $(766)$6,308 $740 $7,048 
Net income (loss)— — 667 — 667 87 754 
Other comprehensive income (loss)— — — 281 281  281 
Share-based compensation1 24 — — 25 — 25 
Dividends on common stock— — (117)— (117)— (117)
Sale of Class A shares of Hess Midstream LP— 130 — — 130 88 218 
Repurchase of Class B units of Hess Midstream Operations LP— 32 — — 32 (215)(183)
Common stock acquired and retired(2)(33)(155)— (190)— (190)
Noncontrolling interests, net— — — — — (78)(78)
Balance at June 30, 2022$310 $6,236 $1,075 $(485)$7,136 $622 $7,758 
For the Three Months Ended June 30, 2021
Balance at April 1, 2021$308 $5,779 $305 $(776)5,616 $1,027 $6,643 
Net income (loss)— — (73)— (73)86 13 
Other comprehensive income (loss)— — — (60)(60) (60)
Share-based compensation2 80 — — 82 — 82 
Dividends on common stock— — (77)— (77)— (77)
Noncontrolling interests, net— — — — — (69)(69)
Balance at June 30, 2021$310 $5,859 $155 $(836)$5,488 $1,044 $6,532 
For the Six Months Ended June 30, 2022
Balance at January 1, 2022$310 $6,017 $379 $(406)$6,300 $726 $7,026 
Net income (loss)— — 1,084 — 1,084 175 1,259 
Other comprehensive income (loss)— — — (79)(79) (79)
Share-based compensation2 90 — — 92 — 92 
Dividends on common stock— — (233)— (233)— (233)
Sale of Class A shares of Hess Midstream LP— 130 — — 130 88 218 
Repurchase of Class B units of Hess Midstream Operations LP— 32 — — 32 (215)(183)
Common stock acquired and retired(2)(33)(155)— (190)— (190)
Noncontrolling interests, net— — — — — (152)(152)
Balance at June 30, 2022$310 $6,236 $1,075 $(485)$7,136 $622 $7,758 
For the Six Months Ended June 30, 2021
Balance at January 1, 2021$307 $5,684 $130 $(755)5,366 $969 $6,335 
Net income (loss)— — 179 — 179 170 349 
Other comprehensive income (loss)— — — (81)(81) (81)
Share-based compensation3 119 — — 122 — 122 
Dividends on common stock— — (154)— (154)— (154)
Sale of Class A shares of Hess Midstream LP— 56 — — 56 41 97 
Noncontrolling interests, net— — — — — (136)(136)
Balance at June 30, 2021$310 $5,859 $155 $(836)$5,488 $1,044 $6,532 
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 June 30, 2022 and December 31, 2021, the consolidated results of operations for the three and six months ended June 30, 2022 and 2021, and consolidated cash flows for the six months ended June 30, 2022 and 2021.  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, 2021.
 2.  Inventories
Inventories consisted of the following:
June 30,
2022
December 31,
2021
 (In millions)
Crude oil and natural gas liquids$142 $52 
Materials and supplies175 171 
Total Inventories$317 $223 
3.  Property, Plant and Equipment
Capitalized Exploratory Well Costs:  
The following table discloses the net changes in capitalized exploratory well costs pending determination of proved reserves during the six months ended June 30, 2022 (in millions):

Balance at January 1, 2022$681 
Additions to capitalized exploratory well costs pending the determination of proved reserves194 
Reclassifications to wells, facilities and equipment based on the determination of proved reserves(93)
Balance at June 30, 2022$782 
Additions to capitalized exploratory well costs pending determination of proved reserves are related to wells drilled on the Stabroek Block (Hess 30%), offshore Guyana and drilling at the Huron prospect (Hess 40%) in the Gulf of Mexico. Reclassifications to wells, facilities and equipment based on the determination of proved reserves resulted from the sanction of the Yellowtail Field development project, the fourth sanctioned project on the Stabroek Block.
At June 30, 2022, exploratory well costs capitalized for greater than one year following completion of drilling of $417 million was comprised of the following:
Guyana: Approximately 89% of the capitalized well costs in excess of one year relate to successful exploration wells where hydrocarbons were encountered on the Stabroek Block.  The operator plans further appraisal drilling on the Block and is conducting pre-development planning for additional phases of development.
Joint Development Area (JDA):  Approximately 9% 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 2% of the capitalized well costs in excess of one year relate to the North Malay Basin (Hess 50%), offshore Peninsular Malaysia, where hydrocarbons were encountered in one successful exploration well.  Subsurface evaluation and pre-development studies are ongoing.
7

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
4.  Hess Midstream LP
At June 30, 2022, Hess Midstream LP (Hess Midstream), a variable interest entity that is fully consolidated by Hess Corporation, had liabilities totaling $3,078 million (December 31, 2021: $2,694 million) that are on a nonrecourse basis to Hess Corporation, while Hess Midstream assets available to settle the obligations of Hess Midstream included cash and cash equivalents totaling $2 million (December 31, 2021: $2 million), property, plant and equipment with a carrying value of $3,145 million (December 31, 2021: $3,125 million) and an equity-method investment in the Little Missouri 4 (LM4) gas processing plant of $97 million (December 31, 2021: $102 million).
LM4 is a 200 million standard cubic feet per day gas processing plant located south of the Missouri River in McKenzie County, North Dakota, that was constructed as part of a 50/50 joint venture between Hess Midstream and Targa Resources Corp. Hess Midstream has a natural gas processing agreement with LM4 under which it pays a processing fee and reimburses LM4 for its proportionate share of electricity costs. The processing fees included in Operating costs and expenses in the Statement of Consolidated Income for the three and six months ended June 30, 2022 were $4 million and $9 million, respectively, compared with $7 million and $14 million for the three and six months ended June 30, 2021, respectively.
In April 2022, Hess Midstream LP completed an underwritten public equity offering of approximately 10.2 million Hess Midstream LP Class A shares held by a subsidiary of Hess Corporation and an affiliate of Global Infrastructure Partners (GIP). We received net proceeds of $146 million from the public offering. The transaction resulted in an increase in Capital in excess of par and Noncontrolling interests of $130 million and $88 million, respectively. The increase to Noncontrolling interests of $88 million is comprised of $16 million resulting from the change in ownership interest and $72 million from an increase to deferred tax assets resulting from a change in the temporary difference between the carrying amount and tax basis of Hess Midstream LP's investment in Hess Midstream Operations LP (HESM Opco).
Concurrent with the April 2022 public offering, HESM Opco, a consolidated subsidiary of Hess Midstream LP, repurchased approximately 13.6 million HESM Opco Class B units held by a subsidiary of Hess Corporation and an affiliate of GIP for $400 million. HESM Opco issued $400 million in aggregate principal amount of 5.500% fixed-rate senior unsecured notes due 2030 in a private offering to repay borrowings under its revolving credit facility used to finance the repurchase. The transaction resulted in an increase in Capital in excess of par and a decrease in Noncontrolling interests of $32 million, and an increase in deferred tax assets and Noncontrolling interests of $17 million resulting from a change in the temporary difference between the carrying amount and tax basis of Hess Midstream LP's investment in HESM Opco. The $200 million paid to GIP reduced Noncontrolling Interests. We owned an approximate 41% interest in Hess Midstream LP, on a consolidated basis, at June 30, 2022.
In March 2021, Hess Midstream LP completed an underwritten public equity offering of 6.9 million Hess Midstream LP Class A shares held by a subsidiary of Hess Corporation and an affiliate of GIP. We received net proceeds of $70 million from the public offering. The transaction resulted in an increase in Capital in excess of par and Noncontrolling interests of $56 million and $41 million, respectively. The increase to Noncontrolling interests of $41 million is comprised of $14 million resulting from the change in ownership interest and $27 million from an increase to deferred tax assets resulting from a change in the temporary difference between the carrying amount and tax basis of Hess Midstream LP's investment in HESM Opco.
5.  Accrued Liabilities
Accrued Liabilities consisted of the following:
June 30,
2022
December 31,
2021
(In millions)
Accrued operating and marketing expenditures$508 $462 
Accrued capital expenditures515 479 
Accrued payments to royalty and working interest owners263 253 
Current portion of asset retirement obligations232 185 
Accrued interest on debt143 138 
Accrued compensation and benefits62 124 
Other accruals18 69 
Total Accrued Liabilities$1,741 $1,710 
6.  Debt
In April 2022, HESM Opco issued $400 million in aggregate principal amount of 5.500% fixed-rate senior unsecured notes due 2030 in a private offering to repay borrowings under its revolving credit facility used to finance the repurchase of approximately
8

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
13.6 million HESM Opco Class B units held by a subsidiary of Hess Corporation and an affiliate of GIP. The covenants of the 5.500% fixed-rate senior unsecured notes are substantially similar to the terms of the other existing HESM Opco fixed-rate senior unsecured notes.
In February 2022, we repaid the remaining $500 million outstanding under our $1.0 billion term loan previously scheduled to mature in March 2023.
7.  Revenue
Revenue from contracts with customers on a disaggregated basis was as follows (in millions):
 Exploration and ProductionMidstreamEliminationsTotal
 United StatesGuyanaMalaysia and JDAOther (a)E&P Total   
Three Months Ended June 30, 2022        
Sales of our net production volumes:        
Crude oil revenue$895 $681 $37 $170 $1,783 $ $— $1,783 
Natural gas liquids revenue173    173  — 173 
Natural gas revenue126  215 5 346  — 346 
Sales of purchased oil and gas761 18  36 815  — 815 
Intercompany revenue     314 (314)— 
Total revenues from contracts with customers1,955 699 252 211 3,117 314 (314)3,117 
Other operating revenues (b)(95)(52) (15)(162)  (162)
Total sales and other operating revenues$1,860 $647 $252 $196 $2,955 $314 $(314)$2,955 
Three Months Ended June 30, 2021        
Sales of our net production volumes:        
Crude oil revenue$661 $134 $27 $135 $957 $ $— $957 
Natural gas liquids revenue120    120  — 120 
Natural gas revenue61  178 1 240  — 240 
Sales of purchased oil and gas299 4  26 329  — 329 
Intercompany revenue