Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
Document Transition Report | false |
Entity File Number | 1-1204 |
Entity Registrant Name | HESS CORPORATION |
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 |
Title of 12(b) Security | Common Stock |
Trading Symbol | HES |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 309,672,952 |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0000004447 |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 2,430 | $ 1,739 |
Accounts receivable: | ||
From contracts with customers | 856 | 710 |
Joint venture and other | 146 | 150 |
Inventories | 241 | 378 |
Assets held for sale | 228 | 0 |
Other current assets | 68 | 104 |
Total current assets | 3,969 | 3,081 |
Property, plant and equipment: | ||
Total — at cost | 29,942 | 30,519 |
Less: Reserves for depreciation, depletion, amortization and lease impairment | 16,285 | 16,404 |
Property, plant and equipment — net | 13,657 | 14,115 |
Operating lease right-of-use assets — net | 373 | 426 |
Finance lease right-of-use assets — net | 155 | 168 |
Goodwill | 360 | 360 |
Deferred income taxes | 21 | 59 |
Other assets | 631 | 612 |
Total Assets | 19,166 | 18,821 |
Current Liabilities: | ||
Accounts payable | 178 | 200 |
Accrued liabilities | 1,480 | 1,251 |
Taxes payable | 268 | 81 |
Current maturities of long-term debt | 511 | 10 |
Current portion of operating and finance lease obligations | 90 | 81 |
Total current liabilities | 2,527 | 1,623 |
Long-term debt | 7,712 | 8,286 |
Long-term operating lease obligations | 421 | 478 |
Long-term finance lease obligations | 210 | 220 |
Deferred income taxes | 318 | 342 |
Asset retirement obligations | 728 | 894 |
Other liabilities and deferred credits | 718 | 643 |
Total Liabilities | 12,634 | 12,486 |
Hess Corporation stockholders’ equity: | ||
Common stock, par value $1.00; Authorized - 600,000,000 shares, Issued - 309,672,952 shares (2020: 306,980,092) | 310 | 307 |
Capital in excess of par value | 5,859 | 5,684 |
Retained earnings | 155 | 130 |
Accumulated other comprehensive income (loss) | (836) | (755) |
Total Hess Corporation stockholders’ equity | 5,488 | 5,366 |
Noncontrolling interests | 1,044 | 969 |
Total Equity | 6,532 | 6,335 |
Total Liabilities and Equity | $ 19,166 | $ 18,821 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 309,672,952 | 306,980,092 |
STATEMENT OF CONSOLIDATED INCOM
STATEMENT OF CONSOLIDATED INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues and Non-Operating Income | ||||
Sales and other operating revenues | $ 1,579 | $ 833 | $ 3,477 | $ 2,187 |
Other, net | 19 | 9 | 40 | 24 |
Total revenues and non-operating income | 1,598 | 842 | 3,517 | 2,211 |
Costs and Expenses | ||||
Marketing, including purchased oil and gas | 322 | 56 | 840 | 434 |
Operating costs and expenses | 315 | 294 | 580 | 597 |
Production and severance taxes | 44 | 16 | 81 | 58 |
Exploration expenses, including dry holes and lease impairment | 48 | 31 | 81 | 220 |
General and administrative expenses | 84 | 89 | 178 | 191 |
Interest expense | 118 | 119 | 235 | 232 |
Depreciation, depletion and amortization | 385 | 509 | 781 | 1,070 |
Impairment and other | 147 | 0 | 147 | 2,126 |
Total costs and expenses | 1,463 | 1,114 | 2,923 | 4,928 |
Income (Loss) Before Income Taxes | 135 | (272) | 594 | (2,717) |
Provision (benefit) for income taxes | 122 | (9) | 245 | (88) |
Net Income (Loss) | 13 | (263) | 349 | (2,629) |
Less: Net income (loss) attributable to noncontrolling interests | 86 | 57 | 170 | 124 |
Net Income (Loss) Attributable to Hess Corporation | $ (73) | $ (320) | $ 179 | $ (2,753) |
Net Income (Loss) Attributable to Hess Corporation Per Common Share: | ||||
Basic (in dollars per share) | $ (0.24) | $ (1.05) | $ 0.58 | $ (9.04) |
Diluted (in dollars per share) | $ (0.24) | $ (1.05) | $ 0.58 | $ (9.04) |
Weighted Average Number of Common Shares Outstanding: | ||||
Basic (in shares) | 307.5 | 305 | 306.7 | 304.5 |
Diluted (in shares) | 307.5 | 305 | 308.7 | 304.5 |
Common Stock Dividends Per Share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
STATEMENT OF CONSOLIDATED COMPR
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 13 | $ (263) | $ 349 | $ (2,629) |
Derivatives designated as cash flow hedges | ||||
Effect of hedge (gains) losses reclassified to income | 64 | (228) | 115 | (292) |
Income taxes on effect of hedge (gains) losses reclassified to income | 0 | 0 | 0 | 0 |
Net effect of hedge (gains) losses reclassified to income | 64 | (228) | 115 | (292) |
Change in fair value of cash flow hedges | (129) | (214) | (231) | 776 |
Income taxes on change in fair value of cash flow hedges | 0 | 0 | 0 | 0 |
Net change in fair value of cash flow hedges | (129) | (214) | (231) | 776 |
Change in derivatives designated as cash flow hedges, after taxes | (65) | (442) | (116) | 484 |
Pension and other postretirement plans | ||||
(Increase) reduction in unrecognized actuarial losses | (11) | 4 | 3 | 4 |
Income taxes on actuarial changes in plan liabilities | 0 | 0 | 0 | 0 |
(Increase) reduction in unrecognized actuarial losses, net | (11) | 4 | 3 | 4 |
Amortization of net actuarial losses | 16 | 12 | 32 | 24 |
Income taxes on amortization of net actuarial losses | 0 | 0 | 0 | 0 |
Net effect of amortization of net actuarial losses | 16 | 12 | 32 | 24 |
Change in pension and other postretirement plans, after taxes | 5 | 16 | 35 | 28 |
Other Comprehensive Income (Loss) | (60) | (426) | (81) | 512 |
Comprehensive Income (Loss) | (47) | (689) | 268 | (2,117) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 86 | 57 | 170 | 124 |
Comprehensive Income (Loss) Attributable to Hess Corporation | $ (133) | $ (746) | $ 98 | $ (2,241) |
STATEMENT OF CONSOLIDATED CASH
STATEMENT OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 349 | $ (2,629) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
(Gains) losses on asset sales, net | 0 | (8) |
Depreciation, depletion and amortization | 781 | 1,070 |
Impairment and other | 147 | 2,126 |
Exploratory dry hole costs | 9 | 135 |
Exploration lease and other impairment | 10 | 38 |
Pension settlement loss | 4 | 0 |
Stock compensation expense | 44 | 47 |
Noncash (gains) losses on commodity derivatives, net | 88 | 119 |
Provision (benefit) for deferred income taxes and other tax accruals | 42 | (95) |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (315) | 628 |
(Increase) decrease in inventories | 137 | (99) |
Increase (decrease) in accounts payable and accrued liabilities | (56) | (520) |
Increase (decrease) in taxes payable | 187 | (63) |
Changes in other operating assets and liabilities | (51) | (38) |
Net cash provided by (used in) operating activities | 1,376 | 711 |
Cash Flows From Investing Activities | ||
Additions to property, plant and equipment - E&P | (687) | (1,250) |
Additions to property, plant and equipment - Midstream | (53) | (147) |
Proceeds from asset sales, net of cash sold | 297 | 11 |
Other, net | (2) | (2) |
Net cash provided by (used in) investing activities | (445) | (1,388) |
Cash Flows From Financing Activities | ||
Net borrowings (repayments) of debt with maturities of 90 days or less | (75) | 72 |
Debt with maturities of greater than 90 days – Borrowings | 0 | 1,000 |
Debt with maturities of greater than 90 days - Repayments | (5) | 0 |
Proceeds from sale of Class A shares of Hess Midstream LP | 70 | 0 |
Payments on finance lease obligations | (4) | (3) |
Cash dividends paid | (157) | (157) |
Employee stock options exercised | 75 | 15 |
Noncontrolling interests, net | (137) | (128) |
Other, net | (7) | (21) |
Net cash provided by (used in) financing activities | (240) | 778 |
Net Increase (Decrease) in Cash and Cash Equivalents | 691 | 101 |
Cash and Cash Equivalents at Beginning of Year | 1,739 | 1,545 |
Cash and Cash Equivalents at End of Period | $ 2,430 | $ 1,646 |
STATEMENT OF CONSOLIDATED EQUIT
STATEMENT OF CONSOLIDATED EQUITY - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Hess Stockholders' Equity | Noncontrolling Interests |
Balance at Dec. 31, 2019 | $ 9,706 | $ 305 | $ 5,591 | $ 3,535 | $ (699) | $ 8,732 | $ 974 |
Net income (loss) | (2,629) | (2,753) | (2,753) | 124 | |||
Other comprehensive income (loss) | 512 | 512 | 512 | ||||
Share-based compensation | 56 | 2 | 59 | (5) | 56 | ||
Dividends on common stock | (152) | (152) | (152) | ||||
Noncontrolling interests, net | (127) | (127) | |||||
Balance at Jun. 30, 2020 | 7,366 | 307 | 5,650 | 625 | (187) | 6,395 | 971 |
Balance at Mar. 31, 2020 | 8,178 | 307 | 5,633 | 1,021 | 239 | 7,200 | 978 |
Net income (loss) | (263) | (320) | (320) | 57 | |||
Other comprehensive income (loss) | (426) | (426) | (426) | ||||
Share-based compensation | 17 | 17 | 17 | ||||
Dividends on common stock | (76) | (76) | (76) | ||||
Noncontrolling interests, net | (64) | (64) | |||||
Balance at Jun. 30, 2020 | 7,366 | 307 | 5,650 | 625 | (187) | 6,395 | 971 |
Balance at Dec. 31, 2020 | 6,335 | 307 | 5,684 | 130 | (755) | 5,366 | 969 |
Net income (loss) | 349 | 179 | 179 | 170 | |||
Other comprehensive income (loss) | (81) | (81) | (81) | ||||
Share-based compensation | 122 | 3 | 119 | 122 | |||
Dividends on common stock | (154) | (154) | (154) | ||||
Sale of Class A shares of Hess Midstream LP | 97 | 56 | 56 | 41 | |||
Noncontrolling interests, net | (136) | (136) | |||||
Balance at Jun. 30, 2021 | 6,532 | 310 | 5,859 | 155 | (836) | 5,488 | 1,044 |
Balance at Mar. 31, 2021 | 6,643 | 308 | 5,779 | 305 | (776) | 5,616 | 1,027 |
Net income (loss) | 13 | (73) | (73) | 86 | |||
Other comprehensive income (loss) | (60) | (60) | (60) | ||||
Share-based compensation | 82 | 2 | 80 | 82 | |||
Dividends on common stock | (77) | (77) | (77) | ||||
Noncontrolling interests, net | (69) | (69) | |||||
Balance at Jun. 30, 2021 | $ 6,532 | $ 310 | $ 5,859 | $ 155 | $ (836) | $ 5,488 | $ 1,044 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020, the consolidated results of operations for the three and six months ended June 30, 2021 and 2020, and consolidated cash flows for the six months ended June 30, 2021 and 2020. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. The financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by generally accepted accounting principles (GAAP) in the United States have been condensed or omitted from these interim financial statements. These statements, therefore, should be read in conjunction with the consolidated financial statements and related notes included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories Inventories consisted of the following: June 30, December 31, (In millions) Crude oil and natural gas liquids $ 62 $ 226 Materials and supplies 179 152 Total Inventories $ 241 $ 378 At December 31, 2020, crude oil inventories included $164 million associated with the cost of 4.2 million barrels of crude oil transported and stored on two chartered very large crude carriers (VLCCs) for sale in Asian markets. The two VLCC cargos were sold in the first quarter of 2021. In the first quarter of 2020, we recognized charges of $53 million ($52 million after income taxes) in Marketing, including purchased oil and gas to reflect crude oil inventories at net realizable value. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 3. Property, Plant and Equipment Assets Held for Sale: In March 2021, we entered into an agreement to sell our interests in Denmark for total consideration of $150 million, with an effective date of January 1, 2021. At June 30, 2021, property, plant and equipment and operating lease right-of-use assets totaling $228 million, and asset retirement obligations and operating lease liabilities totaling $139 million, associated with our interests in Denmark were presented as Assets held for sale and as liabilities held for sale within Accrued Liabilities , respectively, in our C onsolidated Balance Sheet . Dispositions: In April 2021, we completed the sale of our Little Knife and Murphy Creek nonstrategic acreage interests in the Bakken for net cash consideration of $297 million, after closing adjustments. The sale included approximately 78,700 net acres, which are located in the southernmost portion of the Corporation's Bakken position. The acreage constituted part of a larger amortization base and the sale was treated as a normal retirement. Accordingly, no gain or loss was recognized upon sale. Capitalized Exploratory Well Costs: The following table discloses the net changes in capitalized exploratory well costs pending determination of proved reserves during the six months ended June 30, 2021 (in millions): Balance at January 1, 2021 $ 459 Additions to capitalized exploratory well costs pending the determination of proved reserves 72 Balance at June 30, 2021 $ 531 Capitalized exploratory well costs capitalized for greater than one year following completion of drilling were $375 million at June 30, 2021 and primarily related to: Guyana: Approximately 85% of the capitalized well costs in excess of one year relate to successful exploration wells where hydrocarbons were encountered on the Stabroek Block (Hess 30%), offshore Guyana. The operator plans further appraisal drilling and is conducting pre-development planning for additional phases of development beyond the three previously sanctioned development projects on the Block. 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 5% of the capitalized well costs in excess of one year relate to the North Malay Basin (Hess 50%), offshore Peninsular Malaysia, where hydrocarbons were encountered in one successful exploration well. Subsurface evaluation and pre-development studies are ongoing. |
Hess Midstream LP
Hess Midstream LP | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Hess Midstream LP | 4. Hess Midstream LP In March 2021, the Corporation received net proceeds of $70 million from the public offering of 3,450,000 Hess-owned Class A shares in Hess Midstream LP. The transaction resulted in an increase in Capital in Excess of Par of $56 million and Noncontrolling Interests of $41 million including $14 million from the change in ownership and $27 million from the recognition of a deferred tax asset due to an increase in tax basis of Hess Midstream LP's investment in Hess Midstream Operations LP. After giving effect to this transaction, the Corporation owns an approximate 46% interest in Hess Midstream LP, on a consolidated basis. At June 30, 2021 Hess Midstream LP, a variable interest entity that is fully consolidated by Hess Corporation, had liabilities totaling $1,945 million (December 31, 2020: $2,026 million) that are on a nonrecourse basis to Hess Corporation, while Hess Midstream LP assets available to settle the obligations of Hess Midstream LP include cash and cash equivalents totaling $4 million (December 31, 2020: $3 million), property, plant and equipment with a carrying value of $3,101 million (December 31, 2020: $3,111 million) and an equity-method investment of $102 million (December 31, 2020: $108 million) in the Little Missouri 4 gas processing plant. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 5. Accrued Liabilities Accrued Liabilities consisted of the following: June 30, December 31, (In millions) Accrued capital expenditures $ 351 $ 345 Accrued operating and marketing expenditures 304 325 Accrued payments to royalty and working interest owners 209 170 Current portion of asset retirement obligations 209 105 Liabilities held for sale 139 — Accrued interest on debt 126 126 Accrued compensation and benefits 76 117 Other accruals 66 63 Total Accrued Liabilities $ 1,480 $ 1,251 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 6. Revenue Revenue from contracts with customers on a disaggregated basis was as follows: Exploration and Production Midstream Eliminations Total United States Guyana Malaysia & JDA Other (a) E&P Total (In millions) Three Months Ended June 30, 2021 Sales of our net production volumes: Crude oil revenue $ 661 $ 134 $ 27 $ 135 $ 957 $ — $ — $ 957 Natural gas liquids revenue 120 — — — 120 — — 120 Natural gas revenue 61 — 178 1 240 — — 240 Sales of purchased oil and gas 299 4 — 26 329 — — 329 Intercompany revenue — — — — — 294 (294) — Total revenues from contracts with customers 1,141 138 205 162 1,646 294 (294) 1,646 Other operating revenues (b) (53) (6) — (8) (67) — — (67) Total sales and other operating revenues $ 1,088 $ 132 $ 205 $ 154 $ 1,579 $ 294 $ (294) $ 1,579 Three Months Ended June 30, 2020 Sales of our net production volumes: Crude oil revenue $ 254 $ 31 $ 1 $ 14 $ 300 $ — $ — $ 300 Natural gas liquids revenue 43 — — — 43 — — 43 Natural gas revenue 32 — 89 2 123 — — 123 Sales of purchased oil and gas 143 — — — 143 — — 143 Intercompany revenue — — — — — 270 (270) — Total revenues from contracts with customers 472 31 90 16 609 270 (270) 609 Other operating revenues (b) 188 27 — 9 224 — — 224 Total sales and other operating revenues $ 660 $ 58 $ 90 $ 25 $ 833 $ 270 $ (270) $ 833 Six Months Ended June 30, 2021 Sales of our net production volumes: Crude oil revenue $ 1,546 $ 315 $ 49 $ 251 $ 2,161 $ — $ — $ 2,161 Natural gas liquids revenue 263 — — — 263 — — 263 Natural gas revenue 174 — 341 4 519 — — 519 Sales of purchased oil and gas 597 8 — 45 650 — — 650 Intercompany revenue — — — — — 583 (583) — Total revenues from contracts with customers 2,580 323 390 300 3,593 583 (583) 3,593 Other operating revenues (b) (94) (10) — (12) (116) — — (116) Total sales and other operating revenues $ 2,486 $ 313 $ 390 $ 288 $ 3,477 $ 583 $ (583) $ 3,477 Six Months Ended June 30, 2020 Sales of our net production volumes: Crude oil revenue $ 919 $ 69 $ 3 $ 50 $ 1,041 $ — $ — $ 1,041 Natural gas liquids revenue 91 — — — 91 — — 91 Natural gas revenue 70 — 228 6 304 — — 304 Sales of purchased oil and gas 459 1 — — 460 — — 460 Intercompany revenue — — — — — 561 (561) — Total revenues from contracts with customers 1,539 70 231 56 1,896 561 (561) 1,896 Other operating revenues (b) 243 33 1 14 291 — — 291 Total sales and other operating revenues $ 1,782 $ 103 $ 232 $ 70 $ 2,187 $ 561 $ (561) $ 2,187 (a) Other includes our interests in Denmark and Libya. (b) Includes gains (losses) on commodity derivatives. There have been no significant changes to contracts with customers or composition thereof during the six months ended June 30, 2021. 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. |
Impairment and Other
Impairment and Other | 6 Months Ended |
Jun. 30, 2021 | |
Asset Impairment Charges [Abstract] | |
Impairment and Other | 7. Impairment and Other In June 2021, the U.S. Bankruptcy Court approved the bankruptcy plan for Fieldwood Energy LLC (Fieldwood) which includes transferring abandonment obligations of Fieldwood to predecessors in title of certain of its assets, who are jointly and severally liable for the obligations. Second quarter 2021 results include a charge of $147 million ($147 million after income taxes) in connection with total estimated abandonment obligations in the West Delta 79/86 Field (West Delta Field), which we sold to a Fieldwood predecessor in 2004. See Note 10 , Guarantees and Contingencies . First quarter 2020 results include noncash impairment charges totaling $2.1 billion ($2.0 billion after income taxes) related to our oil and gas properties at North Malay Basin in Malaysia, the South Arne Field in Denmark, and the Stampede and Tubular Bells fields in the Gulf of Mexico, primarily as a result of a lower long-term crude oil price outlook. Other 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. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | 8. Retirement Plans Components of net periodic pension cost consisted of the following: Three Months Ended Six Months Ended 2021 2020 2021 2020 (In millions) Service cost $ 13 $ 14 $ 27 $ 28 Interest cost (a) 14 19 28 37 Expected return on plan assets (a) (49) (45) (99) (90) Amortization of unrecognized net actuarial losses (a) 13 12 28 24 Settlement loss (a) 3 — 4 — Pension (income) expense (a) $ (6) $ — $ (12) $ (1) ( a) Net non-service pension cost included in Other, net in the Statement of Consolidated Income for the three and six months ended June 30, 2021 was income of $19 million and $39 million, respectively, compared with income of $14 million and $29 million for the three and six months ended June 30, 2020, respectively. In 2021, we expect to contribute approximately $10 million to our funded pension plans. |
Weighted Average Common Shares
Weighted Average Common Shares | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended 2021 2020 2021 2020 (In millions) Net income (loss) attributable to Hess Corporation: Net income (loss) $ 13 $ (263) $ 349 $ (2,629) Less: Net income (loss) attributable to noncontrolling interests 86 57 170 124 Net income (loss) attributable to Hess Corporation $ (73) $ (320) $ 179 $ (2,753) Weighted average number of common shares outstanding: Basic 307.5 305.0 306.7 304.5 Effect of dilutive securities Restricted common stock — — 0.7 — Stock options — — 0.5 — Performance share units — — 0.8 — Diluted 307.5 305.0 308.7 304.5 The following table summarizes the number of antidilutive shares excluded from the computation of diluted shares: Three Months Ended Six Months Ended 2021 2020 2021 2020 Restricted common stock 1,641,860 2,173,061 94,726 2,094,360 Stock options 2,562,983 4,429,642 832,454 4,239,533 Performance share units 1,161,324 992,166 39,608 1,144,261 During the six months ended June 30, 2021, we granted 705,489 shares of restricted stock (2020: 1,120,356), 205,155 performance share units (2020: 307,999) and 319,295 stock options (2020: 686,639). |
Guarantees and Contingencies
Guarantees and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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 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. The ROD does not address the upper nine miles of the Lower Passaic River or the Newark Bay, 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 final remedy for the entirety of the Lower Passaic River or the Newark Bay, 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 our former terminal did not store or use contaminants which are of concern in the river sediments and could not have contributed contamination along the river’s length. Further, there are numerous other parties who we expect will bear the cost of remediation and damages. 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; however, the ultimate costs that will be incurred in connection with the design and implementation of the remedy remain uncertain. We have complied with the EPA’s March 2014 Administrative Order and contributed funding for the Remedial Design based on an allocation of costs among the parties determined by a third-party expert. In January 2020, we received an additional Administrative Order from the EPA requiring us and several other parties to begin Remedial Action along the uppermost portion of the Canal. We intend to comply with this Administrative Order. The remediation work began in the fourth quarter of 2020. Based on currently known facts and circumstances, we do not believe that this matter will result in a significant liability to us, and the costs will continue to be allocated amongst the parties, as they were for the Remedial Design. From time to time, we are involved in other judicial and administrative proceedings relating to environmental matters. 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. Beginning in 2017, certain states, municipalities and private associations in California, Delaware, Maryland, Rhode Island and South Carolina separately filed lawsuits against oil, gas and coal producers, including us, for alleged damages purportedly caused by climate change. These proceedings include claims for monetary damages and injunctive relief. Beginning in 2013, various parishes in Louisiana filed suit against approximately 100 oil and gas companies, including us, alleging that the companies’ operations and activities in certain fields violated the State and Local Coastal Resource Management Act of 1978, as amended, and caused contamination, subsidence and other environmental damages to land and water bodies located in the coastal zone of Louisiana. The plaintiffs seek, among other things, the payment of the costs necessary to clear, re-vegetate and otherwise restore the allegedly impacted areas. The ultimate impact of such climate and other aforementioned environmental 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. In August 2020, Fieldwood and related entities filed for bankruptcy relief under Chapter 11 of the U.S. Bankruptcy Code. Fieldwood’s Bankruptcy Plan, which was approved by the U.S. Bankruptcy Court in June 2021, includes the abandonment of certain assets, including seven offshore Gulf of Mexico leases and related facilities in the West Delta Field that were formerly owned by us and sold to a Fieldwood predecessor in 2004, and the discharge of Fieldwood’s obligation to decommission these facilities. As a result, in the next nine months, we expect to receive an Order from the Bureau of Safety and Environmental Enforcement (BSEE) requiring us to decommission the facilities on the seven West Delta leases. Our alleged decommissioning obligation derives from our former ownership of the facilities. We intend to comply with BSEE’s Order once we receive it. We also intend to seek contribution from other parties that owned an interest in the facilities. As of June 30, 2021, we accrued a loss contingency of $147 million ($147 million after income taxes) in connection with total estimated abandonment obligations in the West Delta Field. Potential recoveries from other parties that previously owned an interest in the West Delta Field have not been recognized as of June 30, 2021. We are also involved in other judicial and administrative proceedings from time to time in addition to the matters described above, including claims related to post-production deductions from royalty payments. We may also be exposed to future decommissioning liabilities for divested assets in the event the current or future owners are determined to be unable to perform such actions, whether due to bankruptcy or otherwise. 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Sales and Other Operating Revenues - Third parties $ 1,579 $ — $ — $ — $ 1,579 Intersegment Revenues — 294 — (294) — Sales and Other Operating Revenues $ 1,579 $ 294 $ — $ (294) $ 1,579 Net Income (Loss) attributable to Hess Corporation $ (25) $ 76 $ (124) $ — $ (73) Depreciation, Depletion and Amortization 344 41 — — 385 Impairment and other 147 — — — 147 Provision (Benefit) for Income Taxes 119 3 — — 122 Capital Expenditures 396 47 — — 443 For the Three Months Ended June 30, 2020 Sales and Other Operating Revenues - Third parties $ 833 $ — $ — $ — $ 833 Intersegment Revenues — 270 — (270) — Sales and Other Operating Revenues $ 833 $ 270 $ — $ (270) $ 833 Net Income (Loss) attributable to Hess Corporation $ (249) $ 51 $ (122) $ — $ (320) Depreciation, Depletion and Amortization 470 39 — — 509 Provision (Benefit) for Income Taxes (11) 2 — — (9) Capital Expenditures 428 79 — — 507 For the Six Months Ended June 30, 2021 Sales and Other Operating Revenues - Third parties $ 3,477 $ — $ — $ — $ 3,477 Intersegment Revenues — 583 — (583) — Sales and Other Operating Revenues $ 3,477 $ 583 $ — $ (583) $ 3,477 Net Income (Loss) attributable to Hess Corporation $ 283 $ 151 $ (255) $ — $ 179 Depreciation, Depletion and Amortization 699 81 1 — 781 Impairment and other 147 — — — 147 Provision (Benefit) for Income Taxes 239 6 — — 245 Capital Expenditures 676 70 — — 746 For the Six Months Ended June 30, 2020 Sales and Other Operating Revenues - Third parties $ 2,187 $ — $ — $ — $ 2,187 Intersegment Revenues — 561 — (561) — Sales and Other Operating Revenues $ 2,187 $ 561 $ — $ (561) $ 2,187 Net Income (Loss) attributable to Hess Corporation $ (2,620) $ 112 $ (245) $ — $ (2,753) Depreciation, Depletion and Amortization 991 77 2 — 1,070 Impairment and other 2,126 — — — 2,126 Provision (Benefit) for Income Taxes (88) 4 (4) — (88) Capital Expenditures 1,037 136 — — 1,173 Identifiable assets by operating segment were as follows: June 30, December 31, (In millions) Exploration and Production $ 13,753 $ 13,688 Midstream 3,587 3,599 Corporate, Interest and Other 1,826 1,534 Total $ 19,166 $ 18,821 |
Financial Risk Management Activ
Financial Risk Management Activities | 6 Months Ended |
Jun. 30, 2021 | |
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. 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 or establish a floor price for a portion of our crude oil or natural gas production. Forward contracts may be used to purchase certain currencies in which we conduct business with the intent of reducing exposure to foreign currency fluctuations. At June 30, 2021, these forward contracts relate to the British Pound, Canadian Dollar and Malaysian Ringgit. 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: June 30, December 31, (In millions) Commodity - crude oil put options (millions of barrels) 27.6 27.4 Foreign exchange forwards $ 91 $ 163 Interest rate swaps $ 100 $ 100 As of June 30, 2021, we have West Texas Intermediate (WTI) put options of 120,000 barrels of oil per day (bopd) with an average monthly floor price of $55 per barrel and Brent put options of 30,000 bopd with an average monthly floor price of $60 per barrel for the remainder of 2021. The table below reflects the fair values of risk management derivative instruments. Assets Liabilities (In millions) June 30, 2021 Derivative Contracts Designated as Hedging Instruments: Crude oil put options $ 19 $ — Interest rate swaps 4 — Total derivative contracts designated as hedging instruments 23 — Derivative Contracts Not Designated as Hedging Instruments: Foreign exchange forwards — — Total derivative contracts not designated as hedging instruments — — Gross fair value of derivative contracts 23 — Gross amounts offset in the Consolidated Balance Sheet — — Net Amounts Presented in the Consolidated Balance Sheet $ 23 $ — December 31, 2020 Derivative Contracts Designated as Hedging Instruments: Crude oil put options $ 64 $ — Crude oil swaps — (54) Interest rate swaps 5 — Total derivative contracts designated as hedging instruments 69 (54) Derivative Contracts Not Designated as Hedging Instruments: Foreign exchange forwards — (1) Total derivative contracts not designated as hedging instruments — (1) Gross fair value of derivative contracts 69 (55) Gross amounts offset in the Consolidated Balance Sheet (13) 13 Net Amounts Presented in the Consolidated Balance Sheet $ 56 $ (42) During the first quarter of 2021, we completed the sale of 4.2 million barrels of Bakken crude oil transported and stored on two VLCCs during 2020 for sale in Asian markets. We recognized net losses of $4 million from crude oil hedging contracts associated with the VLCC volumes in the first quarter of 2021. The fair value of our crude oil put options is presented within Other current assets in our Consolidated Balance Sheet . The fair value of our interest rate swaps is presented within Other assets in our Consolidated Balance Sheet . The fair value of our foreign exchange forwards is presented within Accrued liabilities in our Consolidated Balance Sheet . All fair values in the table above are based on Level 2 inputs. Derivative contracts designated as hedging instruments: Crude oil derivatives designated as cash flow hedges: Crude oil hedging contracts decreased Sales and other operating revenues by $64 million and $115 million in the three and six months ended June 30, 2021, respectively. In the three and six months ended June 30, 2020, crude oil hedging contracts increased Sales and other operating revenues by $228 million and $292 million, respectively. At June 30, 2021, pre-tax deferred losses in Accumulated other comprehensive income (loss) related to outstanding crude oil put option contracts were $112 million, all of which will be reclassified into earnings during the remainder of 2021 as the hedged crude oil sales are recognized in earnings. Interest rate swaps designated as fair value hedges: At June 30, 2021 and December 31, 2020, 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 from fixed to floating rates. Changes in the fair value of interest rate swaps and the hedged fixed-rate debt are recorded in Interest expense in the Statement of Consolidated Income . In the three and six months ended June 30, 2021, the change in fair value of interest rate swaps was a decrease in the asset of nil and $1 million, respectively, compared with an increase in the asset of $1 million and $6 million in the three and six months ended June 30, 2020, respectively, 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 losses of $1 million and $2 million in the three and six months ended June 30, 2021, respectively, compared with losses of $2 million and $3 million in the three and six months ended June 30, 2020, respectively. A component of foreign exchange gains and losses is the result of foreign exchange derivative contracts that are not designated as hedges which amounted to net gains of $1 million and nil in the three and six months ended June 30, 2021, respectively, compared with net gains of $1 million and $3 million in the three and six months ended June 30, 2020, respectively. Fair Value Measurement: |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events In July 2021, we repaid $500 million principal amount of our $1 billion term loan, which matures in March 2023. At June 30, 2021, the $500 million which was repaid in July has been classified as Current maturities of long-term debt in our Consolidated Balance Sheet . |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: June 30, December 31, (In millions) Crude oil and natural gas liquids $ 62 $ 226 Materials and supplies 179 152 Total Inventories $ 241 $ 378 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021 (in millions): Balance at January 1, 2021 $ 459 Additions to capitalized exploratory well costs pending the determination of proved reserves 72 Balance at June 30, 2021 $ 531 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued Liabilities consisted of the following: June 30, December 31, (In millions) Accrued capital expenditures $ 351 $ 345 Accrued operating and marketing expenditures 304 325 Accrued payments to royalty and working interest owners 209 170 Current portion of asset retirement obligations 209 105 Liabilities held for sale 139 — Accrued interest on debt 126 126 Accrued compensation and benefits 76 117 Other accruals 66 63 Total Accrued Liabilities $ 1,480 $ 1,251 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Other (a) E&P Total (In millions) Three Months Ended June 30, 2021 Sales of our net production volumes: Crude oil revenue $ 661 $ 134 $ 27 $ 135 $ 957 $ — $ — $ 957 Natural gas liquids revenue 120 — — — 120 — — 120 Natural gas revenue 61 — 178 1 240 — — 240 Sales of purchased oil and gas 299 4 — 26 329 — — 329 Intercompany revenue — — — — — 294 (294) — Total revenues from contracts with customers 1,141 138 205 162 1,646 294 (294) 1,646 Other operating revenues (b) (53) (6) — (8) (67) — — (67) Total sales and other operating revenues $ 1,088 $ 132 $ 205 $ 154 $ 1,579 $ 294 $ (294) $ 1,579 Three Months Ended June 30, 2020 Sales of our net production volumes: Crude oil revenue $ 254 $ 31 $ 1 $ 14 $ 300 $ — $ — $ 300 Natural gas liquids revenue 43 — — — 43 — — 43 Natural gas revenue 32 — 89 2 123 — — 123 Sales of purchased oil and gas 143 — — — 143 — — 143 Intercompany revenue — — — — — 270 (270) — Total revenues from contracts with customers 472 31 90 16 609 270 (270) 609 Other operating revenues (b) 188 27 — 9 224 — — 224 Total sales and other operating revenues $ 660 $ 58 $ 90 $ 25 $ 833 $ 270 $ (270) $ 833 Six Months Ended June 30, 2021 Sales of our net production volumes: Crude oil revenue $ 1,546 $ 315 $ 49 $ 251 $ 2,161 $ — $ — $ 2,161 Natural gas liquids revenue 263 — — — 263 — — 263 Natural gas revenue 174 — 341 4 519 — — 519 Sales of purchased oil and gas 597 8 — 45 650 — — 650 Intercompany revenue — — — — — 583 (583) — Total revenues from contracts with customers 2,580 323 390 300 3,593 583 (583) 3,593 Other operating revenues (b) (94) (10) — (12) (116) — — (116) Total sales and other operating revenues $ 2,486 $ 313 $ 390 $ 288 $ 3,477 $ 583 $ (583) $ 3,477 Six Months Ended June 30, 2020 Sales of our net production volumes: Crude oil revenue $ 919 $ 69 $ 3 $ 50 $ 1,041 $ — $ — $ 1,041 Natural gas liquids revenue 91 — — — 91 — — 91 Natural gas revenue 70 — 228 6 304 — — 304 Sales of purchased oil and gas 459 1 — — 460 — — 460 Intercompany revenue — — — — — 561 (561) — Total revenues from contracts with customers 1,539 70 231 56 1,896 561 (561) 1,896 Other operating revenues (b) 243 33 1 14 291 — — 291 Total sales and other operating revenues $ 1,782 $ 103 $ 232 $ 70 $ 2,187 $ 561 $ (561) $ 2,187 (a) Other includes our interests in Denmark and Libya. (b) Includes gains (losses) on commodity derivatives. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost | Components of net periodic pension cost consisted of the following: Three Months Ended Six Months Ended 2021 2020 2021 2020 (In millions) Service cost $ 13 $ 14 $ 27 $ 28 Interest cost (a) 14 19 28 37 Expected return on plan assets (a) (49) (45) (99) (90) Amortization of unrecognized net actuarial losses (a) 13 12 28 24 Settlement loss (a) 3 — 4 — Pension (income) expense (a) $ (6) $ — $ (12) $ (1) ( a) Net non-service pension cost included in Other, net in the Statement of Consolidated Income for the three and six months ended June 30, 2021 was income of $19 million and $39 million, respectively, compared with income of $14 million and $29 million for the three and six months ended June 30, 2020, respectively. |
Weighted Average Common Shares
Weighted Average Common Shares (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended 2021 2020 2021 2020 (In millions) Net income (loss) attributable to Hess Corporation: Net income (loss) $ 13 $ (263) $ 349 $ (2,629) Less: Net income (loss) attributable to noncontrolling interests 86 57 170 124 Net income (loss) attributable to Hess Corporation $ (73) $ (320) $ 179 $ (2,753) Weighted average number of common shares outstanding: Basic 307.5 305.0 306.7 304.5 Effect of dilutive securities Restricted common stock — — 0.7 — Stock options — — 0.5 — Performance share units — — 0.8 — Diluted 307.5 305.0 308.7 304.5 |
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 Six Months Ended 2021 2020 2021 2020 Restricted common stock 1,641,860 2,173,061 94,726 2,094,360 Stock options 2,562,983 4,429,642 832,454 4,239,533 Performance share units 1,161,324 992,166 39,608 1,144,261 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Operating Segment | 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 June 30, 2021 Sales and Other Operating Revenues - Third parties $ 1,579 $ — $ — $ — $ 1,579 Intersegment Revenues — 294 — (294) — Sales and Other Operating Revenues $ 1,579 $ 294 $ — $ (294) $ 1,579 Net Income (Loss) attributable to Hess Corporation $ (25) $ 76 $ (124) $ — $ (73) Depreciation, Depletion and Amortization 344 41 — — 385 Impairment and other 147 — — — 147 Provision (Benefit) for Income Taxes 119 3 — — 122 Capital Expenditures 396 47 — — 443 For the Three Months Ended June 30, 2020 Sales and Other Operating Revenues - Third parties $ 833 $ — $ — $ — $ 833 Intersegment Revenues — 270 — (270) — Sales and Other Operating Revenues $ 833 $ 270 $ — $ (270) $ 833 Net Income (Loss) attributable to Hess Corporation $ (249) $ 51 $ (122) $ — $ (320) Depreciation, Depletion and Amortization 470 39 — — 509 Provision (Benefit) for Income Taxes (11) 2 — — (9) Capital Expenditures 428 79 — — 507 For the Six Months Ended June 30, 2021 Sales and Other Operating Revenues - Third parties $ 3,477 $ — $ — $ — $ 3,477 Intersegment Revenues — 583 — (583) — Sales and Other Operating Revenues $ 3,477 $ 583 $ — $ (583) $ 3,477 Net Income (Loss) attributable to Hess Corporation $ 283 $ 151 $ (255) $ — $ 179 Depreciation, Depletion and Amortization 699 81 1 — 781 Impairment and other 147 — — — 147 Provision (Benefit) for Income Taxes 239 6 — — 245 Capital Expenditures 676 70 — — 746 For the Six Months Ended June 30, 2020 Sales and Other Operating Revenues - Third parties $ 2,187 $ — $ — $ — $ 2,187 Intersegment Revenues — 561 — (561) — Sales and Other Operating Revenues $ 2,187 $ 561 $ — $ (561) $ 2,187 Net Income (Loss) attributable to Hess Corporation $ (2,620) $ 112 $ (245) $ — $ (2,753) Depreciation, Depletion and Amortization 991 77 2 — 1,070 Impairment and other 2,126 — — — 2,126 Provision (Benefit) for Income Taxes (88) 4 (4) — (88) Capital Expenditures 1,037 136 — — 1,173 Identifiable assets by operating segment were as follows: June 30, December 31, (In millions) Exploration and Production $ 13,753 $ 13,688 Midstream 3,587 3,599 Corporate, Interest and Other 1,826 1,534 Total $ 19,166 $ 18,821 |
Financial Risk Management Act_2
Financial Risk Management Activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, December 31, (In millions) Commodity - crude oil put options (millions of barrels) 27.6 27.4 Foreign exchange forwards $ 91 $ 163 Interest rate swaps $ 100 $ 100 |
Fair Values of Financial Risk Management Derivative Instruments | The table below reflects the fair values of risk management derivative instruments. Assets Liabilities (In millions) June 30, 2021 Derivative Contracts Designated as Hedging Instruments: Crude oil put options $ 19 $ — Interest rate swaps 4 — Total derivative contracts designated as hedging instruments 23 — Derivative Contracts Not Designated as Hedging Instruments: Foreign exchange forwards — — Total derivative contracts not designated as hedging instruments — — Gross fair value of derivative contracts 23 — Gross amounts offset in the Consolidated Balance Sheet — — Net Amounts Presented in the Consolidated Balance Sheet $ 23 $ — December 31, 2020 Derivative Contracts Designated as Hedging Instruments: Crude oil put options $ 64 $ — Crude oil swaps — (54) Interest rate swaps 5 — Total derivative contracts designated as hedging instruments 69 (54) Derivative Contracts Not Designated as Hedging Instruments: Foreign exchange forwards — (1) Total derivative contracts not designated as hedging instruments — (1) Gross fair value of derivative contracts 69 (55) Gross amounts offset in the Consolidated Balance Sheet (13) 13 Net Amounts Presented in the Consolidated Balance Sheet $ 56 $ (42) |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas liquids | $ 62 | $ 226 |
Materials and supplies | 179 | 152 |
Total Inventories | $ 241 | $ 378 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) bbl in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021vlcc | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($)vlccbbl | |
Inventory [Line Items] | ||||
Cost of crude oil | $ 62 | $ 226 | ||
Charges related to inventories | $ 53 | |||
Charges related to inventories, after income taxes | $ 52 | |||
Very Large Crude Carriers (VLCCs) | ||||
Inventory [Line Items] | ||||
Cost of crude oil | $ 164 | |||
Crude oil loaded in very large crude carriers (in barrels of oil) | bbl | 4.2 | |||
Number of very large crude carriers | vlcc | 2 | |||
Number of VLCCs cargos sold | vlcc | 2 |
Property, Plant, and Equipment
Property, Plant, and Equipment - Assets Held for Sale - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Long Lived Assets Held-for-sale [Line Items] | |||
Assets held for sale | $ 228 | $ 0 | |
Liabilities held for sale | 139 | $ 0 | |
Asset Held For Sale | Denmark | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Expected proceeds from divestiture of businesses and interest in affiliates | $ 150 | ||
Assets held for sale | 228 | ||
Liabilities held for sale | $ 139 |
Property, Plant and Equipment -
Property, Plant and Equipment - Net Changes in Capitalized Exploratory Well Costs (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Property, Plant and Equipment [Abstract] | |
Beginning balance | $ 459 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 72 |
Ending balance | $ 531 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) $ in Millions | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2021USD ($)a | Jun. 30, 2021USD ($)well | Jun. 30, 2020USD ($) | |
Capitalized Exploratory Well Costs [Line Items] | |||
Proceeds from asset sales, net of cash sold | $ 297 | $ 11 | |
Capitalized exploratory well costs that have been capitalized for period greater than one year | $ 375 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Little Knife And Murphy Creek | |||
Capitalized Exploratory Well Costs [Line Items] | |||
Proceeds from asset sales, net of cash sold | $ 297 | ||
Developed and undeveloped acreage sold | a | 78,700 | ||
Stabroek Block, Offshore Guyana | |||
Capitalized Exploratory Well Costs [Line Items] | |||
Capitalized well costs percentage | 85.00% | ||
Project interest percentage | 30.00% | ||
JDA, Gulf of Thailand | |||
Capitalized Exploratory Well Costs [Line Items] | |||
Capitalized well costs percentage | 10.00% | ||
Project interest percentage | 50.00% | ||
Number of successful exploration wells drilled | well | 3 | ||
North Malay Basin, Offshore Peninsular Malaysia | |||
Capitalized Exploratory Well Costs [Line Items] | |||
Capitalized well costs percentage | 5.00% | ||
Project interest percentage | 50.00% | ||
Number of successful exploration wells drilled | well | 1 |
Hess Midstream LP (Detail)
Hess Midstream LP (Detail) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | ||||
Proceeds from sale of Class A shares of Hess Midstream LP | $ 70 | $ 70 | $ 0 | |
Number of Class A shares of subsidiary public offering (in shares) | 3,450 | |||
Sale of Class A shares of Hess Midstream LP | 97 | |||
Liabilities | 12,634 | $ 12,486 | ||
Cash and cash equivalents | 2,430 | 1,739 | ||
Property, plant and equipment, net | 13,657 | 14,115 | ||
Capital in Excess of Par | ||||
Variable Interest Entity [Line Items] | ||||
Sale of Class A shares of Hess Midstream LP | $ 56 | 56 | ||
Noncontrolling Interests | ||||
Variable Interest Entity [Line Items] | ||||
Sale of Class A shares of Hess Midstream LP | 41 | 41 | ||
Noncontrolling Interests | Change In Ownership | ||||
Variable Interest Entity [Line Items] | ||||
Sale of Class A shares of Hess Midstream LP | 14 | |||
Noncontrolling Interests | Recognition Of Deferred Tax Asset | ||||
Variable Interest Entity [Line Items] | ||||
Sale of Class A shares of Hess Midstream LP | $ 27 | |||
Variable Interest Entity | ||||
Variable Interest Entity [Line Items] | ||||
Percent interest in consolidated entity | 46.00% | |||
Variable Interest Entity | Hess Midstream LP | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 4 | 3 | ||
Property, plant and equipment, net | 3,101 | 3,111 | ||
Variable Interest Entity | Hess Midstream LP | Nonrecourse | ||||
Variable Interest Entity [Line Items] | ||||
Liabilities | 1,945 | 2,026 | ||
Variable Interest Entity | Hess Midstream LP | Little Missouri Four | ||||
Variable Interest Entity [Line Items] | ||||
Equity Method Investments | $ 102 | $ 108 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued capital expenditures | $ 351 | $ 345 |
Accrued operating and marketing expenditures | 304 | 325 |
Accrued payments to royalty and working interest owners | 209 | 170 |
Current portion of asset retirement obligations | 209 | 105 |
Liabilities held for sale | 139 | 0 |
Accrued interest on debt | 126 | 126 |
Accrued compensation and benefits | 76 | 117 |
Other accruals | 66 | 63 |
Accrued liabilities | $ 1,480 | $ 1,251 |
Revenue (Detail)
Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | $ 1,646 | $ 609 | $ 3,593 | $ 1,896 |
Other operating revenues | (67) | 224 | (116) | 291 |
Total sales and other operating revenues | 1,579 | 833 | 3,477 | 2,187 |
Crude oil revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 957 | 300 | 2,161 | 1,041 |
Natural gas liquids revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 120 | 43 | 263 | 91 |
Natural gas revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 240 | 123 | 519 | 304 |
Sales of purchased oil and gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 329 | 143 | 650 | 460 |
Exploration and Production | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | 1,579 | 833 | 3,477 | 2,187 |
Exploration and Production | Crude oil revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 957 | 300 | 2,161 | 1,041 |
Exploration and Production | Crude oil revenue | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 661 | 254 | 1,546 | 919 |
Exploration and Production | Crude oil revenue | Guyana | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 134 | 31 | 315 | 69 |
Exploration and Production | Crude oil revenue | Malaysia & JDA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 27 | 1 | 49 | 3 |
Exploration and Production | Crude oil revenue | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 135 | 14 | 251 | 50 |
Exploration and Production | Natural gas liquids revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 120 | 43 | 263 | 91 |
Exploration and Production | Natural gas liquids revenue | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 120 | 43 | 263 | 91 |
Exploration and Production | Natural gas liquids revenue | Guyana | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Exploration and Production | Natural gas liquids revenue | Malaysia & JDA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Exploration and Production | Natural gas liquids revenue | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Exploration and Production | Natural gas revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 240 | 123 | 519 | 304 |
Exploration and Production | Natural gas revenue | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 61 | 32 | 174 | 70 |
Exploration and Production | Natural gas revenue | Guyana | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Exploration and Production | Natural gas revenue | Malaysia & JDA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 178 | 89 | 341 | 228 |
Exploration and Production | Natural gas revenue | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1 | 2 | 4 | 6 |
Exploration and Production | Sales of purchased oil and gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 329 | 143 | 650 | 460 |
Exploration and Production | Sales of purchased oil and gas | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 299 | 143 | 597 | 459 |
Exploration and Production | Sales of purchased oil and gas | Guyana | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 4 | 0 | 8 | 1 |
Exploration and Production | Sales of purchased oil and gas | Malaysia & JDA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Exploration and Production | Sales of purchased oil and gas | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 26 | 0 | 45 | 0 |
Midstream | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | 0 | 0 | 0 | 0 |
Midstream | Crude oil revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Midstream | Natural gas liquids revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Midstream | Natural gas revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Midstream | Sales of purchased oil and gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | (294) | (270) | (583) | (561) |
Other operating revenues | 0 | 0 | 0 | 0 |
Total sales and other operating revenues | (294) | (270) | (583) | (561) |
Eliminations | Exploration and Production | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Total sales and other operating revenues | 0 | 0 | 0 | 0 |
Eliminations | Exploration and Production | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Exploration and Production | Guyana | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Exploration and Production | Malaysia & JDA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Exploration and Production | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 0 | 0 | 0 | 0 |
Eliminations | Midstream | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 294 | 270 | 583 | 561 |
Total sales and other operating revenues | 294 | 270 | 583 | 561 |
Operating Segments | Exploration and Production | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,646 | 609 | 3,593 | 1,896 |
Other operating revenues | (67) | 224 | (116) | 291 |
Total sales and other operating revenues | 1,579 | 833 | 3,477 | 2,187 |
Operating Segments | Exploration and Production | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 1,141 | 472 | 2,580 | 1,539 |
Other operating revenues | (53) | 188 | (94) | 243 |
Total sales and other operating revenues | 1,088 | 660 | 2,486 | 1,782 |
Operating Segments | Exploration and Production | Guyana | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 138 | 31 | 323 | 70 |
Other operating revenues | (6) | 27 | (10) | 33 |
Total sales and other operating revenues | 132 | 58 | 313 | 103 |
Operating Segments | Exploration and Production | Malaysia & JDA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 205 | 90 | 390 | 231 |
Other operating revenues | 0 | 0 | 0 | 1 |
Total sales and other operating revenues | 205 | 90 | 390 | 232 |
Operating Segments | Exploration and Production | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 162 | 16 | 300 | 56 |
Other operating revenues | (8) | 9 | (12) | 14 |
Total sales and other operating revenues | 154 | 25 | 288 | 70 |
Operating Segments | Midstream | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from contracts with customers | 294 | 270 | 583 | 561 |
Other operating revenues | 0 | 0 | 0 | 0 |
Total sales and other operating revenues | $ 294 | $ 270 | $ 583 | $ 561 |
Impairment and Other (Detail)
Impairment and Other (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2020 | |
Impairments [Line Items] | ||
Loss contingency charge, pre-tax | $ 147 | |
Loss contingency charge, after tax | $ 147 | |
Oil and Gas Properties | ||
Impairments [Line Items] | ||
Impairment charge, pre-tax | $ 2,100 | |
Impairment charge, after income taxes | 2,000 | |
Other Assets | ||
Impairments [Line Items] | ||
Impairment charge, pre-tax | 21 | |
Impairment charge, after income taxes | $ 20 |
Retirement Plans - Components o
Retirement Plans - Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 13 | $ 14 | $ 27 | $ 28 |
Interest cost | 14 | 19 | 28 | 37 |
Expected return on plan assets | (49) | (45) | (99) | (90) |
Amortization of unrecognized net actuarial losses | 13 | 12 | 28 | 24 |
Settlement loss | 3 | 0 | 4 | 0 |
Pension (income) expense | (6) | 0 | (12) | (1) |
Net non-service pension (income) costs included in other, net | $ (19) | $ (14) | $ (39) | $ (29) |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Millions | Jun. 30, 2021USD ($) |
Retirement Benefits [Abstract] | |
Corporation's estimated contribution for funded pension plans in current fiscal year | $ 10 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income (loss) attributable to Hess Corporation: | ||||
Net income (loss) | $ 13 | $ (263) | $ 349 | $ (2,629) |
Less: Net income (loss) attributable to noncontrolling interests | 86 | 57 | 170 | 124 |
Net Income (Loss) Attributable to Hess Corporation | $ (73) | $ (320) | $ 179 | $ (2,753) |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 307.5 | 305 | 306.7 | 304.5 |
Diluted (in shares) | 307.5 | 305 | 308.7 | 304.5 |
Restricted common stock | ||||
Weighted average number of common shares outstanding: | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 0.7 | 0 |
Stock options | ||||
Weighted average number of common shares outstanding: | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 0.5 | 0 |
Performance share units | ||||
Weighted average number of common shares outstanding: | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 0.8 | 0 |
Weighted Average Common Share_3
Weighted Average Common Shares - Antidilutive Shares Excluded from Computation of Diluted Shares (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of diluted shares (in shares) | 1,641,860 | 2,173,061 | 94,726 | 2,094,360 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of diluted shares (in shares) | 2,562,983 | 4,429,642 | 832,454 | 4,239,533 |
Performance share units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of diluted shares (in shares) | 1,161,324 | 992,166 | 39,608 | 1,144,261 |
Weighted Average Common Share_4
Weighted Average Common Shares - Additional Information (Detail) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Shares granted, restricted stock (in shares) | 705,489 | 1,120,356 |
Shares granted, performance share units (in shares) | 205,155 | 307,999 |
Shares granted, stock options (in shares) | 319,295 | 686,639 |
Guarantees and Contingencies (D
Guarantees and Contingencies (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($)case | Jun. 30, 2021USD ($)case | |
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $ 147 | $ 147 |
Loss contingency charge, after tax | $ 147 | |
MTBE Cases | ||
Loss Contingencies [Line Items] | ||
Total number of remaining active cases filed | case | 3 | 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) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Financial
Segment Information - Financial Data by Operating Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | $ 1,579 | $ 833 | $ 3,477 | $ 2,187 | |
Net Income (Loss) attributable to Hess Corporation | (73) | (320) | 179 | (2,753) | |
Depreciation, depletion and amortization | 385 | 509 | 781 | 1,070 | |
Impairment and other | 147 | 0 | 147 | 2,126 | |
Provision (benefit) for income taxes | 122 | (9) | 245 | (88) | |
Capital Expenditures | 443 | 507 | 746 | 1,173 | |
Assets | 19,166 | 19,166 | $ 18,821 | ||
Exploration and Production | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 1,579 | 833 | 3,477 | 2,187 | |
Midstream | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 0 | 0 | 0 | 0 | |
Operating Segments | Exploration and Production | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 1,579 | 833 | 3,477 | 2,187 | |
Net Income (Loss) attributable to Hess Corporation | (25) | (249) | 283 | (2,620) | |
Depreciation, depletion and amortization | 344 | 470 | 699 | 991 | |
Impairment and other | 147 | 147 | 2,126 | ||
Provision (benefit) for income taxes | 119 | (11) | 239 | (88) | |
Capital Expenditures | 396 | 428 | 676 | 1,037 | |
Assets | 13,753 | 13,753 | 13,688 | ||
Operating Segments | Midstream | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 294 | 270 | 583 | 561 | |
Net Income (Loss) attributable to Hess Corporation | 76 | 51 | 151 | 112 | |
Depreciation, depletion and amortization | 41 | 39 | 81 | 77 | |
Impairment and other | 0 | 0 | 0 | ||
Provision (benefit) for income taxes | 3 | 2 | 6 | 4 | |
Capital Expenditures | 47 | 79 | 70 | 136 | |
Assets | 3,587 | 3,587 | 3,599 | ||
Corporate, Interest and Other | |||||
Segment Reporting Information [Line Items] | |||||
Net Income (Loss) attributable to Hess Corporation | (124) | (122) | (255) | (245) | |
Depreciation, depletion and amortization | 0 | 0 | 1 | 2 | |
Impairment and other | 0 | 0 | 0 | ||
Provision (benefit) for income taxes | 0 | 0 | 0 | (4) | |
Capital Expenditures | 0 | 0 | 0 | 0 | |
Assets | 1,826 | 1,826 | $ 1,534 | ||
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | (294) | (270) | (583) | (561) | |
Net Income (Loss) attributable to Hess Corporation | 0 | 0 | 0 | 0 | |
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 | |
Impairment and other | 0 | 0 | 0 | ||
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | |
Capital Expenditures | 0 | 0 | 0 | 0 | |
Eliminations | Exploration and Production | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 0 | 0 | 0 | 0 | |
Eliminations | Midstream | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | $ 294 | $ 270 | $ 583 | $ 561 |
Financial Risk Management Act_3
Financial Risk Management Activities - Notional Amounts of Outstanding Financial Risk Management Derivative Contracts (Detail) MMBbls in Millions | Jun. 30, 2021USD ($)MMBbls | Dec. 31, 2020USD ($)MMBbls |
Commodity Derivative Contracts | ||
Derivative [Line Items] | ||
Commodity - crude oil | MMBbls | 27.6 | 27.4 |
Foreign Exchange Forwards | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 91,000,000 | $ 163,000,000 |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Outstanding gross notional amount | $ 100,000,000 | $ 100,000,000 |
Financial Risk Management Act_4
Financial Risk Management Activities - Fair Values of Financial Risk Management Derivative Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | $ 23 | $ 69 |
Liabilities - Gross fair value of derivative contracts | 0 | (55) |
Gross amounts offset in the Consolidated Balance Sheet | 0 | (13) |
Gross amounts offset in the Consolidated Balance Sheet | 0 | 13 |
Derivative assets | 23 | 56 |
Derivative liabilities | 0 | (42) |
Derivative Contracts Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 23 | 69 |
Liabilities - Gross fair value of derivative contracts | 0 | (54) |
Derivative Contracts Designated as Hedging Instruments: | Crude Oil Put Options | ||
Derivatives, Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 19 | 64 |
Liabilities - Gross fair value of derivative contracts | 0 | 0 |
Derivative Contracts Designated as Hedging Instruments: | Crude Oil Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 0 | |
Liabilities - Gross fair value of derivative contracts | (54) | |
Derivative Contracts Designated as Hedging Instruments: | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 4 | 5 |
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 | 0 | (1) |
Derivative Contracts Not Designated as Hedging Instruments: | Foreign Exchange Forwards | ||
Derivatives, Fair Value [Line Items] | ||
Assets - Gross fair value of derivative contracts | 0 | 0 |
Liabilities - Gross fair value of derivative contracts | $ 0 | $ (1) |
Financial Risk Management Act_5
Financial Risk Management Activities - Additional Information (Detail) MMBbls in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($)vlccbbl | Jun. 30, 2021bblMMBbls$ / bbl | Dec. 31, 2020MMBbls | |
Very Large Crude Carriers (VLCCs) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Crude oil sold (in barrels of oil) | 4,200,000 | ||
Number of VLCCs cargos sold | vlcc | 2 | ||
Crude Oil Put Options | West Texas Intermediate | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of crude oil | 120,000 | ||
Average monthly floor price (US dollar per barrel) | $ / bbl | 55 | ||
Crude Oil Put Options | Brent | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of crude oil | 30,000 | ||
Average monthly floor price (US dollar per barrel) | $ / bbl | 60 | ||
Commodity Derivative Contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount of crude oil | MMBbls | 27.6 | 27.4 | |
Commodity Derivative Contracts | Very Large Crude Carriers (VLCCs) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gain (loss) from crude oil hedging contracts | $ | $ (4) |
Financial Risk Management Act_6
Financial Risk Management Activities - Derivative Contracts - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Interest Rate Swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Outstanding gross notional amount | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||
Foreign Exchange Forwards | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Outstanding gross notional amount | 91,000,000 | 91,000,000 | 163,000,000 | ||
Derivative Contracts Designated as Hedging Instruments: | Commodity Derivative Contracts | Designated as Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Increase (decrease) in sales and other operating revenues due to hedging instruments | (64,000,000) | $ 228,000,000 | (115,000,000) | $ 292,000,000 | |
Pre-tax deferred income (losses) in Accumulated other comprehensive income (loss) to be reclassified into earnings within the next 12 months | 112,000,000 | ||||
Derivative Contracts Designated as Hedging Instruments: | Interest Rate Swaps | Designated as Fair Value Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Outstanding gross notional amount | 100,000,000 | 100,000,000 | $ 100,000,000 | ||
Unrealized change in fair value of interest rate swaps - (increase in derivative asset) decrease in derivative liability | 1,000,000 | (1,000,000) | 6,000,000 | ||
Derivative Contracts Not Designated as Hedging Instruments: | Foreign Exchange Forwards | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign exchange gains (losses) reported in Other, net in the Statement of Consolidated Income | (1,000,000) | (2,000,000) | $ (2,000,000) | (3,000,000) | |
Net gains (losses) on foreign exchange contracts not designated as hedging instruments | $ 1,000,000 | $ 1,000,000 | $ 3,000,000 |
Financial Risk Management Act_7
Financial Risk Management Activities - Fair Value Measurements - Additional Information (Detail) $ in Millions | Jun. 30, 2021USD ($) |
Fair Value Disclosures [Abstract] | |
Long-term debt | $ 8,223 |
Long-term debt, fair value | $ 9,749 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) shares in Millions, $ in Millions | Jul. 28, 2021 | Jul. 27, 2021 | Sep. 30, 2021 | Aug. 01, 2021 | Jun. 30, 2021 |
Forecast | |||||
Subsequent Event [Line Items] | |||||
Percent interest in consolidated entity | 45.00% | ||||
Long-term Debt, Current Maturities | |||||
Subsequent Event [Line Items] | |||||
Unsecured debt, current | $ 500 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Term loan | $ 1,000 | ||||
Prepayment of principal amount of term loan | $ 500 | ||||
Number of Class B units repurchased by Hess Midstream LP (in shares) | 31 | ||||
Proceeds from repurchase of units held by Hess Corporation and Global Infrastructure Partners, by Hess Midstream Operations LP | $ 750 | ||||
Proceeds from repurchase of units held by parent by consolidated subsidiary | $ 375 | ||||
Principal amount of senior unsecured notes issued by Hess Midstream Operations LP | $ 750 |