Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | HES |
Security Exchange Name | NYSE |
Entity Registrant Name | HESS CORPORATION |
Entity Central Index Key | 0000004447 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock |
Entity Common Stock, Shares Outstanding | 307,158,340 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity File Number | 1-1204 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-4921002 |
Entity Address, Address Line One | 1185 AVENUE OF THE AMERICAS |
Entity Address, City or Town | NEW YORK |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10036 |
City Area Code | 212 |
Local Phone Number | 997-8500 |
Document Quarterly Report | true |
Document Transition Report | false |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 2,080 | $ 1,545 |
Accounts receivable: | ||
From contracts with customers | 600 | 940 |
Joint venture and other | 194 | 230 |
Crude oil derivative contracts | 1,098 | 125 |
Inventories | 230 | 261 |
Other current assets | 68 | 55 |
Total current assets | 4,270 | 3,156 |
Property, plant and equipment: | ||
Total — at cost | 31,704 | 35,820 |
Less: Reserves for depreciation, depletion, amortization and lease impairment | 16,893 | 19,006 |
Property, plant and equipment — net | 14,811 | 16,814 |
Operating lease right-of-use assets — net | 386 | 447 |
Finance lease right-of-use assets — net | 187 | 299 |
Goodwill | 360 | 360 |
Deferred income taxes | 77 | 80 |
Other assets | 626 | 626 |
Total Assets | 20,717 | 21,782 |
Current Liabilities: | ||
Accounts payable | 431 | 411 |
Accrued liabilities | 1,334 | 1,803 |
Taxes payable | 33 | 97 |
Current maturities of long-term debt | 3 | 0 |
Current portion of operating and finance lease obligations | 146 | 199 |
Total current liabilities | 1,947 | 2,510 |
Long-term debt | 8,191 | 7,142 |
Long-term operating lease obligations | 357 | 353 |
Long-term finance lease obligations | 233 | 238 |
Deferred income taxes | 328 | 415 |
Asset retirement obligations | 929 | 897 |
Other liabilities and deferred credits | 554 | 521 |
Total Liabilities | 12,539 | 12,076 |
Hess Corporation stockholders’ equity: | ||
Common stock, par value $1.00; Authorized — 600,000,000 shares Issued — 307,158,340 shares (2019: 304,955,472) | 307 | 305 |
Capital in excess of par value | 5,633 | 5,591 |
Retained earnings | 1,021 | 3,535 |
Accumulated other comprehensive income (loss) | 239 | (699) |
Total Hess Corporation stockholders’ equity | 7,200 | 8,732 |
Noncontrolling interests | 978 | 974 |
Total equity | 8,178 | 9,706 |
Total Liabilities and Equity | $ 20,717 | $ 21,782 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 307,158,340 | 304,955,472 |
Statement of Consolidated Incom
Statement of Consolidated Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues and Non-Operating Income | ||
Sales and other operating revenues | $ 1,354 | $ 1,572 |
Other, net | 15 | 27 |
Total revenues and non-operating income | 1,369 | 1,599 |
Costs and Expenses | ||
Marketing, including purchased oil and gas | 378 | 408 |
Operating costs and expenses | 303 | 266 |
Production and severance taxes | 42 | 39 |
Exploration expenses, including dry holes and lease impairment | 189 | 34 |
General and administrative expenses | 102 | 87 |
Interest expense | 113 | 98 |
Depreciation, depletion and amortization | 561 | 498 |
Impairment | 2,126 | 0 |
Total costs and expenses | 3,814 | 1,430 |
Income (Loss) Before Income Taxes | (2,445) | 169 |
Provision (benefit) for income taxes | (79) | 94 |
Net Income (Loss) | (2,366) | 75 |
Less: Net income (loss) attributable to noncontrolling interests | 67 | 43 |
Net Income (Loss) Attributable to Hess Corporation | (2,433) | 32 |
Less: Preferred stock dividends | 0 | 4 |
Net Income (Loss) Attributable to Hess Corporation Common Stockholders | $ (2,433) | $ 28 |
Net Income (Loss) Attributable to Hess Corporation Per Common Share: | ||
Basic | $ (8) | $ 0.09 |
Diluted | $ (8) | $ 0.09 |
Weighted Average Number of Common Shares Outstanding: | ||
Basic | 304 | 297.4 |
Diluted | 304 | 299.7 |
Common Stock Dividends Per Share | $ 0.25 | $ 0.25 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ (2,366) | $ 75 |
Derivatives designated as cash flow hedges | ||
Effect of hedge (gains) losses reclassified to income | (64) | (15) |
Income taxes on effect of hedge (gains) losses reclassified to income | 0 | 0 |
Net effect of hedge (gains) losses reclassified to income | (64) | (15) |
Change in fair value of cash flow hedges | 990 | (346) |
Income taxes on change in fair value of cash flow hedges | 0 | 0 |
Net change in fair value of cash flow hedges | 990 | (346) |
Change in derivatives designated as cash flow hedges, after taxes | 926 | (361) |
Pension and other postretirement plans | ||
(Increase) reduction in unrecognized actuarial losses | 0 | 6 |
Income taxes on actuarial changes in plan liabilities | 0 | 0 |
(Increase) reduction in unrecognized actuarial losses, net | 0 | 6 |
Amortization of net actuarial losses | 12 | 11 |
Income taxes on amortization of net actuarial losses | 0 | 0 |
Net effect of amortization of net actuarial losses | 12 | 11 |
Change in pension and other postretirement plans, after taxes | 12 | 17 |
Other Comprehensive Income (Loss) | 938 | (344) |
Comprehensive Income (Loss) | (1,428) | (269) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 67 | 43 |
Comprehensive Income (Loss) Attributable to Hess Corporation | $ (1,495) | $ (312) |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ (2,366) | $ 75 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation, depletion and amortization | 561 | 498 |
Impairment | 2,126 | 0 |
Exploratory dry hole costs | 135 | 0 |
Exploration lease and other impairment | 32 | 7 |
Stock compensation expense | 29 | 27 |
Noncash (gains) losses on commodity derivatives, net | 70 | 29 |
Provision (benefit) for deferred income taxes and other tax accruals | (85) | (1) |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | 258 | (117) |
(Increase) decrease in inventories | 31 | (29) |
Increase (decrease) in accounts payable and accrued liabilities | (263) | (204) |
Increase (decrease) in taxes payable | (63) | 8 |
Changes in other operating assets and liabilities | (20) | (55) |
Net cash provided by (used in) operating activities | 445 | 238 |
Cash Flows From Investing Activities | ||
Additions to property, plant and equipment - E&P | (740) | (521) |
Additions to property, plant and equipment - Midstream | (78) | (150) |
Payments for Midstream equity investments | 0 | (7) |
Other, net | 0 | (2) |
Net cash provided by (used in) investing activities | (818) | (680) |
Cash Flows From Financing Activities | ||
Net borrowings (repayments) of debt with maturities of 90 days or less | 60 | 199 |
Debt with maturities of greater than 90 days – Borrowings | 1,000 | 0 |
Debt with maturities of greater than 90 days - Repayments | 0 | (3) |
Payments on finance lease obligations | (1) | (23) |
Common stock acquired and retired | 0 | (25) |
Cash dividends paid | (81) | (88) |
Noncontrolling interests, net | (63) | (13) |
Other, net | (7) | 1 |
Net cash provided by (used in) financing activities | 908 | 48 |
Net Increase (Decrease) in Cash and Cash Equivalents | 535 | (394) |
Cash and Cash Equivalents at Beginning of Year | 1,545 | 2,694 |
Cash and Cash Equivalents at End of Period | $ 2,080 | $ 2,300 |
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, 2018 | $ 10,888 | $ 1 | $ 291 | $ 5,386 | $ 4,257 | $ (306) | $ 9,629 | $ 1,259 |
Net income (loss) | 75 | 0 | 0 | 0 | 32 | 0 | 32 | 43 |
Other comprehensive income (loss) | (344) | 0 | 0 | 0 | 0 | (344) | (344) | 0 |
Preferred stock conversion | 0 | (1) | 12 | (11) | 0 | 0 | 0 | 0 |
Share-based compensation | 29 | 0 | 1 | 28 | 0 | 0 | 29 | 0 |
Dividends on preferred stock | (4) | 0 | 0 | 0 | (4) | 0 | (4) | 0 |
Dividends on common stock | (78) | 0 | 0 | 0 | (78) | 0 | (78) | 0 |
Sale of water business to Hess Infrastructure Partners | 0 | 0 | 0 | 78 | 0 | 0 | 78 | (78) |
Noncontrolling interests, net | (13) | 0 | 0 | 0 | 0 | 0 | 0 | (13) |
Balance at Mar. 31, 2019 | 10,553 | 0 | 304 | 5,481 | 4,207 | (650) | 9,342 | 1,211 |
Balance at Dec. 31, 2019 | 9,706 | 0 | 305 | 5,591 | 3,535 | (699) | 8,732 | 974 |
Net income (loss) | (2,366) | 0 | 0 | 0 | (2,433) | 0 | (2,433) | 67 |
Other comprehensive income (loss) | 938 | 0 | 0 | 0 | 0 | 938 | 938 | 0 |
Share-based compensation | 39 | 0 | 2 | 42 | (5) | 0 | 39 | 0 |
Dividends on common stock | (76) | 0 | 0 | 0 | (76) | 0 | (76) | 0 |
Noncontrolling interests, net | (63) | 0 | 0 | 0 | 0 | 0 | 0 | (63) |
Balance at Mar. 31, 2020 | $ 8,178 | $ 0 | $ 307 | $ 5,633 | $ 1,021 | $ 239 | $ 7,200 | $ 978 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019, the consolidated results of operations for the three months ended March 31, 2020 and 2019, and consolidated cash flows for the three months ended March 31, 2020 and 2019. 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, 2019. In the first quarter of 2020, we adopted Accounting Standards Update Financial Instruments – Credit Losses. |
Impairment
Impairment | 3 Months Ended |
Mar. 31, 2020 | |
Asset Impairment Charges [Abstract] | |
Impairment | 2. Impairment Oil and Gas Properties: As a result of the significant decline in crude oil prices due to the global economic slowdown from the coronavirus In the first quarter of 2020, we recognized pre-tax impairment charges to reduce the carrying value of our oil and gas properties and certain related right-of-use assets at the North Malay Basin in Malaysia by $755 million ($755 million after income taxes), the South Arne Field in Denmark by $670 million ($594 million after income taxes), and in the Gulf of Mexico, the Stampede Field by $410 million ($410 million after income taxes) and the Tubular Bells Field by $270 million ($270 million Other Assets: In the first quarter of 2020, we recognized impairment charges totaling $21 million pre-tax ($20 million after income taxes) related to drilling rig right-of-use assets in the Bakken and surplus materials and supplies. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories consisted of the following: March 31, December 31, 2020 2019 (In millions) Crude oil and natural gas liquids $ 74 $ 92 Materials and supplies 156 169 Total Inventories $ 230 $ 261 In the first quarter of 2020, we recognized charges of $53 million ($52 million after income taxes) recorded in Marketing, including purchased oil and gas |
Property Plant and Equipment
Property Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property Plant and Equipment | 4. 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 three months ended March 31, 2020 (in millions): Balance at January 1, 2020 $ 584 Additions to capitalized exploratory well costs pending the determination of proved reserves 47 Capitalized exploratory well costs charged to expense (125 ) Balance at March 31, 2020 $ 506 In the first quarter of 2020, the Corporation expensed previously capitalized well costs of $125 million, primarily related to the northern portion of the Shenzi Field (Hess 28%) in the Gulf of Mexico due to reprioritization of the Corporation’s forward capital program in response to the significant decline in crude oil prices. The table above does not include well costs incurred and expensed during 2020 of $10 million associated with the Oldfield-1 well in the Gulf of Mexico. Capitalized exploratory well costs capitalized for greater than one year following completion of drilling were $319 million at March 31, 2020 and primarily related to Guyana: Approximately 80% of the capitalized well costs in excess of one year relate to twelve successful exploration wells where hydrocarbons were encountered on the Stabroek Block (Hess 30%), offshore Guyana. The operator plans further appraisal drilling for certain fields and is conducting pre-development planning for additional phases of development beyond the two existing sanctioned phases of development. Joint Development Area (JDA): Approximately 10% 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 10% 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 five successful exploration wells. Subsurface evaluation and pre-development studies for future phases of development are ongoing. |
Hess Midstream LP
Hess Midstream LP | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Hess Midstream LP | 5. Hess Midstream LP At March 31, 2020 Hess Midstream LP (Hess Midstream), a variable interest entity that is fully consolidated by Hess Corporation, had liabilities totaling $1,971 million (December 31, 2019: $1,941 million) that are on a nonrecourse basis to Hess Corporation, while Hess Midstream assets available to settle the obligations of Hess Midstream include cash and cash equivalents totaling $3 million (December 31, 2019: $3 million) and property, plant and equipment with a carrying value of $3,029 million (December 31, 2019: $3,010 million). |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt In the first quarter of 2020, the Corporation entered into a $1.0 billion three year term loan agreement with JPMorgan Chase Bank N.A. with a maturity date of March 16, 2023. The term loan contains provisions that require us to reduce JPMorgan’s initial funded amount of $1.0 billion. The Corporation is currently in the process of syndicating with other lenders. Borrowings under the term loan bear interest at the applicable interest rates either, at the Corporation’s option, the adjusted LIBOR rate in effect from time to time or the alternate base rate (as described in the term loan agreement) plus the applicable margins specified in the term loan agreement, which generally vary based on the credit rating of the Corporation’s senior, unsecured, non-credit enhanced long-term debt. This loan has been classified as noncurrent in the consolidated balance sheet due to the Corporation’s ability and intent to refinance any amount we are unable to syndicate to other banks on a long-term basis through the Corporation’s existing $3.5 billion revolving credit facility with a maturity date of May 15, 2023. The term loan agreement contains customary representations, warranties and covenants, including a financial covenant limiting the ratio of Total Consolidated Debt to Total Capitalization (as such terms are defined in the term loan agreement) of the Corporation and its consolidated subsidiaries to 65%, and customary events of default. At March 31, 2020, Hess Corporation had borrowings of $1.0 billion under this term loan agreement and was in compliance with this financial covenant. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 7. Retirement Plans Components of net periodic pension cost consisted of the following: Three Months Ended March 31, 2020 2019 (In millions) Service cost $ 14 $ 10 Interest cost (a) 18 24 Expected return on plan assets (a) (45 ) (45 ) Amortization of unrecognized net actuarial losses (a) 12 11 Pension (income) expense (a) $ (1 ) $ — ( a) Net non-service pension cost included in Other, net in the Statement of Consolidated Income in the first quarter of 2020 was income of $15 million (2019: $10 million of income). To preserve cash in 2020, we are minimizing non-required cash contributions to funded pension plans. In 2020, we expect to contribute approximately $2 million to our funded pension plans. Through March 31, 2020, we have contributed less than $1 million. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 8. Revenue Revenue from contracts with customers on a disaggregated basis was as follows: Exploration and Production Midstream Eliminations Total United States Guyana Malaysia & JDA Denmark Libya E&P Total (In millions) Three Months Ended March 31, 2020 Sales of our net production volumes: Crude oil revenue $ 656 $ 38 $ 2 $ 36 $ — $ 732 $ — $ — $ 732 Natural gas liquids revenue 49 — — — — 49 — — 49 Natural gas revenue 38 — 139 2 2 181 — — 181 Sales of purchased oil and gas 324 1 — — — 325 — — 325 Intercompany revenue — — — — — — 291 (291 ) — Total sales and other operating revenues before other operating revenues 1,067 39 141 38 2 1,287 291 (291 ) 1,287 Other operating revenues (a) 55 6 1 5 — 67 — — 67 Total sales and other operating revenues $ 1,122 $ 45 $ 142 $ 43 $ 2 $ 1,354 $ 291 $ (291 ) $ 1,354 Three Months Ended March 31, 2019 Sales of our net production volumes: Crude oil revenue $ 682 $ — $ 21 $ 16 $ 91 $ 810 $ — $ — $ 810 Natural gas liquids revenue 68 — — — — 68 — — 68 Natural gas revenue 42 — 180 3 6 231 — — 231 Sales of purchased oil and gas 426 — — — 22 448 — — 448 Intercompany revenue — — — — — — 190 (190 ) — Total sales and other operating revenues before other operating revenues 1,218 — 201 19 119 1,557 190 (190 ) 1,557 Other operating revenues (a) 15 — — — — 15 — — 15 Total sales and other operating revenues $ 1,233 $ — $ 201 $ 19 $ 119 $ 1,572 $ 190 $ (190 ) $ 1,572 (a) Includes gains (losses) on commodity derivatives. There have been no significant changes to contracts with customers or composition thereof during the three months ended March 31, 2020. Generally, we receive payments from customers on a monthly basis, shortly after the physical delivery of the crude oil, natural gas liquids, or natural gas. |
Weighted Average Common Shares
Weighted Average Common Shares | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares | 9. 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 March 31, 2020 2019 (In millions) Net income (loss) attributable to Hess Corporation Common Stockholders: Net income (loss) $ (2,366 ) $ 75 Less: Net income (loss) attributable to noncontrolling interests 67 43 Less: Preferred stock dividends — 4 Net income (loss) attributable to Hess Corporation Common Stockholders $ (2,433 ) $ 28 Weighted average number of common shares outstanding: Basic 304.0 297.4 Effect of dilutive securities Restricted common stock — 1.2 Stock options — 0.2 Performance share units — 0.9 Diluted 304.0 299.7 The following table summarizes the number of antidilutive shares excluded from the computation of diluted shares: Three Months Ended March 31, 2020 2019 Restricted common stock 2,015,659 57,252 Stock options 4,086,340 3,394,418 Performance share units 1,296,356 65,661 Common shares from conversion of preferred stock — 3,930,663 During the three months ended March 31, 2020, we granted 1,117,009 shares of restricted stock (2019: 941,082), 307,999 performance share units (2019: 234,866) and 686,639 stock options (2019: 526,968). |
Guarantees and Contingencies
Guarantees and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Guarantees and Contingencies | 10. 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. 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 was a defective product and that these producers and refiners 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. There are three remaining active cases, filed by Pennsylvania, Rhode Island, and Maryland. In June 2014, the Commonwealth of Pennsylvania filed a lawsuit alleging that we and all major oil companies with operations in Pennsylvania, have damaged the groundwater by introducing thereto gasoline with MTBE. The Pennsylvania suit has been forwarded to the existing MTBE multidistrict litigation pending in the Southern District of New York. 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 thereto gasoline with MTBE. The suit filed in Rhode Island is proceeding in Federal court. In December 2017, the State of Maryland filed a lawsuit alleging that we and other major oil companies damaged the groundwater in Maryland by introducing thereto gasoline with MTBE. The suit filed in Maryland state court, was served on us in January 2018 and has been removed to Federal court by the defendants. 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 agreed with the 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. In March 2014, we received an Administrative Order from the 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. Our alleged liability derives from our former ownership and operation of a fuel oil terminal and connected shipbuilding and repair facility adjacent to the Canal. The remedy selected by the EPA 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. The EPA’s original estimate was that this remedy would cost $506 million We periodically receive notices from the EPA that we are a “potential responsible party” under the Superfund legislation with respect to various waste disposal sites. Under this legislation, all potentially responsible parties may be jointly and severally liable. For any site for which we have received such a notice, the EPA’s claims or assertions of liability against us relating to these sites have not been fully developed, or the EPA’s claims have been settled or a settlement is under consideration, in all cases for amounts that are not material. The ultimate impact of these proceedings, and of any related proceedings by private parties, on our business or accounts cannot be predicted at this time due to the large number of other potentially responsible parties and the speculative nature of clean-up cost estimates but is not expected to be material. 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, in management’s opinion, based upon currently known facts and circumstances, the outcome of lawsuits, claims and proceedings, including the matters disclosed above, is not expected to have a material adverse effect on our financial condition, results of operations or cash flows. 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. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 11. 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 March 31, 2020 Sales and Other Operating Revenues - Third parties $ 1,354 $ — $ — $ — $ 1,354 Intersegment Revenues — 291 — (291 ) — Sales and Other Operating Revenues $ 1,354 $ 291 $ — $ (291 ) $ 1,354 Net Income (Loss) attributable to Hess Corporation $ (2,371 ) $ 61 $ (123 ) $ — $ (2,433 ) Depreciation, Depletion and Amortization 521 38 2 — 561 Impairment 2,126 — — — 2,126 Provision (Benefit) for Income Taxes (77 ) 2 (4 ) — (79 ) Capital Expenditures 609 57 — — 666 For the Three Months Ended March 31, 2019 Sales and Other Operating Revenues - Third parties $ 1,572 $ — $ — $ — $ 1,572 Intersegment Revenues — 190 — (190 ) — Sales and Other Operating Revenues $ 1,572 $ 190 $ — $ (190 ) $ 1,572 Net Income (Loss) attributable to Hess Corporation $ 109 $ 37 $ (114 ) $ — $ 32 Depreciation, Depletion and Amortization 464 34 — — 498 Provision (Benefit) for Income Taxes 95 — (1 ) — 94 Capital Expenditures 515 127 — — 642 Identifiable assets by operating segment were as follows: March 31, December 31, 2020 2019 (In millions) Exploration and Production $ 14,302 $ 16,790 Midstream 3,519 3,499 Corporate, Interest and Other 2,896 1,493 Total $ 20,717 $ 21,782 |
Financial Risk Management Activ
Financial Risk Management Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Risk Management Activities | 12. 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 business with the intent of reducing exposure to foreign currency fluctuations. At March 31, 2020, these forward contracts relate to the British Pound and the Danish Krone. Interest rate swaps may be used to convert interest payments on certain long-term debt from fixed to floating rates. The notional amounts of outstanding financial risk management derivative contracts were as follows: March 31, 2020 December 31, 2019 (In millions) Commodity - crude oil (millions of barrels) 41.3 54.9 Foreign exchange $ 65 $ 90 Interest rate swaps $ 100 $ 100 For calendar year 2020 we have West Texas Intermediate (WTI) put options with an average monthly floor price of $55 per barrel for 130,000 barrels of oil per day (bopd), and Brent put options with an average monthly floor price of $60 per barrel for 20,000 bopd. The table below reflects the gross and net fair values of risk management derivative instruments and their respective financial statement caption in the Consolidated Balance Sheet Assets Liabilities (In millions) March 31, 2020 Derivative Contracts Designated as Hedging Instruments: Crude oil derivative contracts $ 1,098 $ — Interest rate - Other assets (noncurrent) 6 — Total derivative contracts designated as hedging instruments 1,104 — Derivative Contracts Not Designated as Hedging Instruments: Foreign exchange — (2 ) Total derivative contracts not designated as hedging instruments — (2 ) Gross fair value of derivative contracts 1,104 (2 ) Master netting arrangements — — Net Fair Value of Derivative Contracts $ 1,104 $ (2 ) December 31, 2019 Derivative Contracts Designated as Hedging Instruments: Crude oil derivative contracts $ 125 $ — Interest rate - Other assets (noncurrent) 1 — Total derivative contracts designated as hedging instruments 126 — Derivative Contracts Not Designated as Hedging Instruments: Foreign exchange — (1 ) Total derivative contracts not designated as hedging instruments — (1 ) Gross fair value of derivative contracts 126 (1 ) Master netting arrangements — — Net Fair Value of Derivative Contracts $ 126 $ (1 ) All fair values in the table above are based on Level 2 inputs. Derivative contracts designated as hedging instruments: Crude oil derivatives: Crude oil hedging contracts increased Sales and other operating revenues by $64 million and $15 million in the first quarter of 2020 and 2019 , respectively. At March 31, 2020, pre-tax deferred gains in related to outstanding crude oil price hedging contracts were $ 831 million, all of which will be reclassified into earnings during the remainder of 2020 as the originally hedged crude oil sales are recognized in earnings. Interest rate swaps designated as fair value hedges: At March 31, 2020 and December 31, 2019, we had interest rate swaps with gross notional amounts totaling $100 million, 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. Changes in the fair value of interest rate swaps and the hedged fixed-rate debt are recorded in in the . In the first quarter of 2020, the change in fair value of interest rate swaps was an increase in the asset of $5 million (2019 Q1: decrease in the liability of $1 million) with a corresponding adjustment in the carrying value of the hedged fixed-rate debt. Derivative contracts not designated as hedging instruments: Foreign exchange: Foreign exchange gains and losses which are reported in Other, net in Revenues and non-operating income in the Statement of Consolidated Income were a loss of $1 million in the first quarter of 2020 (2019 Q1: $5 million gain). A component of foreign exchange gain is the result of foreign exchange derivative contracts that are not designated as hedges which amounted to a net gain of $ 2 million in the first quarter of 2020 (2019 Q1: a net loss of less than $1 million). 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 March 31, 2020. At March 31, 2020, total long-term debt, which was primarily comprised of fixed-rate debt instruments, had a carrying value of $8,194 million and a fair value of $6,468 million based on Level 2 inputs. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | In the first quarter of 2020, we adopted Accounting Standards Update Financial Instruments – Credit Losses. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: March 31, December 31, 2020 2019 (In millions) Crude oil and natural gas liquids $ 74 $ 92 Materials and supplies 156 169 Total Inventories $ 230 $ 261 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property Plant And Equipment [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 three months ended March 31, 2020 (in millions): Balance at January 1, 2020 $ 584 Additions to capitalized exploratory well costs pending the determination of proved reserves 47 Capitalized exploratory well costs charged to expense (125 ) Balance at March 31, 2020 $ 506 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Cost | Components of net periodic pension cost consisted of the following: Three Months Ended March 31, 2020 2019 (In millions) Service cost $ 14 $ 10 Interest cost (a) 18 24 Expected return on plan assets (a) (45 ) (45 ) Amortization of unrecognized net actuarial losses (a) 12 11 Pension (income) expense (a) $ (1 ) $ — ( a) Net non-service pension cost included in Other, net in the Statement of Consolidated Income in the first quarter of 2020 was income of $15 million (2019: $10 million of income). |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue from Contracts with Customers on a Disaggregated Basis | Revenue from contracts with customers on a disaggregated basis was as follows: Exploration and Production Midstream Eliminations Total United States Guyana Malaysia & JDA Denmark Libya E&P Total (In millions) Three Months Ended March 31, 2020 Sales of our net production volumes: Crude oil revenue $ 656 $ 38 $ 2 $ 36 $ — $ 732 $ — $ — $ 732 Natural gas liquids revenue 49 — — — — 49 — — 49 Natural gas revenue 38 — 139 2 2 181 — — 181 Sales of purchased oil and gas 324 1 — — — 325 — — 325 Intercompany revenue — — — — — — 291 (291 ) — Total sales and other operating revenues before other operating revenues 1,067 39 141 38 2 1,287 291 (291 ) 1,287 Other operating revenues (a) 55 6 1 5 — 67 — — 67 Total sales and other operating revenues $ 1,122 $ 45 $ 142 $ 43 $ 2 $ 1,354 $ 291 $ (291 ) $ 1,354 Three Months Ended March 31, 2019 Sales of our net production volumes: Crude oil revenue $ 682 $ — $ 21 $ 16 $ 91 $ 810 $ — $ — $ 810 Natural gas liquids revenue 68 — — — — 68 — — 68 Natural gas revenue 42 — 180 3 6 231 — — 231 Sales of purchased oil and gas 426 — — — 22 448 — — 448 Intercompany revenue — — — — — — 190 (190 ) — Total sales and other operating revenues before other operating revenues 1,218 — 201 19 119 1,557 190 (190 ) 1,557 Other operating revenues (a) 15 — — — — 15 — — 15 Total sales and other operating revenues $ 1,233 $ — $ 201 $ 19 $ 119 $ 1,572 $ 190 $ (190 ) $ 1,572 (a) Includes gains (losses) on commodity derivatives. |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) and Weighted Average Number of Common Shares Used in 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 March 31, 2020 2019 (In millions) Net income (loss) attributable to Hess Corporation Common Stockholders: Net income (loss) $ (2,366 ) $ 75 Less: Net income (loss) attributable to noncontrolling interests 67 43 Less: Preferred stock dividends — 4 Net income (loss) attributable to Hess Corporation Common Stockholders $ (2,433 ) $ 28 Weighted average number of common shares outstanding: Basic 304.0 297.4 Effect of dilutive securities Restricted common stock — 1.2 Stock options — 0.2 Performance share units — 0.9 Diluted 304.0 299.7 |
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 March 31, 2020 2019 Restricted common stock 2,015,659 57,252 Stock options 4,086,340 3,394,418 Performance share units 1,296,356 65,661 Common shares from conversion of preferred stock — 3,930,663 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 Sales and Other Operating Revenues - Third parties $ 1,354 $ — $ — $ — $ 1,354 Intersegment Revenues — 291 — (291 ) — Sales and Other Operating Revenues $ 1,354 $ 291 $ — $ (291 ) $ 1,354 Net Income (Loss) attributable to Hess Corporation $ (2,371 ) $ 61 $ (123 ) $ — $ (2,433 ) Depreciation, Depletion and Amortization 521 38 2 — 561 Impairment 2,126 — — — 2,126 Provision (Benefit) for Income Taxes (77 ) 2 (4 ) — (79 ) Capital Expenditures 609 57 — — 666 For the Three Months Ended March 31, 2019 Sales and Other Operating Revenues - Third parties $ 1,572 $ — $ — $ — $ 1,572 Intersegment Revenues — 190 — (190 ) — Sales and Other Operating Revenues $ 1,572 $ 190 $ — $ (190 ) $ 1,572 Net Income (Loss) attributable to Hess Corporation $ 109 $ 37 $ (114 ) $ — $ 32 Depreciation, Depletion and Amortization 464 34 — — 498 Provision (Benefit) for Income Taxes 95 — (1 ) — 94 Capital Expenditures 515 127 — — 642 Identifiable assets by operating segment were as follows: March 31, December 31, 2020 2019 (In millions) Exploration and Production $ 14,302 $ 16,790 Midstream 3,519 3,499 Corporate, Interest and Other 2,896 1,493 Total $ 20,717 $ 21,782 |
Financial Risk Management Act_2
Financial Risk Management Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Notional Amounts of Outstanding Financial Risk Management Derivative Contracts | The notional amounts of outstanding financial risk management derivative contracts were as follows: March 31, 2020 December 31, 2019 (In millions) Commodity - crude oil (millions of barrels) 41.3 54.9 Foreign exchange $ 65 $ 90 Interest rate swaps $ 100 $ 100 |
Gross and Net Fair Values of Financial Risk Management Derivative Instruments | The table below reflects the gross and net fair values of risk management derivative instruments and their respective financial statement caption in the Consolidated Balance Sheet Assets Liabilities (In millions) March 31, 2020 Derivative Contracts Designated as Hedging Instruments: Crude oil derivative contracts $ 1,098 $ — Interest rate - Other assets (noncurrent) 6 — Total derivative contracts designated as hedging instruments 1,104 — Derivative Contracts Not Designated as Hedging Instruments: Foreign exchange — (2 ) Total derivative contracts not designated as hedging instruments — (2 ) Gross fair value of derivative contracts 1,104 (2 ) Master netting arrangements — — Net Fair Value of Derivative Contracts $ 1,104 $ (2 ) December 31, 2019 Derivative Contracts Designated as Hedging Instruments: Crude oil derivative contracts $ 125 $ — Interest rate - Other assets (noncurrent) 1 — Total derivative contracts designated as hedging instruments 126 — Derivative Contracts Not Designated as Hedging Instruments: Foreign exchange — (1 ) Total derivative contracts not designated as hedging instruments — (1 ) Gross fair value of derivative contracts 126 (1 ) Master netting arrangements — — Net Fair Value of Derivative Contracts $ 126 $ (1 ) |
Impairment - Additional Informa
Impairment - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)$ / bbl | Mar. 31, 2019USD ($) | |
Impairments [Line Items] | ||
Impairment charge, pre-tax | $ 2,126 | $ 0 |
Bakken | ||
Impairments [Line Items] | ||
Right-of-use assets, impairment charge, pre-tax | 21 | |
Right-of-use assets, impairment charge, after income taxes | 20 | |
Oil and Gas Properties | ||
Impairments [Line Items] | ||
Fair value of estimated impairment charges determined using internal projected discounted cash flows | $ 1,050 | |
Fair value of estimated impairment charges discount rate | 10.00% | |
Weighted average crude oil benchmark price for impaired assets | $ / bbl | 48.82 | |
Oil and Gas Properties | West Texas Intermediate | ||
Impairments [Line Items] | ||
Impairment charge, future flat price | $ / bbl | 50 | |
Oil and Gas Properties | Brent | ||
Impairments [Line Items] | ||
Impairment charge, future flat price | $ / bbl | 55 | |
Oil and Gas Properties | North Malay Basin Field | Malaysia | ||
Impairments [Line Items] | ||
Impairment charge, pre-tax | $ 755 | |
Impairment charge, after income taxes | 755 | |
Oil and Gas Properties | South Arne Field | Denmark | ||
Impairments [Line Items] | ||
Impairment charge, pre-tax | 670 | |
Impairment charge, after income taxes | 594 | |
Oil and Gas Properties | Stampede Field | Gulf of Mexico | ||
Impairments [Line Items] | ||
Impairment charge, pre-tax | 410 | |
Impairment charge, after income taxes | 410 | |
Oil and Gas Properties | Tubular Bells Field | ||
Impairments [Line Items] | ||
Impairment charge, pre-tax | 270 | |
Impairment charge, after income taxes | $ 270 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas liquids | $ 74 | $ 92 |
Materials and supplies | 156 | 169 |
Total Inventories | $ 230 | $ 261 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Inventory Disclosure [Abstract] | |
Charges related to inventories | $ 53 |
Charges related to inventories, after income taxes | $ 52 |
Property Plant and Equipment -
Property Plant and Equipment - Net Changes in Capitalized Exploratory Well Costs (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Capitalized Exploratory Well Costs [Abstract] | |
Beginning balance | $ 584 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 47 |
Capitalized exploratory well costs charged to expense | (125) |
Ending balance | $ 506 |
Property Plant and Equipment _2
Property Plant and Equipment - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Capitalized Exploratory Well Costs [Line Items] | |
Previously capitalized well cost expensed | $ 125 |
Capitalized exploratory well costs that have been capitalized for period greater than one year | 319 |
Northern Portion of Shenzi Field, Gulf of Mexico | |
Capitalized Exploratory Well Costs [Line Items] | |
Previously capitalized well cost expensed | $ 125 |
Project interest percentage | 28.00% |
Oldfield-1 Exploration Well in Gulf of Mexico | |
Capitalized Exploratory Well Costs [Line Items] | |
Well costs incurred and expensed | $ 10 |
Successful Exploration Wells on the Stabroek Block, Offshore Guyana | |
Capitalized Exploratory Well Costs [Line Items] | |
Project interest percentage | 30.00% |
Capitalized well costs percentage | 80.00% |
JDA, Gulf of Thailand | |
Capitalized Exploratory Well Costs [Line Items] | |
Project interest percentage | 50.00% |
Capitalized well costs percentage | 10.00% |
North Malay Basin, offshore Peninsular Malaysia | |
Capitalized Exploratory Well Costs [Line Items] | |
Capitalized well costs percentage | 10.00% |
Project interest percentage | 50.00% |
Hess Midstream LP - Additional
Hess Midstream LP - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 2,080 | $ 1,545 |
Property, plant and equipment, net | 14,811 | 16,814 |
Hess Midstream LP | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 3 | 3 |
Property, plant and equipment, net | 3,029 | 3,010 |
Hess Midstream LP liabilities on a nonrecourse basis to Hess Corporation | $ 1,971 | $ 1,941 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Billions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
JPMorgan Chase Bank N.A. Term Loan Agreement | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 1 |
Loan agreement term | 3 years |
Debt instrument maturity year | Mar. 16, 2023 |
Borrowings | $ 1 |
Debt instrument covenant, ratio | 65.00% |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Borrowings | $ 3.5 |
Revolving credit facility expiration date | May 15, 2023 |
Retirement Plans - Components o
Retirement Plans - Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Service cost | $ 14 | $ 10 |
Interest cost | 18 | 24 |
Expected return on plan assets | (45) | (45) |
Amortization of unrecognized net actuarial losses | 12 | 11 |
Pension (income) expense | $ (1) | $ 0 |
Retirement Plans - Components_2
Retirement Plans - Components of Net Periodic Pension Cost (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Net non-service pension (income) costs included in Other, net | $ (15) | $ (10) |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Corporation's estimated contribution for funded pension plans in 2020 | $ 2,000,000 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Corporation's contribution for funded pension plan during the year to date | $ 1,000,000 |
Revenue - Summary of Revenue fr
Revenue - Summary of Revenue from Contracts with Customers on a Disaggregated Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | $ 1,287 | $ 1,557 |
Other operating revenues (a) | 67 | 15 |
Total sales and other operating revenues | 1,354 | 1,572 |
Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Crude Oil Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 732 | 810 |
Natural Gas Liquids Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 49 | 68 |
Natural Gas Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 181 | 231 |
Sales of Purchased Oil and Gas | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 325 | 448 |
Operating Segments | Exploration and Production | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 1,287 | 1,557 |
Other operating revenues (a) | 67 | 15 |
Total sales and other operating revenues | 1,354 | 1,572 |
Operating Segments | Exploration and Production | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 1,067 | 1,218 |
Other operating revenues (a) | 55 | 15 |
Total sales and other operating revenues | 1,122 | 1,233 |
Operating Segments | Exploration and Production | United States | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Guyana | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 39 | 0 |
Other operating revenues (a) | 6 | 0 |
Total sales and other operating revenues | 45 | 0 |
Operating Segments | Exploration and Production | Guyana | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 141 | 201 |
Other operating revenues (a) | 1 | 0 |
Total sales and other operating revenues | 142 | 201 |
Operating Segments | Exploration and Production | Malaysia & JDA | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 38 | 19 |
Other operating revenues (a) | 5 | 0 |
Total sales and other operating revenues | 43 | 19 |
Operating Segments | Exploration and Production | Denmark | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 2 | 119 |
Other operating revenues (a) | 0 | 0 |
Total sales and other operating revenues | 2 | 119 |
Operating Segments | Exploration and Production | Libya | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Crude Oil Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 732 | 810 |
Operating Segments | Exploration and Production | Crude Oil Revenue | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 656 | 682 |
Operating Segments | Exploration and Production | Crude Oil Revenue | Guyana | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 38 | 0 |
Operating Segments | Exploration and Production | Crude Oil Revenue | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 2 | 21 |
Operating Segments | Exploration and Production | Crude Oil Revenue | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 36 | 16 |
Operating Segments | Exploration and Production | Crude Oil Revenue | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 91 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 49 | 68 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 49 | 68 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | Guyana | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Natural Gas Liquids Revenue | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Natural Gas Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 181 | 231 |
Operating Segments | Exploration and Production | Natural Gas Revenue | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 38 | 42 |
Operating Segments | Exploration and Production | Natural Gas Revenue | Guyana | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Natural Gas Revenue | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 139 | 180 |
Operating Segments | Exploration and Production | Natural Gas Revenue | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 2 | 3 |
Operating Segments | Exploration and Production | Natural Gas Revenue | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 2 | 6 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 325 | 448 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 324 | 426 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | Guyana | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 1 | 0 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | Malaysia & JDA | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | Denmark | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Exploration and Production | Sales of Purchased Oil and Gas | Libya | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 22 |
Operating Segments | Midstream | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 291 | 190 |
Other operating revenues (a) | 0 | 0 |
Total sales and other operating revenues | 291 | 190 |
Operating Segments | Midstream | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 291 | 190 |
Operating Segments | Midstream | Crude Oil Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Midstream | Natural Gas Liquids Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Midstream | Natural Gas Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Operating Segments | Midstream | Sales of Purchased Oil and Gas | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Eliminations | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | (291) | (190) |
Other operating revenues (a) | 0 | 0 |
Total sales and other operating revenues | (291) | (190) |
Eliminations | Intercompany Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | (291) | (190) |
Eliminations | Crude Oil Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Eliminations | Natural Gas Liquids Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Eliminations | Natural Gas Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | 0 | 0 |
Eliminations | Sales of Purchased Oil and Gas | ||
Disaggregation Of Revenue [Line Items] | ||
Total sales and other operating revenues before other operating revenues | $ 0 | $ 0 |
Weighted Average Common Share_2
Weighted Average Common Shares - Net Income (Loss) and Weighted Average Number of Common Shares Used in Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income (loss) attributable to Hess Corporation Common Stockholders: | ||
Net income (loss) | $ (2,366) | $ 75 |
Less: Net income (loss) attributable to noncontrolling interests | 67 | 43 |
Less: Preferred stock dividends | 0 | 4 |
Net Income (Loss) Attributable to Hess Corporation Common Stockholders | $ (2,433) | $ 28 |
Weighted average number of common shares outstanding: | ||
Basic | 304 | 297.4 |
Diluted | 304 | 299.7 |
Restricted Common Stock | ||
Weighted average number of common shares outstanding: | ||
Effect of dilutive securities | 0 | 1.2 |
Stock Options | ||
Weighted average number of common shares outstanding: | ||
Effect of dilutive securities | 0 | 0.2 |
Performance Share Units | ||
Weighted average number of common shares outstanding: | ||
Effect of dilutive securities | 0 | 0.9 |
Weighted Average Common Share_3
Weighted Average Common Shares - Antidilutive Shares Excluded from Computation of Diluted Shares (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares | 2,015,659 | 57,252 |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares | 4,086,340 | 3,394,418 |
Performance Share Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares | 1,296,356 | 65,661 |
Common Shares from Conversion of Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted shares | 0 | 3,930,663 |
Weighted Average Common Share_4
Weighted Average Common Shares - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Shares granted, restricted stock | 1,117,009 | 941,082 |
Shares granted, performance share units | 307,999 | 234,866 |
Shares granted, stock options | 686,639 | 526,968 |
Guarantees and Contingencies -
Guarantees and Contingencies - Additional Information (Detail) $ in Millions | Mar. 04, 2016USD ($) | Mar. 31, 2020USD ($)Case |
MTBE Cases | ||
Loss Contingencies [Line Items] | ||
Total number of remaining active cases filed | Case | 3 | |
Lower Passaic River | ||
Loss Contingencies [Line Items] | ||
Estimated remediation cost | $ 1,380 | |
Gowanus Canal Superfund Site | ||
Loss Contingencies [Line Items] | ||
Estimated remediation cost | $ 506 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020Segment | |
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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | $ 1,354 | $ 1,572 | |
Intersegment revenues | 0 | 0 | |
Total sales and other operating revenues | 1,354 | 1,572 | |
Net Income (Loss) attributable to Hess Corporation | (2,433) | 32 | |
Depreciation, depletion and amortization | 561 | 498 | |
Impairment | 2,126 | ||
Provision (benefit) for income taxes | (79) | 94 | |
Capital Expenditures | 666 | 642 | |
Identifiable assets | 20,717 | $ 21,782 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | 0 | 0 | |
Intersegment revenues | (291) | (190) | |
Total sales and other operating revenues | (291) | (190) | |
Net Income (Loss) attributable to Hess Corporation | 0 | 0 | |
Depreciation, depletion and amortization | 0 | 0 | |
Impairment | 0 | ||
Provision (benefit) for income taxes | 0 | 0 | |
Capital Expenditures | 0 | 0 | |
Exploration and Production | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | 1,354 | 1,572 | |
Intersegment revenues | 0 | 0 | |
Total sales and other operating revenues | 1,354 | 1,572 | |
Net Income (Loss) attributable to Hess Corporation | (2,371) | 109 | |
Depreciation, depletion and amortization | 521 | 464 | |
Impairment | 2,126 | ||
Provision (benefit) for income taxes | (77) | 95 | |
Capital Expenditures | 609 | 515 | |
Identifiable assets | 14,302 | 16,790 | |
Midstream | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | 0 | 0 | |
Intersegment revenues | 291 | 190 | |
Total sales and other operating revenues | 291 | 190 | |
Net Income (Loss) attributable to Hess Corporation | 61 | 37 | |
Depreciation, depletion and amortization | 38 | 34 | |
Impairment | 0 | ||
Provision (benefit) for income taxes | 2 | 0 | |
Capital Expenditures | 57 | 127 | |
Identifiable assets | 3,519 | 3,499 | |
Corporate, Interest and Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues - third-parties | 0 | 0 | |
Intersegment revenues | 0 | 0 | |
Total sales and other operating revenues | 0 | 0 | |
Net Income (Loss) attributable to Hess Corporation | (123) | (114) | |
Depreciation, depletion and amortization | 2 | 0 | |
Impairment | 0 | ||
Provision (benefit) for income taxes | (4) | (1) | |
Capital Expenditures | 0 | $ 0 | |
Identifiable assets | $ 2,896 | $ 1,493 |
Financial Risk Management Act_3
Financial Risk Management Activities - Notional Amounts of Outstanding Financial Risk Management Derivative Contracts (Detail) MMBbls in Millions | Mar. 31, 2020USD ($)MMBbls | Dec. 31, 2019USD ($)MMBbls |
Commodity | ||
Derivative [Line Items] | ||
Commodity - crude oil (millions of barrels) | MMBbls | 41.3 | 54.9 |
Foreign Exchange | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 65,000,000 | $ 90,000,000 |
Interest Rate Swaps | Designated as Fair Value Hedges | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 100,000,000 | $ 100,000,000 |
Financial Risk Management Act_4
Financial Risk Management Activities - Additional Information (Detail) - 2020 - Designated as Cash Flow Hedges | 3 Months Ended |
Mar. 31, 2020bbl / d$ / bbl | |
West Texas Intermediate | |
Derivative Instruments Gain Loss [Line Items] | |
Average monthly floor price | $ / bbl | 55 |
Notional amount of outstanding average barrels of oil per day | bbl / d | 130,000 |
Brent | |
Derivative Instruments Gain Loss [Line Items] | |
Average monthly floor price | $ / bbl | 60 |
Notional amount of outstanding average barrels of oil per day | bbl / d | 20,000 |
Financial Risk Management Act_5
Financial Risk Management Activities - Gross and Net Fair Values (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | $ 1,104 | $ 126 |
Assets - Master netting arrangements | 0 | 0 |
Assets - Net Fair Value of Derivative Contracts | 1,104 | 126 |
Liabilities - Gross fair value of derivative contracts | (2) | (1) |
Liabilities - Master netting arrangements | 0 | 0 |
Liabilities - Net Fair Value of Derivative Contracts | (2) | (1) |
Derivative Contracts Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 1,104 | 126 |
Liabilities - Gross fair value of derivative contracts | 0 | 0 |
Derivative Contracts Designated as Hedging Instruments | Crude Oil Revenue | ||
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 1,098 | 125 |
Liabilities - Gross fair value of derivative contracts | 0 | 0 |
Derivative Contracts Designated as Hedging Instruments | Interest Rate | Other Assets (Noncurrent) | ||
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 6 | 1 |
Liabilities - Gross fair value of derivative contracts | 0 | 0 |
Derivative Contracts Not Designated as Hedging Instruments | ||
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 0 | 0 |
Liabilities - Gross fair value of derivative contracts | (2) | (1) |
Derivative Contracts Not Designated as Hedging Instruments | Foreign Exchange | ||
Derivatives Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 0 | 0 |
Liabilities - Gross fair value of derivative contracts | $ (2) | $ (1) |
Financial Risk Management Act_6
Financial Risk Management Activities - Corporate Financial Risk Management Activities - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Interest Rate Swaps | Designated as Fair Value Hedges | |||
Derivative Instruments Gain Loss [Line Items] | |||
Outstanding gross notional amount | $ 100,000,000 | $ 100,000,000 | |
Unrealized change in fair value of interest rate swaps - (increase in derivative asset) decrease in derivative liability | 5,000,000 | $ (1,000,000) | |
Foreign Exchange | |||
Derivative Instruments Gain Loss [Line Items] | |||
Outstanding gross notional amount | 65,000,000 | $ 90,000,000 | |
Foreign exchange gains (losses) reported in Other, net in the Statement of Consolidated Income | (1,000,000) | 5,000,000 | |
Net gains (losses) on foreign exchange contracts not designated as hedging instruments | 2,000,000 | (1,000,000) | |
Derivative Contracts Designated as Hedging Instruments | Crude Oil | |||
Derivative Instruments Gain Loss [Line Items] | |||
Increased (decreased) sales and other operating revenue | 64,000,000 | $ 15,000,000 | |
Pre-tax deferred income (losses) in Accumulated other comprehensive income (loss) to be reclassified into earnings during the remainder of 2020 | $ 831,000,000 |
Financial Risk Management Act_7
Financial Risk Management Activities - Fair Value Measurements - Additional Information (Detail) $ in Millions | Mar. 31, 2020USD ($) |
Carrying value | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total long-term debt | $ 8,194 |
Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total long-term debt fair value | $ 6,468 |