Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | HES |
Entity Registrant Name | HESS CORP |
Entity Central Index Key | 4,447 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 317,754,024 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 2,526 | $ 2,732 |
Accounts receivable: | ||
Trade | 933 | 940 |
Other | 110 | 86 |
Inventories | 372 | 323 |
Other current assets | 142 | 195 |
Total current assets | 4,083 | 4,276 |
Property, plant and equipment: | ||
Total — at cost | 47,855 | 46,907 |
Less: Reserves for depreciation, depletion, amortization and lease impairment | 27,576 | 23,312 |
Property, plant and equipment — net | 20,279 | 23,595 |
Goodwill | 360 | 375 |
Deferred income taxes | 1,480 | 59 |
Other assets | 398 | 316 |
Total Assets | 26,600 | 28,621 |
Current Liabilities: | ||
Accounts payable | 421 | 433 |
Accrued liabilities | 1,570 | 1,609 |
Taxes payable | 101 | 97 |
Current maturities of long-term debt | 122 | 112 |
Total current liabilities | 2,214 | 2,251 |
Long-term debt | 6,592 | 6,694 |
Deferred income taxes | 584 | 1,144 |
Asset retirement obligations | 1,846 | 1,912 |
Other liabilities and deferred credits | 936 | 1,029 |
Total Liabilities | 12,172 | 13,030 |
Hess Corporation stockholders’ equity: | ||
Preferred stock Series A 8% cumulative mandatory convertible, par value $1.00; Authorized —20,000,000 shares; $1,000 per share liquidation preference; Issued — 575,000 shares (2016: 575,000) | 1 | 1 |
Common stock, par value $1.00; Authorized — 600,000,000 shares Issued — 317,754,024 shares (2016: 316,523,200) | 318 | 317 |
Capital in excess of par value | 5,847 | 5,773 |
Retained earnings | 8,438 | 10,147 |
Accumulated other comprehensive income (loss) | (1,472) | (1,704) |
Total Hess Corporation stockholders’ equity | 13,132 | 14,534 |
Noncontrolling interests | 1,296 | 1,057 |
Total equity | 14,428 | 15,591 |
Total Liabilities and Equity | $ 26,600 | $ 28,621 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 575,000 | 575,000 |
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 |
Cumulative mandatory convertible series | 8.00% | 8.00% |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 317,754,024 | 316,523,200 |
Statement of Consolidated Incom
Statement of Consolidated Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues and Non-Operating Income | ||||
Sales and other operating revenues | $ 1,370 | $ 1,177 | $ 3,863 | $ 3,374 |
Gains on asset sales, net | 274 | 0 | 276 | 27 |
Other, net | 22 | 19 | 30 | 57 |
Total revenues and non-operating income | 1,666 | 1,196 | 4,169 | 3,458 |
Costs and Expenses | ||||
Cost of products sold (excluding items shown separately below) | 360 | 222 | 851 | 688 |
Operating costs and expenses | 352 | 421 | 1,086 | 1,312 |
Production and severance taxes | 27 | 27 | 88 | 74 |
Exploration expenses, including dry holes and lease impairment | 40 | 78 | 151 | 409 |
General and administrative expenses | 113 | 106 | 309 | 310 |
Interest expense | 79 | 84 | 245 | 254 |
Loss on debt extinguishment | 0 | (80) | 0 | (80) |
Depreciation, depletion and amortization | 759 | 811 | 2,237 | 2,476 |
Impairment | 2,503 | 0 | 2,503 | 0 |
Total costs and expenses | 4,233 | 1,829 | 7,470 | 5,603 |
Income (Loss) Before Income Taxes | (2,567) | (633) | (3,301) | (2,145) |
Provision (benefit) for income taxes | (1,974) | (316) | (1,995) | (967) |
Net Income (Loss) | (593) | (317) | (1,306) | (1,178) |
Less: Net income (loss) attributable to noncontrolling interests | 31 | 22 | 91 | 62 |
Net Income (Loss) Attributable to Hess Corporation | (624) | (339) | (1,397) | (1,240) |
Less: Preferred stock dividends | 11 | 12 | 34 | 30 |
Net Income (Loss) Attributable to Hess Corporation Common Stockholders | $ (635) | $ (351) | $ (1,431) | $ (1,270) |
Net Income (Loss) Attributable to Hess Corporation Per Common Share: | ||||
Basic | $ (2.02) | $ (1.12) | $ (4.55) | $ (4.11) |
Diluted | $ (2.02) | $ (1.12) | $ (4.55) | $ (4.11) |
Weighted Average Number of Common Shares Outstanding (Diluted) | 314.5 | 313.2 | 314.3 | 308.7 |
Common Stock Dividends Per Share | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (593) | $ (317) | $ (1,306) | $ (1,178) |
Derivatives designated as cash flow hedges | ||||
Effect of hedge (gains) losses reclassified to income | (18) | 0 | (38) | 0 |
Income taxes on effect of hedge (gains) losses reclassified to income | 0 | 0 | 0 | 0 |
Net effect of hedge (gains) losses reclassified to income | (18) | 0 | (38) | 0 |
Change in fair value of cash flow hedges | (76) | 0 | 0 | 0 |
Income taxes on change in fair value of cash flow hedges | 0 | 0 | 0 | 0 |
Net change in fair value of cash flow hedges | (76) | 0 | 0 | 0 |
Change in derivatives designated as cash flow hedges, after taxes | (94) | 0 | (38) | 0 |
Pension and other postretirement plans | ||||
(Increase) reduction in unrecognized actuarial losses | 0 | 0 | 5 | 4 |
Income taxes on actuarial changes in plan liabilities | 2 | 0 | 0 | (2) |
(Increase) reduction in unrecognized actuarial losses, net | 2 | 0 | 5 | 2 |
Amortization of net actuarial losses | 17 | 15 | 57 | 47 |
Income taxes on amortization of net actuarial losses | 0 | (5) | 0 | (16) |
Net effect of amortization of net actuarial losses | 17 | 10 | 57 | 31 |
Change in pension and other postretirement plans, after taxes | 19 | 10 | 62 | 33 |
Foreign currency translation adjustment | ||||
Foreign currency translation adjustment | 121 | 117 | 208 | 259 |
Change in foreign currency translation adjustment | 121 | 117 | 208 | 259 |
Other Comprehensive Income (Loss) | 46 | 127 | 232 | 292 |
Comprehensive Income (Loss) | (547) | (190) | (1,074) | (886) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 31 | 22 | 91 | 62 |
Comprehensive Income (Loss) Attributable to Hess Corporation | $ (578) | $ (212) | $ (1,165) | $ (948) |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ (1,306) | $ (1,178) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Gains on asset sales, net | (276) | (27) |
Depreciation, depletion and amortization | 2,237 | 2,476 |
Impairment | 2,503 | 0 |
Exploratory dry hole costs | 0 | 234 |
Exploration lease and other impairment | 22 | 33 |
Stock compensation expense | 65 | 69 |
Provision (benefit) for deferred income taxes and other tax accruals | (2,055) | (973) |
Loss on debt extinguishment | 0 | 80 |
Changes in operating assets and liabilities | ||
(Increase) decrease in accounts receivable | (45) | 278 |
(Increase) decrease in inventories | (48) | 1 |
Increase (decrease) in accounts payable and accrued liabilities | (189) | (266) |
Increase (decrease) in taxes payable | 3 | (28) |
Changes in other operating assets and liabilities | (309) | (230) |
Net cash provided by (used in) operating activities | 602 | 469 |
Cash Flows From Investing Activities | ||
Additions to property, plant and equipment - E&P | (1,275) | (1,575) |
Additions to property, plant and equipment - Midstream | (108) | (189) |
Proceeds from asset sales | 783 | 80 |
Other, net | (1) | 18 |
Net cash provided by (used in) investing activities | (601) | (1,666) |
Cash Flows From Financing Activities | ||
Net borrowings (repayments) of debt with maturities of 90 days or less | 15 | (14) |
Debt with maturities of greater than 90 days – Borrowings | 0 | 1,496 |
Debt with maturities of greater than 90 days – Repayments | (107) | (806) |
Proceeds from issuance of Hess Midstream Partnership LP units | 366 | 0 |
Proceeds from issuance of preferred stock | 0 | 557 |
Proceeds from issuance of common stock | 0 | 1,087 |
Cash dividends paid | (273) | (260) |
Noncontrolling interests, net | (208) | 0 |
Other, net | 0 | (50) |
Net cash provided by (used in) financing activities | (207) | 2,010 |
Net Increase (Decrease) in Cash and Cash Equivalents | (206) | 813 |
Cash and Cash Equivalents at Beginning of Year | 2,732 | 2,716 |
Cash and Cash Equivalents at End of Period | $ 2,526 | $ 3,529 |
Statement of Consolidated Equit
Statement of Consolidated Equity - USD ($) $ in Millions | Total | Mandatory Convertible Preferred Stock | Common Stock | Capital in Excess of Par | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Hess Stockholders' Equity | Noncontrolling Interests |
Balance at Dec. 31, 2015 | $ 20,401 | $ 0 | $ 286 | $ 4,127 | $ 16,637 | $ (1,664) | $ 19,386 | $ 1,015 |
Net income (loss) | (1,178) | 0 | 0 | 0 | (1,240) | 0 | (1,240) | 62 |
Other comprehensive income (loss) | 292 | 0 | 0 | 0 | 0 | 292 | 292 | 0 |
Stock issuance | 1,607 | 1 | 29 | 1,577 | 0 | 0 | 1,607 | 0 |
Share-based compensation, including income taxes | 61 | 0 | 2 | 59 | 0 | 0 | 61 | 0 |
Dividends on preferred stock | (30) | 0 | 0 | 0 | (30) | 0 | (30) | 0 |
Dividends on common stock | (238) | 0 | 0 | 0 | (238) | 0 | (238) | 0 |
Balance at Sep. 30, 2016 | 20,915 | 1 | 317 | 5,763 | 15,129 | (1,372) | 19,838 | 1,077 |
Balance at Dec. 31, 2016 | 15,591 | 1 | 317 | 5,773 | 10,147 | (1,704) | 14,534 | 1,057 |
Cumulative effect of adoption of new accounting standards at Dec. 31, 2016 | (37) | 0 | 0 | 2 | (39) | 0 | (37) | 0 |
Net income (loss) | (1,306) | 0 | 0 | 0 | (1,397) | 0 | (1,397) | 91 |
Other comprehensive income (loss) | 232 | 0 | 0 | 0 | 0 | 232 | 232 | 0 |
Share-based compensation, including income taxes | 73 | 0 | 1 | 72 | 0 | 0 | 73 | 0 |
Dividends on preferred stock | (34) | 0 | 0 | 0 | (34) | 0 | (34) | 0 |
Dividends on common stock | (239) | 0 | 0 | 0 | (239) | 0 | (239) | 0 |
Hess Midstream Partners LP units issuance | 356 | 0 | 0 | 0 | 0 | 0 | 0 | 356 |
Noncontrolling interests, net | (208) | 0 | 0 | 0 | 0 | 0 | 0 | (208) |
Balance at Sep. 30, 2017 | $ 14,428 | $ 1 | $ 318 | $ 5,847 | $ 8,438 | $ (1,472) | $ 13,132 | $ 1,296 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our consolidated financial position at September 30, 2017 and December 31, 2016, the consolidated results of operations for the three months and nine months ended September 30, 2017 and 2016, and consolidated cash flows for the nine months ended September 30, 2017 and 2016. 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, 2016. On January 1, 2017, the Corporation’s interests in a Permian Basin gas plant in West Texas and related CO 2 - Note 12 Segment Information 2 Note 2, Disposition In the first quarter of 2017, we adopted Accounting Standards Update (ASU) 2016-16, Income Taxes – Intra-Entity Transfer of Assets Other than Inventory Retained earnings Deferred income taxes In the first quarter of 2017, we adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. Retained earnings Capital in excess of par value Retained earnings New Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers , as a new Accounting Standards Codification (ASC) Topic, ASC 606. This ASU is effective for us beginning in the first quarter of 2018. As of September 30, 2017, our analysis of contracts with customers against the requirements of the standard is largely complete. Based on our assessment to date, we have not identified any changes to the timing of revenue recognition based on the requirements of ASC 606 that would have a material impact on our consolidated financial statements. We plan to adopt ASC 606 using the modified retrospective method that requires application of the new standard prospectively from the date of adoption with a cumulative effect adjustment, if any, recorded to Retained earnings as of January 1, 2018. In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses In January 2017, the FASB issued ASU 2017-01, Business Combinations – Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities |
Disposition
Disposition | 9 Months Ended |
Sep. 30, 2017 | |
Disposition Of Businesses [Abstract] | |
Disposition | 2. Disposition In the third quarter of 2017, we completed the sale of our enhanced oil recovery assets in the Permian Basin for proceeds of $597 million, after normal closing adjustments, and recognized a pre-tax gain of $273 million ($280 million attributable to Hess Corporation after income taxes and noncontrolling interest). This sale transaction included both upstream and midstream assets resulting in an after-tax gain of $314 million allocated to the E&P segment, and an after-tax loss of $34 million allocated to the Midstream segment. |
Impairment
Impairment | 9 Months Ended |
Sep. 30, 2017 | |
Asset Impairment Charges [Abstract] | |
Impairment | 3. Impairment In the third quarter of 2017, we recorded a pre-tax impairment charge of $2,503 million ($550 million after income taxes) to impair the carrying value of our interests in Norway based on the anticipated sale of this asset using Level 3 inputs. Upon recognition of the impairment and corresponding tax benefit of $1,953 million, the deferred tax position recognized for Norway on the Consolidated Balance Sheet Note 14. Subsequent Events |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consisted of the following: September 30, December 31, 2017 2016 (In millions) Crude oil and natural gas liquids $ 110 $ 77 Materials and supplies 262 246 Total Inventories $ 372 $ 323 |
Capitalized Exploratory Well Co
Capitalized Exploratory Well Costs | 9 Months Ended |
Sep. 30, 2017 | |
Capitalized Exploratory Well Costs [Abstract] | |
Capitalized Exploratory Well Costs | 5. 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, 2017 (in millions): Balance at January 1, 2017 $ 597 Additions to capitalized exploratory well costs pending the determination of proved reserves 83 Reclassifications to wells, facilities and equipment based on the determination of proved reserves (177 ) Balance at September 30, 2017 $ 503 Reclassifications to wells, facilities and equipment based on the determination of proved reserves resulted primarily from sanction of the first phase of development for the Liza Field, offshore Guyana. Ghana: Approximately 65% of the capitalized well costs in excess of one year relates to our Deepwater Tano/Cape Three Points license (Hess 50%), offshore Ghana. The government of Côte d’Ivoire had challenged the maritime border between it and the country of Ghana, which includes a portion of our Deepwater Tano/Cape Three Points license. The International Tribunal for Law of the Sea rendered a final ruling on the maritime border dispute in September 2017 in favor of Ghana. Under terms of our license, we now have ten months to submit a plan of development to the Ghanaian government. We have declared commerciality for four discoveries, including the Pecan Field in March 2016, which would be the primary development hub for the block. Front-end engineering studies and other development planning are progressing. Gulf of Mexico: Approximately 25% of the capitalized well costs in excess of one year relates to an appraisal well in the northern portion of the Shenzi Field (Hess 28%) in the Gulf of Mexico, where hydrocarbons were encountered in the fourth quarter of 2015. The operator is evaluating plans for developing this area of the field. JDA: Approximately 10% of the capitalized well costs in excess of one year relates to the JDA in the Gulf of Thailand (Hess 50%) where hydrocarbons were encountered in three successful exploration wells drilled in the western part of Block A-18. We, along with our partner, are currently evaluating results and formulating future drilling plans in the area. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 6. Goodwill The changes in the carrying amount of goodwill were as follows: Exploration and Production Midstream Total (In millions) Balance at January 1, 2017 $ — $ 375 $ 375 Disposition — (15 ) (15 ) Balance at September 30, 2017 $ — $ 360 $ 360 The change in the carrying amount of goodwill relates to the sale of our enhanced oil recovery assets in the Permian Basin. See Note 2, Disposition. |
Hess Infrastructure Partners LP
Hess Infrastructure Partners LP | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Hess Infrastructure Partners LP | 7. Hess Infrastructure Partners LP We consolidate the activities of Hess Infrastructure Partners LP (HIP), a 50/50 joint venture between Hess Corporation and Global Infrastructure Partners (GIP), which qualifies as a variable interest entity (VIE) under U.S. GAAP. We have concluded that we are the primary beneficiary of the VIE, as defined in the accounting standards, since we have the power, through our 50% ownership, to direct those activities that most significantly impact the economic performance of HIP. HIP, which owns Bakken midstream assets, is a component of our Midstream segment. At September 30, 2017, HIP liabilities totaling $756 million (December 31, 2016: $841 million) are on a nonrecourse basis to Hess Corporation, while HIP assets available to settle the obligations of HIP include cash and cash equivalents totaling $50 million (December 31, 2016: $2 million) and property, plant and equipment with a carrying value of $2,516 million (December 31, 2016: $2,528 million). |
Hess Midstream Partners LP - In
Hess Midstream Partners LP - Initial Public Offering | 9 Months Ended |
Sep. 30, 2017 | |
Partners Capital Notes [Abstract] | |
Hess Midstream Partners LP - Initial Public Offering | 8. Hess Midstream Partners LP – Initial Public Offering In April 2017, Hess Midstream Partners LP (the “Partnership”), sold 16,997,000 common units representing limited partner interests at a price of $23 per unit in an initial public offering (IPO) for net proceeds of $365.5 million, of which $350 million was distributed 50/50 to Hess Corporation and GIP. The Partnership owns an approximate 20% controlling interest in the operating companies that comprise our midstream joint venture, while HIP, the 50/50 joint venture between Hess Corporation and GIP, owns the remaining 80%. Hess Corporation and GIP each own a direct 33.75% limited partner interest in the Partnership and a 50% indirect ownership interest through HIP in the Partnership’s general partner, which has a 2% economic interest in the Partnership plus incentive distribution rights. The public unit holders own a 30.5% limited partner interest in the Partnership. The Partnership has a $300 million 4-year senior secured syndicated revolving credit facility, which became available for utilization at completion of the IPO. The credit facility can be used for borrowings and letters of credit to fund operating activities and capital expenditures of the Partnership. Outstanding borrowings under this credit facility are non-recourse to Hess Corporation. At September 30, 2017, this facility was undrawn. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 9. Retirement Plans Components of net periodic pension cost consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Service cost $ 13 $ 15 $ 41 $ 47 Interest cost 26 27 78 83 Expected return on plan assets (42 ) (41 ) (125 ) (125 ) Amortization of unrecognized net actuarial losses 13 15 46 47 Settlement loss 4 — 11 — Pension expense $ 14 $ 16 $ 51 $ 52 In 2017, we expect to contribute $52 million to our funded pension plans. Through September 30, 2017, we have contributed $40 million to these plans. |
Weighted Average Common Shares
Weighted Average Common Shares | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | 10. Weighted Average Common Shares The Net income (loss) and weighted average number of common shares used in the basic and diluted earnings per share computations were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Net income (loss) attributable to Hess Corporation Common Stockholders: Net income (loss) $ (593 ) $ (317 ) $ (1,306 ) $ (1,178 ) Less: Net income (loss) attributable to noncontrolling interests 31 22 91 62 Less: Preferred stock dividends 11 12 34 30 Net income (loss) attributable to Hess Corporation Common Stockholders $ (635 ) $ (351 ) $ (1,431 ) $ (1,270 ) Weighted average number of common shares outstanding: Basic 314.5 313.2 314.3 308.7 Effect of dilutive securities Restricted common stock — — — — Stock options — — — — Performance share units — — — — Mandatory Convertible Preferred stock — — — — Diluted 314.5 313.2 314.3 308.7 The following table summarizes the number of antidilutive shares excluded from the computation of diluted shares: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Restricted common stock 3,313,441 3,476,171 3,296,718 3,345,052 Stock options 6,509,214 6,945,925 6,452,788 6,886,816 Performance share units 709,445 965,634 514,910 960,998 Common shares from conversion of preferred stocks 13,400,515 12,547,650 12,894,078 10,769,864 During the nine months ended September 30, 2017, we granted 1,214,460 shares of restricted stock (2016: 1,656,598), 438,980 performance share units (2016: 447,536) and 662,819 stock options (2016: 824,225). |
Guarantees and Contingencies
Guarantees and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Guarantees and Contingencies | 11. Guarantees and Contingencies We are subject to loss contingencies with respect to various claims, lawsuits and other proceedings. A liability is recognized in our consolidated financial statements when it is probable that a loss has been incurred and the amount can be reasonably estimated. If the risk of loss is probable, but the amount cannot be reasonably estimated or the risk of loss is only reasonably possible, a liability is not accrued; however, we disclose the nature of those contingencies. We cannot predict with certainty if, how or when existing claims, lawsuits and proceedings will be resolved or what the eventual relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues may need to be resolved, including through lengthy discovery, conciliation and/or arbitration proceedings, or litigation before a loss or range of loss can be reasonably estimated. Subject to the foregoing, in management’s opinion, based upon currently known facts and circumstances, the outcome of such lawsuits, claims and proceedings, including the matters described below, is not expected to have a material adverse effect on our financial condition. However, we could incur judgments, enter into settlements, or revise our opinion regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations in the period in which the amounts are accrued and our cash flows in the period in which the amounts are paid. We, along with many companies that have been or continue to be engaged in refining and marketing of gasoline, have been a party to lawsuits and claims related to the use of methyl tertiary butyl ether (MTBE) in gasoline. A series of similar lawsuits, many involving water utilities or governmental entities, were filed in jurisdictions across the U.S. against producers of MTBE and petroleum refiners who produced gasoline containing MTBE, including us. The principal allegation in all cases was that gasoline containing MTBE is a defective product and that these parties are strictly liable in proportion to their share of the gasoline market for damage to groundwater resources and are required to take remedial action to ameliorate the alleged effects on the environment of releases of MTBE. The majority of the cases asserted against us have been settled. In June 2014, the Commonwealth of Pennsylvania and the State of Vermont each filed independent lawsuits alleging that we and all major oil companies with operations in each respective state, have damaged the groundwater in those states by introducing thereto gasoline with MTBE. The Pennsylvania suit has been removed to Federal court and has been forwarded to the existing MTBE multidistrict litigation pending in the Southern District of New York. The suit filed in Vermont is proceeding there in a state court. In September 2016, the State of Rhode Island also filed a lawsuit alleging that we and other major oil companies damaged the groundwater in Rhode Island by introducing gasoline with MTBE. The suit filed in Rhode Island is proceeding in federal court. In September 2003, we received a directive from the New Jersey Department of Environmental Protection (NJDEP) to remediate contamination in the sediments of the Lower Passaic River. The NJDEP is also seeking natural resource damages. The directive, insofar as it affects us, relates to alleged releases from a petroleum bulk storage terminal in Newark, New Jersey we previously owned. We and over 70 companies entered into an Administrative Order on Consent with the Environmental Protection Agency (EPA) to study the same contamination; this work remains ongoing. We and other parties settled a cost recovery claim by the State of New Jersey and also agreed with EPA to fund remediation of a portion of the site. On March 4, 2016, the EPA issued a Record of Decision (ROD) in respect of the lower eight miles of the Lower Passaic River, selecting a remedy that includes bank-to-bank dredging at an estimated cost of $1.38 billion. The ROD does not address the upper nine miles of the Lower Passaic River, which may require additional remedial action. In addition, the federal trustees for natural resources have begun a separate assessment of damages to natural resources in the Passaic River. Given that the EPA has not selected a remedy for the entirety of the Lower Passaic River, total remedial costs cannot be reliably estimated at this time. Based on currently known facts and circumstances, we do not believe that this matter will result in a significant liability to us because there are numerous other parties who we expect will share in the cost of remediation and damages and our former terminal did not store or use contaminants which are of the greatest concern in the river sediments and could not have contributed contamination along most of the river’s length. In March 2014, we received an Administrative Order from EPA requiring us and 26 other parties to undertake the Remedial Design for the remedy selected by the EPA for the Gowanus Canal Superfund Site in Brooklyn, New York. The remedy includes dredging of surface sediments and the placement of a cap over the deeper sediments throughout the Canal and in-situ stabilization of certain contaminated sediments that will remain in place below the cap. EPA has estimated that this remedy will cost $506 million; however, the ultimate costs that will be incurred in connection with the design and implementation of the remedy remain uncertain. Our alleged liability derives from our former ownership and operation of a fuel oil terminal and connected ship-building and repair facility adjacent to the Canal. We indicated to EPA that we would comply with the Administrative Order and are currently contributing funding for the Remedial Design based on an interim allocation of costs among the parties. At the same time, we are participating in an allocation process whereby a neutral expert selected by the parties will determine the final shares of the Remedial Design costs to be paid by each of the participants. The parties have not yet addressed the allocation of costs associated with implementing the remedy that is currently being designed. On January 18, 2017, we entered into a Consent Decree with the North Dakota Department of Health resolving alleged non-compliance with North Dakota’s air pollution laws and provisions of the federal Clean Air Act. Pursuant to the Consent Decree, we were required to implement corrective actions, including implementation of a leak detection and repair program, at most of our existing facilities in North Dakota. We were assessed a base penalty of $922,000 and made an initial penalty payment of $55,000 during the first quarter of 2017. Based on corrective actions completed in accordance with the Consent Decree, the remainder of the penalty was reduced to $745,000 and paid in the third quarter of 2017. From time to time, we are involved in other judicial and administrative proceedings, including proceedings relating to other environmental matters. We cannot predict with certainty if, how or when such proceedings will be resolved or what the eventual relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters before a loss or range of loss can be reasonably estimated for any proceeding. Subject to the foregoing |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 12. Segment Information We currently have two operating segments, Exploration and Production and Midstream. All unallocated costs are reflected under Corporate, Interest and Other. The following table presents operating segment financial data: Exploration and Production Midstream Corporate, Interest and Other Eliminations Total (In Millions) For the Three Months Ended September 30, 2017 Sales and Other Operating Revenues - Third parties $ 1,369 $ 1 $ — $ — $ 1,370 Intersegment Revenues — 153 — (153 ) — Sales and Other Operating Revenues $ 1,369 $ 154 $ — $ (153 ) $ 1,370 Net Income (Loss) attributable to Hess Corporation (a) $ (474 ) $ (12 ) $ (138 ) $ — $ (624 ) Depreciation, Depletion and Amortization 709 29 21 — 759 Impairment 2,503 — — — 2,503 Provision (Benefit) for Income Taxes (b) (1,969 ) (3 ) (2 ) — (1,974 ) Capital Expenditures 526 27 — — 553 For the Three Months Ended September 30, 2016 Sales and Other Operating Revenues - Third parties $ 1,175 $ 2 $ — $ — $ 1,177 Intersegment Revenues — 134 — (134 ) — Sales and Other Operating Revenues $ 1,175 $ 136 $ — $ (134 ) $ 1,177 Net Income (Loss) attributable to Hess Corporation $ (234 ) $ 13 $ (118 ) $ — $ (339 ) Depreciation, Depletion and Amortization 779 30 2 — 811 Provision (Benefit) for Income Taxes (252 ) 9 (73 ) — (316 ) Capital Expenditures 381 90 — — 471 For the Nine Months Ended September 30, 2017 Sales and Other Operating Revenues - Third parties $ 3,857 $ 6 $ — $ — $ 3,863 Intersegment Revenues — 454 — (454 ) — Sales and Other Operating Revenues $ 3,857 $ 460 $ — $ (454 ) $ 3,863 Net Income (Loss) attributable to Hess Corporation (a) $ (1,061 ) $ 22 $ (358 ) $ — $ (1,397 ) Depreciation, Depletion and Amortization 2,120 93 24 — 2,237 Impairment 2,503 — — — 2,503 Provision (Benefit) for Income Taxes (b) (2,003 ) 18 (10 ) — (1,995 ) Capital Expenditures 1,351 75 — — 1,426 For the Nine Months Ended September 30, 2016 Sales and Other Operating Revenues - Third parties $ 3,368 $ 6 $ — $ — $ 3,374 Intersegment Revenues — 398 — (398 ) — Sales and Other Operating Revenues $ 3,368 $ 404 $ — $ (398 ) $ 3,374 Net Income (Loss) attributable to Hess Corporation $ (1,015 ) $ 40 $ (265 ) $ — $ (1,240 ) Depreciation, Depletion and Amortization 2,381 88 7 — 2,476 Provision (Benefit) for Income Taxes (840 ) 25 (152 ) — (967 ) Capital Expenditures 1,318 194 — — 1,512 (a) In the third quarter of 2017, we disposed of our enhanced oil recovery assets in the Permian Basin. This sale transaction included both upstream and midstream assets resulting in an after-tax gain of $314 million allocated to the E&P segment, and an after-tax loss of $34 million allocated to the Midstream segment. See Note 2, Disposition. (b) The provision for income taxes in the Midstream segment is presented before consolidating its operations with other U.S. activities of the Company and prior to evaluating realizability of net U.S. deferred taxes. An offsetting impact is presented in the E&P segment. Identifiable assets by operating segment were as follows: September 30, December 31, 2017 2016 (In millions) Exploration and Production $ 21,389 $ 22,856 Midstream 3,012 3,165 Corporate, Interest and Other 2,199 2,600 Total $ 26,600 $ 28,621 |
Financial Risk Management Activ
Financial Risk Management Activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Risk Management Activities | 13. Financial Risk Management Activities In the normal course of our business, we are exposed to commodity risks related to changes in the prices of crude oil and natural gas as well as changes in interest rates and foreign currency values. Financial risk management activities include transactions designed to reduce risk in the selling prices of crude oil or natural gas we produce or by reducing our exposure to foreign currency or interest rate movements. Generally, futures, swaps or option strategies may be used to fix the forward selling price of a portion of our crude oil or natural gas production. Forward contracts may also be used to purchase certain currencies in which we conduct the business with the intent of reducing exposure to foreign currency fluctuations. At September 30, 2017, these forward contracts relate to the British Pound. Interest rate swaps may be used to convert interest payments on certain long-term debt from fixed to floating rates and, in the case of certain long-term debt relating to our Midstream operating segment, from floating to fixed rates. Gross notional amounts of both long and short positions are presented in the table below. These amounts include long and short positions that offset in closed positions and have not reached contractual maturity. Gross notional amounts do not quantify risk or represent assets or liabilities of the Corporation, but are used in the calculation of cash settlements under the contracts. The gross notional amounts of financial risk management derivative contracts outstanding were as follows: September 30, 2017 December 31, 2016 (In millions) Commodity - crude oil (millions of barrels) 54 — Foreign exchange $ 35 $ 785 Interest rate swaps $ 909 $ 350 At September 30, 2017, we have outstanding Brent and West Texas Intermediate (WTI) crude oil collar positions by year of settlement as follows: 2017 2018 Brent WTI Brent WTI Outstanding average barrels of oil per day 20,000 110,000 — 115,000 Average ceiling price $ 75 $ 68 — $ 65 Average floor price $ 55 $ 50 — $ 50 These crude oil price collars, which have been designated as cash flow hedges, reduce the price exposure to our crude oil production that is hedged. The table below reflects the gross and net fair values of the risk management derivative instruments, all of which are based on Level 2 inputs: Assets Liabilities (In millions) September 30, 2017 Derivative Contracts Designated as Hedging Instruments Commodity - Accounts receivable $ 105 $ — Commodity - Other assets (noncurrent) 41 — Interest rate - Other assets (noncurrent) and Accounts payable 2 (3 ) Total derivative contracts designated as hedging instruments 148 (3 ) Derivative Contracts Not Designated as Hedging Instruments Foreign exchange — — Total derivative contracts not designated as hedging instruments — — Gross fair value of derivative contracts 148 (3 ) Net Fair Value of Derivative Contracts $ 148 $ (3 ) December 31, 2016 Derivative Contracts Designated as Hedging Instruments Interest rate $ — $ — Total derivative contracts designated as hedging instruments — — Derivative Contracts Not Designated as Hedging Instruments Foreign exchange - Accounts receivable and Accrued liabilities 9 (1 ) Total derivative contracts not designated as hedging instruments 9 (1 ) Gross fair value of derivative contracts 9 (1 ) Master netting arrangements (1 ) 1 Net Fair Value of Derivative Contracts $ 8 $ — Derivative contracts designated as hedging instruments: Crude oil collars: The impact from realized and unrealized movements in crude oil price collars on Sales and other operating revenues was an increase of $6 million and a reduction of $5 million in the three and nine months ended September 30, 2017, respectively. Realized and unrealized movements were inclusive of a $2 million charge for hedge ineffectiveness in the third quarter of 2017. Reclassifications to the Statement of Consolidated Income from Other comprehensive income in the three and nine months ended September 30, 2017 amounted to gains of $18 million and $38 million, respectively. At September 30, 2017, after-tax deferred losses in Accumulated other comprehensive income (loss) related to crude oil collars were $39 million, of which $33 million will be reclassified into earnings during the next 12 months as the hedged crude oil sales are recognized in earnings. There were no crude oil hedge contracts in 2016. Interest rate swaps designated as fair value hedges: At September 30, 2017 and December 31, 2016, Hess Corporation had interest rate swaps with gross notional amounts totaling $450 million and $350 million, respectively, which were designated as fair value hedges and relate to debt where we have converted interest payments on certain long-term debt from fixed to floating rates. For the three and nine months ended September 30, 2017, the change in fair value of interest rate swaps was an increase in the liability of less than $1 million and $3 million respectively. There was an increase of $9 million and a decrease of $9 million in the liability in the third quarter and first nine months of 2016, respectively. Changes in the fair value of the interest rate swaps and the hedged fixed‑rate debt are recorded in Interest expense in the . Interest rate swaps designated as cash flow hedges: At September 30, 2017, HIP had interest rate swaps with gross notional amounts totaling $459 million, which convert interest payments on certain long-term debt from floating to fixed rates . For the three and nine months ended September 30, 2017, the change in fair value of interest rate swaps was an increase to assets of $1 million and $2 million, respectively. At September 30, 2017, the after-tax deferred gains in Accumulated other comprehensive income (loss) related to interest rate swaps was $2 million before noncontrolling interests, which will be reclassified into earnings as the hedged interest payments are recognized in the . Of this amount, losses of less than $1 million will be reclassified into earnings during the next 12 months. There were no floating to fixed interest rate swap contracts in 2016. Derivative contracts not designated as hedging instruments: Foreign exchange: Foreign exchange gains, which are reported in Other, net in Revenues and non-operating income in the were $17 million and $26 million in the three months and nine months ended September 30, 2017, respectively, compared with $11 million and $32 million in the third quarter and first nine months of 2016, respectively. A component of foreign exchange gains is the result of foreign exchange derivative contracts that are not designated as hedges. These contracts had gains of less than $1 million and $2 million in the third quarter and first nine months of 2017, respectively, compared to a loss of $2 million and a gain of $11 million in the third quarter and first nine months of 2016, respectively. The after‑tax foreign currency translation adjustments included in the Statement of Consolidated Comprehensive Income Fair Value Measurement: We have other short-term financial instruments, primarily cash equivalents, accounts receivable and accounts payable, for which the carrying value approximated fair value at September 30, 2017. Total long-term debt with a carrying value of $6,714 million at September 30, 2017, had a fair value of $7,157 million based on Level 2 inputs. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On October 23, 2017, we announced the sale of our interests in offshore Equatorial Guinea for total consideration of $650 million before normal closing adjustments, On October 24, 2017, we announced the sale of our interests in offshore Norway for total consideration of $2 billion before normal closing adjustments, Stockholders’ Equity Consolidated Balance Sheet Stockholders’ Equity Retained Earnings Accumulated Other Comprehensive Income (Loss) On October 24, 2017, we also announced that we would commence a process to sell our interests in Denmark where we hold a 61.5% interest in the South Arne Field. This sales process is expected to be completed in 2018. The South Arne Field produced an average of 11,000 boepd during the first nine months of 2017. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers , as a new Accounting Standards Codification (ASC) Topic, ASC 606. This ASU is effective for us beginning in the first quarter of 2018. As of September 30, 2017, our analysis of contracts with customers against the requirements of the standard is largely complete. Based on our assessment to date, we have not identified any changes to the timing of revenue recognition based on the requirements of ASC 606 that would have a material impact on our consolidated financial statements. We plan to adopt ASC 606 using the modified retrospective method that requires application of the new standard prospectively from the date of adoption with a cumulative effect adjustment, if any, recorded to Retained earnings as of January 1, 2018. In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses In January 2017, the FASB issued ASU 2017-01, Business Combinations – Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: September 30, December 31, 2017 2016 (In millions) Crude oil and natural gas liquids $ 110 $ 77 Materials and supplies 262 246 Total Inventories $ 372 $ 323 |
Capitalized Exploratory Well 24
Capitalized Exploratory Well Costs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Capitalized Exploratory Well Costs [Abstract] | |
Net Changes in Capitalized Exploratory Well Costs | The following table discloses the net changes in capitalized exploratory well costs pending determination of proved reserves during the nine months ended September 30, 2017 (in millions): Balance at January 1, 2017 $ 597 Additions to capitalized exploratory well costs pending the determination of proved reserves 83 Reclassifications to wells, facilities and equipment based on the determination of proved reserves (177 ) Balance at September 30, 2017 $ 503 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows: Exploration and Production Midstream Total (In millions) Balance at January 1, 2017 $ — $ 375 $ 375 Disposition — (15 ) (15 ) Balance at September 30, 2017 $ — $ 360 $ 360 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Cost | Components of net periodic pension cost consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Service cost $ 13 $ 15 $ 41 $ 47 Interest cost 26 27 78 83 Expected return on plan assets (42 ) (41 ) (125 ) (125 ) Amortization of unrecognized net actuarial losses 13 15 46 47 Settlement loss 4 — 11 — Pension expense $ 14 $ 16 $ 51 $ 52 |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) and Weighted Average Number of Common Shares Used in the Computation of Basic and Diluted Earnings Per Share | The Net income (loss) and weighted average number of common shares used in the basic and diluted earnings per share computations were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (In millions) Net income (loss) attributable to Hess Corporation Common Stockholders: Net income (loss) $ (593 ) $ (317 ) $ (1,306 ) $ (1,178 ) Less: Net income (loss) attributable to noncontrolling interests 31 22 91 62 Less: Preferred stock dividends 11 12 34 30 Net income (loss) attributable to Hess Corporation Common Stockholders $ (635 ) $ (351 ) $ (1,431 ) $ (1,270 ) Weighted average number of common shares outstanding: Basic 314.5 313.2 314.3 308.7 Effect of dilutive securities Restricted common stock — — — — Stock options — — — — Performance share units — — — — Mandatory Convertible Preferred stock — — — — Diluted 314.5 313.2 314.3 308.7 |
Summary of Antidilutive Shares Excluded from Computation of Diluted Shares | The following table summarizes the number of antidilutive shares excluded from the computation of diluted shares: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Restricted common stock 3,313,441 3,476,171 3,296,718 3,345,052 Stock options 6,509,214 6,945,925 6,452,788 6,886,816 Performance share units 709,445 965,634 514,910 960,998 Common shares from conversion of preferred stocks 13,400,515 12,547,650 12,894,078 10,769,864 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Financial Data and Identifiable Assets by Operating Segment | Exploration and Production Midstream Corporate, Interest and Other Eliminations Total (In Millions) For the Three Months Ended September 30, 2017 Sales and Other Operating Revenues - Third parties $ 1,369 $ 1 $ — $ — $ 1,370 Intersegment Revenues — 153 — (153 ) — Sales and Other Operating Revenues $ 1,369 $ 154 $ — $ (153 ) $ 1,370 Net Income (Loss) attributable to Hess Corporation (a) $ (474 ) $ (12 ) $ (138 ) $ — $ (624 ) Depreciation, Depletion and Amortization 709 29 21 — 759 Impairment 2,503 — — — 2,503 Provision (Benefit) for Income Taxes (b) (1,969 ) (3 ) (2 ) — (1,974 ) Capital Expenditures 526 27 — — 553 For the Three Months Ended September 30, 2016 Sales and Other Operating Revenues - Third parties $ 1,175 $ 2 $ — $ — $ 1,177 Intersegment Revenues — 134 — (134 ) — Sales and Other Operating Revenues $ 1,175 $ 136 $ — $ (134 ) $ 1,177 Net Income (Loss) attributable to Hess Corporation $ (234 ) $ 13 $ (118 ) $ — $ (339 ) Depreciation, Depletion and Amortization 779 30 2 — 811 Provision (Benefit) for Income Taxes (252 ) 9 (73 ) — (316 ) Capital Expenditures 381 90 — — 471 For the Nine Months Ended September 30, 2017 Sales and Other Operating Revenues - Third parties $ 3,857 $ 6 $ — $ — $ 3,863 Intersegment Revenues — 454 — (454 ) — Sales and Other Operating Revenues $ 3,857 $ 460 $ — $ (454 ) $ 3,863 Net Income (Loss) attributable to Hess Corporation (a) $ (1,061 ) $ 22 $ (358 ) $ — $ (1,397 ) Depreciation, Depletion and Amortization 2,120 93 24 — 2,237 Impairment 2,503 — — — 2,503 Provision (Benefit) for Income Taxes (b) (2,003 ) 18 (10 ) — (1,995 ) Capital Expenditures 1,351 75 — — 1,426 For the Nine Months Ended September 30, 2016 Sales and Other Operating Revenues - Third parties $ 3,368 $ 6 $ — $ — $ 3,374 Intersegment Revenues — 398 — (398 ) — Sales and Other Operating Revenues $ 3,368 $ 404 $ — $ (398 ) $ 3,374 Net Income (Loss) attributable to Hess Corporation $ (1,015 ) $ 40 $ (265 ) $ — $ (1,240 ) Depreciation, Depletion and Amortization 2,381 88 7 — 2,476 Provision (Benefit) for Income Taxes (840 ) 25 (152 ) — (967 ) Capital Expenditures 1,318 194 — — 1,512 (a) In the third quarter of 2017, we disposed of our enhanced oil recovery assets in the Permian Basin. This sale transaction included both upstream and midstream assets resulting in an after-tax gain of $314 million allocated to the E&P segment, and an after-tax loss of $34 million allocated to the Midstream segment. See Note 2, Disposition. (b) The provision for income taxes in the Midstream segment is presented before consolidating its operations with other U.S. activities of the Company and prior to evaluating realizability of net U.S. deferred taxes. An offsetting impact is presented in the E&P segment. Identifiable assets by operating segment were as follows: September 30, December 31, 2017 2016 (In millions) Exploration and Production $ 21,389 $ 22,856 Midstream 3,012 3,165 Corporate, Interest and Other 2,199 2,600 Total $ 26,600 $ 28,621 |
Financial Risk Management Act29
Financial Risk Management Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Gross Notional Amounts of Financial Risk Management Derivative Contracts Outstanding | The gross notional amounts of financial risk management derivative contracts outstanding were as follows: September 30, 2017 December 31, 2016 (In millions) Commodity - crude oil (millions of barrels) 54 — Foreign exchange $ 35 $ 785 Interest rate swaps $ 909 $ 350 |
Gross and Net Fair Values of Financial Risk Management Derivative Instruments | The table below reflects the gross and net fair values of the risk management derivative instruments, all of which are based on Level 2 inputs: Assets Liabilities (In millions) September 30, 2017 Derivative Contracts Designated as Hedging Instruments Commodity - Accounts receivable $ 105 $ — Commodity - Other assets (noncurrent) 41 — Interest rate - Other assets (noncurrent) and Accounts payable 2 (3 ) Total derivative contracts designated as hedging instruments 148 (3 ) Derivative Contracts Not Designated as Hedging Instruments Foreign exchange — — Total derivative contracts not designated as hedging instruments — — Gross fair value of derivative contracts 148 (3 ) Net Fair Value of Derivative Contracts $ 148 $ (3 ) December 31, 2016 Derivative Contracts Designated as Hedging Instruments Interest rate $ — $ — Total derivative contracts designated as hedging instruments — — Derivative Contracts Not Designated as Hedging Instruments Foreign exchange - Accounts receivable and Accrued liabilities 9 (1 ) Total derivative contracts not designated as hedging instruments 9 (1 ) Gross fair value of derivative contracts 9 (1 ) Master netting arrangements (1 ) 1 Net Fair Value of Derivative Contracts $ 8 $ — |
Crude Oil Collars | |
Crude Oil Collar Positions by Year of Settlement | At September 30, 2017, we have outstanding Brent and West Texas Intermediate (WTI) crude oil collar positions by year of settlement as follows: 2017 2018 Brent WTI Brent WTI Outstanding average barrels of oil per day 20,000 110,000 — 115,000 Average ceiling price $ 75 $ 68 — $ 65 Average floor price $ 55 $ 50 — $ 50 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) | Sep. 30, 2017 | Jan. 01, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings | $ 8,438,000,000 | $ 10,147,000,000 | |
Deferred income taxes in non-current assets | 1,480,000,000 | 59,000,000 | |
Capital in excess of par value | $ 5,847,000,000 | 5,773,000,000 | |
Cumulative effect adjustment to Retained earnings | $ (37,000,000) | ||
Accounting Standards Update (ASU) 2016-16 | Restatement Adjustment | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings | $ (37,000,000) | ||
Deferred income taxes in non-current assets | (37,000,000) | ||
Accounting Standards Update (ASU) 2016-09 | Restatement Adjustment | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings | (2,000,000) | ||
Capital in excess of par value | 2,000,000 | ||
Cumulative effect adjustment to Retained earnings | $ 0 |
Disposition - Additional Inform
Disposition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disposition Of Businesses [Line Items] | ||||
Consideration for sale of oil recovery assets | $ 783 | $ 80 | ||
Pre-tax gain on sale of oil recovery assets | $ 274 | $ 0 | 276 | $ 27 |
Permian Basin | ||||
Disposition Of Businesses [Line Items] | ||||
Consideration for sale of oil recovery assets | 597 | 597 | ||
Pre-tax gain on sale of oil recovery assets | 273 | 273 | ||
Gain (loss) on sale of oil recovery assets after income taxes | 280 | 280 | ||
Permian Basin | Exploration and Production | ||||
Disposition Of Businesses [Line Items] | ||||
Gain (loss) on sale of oil recovery assets after income taxes | 314 | 314 | ||
Permian Basin | Midstream | ||||
Disposition Of Businesses [Line Items] | ||||
Gain (loss) on sale of oil recovery assets after income taxes | $ (34) | $ (34) |
Impairment - Additional Informa
Impairment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disposition Of Businesses [Abstract] | ||||
Impairment charge, pre-tax | $ 2,503 | $ 0 | $ 2,503 | $ 0 |
Impairment charge, after-tax | 550 | 550 | ||
Income tax benefit for impairment | $ 1,953 | $ 1,953 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas liquids | $ 110 | $ 77 |
Materials and supplies | 262 | 246 |
Total Inventories | $ 372 | $ 323 |
Capitalized Exploratory Well 34
Capitalized Exploratory Well Costs - Net Changes in Capitalized Exploratory Well Costs (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Capitalized Exploratory Well Costs [Abstract] | |
Beginning balance | $ 597 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 83 |
Reclassifications to wells, facilities and equipment based on the determination of proved reserves | (177) |
Ending balance | $ 503 |
Capitalized Exploratory Well 35
Capitalized Exploratory Well Costs - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized exploratory well costs that have been capitalized for period greater than one year | $ 404 |
Offshore Ghana | |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized well costs percentage | 65.00% |
Project interest percentage | 50.00% |
Period to submit plan of development to Ghanaian government | 10 months |
Northern Portion of Shenzi Field, Gulf of Mexico | |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized well costs percentage | 25.00% |
Project interest percentage | 28.00% |
JDA, Gulf of Thailand | |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized well costs percentage | 10.00% |
Project interest percentage | 50.00% |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amount of Goodwill (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Line Items] | |
Balance at January 1, 2017 | $ 375 |
Disposition | (15) |
Balance at September 30, 2017 | 360 |
Exploration and Production | |
Goodwill [Line Items] | |
Balance at January 1, 2017 | 0 |
Disposition | 0 |
Balance at September 30, 2017 | 0 |
Midstream | |
Goodwill [Line Items] | |
Balance at January 1, 2017 | 375 |
Disposition | (15) |
Balance at September 30, 2017 | $ 360 |
Hess Infrastructure Partners 37
Hess Infrastructure Partners LP - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 2,526 | $ 2,732 | $ 3,529 | $ 2,716 | |
Property, plant and equipment, net | 20,279 | 23,595 | |||
Hess Infrastructure Partners LP (HIP) | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 50 | 2 | |||
Property, plant and equipment, net | $ 2,516 | $ 2,528 | |||
Midstream liabilities non-recourse to Hess Corporation | liabilities totaling $756 million | liabilities totaling $841million | |||
Global Infrastructure Partners (GIP) | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in Hess Infrastructure Partners LP (HIP) | 50.00% | 50.00% | |||
Hess Corporation | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in Hess Infrastructure Partners LP (HIP) | 50.00% | 50.00% |
Hess Midstream Partners LP - 38
Hess Midstream Partners LP - Initial Public Offering - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended |
Apr. 30, 2017 | Sep. 30, 2017 | |
Public Unit Holders | ||
Limited Partners' Capital Account [Line Items] | ||
Percentage of ownership interest in Partnership | 30.50% | |
Hess Infrastructure Partners LP (HIP) | ||
Limited Partners' Capital Account [Line Items] | ||
Partnership controlling interest in operating companies, percentage | 80.00% | |
Percentage of economic interest in the Partnership plus incentive distribution rights of general partner | 2.00% | |
Global Infrastructure Partners (GIP) | ||
Limited Partners' Capital Account [Line Items] | ||
Initial public offering partial proceeds distribution percentage | 50.00% | |
Ownership percentage in Hess Infrastructure Partners LP (HIP) | 50.00% | 50.00% |
Percentage of indirect ownership interest | a 50% indirect ownership interest through HIP | |
Hess Corporation | ||
Limited Partners' Capital Account [Line Items] | ||
Initial public offering partial proceeds distribution percentage | 50.00% | |
Ownership percentage in Hess Infrastructure Partners LP (HIP) | 50.00% | 50.00% |
Percentage of indirect ownership interest | a 50% indirect ownership interest through HIP | |
Hess Midstream Partners LP | ||
Limited Partners' Capital Account [Line Items] | ||
Initial public offering common units sold | 16,997,000 | |
Initial public offering sale price per unit | $ 23 | |
Net proceeds from initial public offering | $ 365,500,000 | |
Of this amount distributed 50/50 to Hess Corporation and GIP | $ 350,000,000 | |
Partnership controlling interest in operating companies, percentage | 20.00% | |
Hess Midstream Partners LP | Revolving Credit Facility | ||
Limited Partners' Capital Account [Line Items] | ||
Revolving credit facility - Maximum capacity | $ 300,000,000 | |
Revolving credit facility - Term | 4 years | |
Hess Midstream Partners LP | Global Infrastructure Partners (GIP) | ||
Limited Partners' Capital Account [Line Items] | ||
Percentage of ownership interest in Partnership | 33.75% | |
Hess Midstream Partners LP | Hess Corporation | ||
Limited Partners' Capital Account [Line Items] | ||
Percentage of ownership interest in Partnership | 33.75% |
Retirement Plans - Components o
Retirement Plans - Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Service cost | $ 13 | $ 15 | $ 41 | $ 47 |
Interest cost | 26 | 27 | 78 | 83 |
Expected return on plan assets | (42) | (41) | (125) | (125) |
Amortization of unrecognized net actuarial losses | 13 | 15 | 46 | 47 |
Settlement loss | 4 | 0 | 11 | 0 |
Pension expense | $ 14 | $ 16 | $ 51 | $ 52 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Corporation's estimated contribution for funded pension plans during the current year | $ 52 |
Corporation's contribution for funded pension plan during the year to date | $ 40 |
Weighted Average Common Share41
Weighted Average Common Shares - Basic and Diluted Earnings Per Share (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) attributable to Hess Corporation Common Stockholders: | ||||
Net Income (Loss) | $ (593) | $ (317) | $ (1,306) | $ (1,178) |
Less: Net income (loss) attributable to noncontrolling interests | 31 | 22 | 91 | 62 |
Less: Preferred stock dividends | 11 | 12 | 34 | 30 |
Net Income (Loss) Attributable to Hess Corporation Common Stockholders | $ (635) | $ (351) | $ (1,431) | $ (1,270) |
Weighted average number of common shares outstanding: | ||||
Shares outstanding – Basic | 314.5 | 313.2 | 314.3 | 308.7 |
Diluted | 314.5 | 313.2 | 314.3 | 308.7 |
Restricted Common Stock | ||||
Weighted average number of common shares outstanding: | ||||
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Stock Options | ||||
Weighted average number of common shares outstanding: | ||||
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Performance Share Units | ||||
Weighted average number of common shares outstanding: | ||||
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Mandatory Convertible Preferred Stock | ||||
Weighted average number of common shares outstanding: | ||||
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Weighted Average Common Share42
Weighted Average Common Shares - Antidilutive Shares Excluded from Computation of Diluted Shares (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restricted Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of diluted shares | 3,313,441 | 3,476,171 | 3,296,718 | 3,345,052 |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of diluted shares | 6,509,214 | 6,945,925 | 6,452,788 | 6,886,816 |
Performance Share Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of diluted shares | 709,445 | 965,634 | 514,910 | 960,998 |
Common Shares from Conversion of Preferred Stocks | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of diluted shares | 13,400,515 | 12,547,650 | 12,894,078 | 10,769,864 |
Weighted Average Common Share43
Weighted Average Common Shares - Additional Information (Detail) - shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||
Shares granted, restricted stock | 1,214,460 | 1,656,598 |
Shares granted, performance share units | 438,980 | 447,536 |
Shares granted, stock options | 662,819 | 824,225 |
Guarantees and Contingencies -
Guarantees and Contingencies - Additional Information (Detail) - USD ($) | Jan. 18, 2017 | Mar. 04, 2016 | Mar. 31, 2014 | Sep. 30, 2017 | Mar. 31, 2017 |
Lower Passaic River | |||||
Loss Contingencies [Line Items] | |||||
Estimated remediation cost | $ 1,380,000,000 | ||||
Gowanus Canal Superfund Site | |||||
Loss Contingencies [Line Items] | |||||
Estimated remediation cost | $ 506,000,000 | ||||
Facilities in North Dakota | |||||
Loss Contingencies [Line Items] | |||||
Penalty assessed under consent decree | $ 922,000 | ||||
Initial penalty payment under consent decree | $ 55,000 | ||||
Consent decree penalty paid | $ 745,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of operating segments for the Corporation | 2 |
Segment Information - Financial
Segment Information - Financial Data by Operating Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Sales and Other Operating Revenues - Third parties | $ 1,370 | $ 1,177 | $ 3,863 | $ 3,374 | |
Intersegment Revenues | 0 | 0 | 0 | 0 | |
Sales and Other Operating Revenues | 1,370 | 1,177 | 3,863 | 3,374 | |
Net Income (Loss) attributable to Hess Corporation | (624) | (339) | (1,397) | (1,240) | |
Depreciation, Depletion and Amortization | 759 | 811 | 2,237 | 2,476 | |
Impairment | 2,503 | 0 | 2,503 | 0 | |
Provision (Benefit) for Income Taxes | (1,974) | (316) | (1,995) | (967) | |
Capital Expenditures | 553 | 471 | 1,426 | 1,512 | |
Identifiable assets | 26,600 | 26,600 | $ 28,621 | ||
Exploration and Production | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 21,389 | 21,389 | 22,856 | ||
Midstream | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 3,012 | 3,012 | 3,165 | ||
Corporate, Interest and Other | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 2,199 | 2,199 | $ 2,600 | ||
Operating Segments | Exploration and Production | |||||
Segment Reporting Information [Line Items] | |||||
Sales and Other Operating Revenues - Third parties | 1,369 | 1,175 | 3,857 | 3,368 | |
Intersegment Revenues | 0 | 0 | 0 | 0 | |
Sales and Other Operating Revenues | 1,369 | 1,175 | 3,857 | 3,368 | |
Net Income (Loss) attributable to Hess Corporation | (474) | (234) | (1,061) | (1,015) | |
Depreciation, Depletion and Amortization | 709 | 779 | 2,120 | 2,381 | |
Impairment | 2,503 | 2,503 | |||
Provision (Benefit) for Income Taxes | (1,969) | (252) | (2,003) | (840) | |
Capital Expenditures | 526 | 381 | 1,351 | 1,318 | |
Operating Segments | Midstream | |||||
Segment Reporting Information [Line Items] | |||||
Sales and Other Operating Revenues - Third parties | 1 | 2 | 6 | 6 | |
Intersegment Revenues | 153 | 134 | 454 | 398 | |
Sales and Other Operating Revenues | 154 | 136 | 460 | 404 | |
Net Income (Loss) attributable to Hess Corporation | (12) | 13 | 22 | 40 | |
Depreciation, Depletion and Amortization | 29 | 30 | 93 | 88 | |
Impairment | 0 | 0 | |||
Provision (Benefit) for Income Taxes | (3) | 9 | 18 | 25 | |
Capital Expenditures | 27 | 90 | 75 | 194 | |
Operating Segments | Corporate, Interest and Other | |||||
Segment Reporting Information [Line Items] | |||||
Sales and Other Operating Revenues - Third parties | 0 | 0 | 0 | 0 | |
Intersegment Revenues | 0 | 0 | 0 | 0 | |
Sales and Other Operating Revenues | 0 | 0 | 0 | 0 | |
Net Income (Loss) attributable to Hess Corporation | (138) | (118) | (358) | (265) | |
Depreciation, Depletion and Amortization | 21 | 2 | 24 | 7 | |
Impairment | 0 | 0 | |||
Provision (Benefit) for Income Taxes | (2) | (73) | (10) | (152) | |
Capital Expenditures | 0 | 0 | 0 | 0 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and Other Operating Revenues - Third parties | 0 | 0 | 0 | 0 | |
Intersegment Revenues | (153) | (134) | (454) | (398) | |
Sales and Other Operating Revenues | (153) | (134) | (454) | (398) | |
Net Income (Loss) attributable to Hess Corporation | 0 | 0 | 0 | 0 | |
Depreciation, Depletion and Amortization | 0 | 0 | 0 | 0 | |
Impairment | 0 | 0 | |||
Provision (Benefit) for Income Taxes | 0 | 0 | 0 | 0 | |
Capital Expenditures | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information - Financi47
Segment Information - Financial Data by Operating Segment (Parenthetical) (Detail) - Permian Basin - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||
Gain (loss) on sale of oil recovery assets after income taxes | $ 280 | $ 280 |
Exploration and Production | ||
Segment Reporting Information [Line Items] | ||
Gain (loss) on sale of oil recovery assets after income taxes | 314 | 314 |
Midstream | ||
Segment Reporting Information [Line Items] | ||
Gain (loss) on sale of oil recovery assets after income taxes | $ (34) | $ (34) |
Financial Risk Management Act48
Financial Risk Management Activities - Gross Notional Amounts of Derivative Contracts Outstanding (Detail) | Sep. 30, 2017USD ($)MMBbls | Dec. 31, 2016USD ($)MMBbls |
Commodity, Crude Oil | ||
Derivative [Line Items] | ||
Outstanding gross notional amount, in millions of barrels | MMBbls | 54 | 0 |
Foreign Exchange | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 35,000,000 | $ 785,000,000 |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 909,000,000 | $ 350,000,000 |
Financial Risk Management Act49
Financial Risk Management Activities - Crude Oil Collar Positions by Year of Settlement (Detail) | 9 Months Ended |
Sep. 30, 2017bbl / d$ / bbl | |
2017 | Brent | |
Derivative [Line Items] | |
Outstanding average barrels of oil per day | bbl / d | 20,000 |
Average ceiling price | 75 |
Average floor price | 55 |
2017 | WTI | |
Derivative [Line Items] | |
Outstanding average barrels of oil per day | bbl / d | 110,000 |
Average ceiling price | 68 |
Average floor price | 50 |
2018 | Brent | |
Derivative [Line Items] | |
Outstanding average barrels of oil per day | bbl / d | 0 |
Average ceiling price | 0 |
Average floor price | 0 |
2018 | WTI | |
Derivative [Line Items] | |
Outstanding average barrels of oil per day | bbl / d | 115,000 |
Average ceiling price | 65 |
Average floor price | 50 |
Financial Risk Management Act50
Financial Risk Management Activities - Gross and Net Fair Values (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives Fair Value [Line Items] | ||
ASSETS - Gross fair value of derivative contracts | $ 148 | $ 9 |
ASSETS - Master netting arrangements | (1) | |
ASSETS - Net fair value of derivative contracts | 148 | 8 |
LIABILITIES - Gross fair value of derivative contracts | (3) | (1) |
LIABILITIES - Master netting arrangements | 1 | |
LIABILITIES - Net fair value of derivative contracts | (3) | 0 |
Foreign Exchange | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
LIABILITIES - Gross fair value of derivative contracts | (1) | |
Designated As Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
ASSETS - Gross fair value of derivative contracts | 148 | 0 |
LIABILITIES - Gross fair value of derivative contracts | (3) | 0 |
Designated As Hedging Instrument | Interest Rate Contract | ||
Derivatives Fair Value [Line Items] | ||
ASSETS - Gross fair value of derivative contracts | 0 | |
LIABILITIES - Gross fair value of derivative contracts | 0 | |
Derivative Contracts Not Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
ASSETS - Gross fair value of derivative contracts | 0 | 9 |
LIABILITIES - Gross fair value of derivative contracts | 0 | (1) |
Derivative Contracts Not Designated as Hedging Instruments | Foreign Exchange | ||
Derivatives Fair Value [Line Items] | ||
ASSETS - Gross fair value of derivative contracts | 0 | |
LIABILITIES - Gross fair value of derivative contracts | 0 | |
Accounts Receivable | Foreign Exchange | ||
Derivatives Fair Value [Line Items] | ||
ASSETS - Gross fair value of derivative contracts | $ 9 | |
Accounts Receivable | Designated As Hedging Instrument | Commodity, Crude Oil | ||
Derivatives Fair Value [Line Items] | ||
ASSETS - Gross fair value of derivative contracts | 105 | |
Other Assets (Noncurrent) | Designated As Hedging Instrument | Commodity, Crude Oil | ||
Derivatives Fair Value [Line Items] | ||
ASSETS - Gross fair value of derivative contracts | 41 | |
Other Assets (Noncurrent) | Designated As Hedging Instrument | Interest Rate Contract | ||
Derivatives Fair Value [Line Items] | ||
ASSETS - Gross fair value of derivative contracts | 2 | |
Accounts Payable | Interest Rate Contract | ||
Derivatives Fair Value [Line Items] | ||
LIABILITIES - Gross fair value of derivative contracts | $ (3) |
Financial Risk Management Act51
Financial Risk Management Activities - Corporate Financial Risk Management Activities - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)MMBbls | |
Derivative Instruments Gain Loss [Line Items] | |||||
Change in fair value of interest rate swaps - increase/(decrease) | $ (94,000,000) | $ 0 | $ (38,000,000) | $ 0 | |
Designated as Cash Flow Hedges | Maximum | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Interest rate swaps reclassified into earnings during next 12 months | 1,000,000 | 1,000,000 | |||
Interest Rate Swaps | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Outstanding gross notional amount | 909,000,000 | 909,000,000 | $ 350,000,000 | ||
Interest Rate Swaps | Designated as Fair Value Hedges | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Outstanding gross notional amount | 450,000,000 | 450,000,000 | 350,000,000 | ||
Unrealized change in fair value of interest rate swaps - increase/(decrease) | 9,000,000 | 3,000,000 | (9,000,000) | ||
Interest Rate Swaps | Designated as Fair Value Hedges | Maximum | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Unrealized change in fair value of interest rate swaps - increase/(decrease) | 1,000,000 | ||||
Interest Rate Swaps | Designated as Cash Flow Hedges | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Outstanding gross notional amount | 459,000,000 | 459,000,000 | |||
Change in fair value of interest rate swaps - increase/(decrease) | 1,000,000 | 2,000,000 | |||
Accumulated other comprehensive income (loss) reclassified into earnings before noncontrolling interests | 2,000,000 | 2,000,000 | |||
Foreign Exchange | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Outstanding gross notional amount | 35,000,000 | 35,000,000 | 785,000,000 | ||
Foreign exchange gains reported in Other, net in Revenues and Non-Operating Income in the Statement of Consolidated Income | 17,000,000 | 11,000,000 | 26,000,000 | 32,000,000 | |
Gain (Loss) on foreign exchange contracts not designated as hedging instruments | (2,000,000) | 2,000,000 | 11,000,000 | ||
After tax foreign currency translation adjustments included in Accumulated other comprehensive income (loss) | 121,000,000 | $ 117,000,000 | 208,000,000 | $ 259,000,000 | |
Accumulated cumulative currency translation adjustment | (837,000,000) | (837,000,000) | $ (1,045,000,000) | ||
Foreign Exchange | Maximum | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Gain (Loss) on foreign exchange contracts not designated as hedging instruments | 1,000,000 | ||||
Crude Oil Collars | |||||
Derivative Instruments Gain Loss [Line Items] | |||||
Increased (decreased) sales and other operating revenue | 6,000,000 | (5,000,000) | |||
Charge for hedge ineffectiveness | 2,000,000 | 2,000,000 | |||
Gain (loss) E&P sales reclassified from other comprehensive income | 18,000,000 | 38,000,000 | |||
After-tax deferred losses in Accumulated other comprehensive income (loss) | 39,000,000 | 39,000,000 | |||
After-tax deferred losses in AOCI reclassified into earnings during the next 12 months as hedged | $ (33,000,000) | $ (33,000,000) | |||
Outstanding gross notional amount, in millions of barrels | MMBbls | 0 |
Financial Risk Management Act52
Financial Risk Management Activities - Fair Value Measurements - Additional Information (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Derivative [Line Items] | |
Total long-term debt, carrying value | $ 6,714 |
Fair Value, Inputs, Level 2 | |
Derivative [Line Items] | |
Total long-term debt, fair value | $ 7,157 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | Oct. 24, 2017USD ($) | Oct. 23, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Boe | Sep. 30, 2016USD ($) |
Subsequent Event [Line Items] | |||||||
Consideration for sale of oil recovery assets | $ 783 | $ 80 | |||||
Pre-tax gain on sale of oil recovery assets | $ 274 | $ 0 | 276 | 27 | |||
Cumulative translation adjustment | $ 121 | $ 117 | $ 208 | $ 259 | |||
Scenario Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Cumulative translation adjustment | $ 840 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Consideration for sale of oil recovery assets | $ 2,000 | ||||||
Equatorial Guinea | |||||||
Subsequent Event [Line Items] | |||||||
Average production of assets per day | Boe | 28,000 | ||||||
Equatorial Guinea | Scenario Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Pre-tax gain on sale of oil recovery assets | 475 | ||||||
Gain on sale of interests after income taxes | $ 475 | ||||||
Equatorial Guinea | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Consideration for sale of oil recovery assets | $ 650 | ||||||
Offshore Norway | |||||||
Subsequent Event [Line Items] | |||||||
Average production of assets per day | Boe | 24,000 | ||||||
South Arne Field | |||||||
Subsequent Event [Line Items] | |||||||
Average production of assets per day | Boe | 11,000 | ||||||
South Arne Field | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Interest ownership percentage | 61.50% | ||||||
Expected sales process completion year | 2,018 |