hes-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended March 31, 2023


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-1204

HESS CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

DELAWARE

(State or Other Jurisdiction of Incorporation or Organization)

13-4921002

(I.R.S. Employer Identification Number)

1185 AVENUE OF THE AMERICAS, NEW YORK, NY

(Address of Principal Executive Offices)

10036

(Zip Code)

(Registrant’s Telephone Number, Including Area Code is (212) 997-8500)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock	HES	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

At March 31, 2023, there were 307,051,889 shares of Common Stock outstanding.

HESS CORPORATION

Form 10-Q

TABLE OF CONTENTS


Item No.		Page Number
	PART I - FINANCIAL INFORMATION
1.	Financial Statements (Unaudited)
	Consolidated Balance Sheet at March 3 1 , 202 3 , and December 31, 202 2	2
	Statement of Consolidated Income for the Three Months Ended March 3 1 , 202 3 , and 202 2	3
	Statement of Consolidated Comprehensive Income for the Three Months Ended March 3 1 , 202 3 , and 202 2	4
	Statement of Consolidated Cash Flows for the Three Months Ended March 3 1 , 202 3 , and 202 2	5
	Statement of Consolidated Equity for the Three Months Ended March 3 1 , 202 3 , and 202 2	6
	Notes to Consolidated Financial Statements (Unaudited)	7
	Note 1 - Basis of Presentation	7
	Note 2 - Inventories	7
	Note 3 - Property, Plant and Equipment	7
	Note 4 - Hess Midstream LP	8
	Note 5 - Accrued Liabilities	8
	Note 6 - Revenue	9
	Note 7 - Retirement Plans	9
	Note 8 - Weighted Average Common Shares	10
	Note 9 - Guarantees and Contingencies	10
	Note 1 0 - Segment Information	12
	Note 1 1 - Financial Risk Management Activities	13

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
3.	Quantitative and Qualitative Disclosures about Market Risk	28
4.	Controls and Procedures	28

	PART II - OTHER INFORMATION
1.	Legal Proceedings	29
2.	Share Repurchase Activities	29
6.	Exhibits	30
	Signatures	31

Unless the context indicates otherwise, references to “Hess”, the “Corporation”, “Registrant”, “we”, “us”, “our” and “its” refer to the consolidated business operations of Hess Corporation and its subsidiaries.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (UNAUDITED)


	March 31, 2023		December 31, 2022

	(In millions, except share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	2,100	$	2,486
Accounts receivable:
From contracts with customers	1,064		1,041
Joint venture and other	143		121
Inventories	229		217
Other current assets	263		66
Total current assets	3,799		3,931
Property, plant and equipment:
Total — at cost	33,276		32,592
Less: Reserves for depreciation, depletion, amortization and lease impairment	17,864		17,494
Property, plant and equipment — net	15,412		15,098
Operating lease right-of-use assets — net	542		570
Finance lease right-of-use assets — net	121		126
Goodwill	360		360
Deferred income taxes	131		133
Post-retirement benefit assets	663		648
Other assets	910		829
Total Assets	$	21,938	$	21,695
Liabilities
Current Liabilities:
Accounts payable	$	344	$	285
Accrued liabilities	1,663		1,840
Taxes payable	59		47
Current portion of long-term debt	5		3
Current portion of operating and finance lease obligations	237		221
Total current liabilities	2,308		2,396
Long-term debt	8,382		8,278
Long-term operating lease obligations	422		469
Long-term finance lease obligations	174		179
Deferred income taxes	454		418
Asset retirement obligations	1,050		1,034
Other liabilities and deferred credits	427		425
Total Liabilities	13,217		13,199
Equity
Hess Corporation stockholders’ equity:
Common stock, par value $1.00; Authorized — 600,000,000 shares
Issued 307,051,889 shares (2022: 306,176,864)	307		306
Capital in excess of par value	6,254		6,206
Retained earnings

SEC Form 10-Q filed by Hess Corporation