Hess Reports Estimated Results for the First Quarter Of 2021
Hess Corporation (NYSE: HES) reported a net income of $252 million, or $0.82 per share, for Q1 2021, a significant recovery from a loss of $2,433 million in Q1 2020. Adjusted net income improved from a loss of $182 million to $252 million. The increase was driven by higher realized prices, successful sales of VLCC cargos, and reduced depreciation costs. Net production reached 315,000 boepd, although Bakken production declined. Hess plans to prioritize debt reduction and capital return to shareholders, reflecting a strategic focus on sustainable cash flow growth.
- Net income improved to $252 million from a loss of $2,433 million year-over-year.
- Higher average realized crude oil price of $50.02 per barrel, compared to $45.94 in the prior year.
- Successful sale of two VLCC cargos contributed approximately $70 million to net income.
- Cash flow from operating activities increased to $591 million from $445 million year-over-year.
- Plans for future capital returns to shareholders through increased dividends and share buybacks.
- Net production decreased in Bakken, falling to 158,000 boepd from 190,000 boepd year-over-year.
- Cash operating costs increased to $9.81 per boe from $9.70 per boe in the prior year.
- Forecast for Bakken production reduced due to lower NGL volumes and adverse winter weather.
Hess Corporation (NYSE: HES) today reported net income of
“Our company continues to successfully execute our strategy to grow our resource base, have a low cost of supply and sustain cash flow growth,” CEO John Hess said. “As our portfolio generates increasing free cash flow, we will first prioritize debt reduction and then the return of capital to our shareholders through dividend increases and opportunistic share repurchases.”
After-tax income (loss) by major operating activity was as follows:
|
Three Months Ended
|
|||||||
|
2021 |
|
2020 |
|||||
|
(In millions, except per share amounts) |
|||||||
Net Income (Loss) Attributable to Hess Corporation |
||||||||
Exploration and Production |
$ |
308 |
|
|
$ |
(2,371) |
|
|
Midstream |
75 |
|
|
61 |
|
|||
Corporate, Interest and Other |
(131) |
|
|
(123) |
|
|||
Net income (loss) attributable to Hess Corporation |
$ |
252 |
|
|
$ |
(2,433) |
|
|
Net income (loss) per common share (diluted) |
$ |
0.82 |
|
|
$ |
(8.00) |
|
|
Adjusted Net Income (Loss) Attributable to Hess Corporation |
||||||||
Exploration and Production |
$ |
308 |
|
|
$ |
(120) |
|
|
Midstream |
75 |
|
|
61 |
|
|||
Corporate, Interest and Other |
(131) |
|
|
(123) |
|
|||
Adjusted net income (loss) attributable to Hess Corporation |
$ |
252 |
|
|
$ |
(182) |
|
|
Adjusted net income (loss) per common share (diluted) |
$ |
0.82 |
|
|
$ |
(0.60) |
|
|
|
|
|
|
|||||
Weighted average number of shares (diluted) |
307.8 |
|
|
304.0 |
|
|||
|
|
|
|
|||||
Exploration and Production:
E&P net income was
Net production, excluding Libya, was 315,000 boepd in the first quarter of 2021, compared with 344,000 boepd in the first quarter of 2020 or 332,000 boepd pro forma for the sale of the Corporation's interest in the Shenzi Field. Net production for Libya was 18,000 boepd in the first quarter of 2021 compared with 5,000 boepd in the first quarter of 2020.
Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were
Operational Highlights for the First Quarter of 2021:
Bakken (Onshore U.S.): Net production from the Bakken was 158,000 boepd compared with 190,000 boepd in the prior-year quarter, primarily due to reduced drilling activity, lower NGL and natural gas volumes received under percentage of proceeds contracts due to higher commodity prices, and the impact of adverse winter weather. NGL and natural gas volumes received under percentage of proceeds contracts were 19,000 boepd in the first quarter of 2020 and 20,000 boepd in the fourth quarter of 2020, but were reduced to 11,000 boepd in the first quarter of 2021 due to higher realized NGL prices lowering volumes received as consideration for gas processing fees. Higher NGL prices increased net income by approximately
During the first quarter of 2021, the Corporation completed the sale of 4.2 million barrels of Bakken crude oil transported and stored on two very large crude carriers (VLCCs) during 2020, which contributed net income of approximately
In April, the Corporation entered into an agreement to sell its Little Knife and Murphy Creek nonstrategic acreage interests in the Bakken for total consideration of
Net production from the Bakken is forecast to be 155,000 to 160,000 boepd for full year 2021, reflecting the impact of lower NGL volumes received as consideration for gas processing fees under POP contracts due to higher NGL prices, the sale of the Corporation’s nonstrategic acreage interests, and adverse winter weather.
Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 56,000 boepd, compared with 74,000 boepd in the prior-year quarter, reflecting the sale of the Corporation's interest in the Shenzi Field in the fourth quarter of 2020 and natural field decline. Net production from the Shenzi Field was 12,000 boepd in the first quarter of 2020.
Guyana (Offshore): At the Stabroek Block (Hess –
Startup of Phase 2 of the Liza Field development, which will utilize the Liza Unity FPSO with an expected capacity of 220,000 gross bopd, remains on track for early 2022. The third development, Payara, will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd; first oil is expected in 2024. A fourth development, Yellowtail, has been identified on the Stabroek Block with anticipated startup in 2025, pending government approvals and project sanctioning. We expect to have at least six FPSOs on the Stabroek Block by 2027 with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base.
The Uaru-2 well encountered approximately 120 feet of high quality oil bearing sandstone reservoir, including newly identified intervals below the original Uaru-1 discovery. The well was drilled in 5,659 feet of water and is located approximately 6.8 miles south of the Uaru-1 well. The Uaru-2 discovery will add to the discovered recoverable resource estimate of approximately 9 billion boe.
The Stena DrillMax is currently appraising the Longtail discovery, which will include a planned sidetrack. The Noble Don Taylor will drill the Mako-2 well after Uaru-2, and the Stena Carron is currently drilling the Koebi-1 exploration well. The Noble Tom Madden, the Noble Bob Douglas and the Noble Sam Croft, which recently arrived at the Stabroek Block, are primarily focused on development drilling.
South East Asia (Offshore): Net production at North Malay Basin and JDA was 64,000 boepd, compared with 58,000 boepd in the prior-year quarter, reflecting higher natural gas nominations due to a recovery in economic activity.
Denmark (Offshore): In March, the Corporation entered into an agreement to sell its interests in Denmark for total consideration of
Midstream:
The Midstream segment had net income of
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and Other was
Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures were
Liquidity:
Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of
| 2. | “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 7 and 8. |
In March 2021, the Corporation received net proceeds of
In April 2021, the Corporation amended its fully undrawn
The Corporation expects to receive proceeds from the sale of its Little Knife and Murphy Creek acreage interests in the Bakken in the next few weeks and expects to receive proceeds from the sale of its interests in Denmark in the third quarter of 2021.
Items Affecting Comparability of Earnings Between Periods:
The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:
|
Three Months Ended
|
||||||
|
2021 |
|
2020 |
||||
|
(In millions) |
||||||
Exploration and Production |
$ |
— |
|
|
$ |
(2,251) |
|
Midstream |
— |
|
|
— |
|
||
Corporate, Interest and Other |
— |
|
|
— |
|
||
Total items affecting comparability of earnings between periods |
$ |
— |
|
|
$ |
(2,251) |
|
First Quarter 2020: Exploration and Production results included noncash asset impairment charges on certain oil and gas properties totaling
Reconciliation of U.S. GAAP to Non-GAAP Measures:
The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):
|
Three Months Ended
|
||||||
|
2021 |
|
2020 |
||||
|
(In millions) |
||||||
Net income (loss) attributable to Hess Corporation |
$ |
252 |
|
|
$ |
(2,433) |
|
Less: Total items affecting comparability of earnings between periods |
— |
|
|
(2,251) |
|
||
Adjusted net income (loss) attributable to Hess Corporation |
$ |
252 |
|
|
$ |
(182) |
|
The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:
|
Three Months Ended
|
||||||
|
2021 |
|
2020 |
||||
|
(In millions) |
||||||
Net cash provided by (used in) operating activities before changes in operating assets and liabilities |
$ |
815 |
|
|
$ |
502 |
|
Changes in operating assets and liabilities |
(224) |
|
|
(57) |
|
||
Net cash provided by (used in) operating activities |
$ |
591 |
|
|
$ |
445 |
|
Hess Corporation will review first quarter financial and operating results and other matters on a webcast at 10 a.m. today (EDT). For details about the event, refer to the Investor Relations section of our website at www.hess.com.
Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.
Forward-looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects and proposed asset sales; and future economic and market conditions in the oil and gas industry.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry, including as a result of the global COVID-19 pandemic; reduced demand for our products, including due to the global COVID-19 pandemic or the outbreak of any other public health threat, or due to the impact of competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring as well as fracking bans; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks or health measures related to the COVID-19 pandemic; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control; the ability to satisfy the closing conditions of the proposed asset sales; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation, including heightened risks associated with being a general partner of Hess Midstream LP; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
Non-GAAP financial measures
The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income (loss)” presented in this release is defined as reported net income (loss) attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income (loss) to evaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income (loss) or net cash provided by (used in) operating activities. A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss), and a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities are provided in the release.
Cautionary Note to Investors
We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) |
|||||||||||
|
First
|
|
First
|
|
Fourth
|
||||||
Income Statement |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Revenues and non-operating income |
|
|
|
|
|
||||||
Sales and other operating revenues |
$ |
1,898 |
|
|
$ |
1,354 |
|
|
$ |
1,321 |
|
Gains (losses) on asset sales, net |
— |
|
|
— |
|
|
79 |
|
|||
Other, net |
21 |
|
|
15 |
|
|
17 |
|
|||
Total revenues and non-operating income |
1,919 |
|
|
1,369 |
|
|
1,417 |
|
|||
Costs and expenses |
|
|
|
|
|
||||||
Marketing, including purchased oil and gas |
518 |
|
|
378 |
|
|
281 |
|
|||
Operating costs and expenses |
265 |
|
|
303 |
|
|
313 |
|
|||
Production and severance taxes |
37 |
|
|
42 |
|
|
32 |
|
|||
Exploration expenses, including dry holes and lease impairment |
33 |
|
|
189 |
|
|
60 |
|
|||
General and administrative expenses |
94 |
|
|
102 |
|
|
82 |
|
|||
Interest expense |
117 |
|
|
113 |
|
|
118 |
|
|||
Depreciation, depletion and amortization |
396 |
|
|
561 |
|
|
486 |
|
|||
Impairment |
— |
|
|
2,126 |
|
|
— |
|
|||
Total costs and expenses |
1,460 |
|
|
3,814 |
|
|
1,372 |
|
|||
Income (loss) before income taxes |
459 |
|
|
(2,445) |
|
|
45 |
|
|||
Provision (benefit) for income taxes |
123 |
|
|
(79) |
|
|
72 |
|
|||
Net income (loss) |
336 |
|
|
(2,366) |
|
|
(27) |
|
|||
Less: Net income (loss) attributable to noncontrolling interests |
84 |
|
|
67 |
|
|
70 |
|
|||
Net income (loss) attributable to Hess Corporation |
$ |
252 |
|
|
$ |
(2,433) |
|
|
$ |
(97) |
|
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) |
|||||||
|
March 31,
|
|
December 31,
|
||||
Balance Sheet Information |
|
|
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
1,866 |
|
|
$ |
1,739 |
|
Other current assets |
1,656 |
|
|
1,342 |
|
||
Property, plant and equipment – net |
13,863 |
|
|
14,115 |
|
||
Operating lease right-of-use assets – net |
386 |
|
|
426 |
|
||
Finance lease right-of-use assets – net |
161 |
|
|
168 |
|
||
Other long-term assets |
1,019 |
|
|
1,031 |
|
||
Total assets |
$ |
18,951 |
|
|
$ |
18,821 |
|
Liabilities and equity |
|
|
|
||||
Current maturities of long-term debt |
$ |
13 |
|
|
$ |
10 |
|
Current portion of operating and finance lease obligations |
83 |
|
|
81 |
|
||
Other current liabilities |
1,594 |
|
|
1,532 |
|
||
Long-term debt |
8,273 |
|
|
8,286 |
|
||
Long-term operating lease obligations |
437 |
|
|
478 |
|
||
Long-term finance lease obligations |
215 |
|
|
220 |
|
||
Other long-term liabilities |
1,693 |
|
|
1,879 |
|
||
Total equity excluding other comprehensive income (loss) |
6,392 |
|
|
6,121 |
|
||
Accumulated other comprehensive income (loss) |
(776) |
|
|
(755) |
|
||
Noncontrolling interests |
1,027 |
|
|
969 |
|
||
Total liabilities and equity |
$ |
18,951 |
|
|
$ |
18,821 |
|
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) |
|||||||
|
March 31,
|
|
December 31,
|
||||
Total Debt |
|
|
|
||||
Hess Corporation |
$ |
6,387 |
|
|
$ |
6,386 |
|
Midstream (a) |
1,899 |
|
|
1,910 |
|
||
Hess Consolidated |
$ |
8,286 |
|
|
$ |
8,296 |
|
- Midstream debt is non-recourse to Hess Corporation.
|
March 31,
|
|
December 31,
|
||
Debt to Capitalization Ratio (a) |
|
|
|
||
Hess Consolidated |
56.2 |
% |
|
57.4 |
% |
Hess Corporation as defined in debt covenants |
46.6 |
% |
|
47.5 |
% |
- Includes finance lease obligations.
|
Three Months Ended March 31, |
||||||
|
2021 |
|
2020 |
||||
Interest Expense |
|
|
|
||||
Hess Corporation |
$ |
94 |
|
|
$ |
88 |
|
Midstream (a) |
23 |
|
|
25 |
|
||
Hess Consolidated |
$ |
117 |
|
|
$ |
113 |
|
- Midstream interest expense is reported in the Midstream operating segment.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) |
|||||||||||
|
First
|
|
First
|
|
Fourth
|
||||||
Cash Flow Information |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Cash Flows from Operating Activities |
|
|
|
|
|
||||||
Net income (loss) |
$ |
336 |
|
|
$ |
(2,366) |
|
|
$ |
(27) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
||||||
(Gains) losses on asset sales, net |
— |
|
|
— |
|
|
(79) |
|
|||
Depreciation, depletion and amortization |
396 |
|
|
561 |
|
|
486 |
|
|||
Impairment |
— |
|
|
2,126 |
|
|
— |
|
|||
Exploratory dry hole costs |
— |
|
|
135 |
|
|
26 |
|
|||
Exploration lease and other impairment |
4 |
|
|
32 |
|
|
3 |
|
|||
Pension settlement loss |
1 |
|
|
— |
|
|
— |
|
|||
Stock compensation expense |
25 |
|
|
29 |
|
|
16 |
|
|||
Noncash (gains) losses on commodity derivatives, net |
24 |
|
|
70 |
|
|
73 |
|
|||
Provision (benefit) for deferred income taxes and other tax accruals |
29 |
|
|
(85) |
|
|
34 |
|
|||
Net cash provided by (used in) operating activities before changes in operating assets and liabilities |
815 |
|
|
502 |
|
|
532 |
|
|||
Changes in operating assets and liabilities |
(224) |
|
|
(57) |
|
|
(46) |
|
|||
Net cash provided by (used in) operating activities |
591 |
|
|
445 |
|
|
486 |
|
|||
Cash Flows from Investing Activities |
|
|
|
|
|
||||||
Additions to property, plant and equipment - E&P |
(358) |
|
|
(740) |
|
|
(319) |
|
|||
Additions to property, plant and equipment - Midstream |
(27) |
|
|
(78) |
|
|
(55) |
|
|||
Proceeds from asset sales, net of cash sold |
— |
|
|
— |
|
|
482 |
|
|||
Other, net |
— |
|
|
— |
|
|
(1) |
|
|||
Net cash provided by (used in) investing activities |
(385) |
|
|
(818) |
|
|
107 |
|
|||
Cash Flows from Financing Activities |
|
|
|
|
|
||||||
Net borrowings (repayments) of debt with maturities of 90 days or less |
(10) |
|
|
60 |
|
|
6 |
|
|||
Debt with maturities of greater than 90 days: |
|
|
|
|
|
||||||
Borrowings |
— |
|
|
1,000 |
|
|
— |
|
|||
Repayments |
(3) |
|
|
— |
|
|
— |
|
|||
Proceeds from sale of Class A shares of Hess Midstream LP |
70 |
|
|
— |
|
|
— |
|
|||
Payments on finance lease obligations |
(2) |
|
|
(1) |
|
|
(1) |
|
|||
Cash dividends paid |
(80) |
|
|
(81) |
|
|
(76) |
|
|||
Noncontrolling interests, net |
(67) |
|
|
(63) |
|
|
(67) |
|
|||
Other, net |
13 |
|
|
(7) |
|
|
(1) |
|
|||
Net cash provided by (used in) financing activities |
(79) |
|
|
908 |
|
|
(139) |
|
|||
Net Increase (Decrease) in Cash and Cash Equivalents |
127 |
|
|
535 |
|
|
454 |
|
|||
Cash and Cash Equivalents at Beginning of Period |
1,739 |
|
|
1,545 |
|
|
1,285 |
|
|||
Cash and Cash Equivalents at End of Period |
$ |
1,866 |
|
|
$ |
2,080 |
|
|
$ |
1,739 |
|
|
|
|
|
|
|
||||||
Additions to Property, Plant and Equipment included within Investing Activities |
|||||||||||
Capital expenditures incurred |
$ |
(303) |
|
|
$ |
(666) |
|
|
$ |
(391) |
|
Increase (decrease) in related liabilities |
(82) |
|
|
(152) |
|
|
17 |
|
|||
Additions to property, plant and equipment |
$ |
(385) |
|
|
$ |
(818) |
|
|
$ |
(374) |
|
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) |
|||||||||||
|
First
|
|
First
|
|
Fourth
|
||||||
Capital and Exploratory Expenditures |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
E&P Capital and exploratory expenditures |
|
|
|
|
|
||||||
United States |
|
|
|
|
|
||||||
North Dakota |
$ |
88 |
|
|
$ |
322 |
|
|
$ |
72 |
|
Offshore and Other |
31 |
|
|
93 |
|
|
40 |
|
|||
Total United States |
119 |
|
|
415 |
|
|
112 |
|
|||
Guyana |
172 |
|
|
176 |
|
|
224 |
|
|||
Malaysia and JDA |
13 |
|
|
32 |
|
|
25 |
|
|||
Other |
5 |
|
|
8 |
|
|
10 |
|
|||
E&P Capital and exploratory expenditures |
$ |
309 |
|
|
$ |
631 |
|
|
$ |
371 |
|
|
|
|
|
|
|
||||||
Total exploration expenses charged to income included above |
$ |
29 |
|
|
$ |
22 |
|
|
$ |
31 |
|
|
|
|
|
|
|
||||||
Midstream Capital expenditures |
$ |
23 |
|
|
$ |
57 |
|
|
$ |
51 |
|
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) (IN MILLIONS) |
|||||||||||
|
First Quarter 2021 |
||||||||||
Income Statement |
United States |
|
International |
|
Total |
||||||
|
|
|
|
|
|
||||||
Total revenues and non-operating income |
|
|
|
|
|
||||||
Sales and other operating revenues |
$ |
1,398 |
|
|
$ |
500 |
|
|
$ |
1,898 |
|
Other, net |
12 |
|
|
4 |
|
|
16 |
|
|||
Total revenues and non-operating income |
1,410 |
|
|
504 |
|
|
1,914 |
|
|||
Costs and expenses |
|
|
|
|
|
||||||
Marketing, including purchased oil and gas (a) |
520 |
|
|
22 |
|
|
542 |
|
|||
Operating costs and expenses |
135 |
|
|
73 |
|
|
208 |
|
|||
Production and severance taxes |
36 |
|
|
1 |
|
|
37 |
|
|||
Midstream tariffs |
262 |
|
|
— |
|
|
262 |
|
|||
Exploration expenses, including dry holes and lease impairment |
30 |
|
|
3 |
|
|
33 |
|
|||
General and administrative expenses |
42 |
|
|
7 |
|
|
49 |
|
|||
Depreciation, depletion and amortization |
268 |
|
|
87 |
|
|
355 |
|
|||
Total costs and expenses |
1,293 |
|
|
193 |
|
|
1,486 |
|
|||
Results of operations before income taxes |
117 |
|
|
311 |
|
|
428 |
|
|||
Provision (benefit) for income taxes |
— |
|
|
120 |
|
|
120 |
|
|||
Net income (loss) attributable to Hess Corporation |
$ |
117 |
|
(b) |
$ |
191 |
|
(c) |
$ |
308 |
|
|
|
|
|
|
|
||||||
|
First Quarter 2020 |
||||||||||
Income Statement |
United States |
|
International |
|
Total |
||||||
|
|
|
|
|
|
||||||
Total revenues and non-operating income |
|
|
|
|
|
||||||
Sales and other operating revenues |
$ |
1,122 |
|
|
$ |
232 |
|
|
$ |
1,354 |
|
Other, net |
4 |
|
|
4 |
|
|
8 |
|
|||
Total revenues and non-operating income |
1,126 |
|
|
236 |
|
|
1,362 |
|
|||
Costs and expenses |
|
|
|
|
|
||||||
Marketing, including purchased oil and gas (a) |
419 |
|
|
6 |
|
|
425 |
|
|||
Operating costs and expenses |
137 |
|
|
77 |
|
|
214 |
|
|||
Production and severance taxes |
40 |
|
|
2 |
|
|
42 |
|
|||
Midstream tariffs |
241 |
|
|
— |
|
|
241 |
|
|||
Exploration expenses, including dry holes and lease impairment |
156 |
|
|
33 |
|
|
189 |
|
|||
General and administrative expenses |
45 |
|
|
7 |
|
|
52 |
|
|||
Depreciation, depletion and amortization |
394 |
|
|
127 |
|
|
521 |
|
|||
Impairment |
697 |
|
|
1,429 |
|
|
2,126 |
|
|||
Total costs and expenses |
2,129 |
|
|
1,681 |
|
|
3,810 |
|
|||
Results of operations before income taxes |
(1,003) |
|
|
(1,445) |
|
|
(2,448) |
|
|||
Provision (benefit) for income taxes |
— |
|
|
(77) |
|
|
(77) |
|
|||
Net income (loss) attributable to Hess Corporation |
$ |
(1,003) |
|
(d) |
$ |
(1,368) |
|
(e) |
$ |
(2,371) |
|
- Includes amounts charged from the Midstream segment.
-
Includes after-tax losses from realized crude oil hedging activities of
$39 million (noncash premium amortization:$39 million ; cash settlement:$0 million ). -
Includes after-tax losses from realized crude oil hedging activities of
$8 million (noncash premium amortization:$8 million ; cash settlement:$0 million ). -
Includes after-tax gains from realized crude oil hedging activities of
$53 million (noncash premium amortization:$63 million ; cash settlement:$116 million ). -
Includes after-tax gains from realized crude oil hedging activities of
$11 million (noncash premium amortization:$7 million ; cash settlement:$18 million ).
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) (IN MILLIONS) |
|||||||||||
|
Fourth Quarter 2020 |
||||||||||
Income Statement |
United States |
|
International |
|
Total |
||||||
|
|
|
|
|
|
||||||
Total revenues and non-operating income |
|
|
|
|
|
||||||
Sales and other operating revenues |
$ |
904 |
|
|
$ |
417 |
|
|
$ |
1,321 |
|
Gains (losses) on asset sales, net |
79 |
|
|
— |
|
|
79 |
|
|||
Other, net |
12 |
|
|
2 |
|
|
14 |
|
|||
Total revenues and non-operating income |
995 |
|
|
419 |
|
|
1,414 |
|
|||
Costs and expenses |
|
|
|
|
|
||||||
Marketing, including purchased oil and gas (a) |
267 |
|
|
34 |
|
|
301 |
|
|||
Operating costs and expenses |
158 |
|
|
92 |
|
|
250 |
|
|||
Production and severance taxes |
30 |
|
|
2 |
|
|
32 |
|
|||
Midstream tariffs |
243 |
|
|
— |
|
|
243 |
|
|||
Exploration expenses, including dry holes and lease impairment |
36 |
|
|
24 |
|
|
60 |
|
|||
General and administrative expenses |
43 |
|
|
8 |
|
|
51 |
|
|||
Depreciation, depletion and amortization |
325 |
|
|
121 |
|
|
446 |
|
|||
Total costs and expenses |
1,102 |
|
|
281 |
|
|
1,383 |
|
|||
Results of operations before income taxes |
(107) |
|
|
138 |
|
|
31 |
|
|||
Provision (benefit) for income taxes |
— |
|
|
70 |
|
|
70 |
|
|||
Net income (loss) attributable to Hess Corporation |
$ |
(107) |
|
(b) |
$ |
68 |
|
(c) |
$ |
(39) |
|
- Includes amounts charged from the Midstream segment.
-
Includes after-tax gains from realized crude oil hedging activities of
$84 million (noncash premium amortization:$63 million ; cash settlement:$147 million ). -
Includes after-tax gains from realized crude oil hedging activities of
$28 million (noncash premium amortization:$10 million ; cash settlement:$38 million ).
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION OPERATING DATA |
||||||||
|
First
|
|
First
|
|
Fourth
|
|||
Net Production Per Day (in thousands) |
|
|
|
|
|
|||
|
|
|
|
|
|
|||
Crude oil - barrels |
|
|
|
|
|
|||
United States |
|
|
|
|
|
|||
North Dakota |
84 |
|
|
114 |
|
|
97 |
|
Offshore (a) |
36 |
|
|
48 |
|
|
24 |
|
Total United States |
120 |
|
|
162 |
|
|
121 |
|
Guyana |
31 |
|
|
15 |
|
|
26 |
|
Malaysia and JDA |
4 |
|
|
4 |
|
|
3 |
|
Other (b) |
22 |
|
|
10 |
|
|
17 |
|
Total |
177 |
|
|
191 |
|
|
167 |
|
|
|
|
|
|
|
|||
Natural gas liquids - barrels |
|
|
|
|
|
|||
United States |
|
|
|
|
|
|||
North Dakota |
49 |
|
|
49 |
|
|
61 |
|
Offshore (a) |
4 |
|
|
7 |
|
|
3 |
|
Total United States |
53 |
|
|
56 |
|
|
64 |
|
|
|
|
|
|
|
|||
Natural gas - mcf |
|
|
|
|
|
|||
United States |
|
|
|
|
|
|||
North Dakota |
151 |
|
|
162 |
|
|
185 |
|
Offshore |
95 |
|
|
113 |
|
|
31 |
|
Total United States |
246 |
|
|
275 |
|
|
216 |
|
Malaysia and JDA |
360 |
|
|
325 |
|
|
315 |
|
Other (b) |
11 |
|
|
11 |
|
|
7 |
|
Total |
617 |
|
|
611 |
|
|
538 |
|
|
|
|
|
|
|
|||
Barrels of oil equivalent |
333 |
|
|
349 |
|
|
321 |
|
- The Corporation sold its working interest in the Shenzi Field in the deepwater Gulf of Mexico in the fourth quarter of 2020. Net production from the Shenzi Field was 12,000 boepd in the first quarter of 2020 and 3,000 boepd in the fourth quarter of 2020.
- Other includes production from Denmark and Libya. Libya net production was 18,000 boepd in the first quarter of 2021, 5,000 boepd in the first quarter of 2020 and 12,000 boepd in the fourth quarter of 2020. Denmark net production was 6,000 boepd in the first quarter of 2021, 7,000 boepd in the first quarter of 2020 and 6,000 boepd in the fourth quarter of 2020.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION OPERATING DATA |
||||||||
|
First
|
|
First
|
|
Fourth
|
|||
Sales Volumes Per Day (in thousands) (a) |
|
|
|
|
|
|||
Crude oil – barrels |
227 |
|
|
176 |
|
|
184 |
|
Natural gas liquids – barrels |
53 |
|
|
56 |
|
|
64 |
|
Natural gas – mcf |
617 |
|
|
611 |
|
|
538 |
|
Barrels of oil equivalent |
383 |
|
|
334 |
|
|
338 |
|
|
|
|
|
|
|
|||
Sales Volumes (in thousands) (a) |
|
|
|
|
|
|||
Crude oil – barrels (b) |
20,395 |
|
|
16,052 |
|
|
16,974 |
|
Natural gas liquids – barrels |
4,802 |
|
|
5,097 |
|
|
5,842 |
|
Natural gas – mcf |
55,513 |
|
|
55,620 |
|
|
49,542 |
|
Barrels of oil equivalent |
34,449 |
|
|
30,419 |
|
|
31,073 |
|
- Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.
- Sales volumes for the first quarter of 2021 include 4.2 million barrels of crude oil that were stored on VLCCs at December 31, 2020.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION OPERATING DATA |
|||||||||||
|
First
|
|
First
|
|
Fourth
|
||||||
Average Selling Prices |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Crude oil - per barrel (including hedging) |
|
|
|
|
|
||||||
United States |
|
|
|
|
|
||||||
North Dakota (a) |
$ |
44.97 |
|
|
$ |
44.05 |
|
|
$ |
42.69 |
|
Offshore |
53.03 |
|
|
49.33 |
|
|
47.59 |
|
|||
Total United States |
46.73 |
|
|
45.63 |
|
|
43.65 |
|
|||
Guyana |
60.37 |
|
|
43.26 |
|
|
49.56 |
|
|||
Malaysia and JDA |
63.27 |
|
|
51.24 |
|
|
37.80 |
|
|||
Other (b) |
57.66 |
|
|
55.60 |
|
|
50.22 |
|
|||
Worldwide |
50.02 |
|
|
45.94 |
|
|
45.32 |
|
|||
|
|
|
|
|
|
||||||
Crude oil - per barrel (excluding hedging) |
|
|
|
|
|
||||||
United States |
|
|
|
|
|
||||||
North Dakota (a) |
$ |
47.62 |
|
|
$ |
40.54 |
|
|
$ |
36.46 |
|
Offshore |
56.53 |
|
|
45.65 |
|
|
41.36 |
|
|||
Total United States |
49.56 |
|
|
42.07 |
|
|
37.42 |
|
|||
Guyana |
61.85 |
|
|
36.79 |
|
|
43.96 |
|
|||
Malaysia and JDA |
63.27 |
|
|
51.24 |
|
|
37.80 |
|
|||
Other (b) |
59.61 |
|
|
49.14 |
|
|
44.63 |
|
|||
Worldwide |
52.52 |
|
|
42.08 |
|
|
39.45 |
|
|||
|
|
|
|
|
|
||||||
Natural gas liquids - per barrel |
|
|
|
|
|
||||||
United States |
|
|
|
|
|
||||||
North Dakota |
$ |
30.32 |
|
|
$ |
9.31 |
|
|
$ |
15.93 |
|
Offshore |
21.25 |
|
|
9.39 |
|
|
13.07 |
|
|||
Worldwide |
29.49 |
|
|
9.32 |
|
|
15.80 |
|
|||
|
|
|
|
|
|
||||||
Natural gas - per mcf |
|
|
|
|
|
||||||
United States |
|
|
|
|
|
||||||
North Dakota |
$ |
5.93 |
|
|
$ |
1.28 |
|
|
$ |
1.67 |
|
Offshore |
2.95 |
|
|
1.32 |
|
|
1.42 |
|
|||
Total United States |
4.78 |
|
|
1.30 |
|
|
1.64 |
|
|||
Malaysia and JDA |
5.04 |
|
|
4.71 |
|
|
4.57 |
|
|||
Other (b) |
2.69 |
|
|
4.26 |
|
|
2.27 |
|
|||
Worldwide |
4.90 |
|
|
3.16 |
|
|
3.35 |
|
|||
-
Excluding the two VLCC cargo sales totaling 4.2 million barrels, the first quarter 2021 North Dakota crude oil price excluding hedging was
$53.30 per barrel and$49.73 per barrel including hedging. - Other includes prices related to production from Denmark and Libya.
The following is a summary of the Corporation’s outstanding crude oil put options for the remainder of 2021:
|
WTI |
|
Brent |
Barrels of oil per day |
120,000 |
|
30,000 |
Average monthly floor price |
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210428005299/en/
FAQ
What were Hess Corporation's earnings for Q1 2021?
How did Hess' net income change compared to Q1 2020?
What factors contributed to Hess' improved financial performance in Q1 2021?
What is Hess Corporation's production forecast for Bakken in 2021?
How did Hess' cash flow from operations change in Q1 2021?
