hes-20250331

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, 2025


☐						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, 2025, there were 309,271,043 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 5 , and December 31, 202 4	2
	Statement of Consolidated Income for the Three Months Ended Ma rch 3 1 , 202 5 , and 202 4	3
	Statement of Consolidated Comprehensive Income for the Three Months Ended March 3 1 , 202 5 , and 202 4	4
	Statement of Consolidated Cash Flows for the Three Months Ended March 3 1 , 202 5 , and 202 4	5
	Statement of Consolidated Equity for the Three Months Ended March 3 1 , 202 5 , and 202 4	6
	Notes to Consolidated Financial Statements (Unaudited)	7
	Note 1 - Basis of Presentation	7
	Note 2 - Inventories	7
	Note 3 - Property, Plant and Equipment	8
	Note 4 - Hess Midstream LP	8
	Note 5 - Accrued Liabilities	9
	Note 6 - Debt	9
	Note 7 - Revenue	10
	Note 8 - Retirement Plans	10
	Note 9 - Weighted Average Common Shares	11
	Note 10 - Supplementary Cash Flow Information	11
	Note 11 - Guarantees and Contingencies	12
	Note 1 2 - Segment Information	13
	Note 1 3 - Financial Instruments	15
	Note 1 4 - Subsequent Even ts	15

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
3.	Quantitative and Qualitative Disclosures about Market Risk	30
4.	Controls and Procedures	30

	PART II - OTHER INFORMATION
1.	Legal Proceedings	31
1A.	Risk Factors	31
2.	Share Repurchase Activities	32
5.	Other Information	32
6.	Exhibits	33
	Signatures	34

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, 2025		December 31, 2024

	(In millions, except share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	1,324	$	1,171
Accounts receivable:
From contracts with customers	973		1,274
Joint venture and other	176		196
Inventories	472		419
Other current assets	131		113
Total current assets	3,076		3,173
Property, plant and equipment:
Total — at cost	42,124		41,023
Less: Reserves for depreciation, depletion, amortization and lease impairment	21,702		21,102
Property, plant and equipment — net	20,422		19,921
Operating lease right-of-use assets — net	599		652
Finance lease right-of-use assets — net	86		90
Goodwill	360		360
Deferred income taxes	705		579
Post-retirement benefit assets	666		655
Other assets	1,224		1,121
Total Assets	$	27,138	$	26,551
Liabilities
Current Liabilities:
Accounts payable	$	437	$	417
Accrued liabilities	1,937		1,942
Taxes payable	105		98
Current portion of long-term debt	25		23
Current portion of operating and finance lease obligations	346		346
Total current liabilities	2,850		2,826
Long-term debt	8,654		8,555
Long-term operating lease obligations	347		404
Long-term finance lease obligations	126		132
Deferred income taxes	871		784
Asset retirement obligations	1,434		1,377
Other liabilities and deferred credits	471		470
Total Liabilities	14,753		14,548
Equity
Hess Corporation stockholders’ equity:
Common stock, par value $1.00; Authorized — 600,000,000 shares
Issued 309,271,043 shares (2024: 308,293,765)	309		308
Capital in excess of par value	6,662		6,616
Retained earnings	4,756		4,500
Accumulated other comprehensive income (loss)	(206)		(208)
Total Hess Corporation stockholders’ equity	11,521		11,216
Noncontrolling interests	864		787
Total Equity	12,385		12,003
Total Liabilities and Equity	$	27,138	$	26,551

See accompanying Notes to Consolidated Financial Statements.

PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

STATEMENT OF CONSOLIDATED INCOME (UNAUDITED)


	Three Months Ended March 31,
	2025		2024

	(In millions, except per share amounts)
Revenues and Non-Operating Income
Sales and other operating revenues	$	2,912	$	3,309

Other, net	26		32
Total revenues and non-operating income	2,938		3,341
Costs and Expenses
Marketing, including purchased oil and gas	578		622
Operating costs and expenses	470		412
Production and severance taxes	51		56
Exploration expenses, including dry holes and lease impairment	76		42
General and administrative expenses	271		124
Interest expense	92		113
Depreciation, depletion and amortization	619		557

Total costs and expenses	2,157		1,926
Income Before Income Taxes	781		1,415
Provision for income taxes	259		348
Net Income	522		1,067
Less: Net income attributable to noncontrolling interests	92		95
Net Income Attributable to Hess Corporation	$	430	$	972

Net Income Attributable to Hess Corporation Per Common Share:
Basic	$	1.40	$	3.17
Diluted	$	1.39	$	3.16
Weighted Average Number of Common Shares Outstanding:
Basic	307.4		306.4
Diluted	308.6		307.9
Common Stock Dividends Per Share	$	0.5000	$	0.4375

See accompanying Notes to Consolidated Financial Statements.

PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED)


	Three Months Ended March 31,
	2025		2024

	(In millions)
Net Income	$	522	$	1,067
Other Comprehensive Income (Loss):
Pension and other postretirement plans
(Increase) reduction in unrecognized actuarial losses	—		—
Income taxes on actuarial changes in plan liabilities	—		—
(Increase) reduction in unrecognized actuarial losses, net	—		—
Amortization of net actuarial losses	2		—
Income taxes on amortization of net actuarial losses	—		—
Net effect of amortization of net actuarial losses	2		—
Change in pension and other postretirement plans, after taxes	2		—
Comprehensive Income	524		1,067
Less: Comprehensive income attributable to noncontrolling interests	92		95
Comprehensive Income Attributable to Hess Corporation	$	432	$	972

See accompanying Notes to Consolidated Financial Statements.

PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

STATEMENT OF CONSOLIDATED CASH FLOWS (UNAUDITED)


	Three Months Ended March 31,
	2025		2024

	(In millions)
Cash Flows From Operating Activities
Net income	$	522	$	1,067
Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation, depletion and amortization	619		557

Exploratory dry hole costs	21		—
Exploration lease impairment	7		3

Stock compensation expense	43		39

Provision for deferred income taxes and other tax accruals	103		63
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	321		(359)
(Increase) decrease in inventories	(53)		(78)
Increase (decrease) in accounts payable and accrued liabilities	(59)		(294)
Increase (decrease) in taxes payable	7		10
Changes in other operating assets and liabilities	(130)		(123)
Net cash provided by (used in) operating activities	1,401		885
Cash Flows From Investing Activities
Additions to property, plant and equipment - E&P	(966)		(902)
Additions to property, plant and equipment - Midstream	(46)		(55)
Proceeds from asset sales, net of cash sold	2		—
Other, net	—		(1)
Net cash provided by (used in) investing activities	(1,010)		(958)
Cash Flows From Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less	113		115
Debt with maturities of greater than 90 days:
Borrowings	800		—
Repayments	(805)		(3)
Cash dividends paid	(157)		(137)


Noncontrolling interests, net	(156)		(151)
Employee stock options exercised	6		11
Withholding tax on stock-based incentive awards	(24)		(8)
Payments on finance lease obligations	(3)		(3)
Other, net	(12)		(1)
Net cash provided by (used in) financing activities	(238)		(177)
Net Increase (Decrease) in Cash and Cash Equivalents	153		(250)
Cash and Cash Equivalents at Beginning of Year	1,171		1,688
Cash and Cash Equivalents at End of Period	$	1,324	$	1,438

See accompanying Notes to Consolidated Financial Statements.

PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

STATEMENT OF CONSOLIDATED EQUITY (UNAUDITED)


	Common Stock		Capital in Excess of Par		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Hess Stockholders’ Equity		Noncontrolling Interests		Total Equity


For the Three Months Ended March 31, 2025
Balance at January 1, 2025	$	308	$	6,616	$	4,500	$	(208)	$	11,216	$	787	$	12,003
Net income	—		—		430		—		430		92		522
Other comprehensive income (loss)	—		—		—		2		2		—		2
Share-based compensation	1		46		(20)		—		27		—		27
Dividends on common stock	—		—		(154)		—		(154)		—		(154)
Sale of Class A shares of Hess Midstream LP	—		—		—		—		—		129		129
Repurchase of Class B units of Hess Midstream Operations LP	—		—		—		—		—		(50)		(50)
Noncontrolling interests, net	—		—		—		—		—		(94)		(94)
Balance at March 31, 2025	$	309	$	6,662	$	4,756	$	(206)	$	11,521	$	864	$	12,385
For the Three Months Ended March 31, 2024
Balance at January 1, 2024	$	307	$	6,495	$	2,318	$	(134)	$	8,986	$	616	$	9,602
Net income	—		—		972		—		972		95		1,067
Other comprehensive income (loss)	—		—		—		—		—		—		—
Share-based compensation	1		50		(6)		—		45		—		45
Dividends on common stock	—		—		(135)		—		(135)		—		(135)
Sale of Class A shares of Hess Midstream LP	—		—		—

SEC Form 10-Q filed by Hess Corporation