Business Wire | Jan 26, 2022 07:30AM EST

Hess Reports Estimated Results for the Fourth Quarter of 2021

Jan. 26, 2022

NEW YORK--(BUSINESS WIRE)--Jan. 26, 2022--Hess Corporation (NYSE: HES) today reported net income of $265 million, or $0.85 per share, in the fourth quarter of 2021, compared with a net loss of $97 million, or $0.32 per share, in the fourth quarter of 2020. On an adjusted basis, the Corporation reported a net loss in the prior-year quarter of $176 million, or $0.58 per share. The improvement in adjusted after-tax results compared with the prior-year period was primarily due to higher realized selling prices in the fourth quarter of 2021.

* "Adjusted net income (loss)" 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 6 to 8. "This year marks an inflection point in the execution of our strategy," CEO John Hess said. "We have built a differentiated portfolio offering a unique value proposition - delivering durable cash flow growth that enables us to continue to invest in some of the highest return projects in the industry and to start growing our cash returns to our shareholders."

After-tax income (loss) by major operating activity was as follows:

Three Months Ended Year Ended December 31, December 31, (unaudited) (unaudited)

2021 2020 2021 2020

(In millions, except per share amounts)

Net Income (Loss) Attributable to Hess Corporation

Exploration and Production $ 309 $ (39) $ 770 $ (2,841)

Midstream 74 62 286 230

Corporate, Interest and Other (118) (120) (497) (482)

Net income (loss) attributable to $ 265 $ (97) $ 559 $ (3,093)Hess Corporation

Net income (loss) per share $ 0.85 $ (0.32) $ 1.81 $ (10.15)(diluted)





Adjusted Net Income (Loss) Attributable to Hess Corporation

Exploration and Production $ 309 $ (118) $ 888 $ (643)

Midstream 74 62 286 230

Corporate, Interest and Other (118) (120) (497) (481)

Adjusted net income (loss) $ 265 $ (176) $ 677 $ (894)attributable to Hess Corporation

Adjusted net income (loss) per share $ 0.85 $ (0.58) $ 2.19 $ (2.93)(diluted)



Weighted average number of shares 310.0 305.1 309.3 304.8(diluted)



Exploration and Production:

E&P net income was $309 million in the fourth quarter of 2021, compared with a net loss of $39 million in the fourth quarter of 2020. On an adjusted basis, E&P's net loss in the prior-year quarter was $118 million. The Corporation's average realized crude oil selling price, including the effect of hedging, was $71.04 per barrel in the fourth quarter of 2021, compared with $45.32 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the fourth quarter of 2021 was $36.47 per barrel, compared with $15.80 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.77 per mcf, compared with $3.35 per mcf in the fourth quarter of 2020.

Net production, excluding Libya, was 295,000 boepd in the fourth quarter of 2021, compared with 309,000 boepd in the fourth quarter of 2020, or 295,000 boepd proforma for assets sold. Net production for Libya was 21,000 boepd in the fourth quarter of 2021 compared with 12,000 boepd in the prior-year quarter.

Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $12.17 per boe (excluding Libya: $12.84 per boe) in the fourth quarter of 2021, compared with $11.31 per boe (excluding Libya: $11.57 per boe) in the prior-year quarter. The change in per unit cost reflects the impact of lower production volumes and higher production and severance taxes in North Dakota in the fourth quarter of this year. Income tax expense increased in the fourth quarter of 2021 compared with the prior-year quarter primarily due to improved results from Libya and Guyana.

Oil and Gas Reserves Estimates:

Oil and gas proved reserves at December 31, 2021, which are subject to final review, were 1,309 million boe, compared with 1,170 million boe at December 31, 2020. Net proved reserve additions in 2021 totaled 348 million boe, which is comprised of net positive revisions of 107 million boe due to higher commodity prices and other net additions of 241 million boe primarily from the Bakken. Asset sales in 2021 reduced proved reserves by 91 million boe.

Excluding asset sales, the Corporation replaced 295 percent of its 2021 production (204 percent excluding price revisions) at a finding and development cost of approximately $5.25 per boe (approximately $7.60 per boe excluding price revisions).

Operational Highlights for the Fourth Quarter of 2021:

Bakken (Onshore U.S.): Net production from the Bakken was 159,000 boepd compared with 189,000 boepd in the prior-year quarter primarily due to the impact of lower drilling activity caused by a reduction in rig count from six to one during the first half of last year, lower NGL and natural gas volumes received under percentage of proceeds contracts, and the second quarter 2021 sale of Little Knife and Murphy Creek nonstrategic acreage interests, which contributed net production of approximately 5,000 boepd in the fourth quarter of 2020. Net oil production was 79,000 barrels of oil per day (bopd) compared with 97,000 bopd in the fourth quarter of 2020. NGL and natural gas volumes received under percentage of proceeds contracts were 9,000 boepd in the fourth quarter of 2021 compared with 21,000 boepd in the fourth quarter of 2020 due to higher realized NGL prices lowering volumes received as consideration for gas processing fees. The Corporation added a second rig in February 2021 and a third rig in September 2021, and drilled 17 wells, completed 13 wells, and brought 19 new wells online in the fourth quarter.

Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 39,000 boepd, compared with 32,000 boepd in the prior-year quarter primarily due to downtime for hurricane-related maintenance in the fourth quarter of 2020. Net production from the Shenzi Field, which was sold in November 2020, was 3,000 boepd in the fourth quarter of 2020.

Guyana (Offshore): At the Stabroek Block (Hess - 30%), the operator, Esso Exploration and Production Guyana Limited, announced two significant discoveries at Fangtooth and Lau Lau. The Fangtooth-1 well encountered approximately 164 feet of high quality oil bearing sandstone reservoirs, and confirms the deeper exploration potential of the Stabroek Block. The well was drilled in 6,030 feet of water and is located approximately 11 miles northwest of the Liza Field. The Lau Lau-1 well encountered approximately 315 feet of high quality hydrocarbon bearing sandstone reservoirs. The well was drilled in 4,793 feet of water and is located approximately 42 miles southeast of the Liza Field.

The Corporation's net production from the Liza Destiny floating production, storage and offloading vessel (FPSO) was 31,000 bopd in the fourth quarter of 2021 compared with 26,000 bopd in the prior-year quarter. On October 25, 2021, the Liza Unity FPSO, with an expected capacity of 220,000 gross bopd, arrived at the Stabroek Block and startup of Phase 2 of the Liza Field development remains on track for the first quarter of 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, was submitted to the government of Guyana for approval in the fourth quarter. Pending government approval and project sanctioning, the project is expected to have a capacity of 250,000 gross bopd with first oil anticipated in 2025. We expect to have at least six FPSOs on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base.

Following the completion of the Fangtooth-1 well, the Stena DrillMAX will begin drilling at the Tarpon prospect. Following the completion of the Lau Lau-1 well, the Noble Don Taylor began drilling at the Barreleye prospect. The Stena Carron completed drill stem tests on the Longtail-2, Whiptail-2 and Turbot-2 wells, and is currently performing a drill stem test on the Tilapia-1 well. The Noble Sam Croft, the Noble Bob Douglas and the Noble Tom Madden are currently drilling and completing development wells at Liza Phase 2 and the Payara Field.

South East Asia (Offshore): Net production at North Malay Basin and JDA was 66,000 boepd compared with 56,000 boepd in the prior-year quarter, reflecting higher natural gas nominations due to a recovery in economic activity which had been impacted by COVID-19.

Midstream:

The Midstream segment had net income of $74 million in the fourth quarter of 2021, compared with net income of $62 million in the prior-year quarter, primarily due to increased revenue from higher minimum volume commitments and rates.

In October 2021, Hess Midstream LP completed a public offering of approximately 8.6 million Class A shares held by Hess Corporation and Global Infrastructure Partners. The Corporation received net proceeds of $108 million. After giving effect to this transaction, the Corporation owns an approximate 44% interest in Hess Midstream LP, on a consolidated basis.

Corporate, Interest and Other:

After-tax expense for Corporate, Interest and Other was $118 million in the fourth quarter of 2021, compared with $120 million in the fourth quarter of 2020.

Capital and Exploratory Expenditures:

E&P capital and exploratory expenditures were $593 million in the fourth quarter of 2021, compared with $371 million in the prior-year quarter, primarily due to higher drilling and development activity in Guyana and the Bakken. Midstream capital expenditures were $54 million in the fourth quarter of 2021, compared with $51 million in the prior-year quarter.

Liquidity:

Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.71 billion and debt and finance lease obligations totaling $6.1 billion at December 31, 2021. The Midstream segment had cash and cash equivalents of $2 million and total debt of $2.6 billion at December 31, 2021. The Corporation's debt to capitalization ratio as defined in its debt covenants was 42.3% at December 31, 2021 and 47.5% at December 31, 2020.

Net cash provided by operating activities was $899 million in the fourth quarter of 2021, up from $486 million in the fourth quarter of 2020. Net cash provided by operating activities before changes in operating assets and liabilities2 was $886 million in the fourth quarter of 2021, compared with $532 million in the prior-year quarter, primarily due to higher realized selling prices. Changes in operating assets and liabilities increased cash flow from operating activities by $13 million during the fourth quarter of 2021 and decreased cash flow from operating activities by $46 million in the prior-year quarter.

During the quarter, the Corporation received net proceeds of $108 million from the public offering of approximately 4.3 million Hess-owned Class A shares of Hess Midstream LP. In January 2022, the Corporation paid accrued Libyan income tax and royalties of approximately $470 million related to operations for the period December 2020 through November 2021.

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.

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 Year Ended Ended December 31, December 31, (unaudited) (unaudited)

2021 2020 2021 2020

(In millions)

Exploration and Production $ - $ 79 $ (118) $ (2,198)

Midstream - - - -

Corporate, Interest and Other - - - (1)

Total items affecting comparability of $ - $ 79 $ (118) $ (2,199)earnings between periods

Fourth Quarter 2020: E&P results included a pre-tax gain of $79 million ($79 million after income taxes) associated with the sale of the Corporation's 28% working interest in the Shenzi Field in the deepwater Gulf of Mexico.

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 Year Ended December 31, December 31, (unaudited) (unaudited)

2021 2020 2021 2020

(In millions)

Net income (loss) attributable to $ 265 $ (97) $ 559 $ (3,093)Hess Corporation

Less: Total items affectingcomparability of earnings between - 79 (118) (2,199)periods

Adjusted net income (loss) $ 265 $ (176) $ 677 $ (894)attributable to Hess Corporation

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 Year Ended December 31, December 31, (unaudited) (unaudited)

2021 2020 2021 2020

(In millions)

Net cash provided by (used in) operating activities before changes $ 886 532 $ 2,991 $ 1,803in operating assets and liabilities $

Changes in operating assets and 13 (46) (101) (470)liabilities

Net cash provided by (used in) $ 899 $ 486 $ 2,890 $ 1,333operating activities

Hess Corporation will review fourth 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 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 COVID-19; reduced demand for our products, including due to COVID-19, 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; operational changes and expenditures due to climate change and sustainability related initiatives; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks, health measures related to COVID-19 or climate change; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control and exposure to decommissioning liabilities for divested assets in the event the current or future owners are unable to perform; 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)

Fourth Fourth Third Quarter Quarter Quarter 2021 2020 2021

Income Statement



Revenues and non-operating income

Sales and other operating revenues $ 2,237 $ 1,321 $ 1,759

Gains on asset sales, net - 79 29

Other, net 18 17 23

Total revenues and non-operating income 2,255 1,417 1,811

Costs and expenses

Marketing, including purchased oil and gas 672 281 522

Operating costs and expenses 316 313 333

Production and severance taxes 49 32 42

Exploration expenses, including dry holes and 45 60 36lease impairment

General and administrative expenses 86 82 76

Interest expense 121 118 125

Depreciation, depletion and amortization 398 486 349

Total costs and expenses 1,687 1,372 1,483

Income (loss) before income taxes 568 45 328

Provision (benefit) for income taxes 212 72 143

Net income (loss) 356 (27) 185

Less: Net income (loss) attributable to 91 70 70noncontrolling interests

Net income (loss) attributable to Hess $ 265 $ (97) $ 115Corporation

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

Year Ended December 31,

2021

2020

Income Statement

Revenues and non-operating income

Sales and other operating revenues

$

7,473

$

4,667

Gains on asset sales, net

29

87

Other, net

81

50

Total revenues and non-operating income

7,583

4,804

Costs and expenses

Marketing, including purchased oil and gas

2,034

936

Operating costs and expenses

1,229

1,218

Production and severance taxes

172

124

Exploration expenses, including dry holes and lease impairment

162

351

General and administrative expenses

340

357

Interest expense

481

468

Depreciation, depletion and amortization

1,528

2,074

Impairment and other

147

2,126

Total costs and expenses

6,093

7,654

Income (loss) before income taxes

1,490

(2,850)

Provision (benefit) for income taxes

600

(11)

Net income (loss)

890

(2,839)

Less: Net income (loss) attributable to noncontrolling interests

331

254

Net income (loss) attributable to Hess Corporation

$

559

$

(3,093)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

Year Ended December 31,

2021 2020

Income Statement



Revenues and non-operating income

Sales and other operating revenues $ 7,473 $ 4,667

Gains on asset sales, net 29 87

Other, net 81 50

Total revenues and non-operating income 7,583 4,804

Costs and expenses

Marketing, including purchased oil and gas 2,034 936

Operating costs and expenses 1,229 1,218

Production and severance taxes 172 124

Exploration expenses, including dry holes and lease 162 351impairment

General and administrative expenses 340 357

Interest expense 481 468

Depreciation, depletion and amortization 1,528 2,074

Impairment and other 147 2,126

Total costs and expenses 6,093 7,654

Income (loss) before income taxes 1,490 (2,850)

Provision (benefit) for income taxes 600 (11)

Net income (loss) 890 (2,839)

Less: Net income (loss) attributable to noncontrolling 331 254interests

Net income (loss) attributable to Hess Corporation $ 559 $ (3,093)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

December 31,

2021

2020

Balance Sheet Information

Assets

Cash and cash equivalents

$

2,713

$

1,739

Other current assets

1,633

1,342

Property, plant and equipment - net

14,182

14,115

Operating lease right-of-use assets - net

352

426

Finance lease right-of-use assets - net

144

168

Other long-term assets

1,491

1,031

Total assets

$

20,515

$

18,821

Liabilities and equity

Current portion of long-term debt

$ 517

$10

Current portion of operating and finance lease obligations

89

81

Other current liabilities

2,458

1,532

Long-term debt

7,941

8,286

Long-term operating lease obligations

394

478

Long-term finance lease obligations

200

220

Other long-term liabilities

1,890

1,879

Total equity excluding other comprehensive income (loss)

6,706

6,121

Accumulated other comprehensive income (loss)

(406)

(755)

Noncontrolling interests

726

969

Total liabilities and equity

$

20,515

$

18,821

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

December 31,

2021 2020

Balance Sheet Information

Assets

Cash and cash equivalents $ 2,713 $ 1,739

Other current assets 1,633 1,342

Property, plant and equipment - net 14,182 14,115

Operating lease right-of-use assets - net 352 426

Finance lease right-of-use assets - net 144 168

Other long-term assets 1,491 1,031

Total assets $ 20,515 $ 18,821

Liabilities and equity

Current portion of long-term debt $ 517 $ 10

Current portion of operating and finance lease 89 81obligations

Other current liabilities 2,458 1,532

Long-term debt 7,941 8,286

Long-term operating lease obligations 394 478

Long-term finance lease obligations 200 220

Other long-term liabilities 1,890 1,879

Total equity excluding other comprehensive income 6,706 6,121(loss)

Accumulated other comprehensive income (loss) (406) (755)

Noncontrolling interests 726 969

Total liabilities and equity $ 20,515 $ 18,821

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

December 31,

2021

2020

Total Debt

Hess Corporation

$

5,894

$

6,386

Midstream (a)

2,564

1,910

Hess Consolidated

$

8,458

$

8,296

(a) Midstream debt is non-recourse to Hess Corporation.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

December 31,

2021 2020

Total Debt

Hess Corporation $ 5,894 $ 6,386

Midstream (a) 2,564 1,910

Hess Consolidated $ 8,458 $ 8,296

(a) Midstream debt is non-recourse to Hess Corporation.

December 31,

2021

2020

Debt to Capitalization Ratio (a)

Hess Consolidated

55.3 %

57.4 %

Hess Corporation as defined in debt covenants

42.3 %

47.5 %

(a) Includes finance lease obligations.

December 31,

2021 2020

Debt to Capitalization Ratio (a)

Hess Consolidated 55.3 % 57.4 %

Hess Corporation as defined in debt covenants 42.3 % 47.5 %

(a) Includes finance lease obligations.

Three Months Ended December 31,

Year Ended December 31,

2021

2020

2021

2020

Interest Expense

Hess Corporation

$

90

$

94

$

376

$

373

Midstream (a)

31

24

105

95

Hess Consolidated

$

121

$

118

$

481

$

468

(a) Midstream interest expense is reported in the Midstream operating segment.

Three Months Ended Year Ended December 31, December 31,

2021 2020 2021 2020

Interest Expense

Hess Corporation $ 90 $ 94 $ 376 $ 373

Midstream (a) 31 24 105 95

Hess Consolidated $ 121 $ 118 $ 481 $ 468

(a) Midstream interest expense is reported in the Midstream operatingsegment.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

Fourth Fourth Third Quarter Quarter Quarter 2021 2020 2021

Cash Flow Information



Cash Flows from Operating Activities

Net income (loss) $ 356 $ (27) $ 185

Adjustments to reconcile net income (loss) tonet cash provided by (used in) operating activities:

Gains on asset sales, net - (79) (29)

Depreciation, depletion and amortization 398 486 349

Exploratory dry hole costs - 26 2

Exploration lease and other impairment 5 3 5

Pension settlement loss 4 - 1

Stock compensation expense 16 16 17

Noncash (gains) losses on commodity 64 73 64derivatives, net

Provision (benefit) for deferred income taxes 43 34 37and other tax accruals

Net cash provided by (used in) operatingactivities before changes in operating assets 886 532 631and liabilities

Changes in operating assets and liabilities 13 (46) (16)

Net cash provided by (used in) operating 899 486 615activities

Cash Flows from Investing Activities

Additions to property, plant and equipment - (466) (319) (431)E&P

Additions to property, plant and equipment - (43) (55) (67)Midstream

Proceeds from asset sales, net of cash sold - 482 130

Other, net (1) (1) (2)

Net cash provided by (used in) investing (510) 107 (370)activities

Cash Flows from Financing Activities

Net borrowings (repayments) of debt with (48) 6 43maturities of 90 days or less

Debt with maturities of greater than 90 days:

Borrowings - - 750

Repayments (2) - (503)

Payments on finance lease obligations (3) (1) (3)

Proceeds from sale of Class A shares of Hess 108 - -Midstream LP

Cash dividends paid (77) (76) (77)

Noncontrolling interests, net (75) (67) (452)

Employee stock options exercised 2 - -

Other, net - (1) (14)

Net cash provided by (used in) financing (95) (139) (256)activities

Net Increase (Decrease) in Cash and Cash 294 454 (11)Equivalents

Cash and Cash Equivalents at Beginning of 2,419 1,285 2,430Period

Cash and Cash Equivalents at End of Period $ 2,713 $ 1,739 $ 2,419



Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred $ (607) $ (391) $ (528)

Increase (decrease) in related liabilities 98 17 30

Additions to property, plant and equipment $ (509) $ (374) $ (498)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

Year Ended December 31,

2021

2020

Cash Flow Information

Cash Flows from Operating Activities

Net income (loss)

$

890

$

(2,839)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Gains on asset sales, net

(29)

(87)

Depreciation, depletion and amortization

1,528

2,074

Impairment and other

147

2,126

Exploratory dry hole costs

11

192

Exploration lease and other impairment

20

51

Pension settlement loss

9

-

Stock compensation expense

77

79

Noncash (gains) losses on commodity derivatives, net

216

260

Provision (benefit) for deferred income taxes and other tax accruals

122

(53)

Net cash provided by (used in) operating activities before changes in operating assets and liabilities

2,991

1,803

Changes in operating assets and liabilities

(101)

(470)

Net cash provided by (used in) operating activities

2,890

1,333

Cash Flows from Investing Activities

Additions to property, plant and equipment - E&P

(1,584)

(1,896)

Additions to property, plant and equipment - Midstream

(163)

(301)

Proceeds from asset sales, net of cash sold

427

493

Other, net

(5)

(3)

Net cash provided by (used in) investing activities

(1,325)

(1,707)

Cash Flows from Financing Activities

Net borrowings (repayments) of debt with maturities of 90 days or less

(80)

152

Debt with maturities of greater than 90 days:

Borrowings

750

1,000

Repayments

(510)

-

Payments on finance lease obligations

(10)

(7)

Proceeds from sale of Class A shares of Hess Midstream LP

178

-

Cash dividends paid

(311)

(309)

Noncontrolling interests, net

(664)

(261)

Employee stock options exercised

77

15

Other, net

(21)

(22)

Net cash provided by (used in) financing activities

(591)

568

Net Increase (Decrease) in Cash and Cash Equivalents

974

194

Cash and Cash Equivalents at Beginning of Year

1,739

1,545

Cash and Cash Equivalents at End of Year

$

2,713

$

1,739

Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred

$

(1,881)

$

(1,931)

Increase (decrease) in related liabilities

134

(266)

Additions to property, plant and equipment

$

(1,747)

$

(2,197)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

Year Ended December 31,

2021 2020

Cash Flow Information



Cash Flows from Operating Activities

Net income (loss) $ 890 $ (2,839)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Gains on asset sales, net (29) (87)

Depreciation, depletion and amortization 1,528 2,074

Impairment and other 147 2,126

Exploratory dry hole costs 11 192

Exploration lease and other impairment 20 51

Pension settlement loss 9 -

Stock compensation expense 77 79

Noncash (gains) losses on commodity derivatives, net 216 260

Provision (benefit) for deferred income taxes and 122 (53)other tax accruals

Net cash provided by (used in) operating activities 2,991 1,803before changes in operating assets and liabilities

Changes in operating assets and liabilities (101) (470)

Net cash provided by (used in) operating activities 2,890 1,333

Cash Flows from Investing Activities

Additions to property, plant and equipment - E&P (1,584) (1,896)

Additions to property, plant and equipment - (163) (301)Midstream

Proceeds from asset sales, net of cash sold 427 493

Other, net (5) (3)

Net cash provided by (used in) investing activities (1,325) (1,707)

Cash Flows from Financing Activities

Net borrowings (repayments) of debt with maturities (80) 152of 90 days or less

Debt with maturities of greater than 90 days:

Borrowings 750 1,000

Repayments (510) -

Payments on finance lease obligations (10) (7)

Proceeds from sale of Class A shares of Hess 178 -Midstream LP

Cash dividends paid (311) (309)

Noncontrolling interests, net (664) (261)

Employee stock options exercised 77 15

Other, net (21) (22)

Net cash provided by (used in) financing activities (591) 568

Net Increase (Decrease) in Cash and Cash Equivalents 974 194

Cash and Cash Equivalents at Beginning of Year 1,739 1,545

Cash and Cash Equivalents at End of Year $ 2,713 $ 1,739



Additions to Property, Plant and Equipment included within Investing Activities

Capital expenditures incurred $ (1,881) $ (1,931)

Increase (decrease) in related liabilities 134 (266)

Additions to property, plant and equipment $ (1,747) $ (2,197)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

Fourth Quarter 2021

Fourth Quarter 2020

Third Quarter 2021

Capital and Exploratory Expenditures

E&P Capital and exploratory expenditures

United States

North Dakota

$

153

$

72

$

169

Offshore and Other

31

40

16

Total United States

184

112

185

Guyana

330

224

264

Malaysia and JDA

63

25

42

Other

16

10

7

E&P Capital and exploratory expenditures

$

593

$

371

$

498

Total exploration expenses charged to income included above

$

40

$

31

$

29

Midstream Capital expenditures

$

54

$

51

$

59

Year Ended December 31,

2021

2020

Capital and Exploratory Expenditures

E&P Capital and exploratory expenditures

United States

North Dakota

$522

$

661

Offshore and Other

103

258

Total United States

625

919

Guyana

1,016

743

Malaysia and JDA

154

99

Other

34

25

E&P Capital and exploratory expenditures

$

1,829

$

1,786

Total exploration expenses charged to income included above

$

131

$

108

Midstream Capital expenditures

$

183

$

253

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

Fourth Fourth Third Quarter Quarter Quarter 2021 2020 2021

Capital and Exploratory Expenditures



E&P Capital and exploratory expenditures

United States

North Dakota $ 153 $ 72 $ 169

Offshore and Other 31 40 16

Total United States 184 112 185

Guyana 330 224 264

Malaysia and JDA 63 25 42

Other 16 10 7

E&P Capital and exploratory expenditures $ 593 $ 371 $ 498



Total exploration expenses charged to income $ 40 $ 31 $ 29included above



Midstream Capital expenditures $ 54 $ 51 $ 59

Year Ended December 31,

2021 2020

Capital and Exploratory Expenditures



E&P Capital and exploratory expenditures

United States

North Dakota $ 522 $ 661

Offshore and Other 103 258

Total United States 625 919

Guyana 1,016 743

Malaysia and JDA 154 99

Other 34 25

E&P Capital and exploratory expenditures $ 1,829 $ 1,786



Total exploration expenses charged to income included $ 131 $ 108above



Midstream Capital expenditures $ 183 $ 253

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

Fourth Quarter 2021

Income Statement

United States

International

Total

Total revenues and non-operating income

Sales and other operating revenues

$

1,612

$

625

$

2,237

Other, net

13

2

15

Total revenues and non-operating income

1,625

627

2,252

Costs and expenses

Marketing, including purchased oil and gas (a)

668

24

692

Operating costs and expenses

167

87

254

Production and severance taxes

47

2

49

Midstream tariffs

292

-

292

Exploration expenses, including dry holes and lease impairment

25

20

45

General and administrative expenses

44

7

51

Depreciation, depletion and amortization

263

91

354

Total costs and expenses

1,506

231

1,737

Results of operations before income taxes

119

396

515

Provision (benefit) for income taxes

-

206

206

Net income (loss) attributable to Hess Corporation

$

119

(b)

$

190

(c)

$

309

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)

(d)

$

68

(e)

$

(39)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

Fourth Quarter 2021

Income Statement United International Total States



Total revenues and non-operating income

Sales and other operating $ 1,612 $ 625 $ 2,237revenues

Other, net 13 2 15

Total revenues and non-operating 1,625 627 2,252income

Costs and expenses

Marketing, including purchased 668 24 692oil and gas (a)

Operating costs and expenses 167 87 254

Production and severance taxes 47 2 49

Midstream tariffs 292 - 292

Exploration expenses, including 25 20 45dry holes and lease impairment

General and administrative 44 7 51expenses

Depreciation, depletion and 263 91 354amortization

Total costs and expenses 1,506 231 1,737

Results of operations before 119 396 515income taxes

Provision (benefit) for income - 206 206taxes

Net income (loss) attributable to $ 119 (b) $ 190 (c) $ 309Hess Corporation



Fourth Quarter 2020

Income Statement United International Total States



Total revenues and non-operating income

Sales and other operating $ 904 $ 417 $ 1,321revenues

Gains (losses) on asset sales, 79 - 79net

Other, net 12 2 14

Total revenues and non-operating 995 419 1,414income

Costs and expenses

Marketing, including purchased 267 34 301oil and gas (a)

Operating costs and expenses 158 92 250

Production and severance taxes 30 2 32

Midstream tariffs 243 - 243

Exploration expenses, including 36 24 60dry holes and lease impairment

General and administrative 43 8 51expenses

Depreciation, depletion and 325 121 446amortization

Total costs and expenses 1,102 281 1,383

Results of operations before (107) 138 31income taxes

Provision (benefit) for income - 70 70taxes

Net income (loss) attributable to $ (107) (d) $ 68 (e) $ (39)Hess Corporation

(a)

Includes amounts charged from the Midstream segment.

(b)

Includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement: $0 million).

(c)

Includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement: $0 million).

(d)

Includes after-tax gains from realized crude oil hedging activities of $84 million (noncash premium amortization: $63 million; cash settlement: $147 million).

(e)

Includes after-tax gains from realized crude oil hedging activities of $28 million (noncash premium amortization: $10 million; cash settlement: $38 million).

(a) Includes amounts charged from the Midstream segment.

Includes after-tax losses from realized crude oil hedging activities of(b) $50 million (noncash premium amortization: $50 million; cash settlement: $0 million).

Includes after-tax losses from realized crude oil hedging activities of(c) $14 million (noncash premium amortization: $14 million; cash settlement: $0 million).

Includes after-tax gains from realized crude oil hedging activities of(d) $84 million (noncash premium amortization: $63 million; cash settlement: $147 million).

Includes after-tax gains from realized crude oil hedging activities of(e) $28 million (noncash premium amortization: $10 million; cash settlement: $38 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

Third Quarter 2021

Income Statement

United States

International

Total

Total revenues and non-operating income

Sales and other operating revenues

$

1,280

$

479

$

1,759

Gains on asset sales, net

-

29

29

Other, net

12

7

19

Total revenues and non-operating income

1,292

515

1,807

Costs and expenses

Marketing, including purchased oil and gas (a)

542

-

542

Operating costs and expenses

150

99

249

Production and severance taxes

41

1

42

Midstream tariffs

270

-

270

Exploration expenses, including dry holes and lease impairment

21

15

36

General and administrative expenses

35

7

42

Depreciation, depletion and amortization

229

79

308

Total costs and expenses

1,288

201

1,489

Results of operations before income taxes

4

314

318

Provision (benefit) for income taxes

-

140

140

Net income (loss) attributable to Hess Corporation

$

4

(b)

$

174

(c)

$

178

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

Third Quarter 2021

Income Statement United International Total States



Total revenues and non-operating income

Sales and other operating $ 1,280 $ 479 $ 1,759revenues

Gains on asset sales, net - 29 29

Other, net 12 7 19

Total revenues and non-operating 1,292 515 1,807income

Costs and expenses

Marketing, including purchased 542 - 542oil and gas (a)

Operating costs and expenses 150 99 249

Production and severance taxes 41 1 42

Midstream tariffs 270 - 270

Exploration expenses, including 21 15 36dry holes and lease impairment

General and administrative 35 7 42expenses

Depreciation, depletion and 229 79 308amortization

Total costs and expenses 1,288 201 1,489

Results of operations before 4 314 318income taxes

Provision (benefit) for income - 140 140taxes

Net income (loss) attributable to $ 4 (b) $ 174 (c) $ 178Hess Corporation

(a)

Includes amounts charged from the Midstream segment.

(b)

Includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement: $0 million).

(c)

Includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement: $0 million).

(a) Includes amounts charged from the Midstream segment.

Includes after-tax losses from realized crude oil hedging activities of(b) $50 million (noncash premium amortization: $50 million; cash settlement: $0 million).

Includes after-tax losses from realized crude oil hedging activities of(c) $14 million (noncash premium amortization: $14 million; cash settlement: $0 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

Year Ended December 31, 2021

Income Statement

United States

International

Total

Total revenues and non-operating income

Sales and other operating revenues

$

5,378

$

2,095

$

7,473

Gains on asset sales, net

-

29

29

Other, net

48

16

64

Total revenues and non-operating income

5,426

2,140

7,566

Costs and expenses

Marketing, including purchased oil and gas (a)

2,065

54

2,119

Operating costs and expenses

610

355

965

Production and severance taxes

166

6

172

Midstream tariffs

1,094

-

1,094

Exploration expenses, including dry holes and lease impairment

102

60

162

General and administrative expenses

162

29

191

Depreciation, depletion and amortization

1,020

341

1,361

Impairment and other

147

-

147

Total costs and expenses

5,366

845

6,211

Results of operations before income taxes

60

1,295

1,355

Provision (benefit) for income taxes

-

585

585

Net income (loss) attributable to Hess Corporation

$

60

(b)

$

710

(c)

$

770

Year Ended December 31, 2020

Income Statement

United States

International

Total

Total revenues and non-operating income

Sales and other operating revenues

$

3,604

$

1,063

$

4,667

Gains on asset sales, net

79

-

79

Other, net

18

13

31

Total revenues and non-operating income

3,701

1,076

4,777

Costs and expenses

Marketing, including purchased oil and gas (a)

1,043

24

1,067

Operating costs and expenses

564

331

895

Production and severance taxes

118

6

124

Midstream tariffs

946

-

946

Exploration expenses, including dry holes and lease impairment

284

67

351

General and administrative expenses

176

30

206

Depreciation, depletion and amortization

1,480

435

1,915

Impairment and other

697

1,429

2,126

Total costs and expenses

5,308

2,322

7,630

Results of operations before income taxes

(1,607)

(1,246)

(2,853)

Provision (benefit) for income taxes

-

(12)

(12)

Net income (loss) attributable to Hess Corporation

$

(1,607)

(d)

$

(1,234)

(e)

$

(2,841)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

Year Ended December 31, 2021

Income Statement United International Total States



Total revenues and non-operating income

Sales and other operating $ 5,378 $ 2,095 $ 7,473revenues

Gains on asset sales, net - 29 29

Other, net 48 16 64

Total revenues and 5,426 2,140 7,566non-operating income

Costs and expenses

Marketing, including 2,065 54 2,119purchased oil and gas (a)

Operating costs and expenses 610 355 965

Production and severance 166 6 172taxes

Midstream tariffs 1,094 - 1,094

Exploration expenses,including dry holes and lease 102 60 162impairment

General and administrative 162 29 191expenses

Depreciation, depletion and 1,020 341 1,361amortization

Impairment and other 147 - 147

Total costs and expenses 5,366 845 6,211

Results of operations before 60 1,295 1,355income taxes

Provision (benefit) for - 585 585income taxes

Net income (loss)attributable to Hess $ 60 (b) $ 710 (c) $ 770Corporation



Year Ended December 31, 2020

Income Statement United International Total States



Total revenues and non-operating income

Sales and other operating $ 3,604 $ 1,063 $ 4,667revenues

Gains on asset sales, net 79 - 79

Other, net 18 13 31

Total revenues and 3,701 1,076 4,777non-operating income

Costs and expenses

Marketing, including 1,043 24 1,067purchased oil and gas (a)

Operating costs and expenses 564 331 895

Production and severance 118 6 124taxes

Midstream tariffs 946 - 946

Exploration expenses,including dry holes and lease 284 67 351impairment

General and administrative 176 30 206expenses

Depreciation, depletion and 1,480 435 1,915amortization

Impairment and other 697 1,429 2,126

Total costs and expenses 5,308 2,322 7,630

Results of operations before (1,607) (1,246) (2,853)income taxes

Provision (benefit) for - (12) (12)income taxes

Net income (loss)attributable to Hess $ (1,607) (d) $ (1,234) (e) $ (2,841)Corporation

(a)

Includes amounts charged from the Midstream segment.

(b)

Includes after-tax losses from realized crude oil hedging activities of $190 million (noncash premium amortization: $190 million; cash settlement: $0 million).

(c)

Includes after-tax losses from realized crude oil hedging activities of $49 million (noncash premium amortization: $49 million; cash settlement: $0 million).

(d)

Includes after-tax gains from realized crude oil hedging activities of $452 million (noncash premium amortization: $230 million; cash settlement: $682 million).

(e)

Includes after-tax gains from realized crude oil hedging activities of $95 million (noncash premium amortization: $30 million; cash settlement: $125 million).

(a) Includes amounts charged from the Midstream segment.

Includes after-tax losses from realized crude oil hedging activities of(b) $190 million (noncash premium amortization: $190 million; cash settlement: $0 million).

Includes after-tax losses from realized crude oil hedging activities of(c) $49 million (noncash premium amortization: $49 million; cash settlement: $0 million).

Includes after-tax gains from realized crude oil hedging activities of(d) $452 million (noncash premium amortization: $230 million; cash settlement: $682 million).

Includes after-tax gains from realized crude oil hedging activities of(e) $95 million (noncash premium amortization: $30 million; cash settlement: $125 million).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Fourth Quarter 2021

Fourth Quarter 2020

Third Quarter 2021

Net Production Per Day (in thousands)

Crude oil - barrels

United States

North Dakota

79

97

78

Offshore (a)

26

24

20

Total United States

105

121

98

Guyana

31

26

32

Malaysia and JDA

3

3

3

Other (b)

19

17

20

Total

158

167

153

Natural gas liquids - barrels

United States

North Dakota

52

61

44

Offshore (a)

4

3

3

Total United States

56

64

47

Natural gas - mcf

United States

North Dakota

170

185

158

Offshore

55

31

52

Total United States

225

216

210

Malaysia and JDA

375

315

284

Other (b)

11

7

9

Total

611

538

503

Barrels of oil equivalent

316

321

284

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Fourth Fourth Third Quarter Quarter Quarter 2021 2020 2021

Net Production Per Day (in thousands)



Crude oil - barrels

United States

North Dakota 79 97 78

Offshore (a) 26 24 20

Total United States 105 121 98

Guyana 31 26 32

Malaysia and JDA 3 3 3

Other (b) 19 17 20

Total 158 167 153



Natural gas liquids - barrels

United States

North Dakota 52 61 44

Offshore (a) 4 3 3

Total United States 56 64 47



Natural gas - mcf

United States

North Dakota 170 185 158

Offshore 55 31 52

Total United States 225 216 210

Malaysia and JDA 375 315 284

Other (b) 11 7 9

Total 611 538 503



Barrels of oil equivalent 316 321 284

(a)

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 3,000 boepd in the fourth quarter of 2020.

(b)

Other includes production from Denmark and Libya. The Corporation sold its interests in Denmark in the third quarter of 2021. Denmark net production was 6,000 boepd in the fourth quarter of 2020 and 3,000 boepd in the third quarter of 2021. Libya net production was 21,000 boepd in the fourth quarter of 2021, 12,000 boepd in the fourth quarter of 2020 and 19,000 boepd in the third quarter of 2021.

The Corporation sold its working interest in the Shenzi Field in the(a) deepwater Gulf of Mexico in the fourth quarter of 2020. Net production from the Shenzi Field was 3,000 boepd in the fourth quarter of 2020.

Other includes production from Denmark and Libya. The Corporation sold its interests in Denmark in the third quarter of 2021. Denmark net(b) production was 6,000 boepd in the fourth quarter of 2020 and 3,000 boepd in the third quarter of 2021. Libya net production was 21,000 boepd in the fourth quarter of 2021, 12,000 boepd in the fourth quarter of 2020 and 19,000 boepd in the third quarter of 2021.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Year Ended December 31,

2021

2020

Net Production Per Day (in thousands)

Crude oil - barrels

United States

North Dakota

80

107

Offshore (a)

29

38

Total United States

109

145

Guyana

30

20

Malaysia and JDA

3

4

Other (b)

21

9

Total

163

178

Natural gas liquids - barrels

United States

North Dakota

49

56

Offshore (a)

4

5

Total United States

53

61

Natural gas - mcf

United States

North Dakota

162

180

Offshore

72

76

Total United States

234

256

Malaysia and JDA

347

291

Other (b)

10

7

Total

591

554

Barrels of oil equivalent

315

331

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Year Ended December 31,

2021 2020

Net Production Per Day (in thousands)



Crude oil - barrels

United States

North Dakota 80 107

Offshore (a) 29 38

Total United States 109 145

Guyana 30 20

Malaysia and JDA 3 4

Other (b) 21 9

Total 163 178



Natural gas liquids - barrels

United States

North Dakota 49 56

Offshore (a) 4 5

Total United States 53 61



Natural gas - mcf

United States

North Dakota 162 180

Offshore 72 76

Total United States 234 256

Malaysia and JDA 347 291

Other (b) 10 7

Total 591 554



Barrels of oil equivalent 315 331

(a)

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 9,000 boepd in 2020.

(b)

Other includes production from Denmark and Libya. The Corporation sold its interests in Denmark in the third quarter of 2021. Denmark net production was 3,000 boepd in 2021 and 6,000 boepd in 2020. Libya net production was 20,000 boepd in 2021 and 4,000 boepd in 2020.

The Corporation sold its working interest in the Shenzi Field in the(a) deepwater Gulf of Mexico in the fourth quarter of 2020. Net production from the Shenzi Field was 9,000 boepd in 2020.

Other includes production from Denmark and Libya. The Corporation sold(b) its interests in Denmark in the third quarter of 2021. Denmark net production was 3,000 boepd in 2021 and 6,000 boepd in 2020. Libya net production was 20,000 boepd in 2021 and 4,000 boepd in 2020.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Fourth Quarter 2021

FourthQuarter2020Third Quarter 2021

Sales Volumes Per Day (in thousands) (a)

Crude oil - barrels

165

184

148

Natural gas liquids - barrels

56

64

47

Natural gas - mcf

611

538

503

Barrels of oil equivalent

323

338

279

Sales Volumes (in thousands) (a)

Crude oil - barrels

15,225

16,974

13,627

Natural gas liquids - barrels

5,124

5,842

4,338

Natural gas - mcf

56,202

49,542

46,317

Barrels of oil equivalent

29,716

31,073

25,685

Year Ended December 31,

2021

2020

Sales Volumes Per Day (in thousands) (a)

Crude oil - barrels

174

167Natural gas liquids - barrels

53

61Natural gas - mcf

591

554Barrels of oil equivalent

326

320Sales Volumes (in thousands) (a)

Crude oil - barrels (b)

63,540

60,924Natural gas liquids - barrels

19,406

22,397Natural gas - mcf

215,589

202,917Barrels of oil equivalent

118,878

117,141HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Fourth Fourth Third Quarter Quarter Quarter 2021 2020 2021

Sales Volumes Per Day (in thousands) (a)

Crude oil - barrels 165 184 148

Natural gas liquids - barrels 56 64 47

Natural gas - mcf 611 538 503

Barrels of oil equivalent 323 338 279



Sales Volumes (in thousands) (a)

Crude oil - barrels 15,225 16,974 13,627

Natural gas liquids - barrels 5,124 5,842 4,338

Natural gas - mcf 56,202 49,542 46,317

Barrels of oil equivalent 29,716 31,073 25,685

Year Ended December 31,

2021 2020

Sales Volumes Per Day (in thousands) (a)

Crude oil - barrels 174 167

Natural gas liquids - barrels 53 61

Natural gas - mcf 591 554

Barrels of oil equivalent 326 320



Sales Volumes (in thousands) (a)

Crude oil - barrels (b) 63,540 60,924

Natural gas liquids - barrels 19,406 22,397

Natural gas - mcf 215,589 202,917

Barrels of oil equivalent 118,878 117,141

(a)

Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.

(b)

Sales volumes for the year ended December 31, 2021 include 4.2 million barrels of crude oil that were stored on very large crude carriers at December 31, 2020 and sold in the first quarter of 2021.

(a) Sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported.

Sales volumes for the year ended December 31, 2021 include 4.2 million(b) barrels of crude oil that were stored on very large crude carriers at December 31, 2020 and sold in the first quarter of 2021.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Fourth Quarter 2021

Fourth Quarter 2020

Third Quarter 2021

Average Selling Prices

Crude oil - per barrel (including hedging)

United States

North Dakota

$

67.39

$

42.69

$

59.65

Offshore

69.04

47.59

62.23

Total United States

67.80

43.65

60.14

Guyana

77.20

49.56

70.05

Malaysia and JDA

83.23

37.80

69.87

Other (a)

75.24

50.22

68.36

Worldwide

71.04

45.32

63.17

Crude oil - per barrel (excluding hedging)

United States

North Dakota

$

72.54

$

36.46

$

65.11

Offshore

74.11

41.36

67.88

Total United States

72.93

37.42

65.64

Guyana

79.94

43.96

73.12

Malaysia and JDA

83.23

37.80

69.87

Other (a)

77.78

44.63

71.43

Worldwide

75.22

39.45

67.88

Natural gas liquids - per barrel

United States

North Dakota

$

36.63

$

15.93

$

32.94

Offshore

34.23

13.07

32.00

Worldwide

36.47

15.80

32.88

Natural gas - per mcf

United States

North Dakota

$

4.40

$

1.67

$

3.75

Offshore

4.63

1.42

3.76

Total United States

4.46

1.64

3.75

Malaysia and JDA

4.97

4.57

5.45

Other (a)

4.27

2.27

3.62

Worldwide

4.77

3.35

4.71

(a) Other includes prices related to production from Denmark, which was sold in the third quarter of 2021, and Libya.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Fourth Fourth Third Quarter Quarter Quarter 2021 2020 2021

Average Selling Prices



Crude oil - per barrel (including hedging)

United States

North Dakota $ 67.39 $ 42.69 $ 59.65

Offshore 69.04 47.59 62.23

Total United States 67.80 43.65 60.14

Guyana 77.20 49.56 70.05

Malaysia and JDA 83.23 37.80 69.87

Other (a) 75.24 50.22 68.36

Worldwide 71.04 45.32 63.17



Crude oil - per barrel (excluding hedging)

United States

North Dakota $ 72.54 $ 36.46 $ 65.11

Offshore 74.11 41.36 67.88

Total United States 72.93 37.42 65.64

Guyana 79.94 43.96 73.12

Malaysia and JDA 83.23 37.80 69.87

Other (a) 77.78 44.63 71.43

Worldwide 75.22 39.45 67.88



Natural gas liquids - per barrel

United States

North Dakota $ 36.63 $ 15.93 $ 32.94

Offshore 34.23 13.07 32.00

Worldwide 36.47 15.80 32.88



Natural gas - per mcf

United States

North Dakota $ 4.40 $ 1.67 $ 3.75

Offshore 4.63 1.42 3.76

Total United States 4.46 1.64 3.75

Malaysia and JDA 4.97 4.57 5.45

Other (a) 4.27 2.27 3.62

Worldwide 4.77 3.35 4.71

(a) Other includes prices related to production from Denmark, which was sold inthe third quarter of 2021, and Libya.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Year Ended December 31,

2021

2020

Average Selling Prices

Crude oil - per barrel (including hedging)

United States

North Dakota

$

55.57

$

42.63

Offshore

60.09

45.92

Total United States

56.64

43.56

Guyana

68.57

46.41

Malaysia and JDA

71.00

37.91

Other (a)

66.39

51.37

Worldwide

60.08

44.28

Crude oil - per barrel (excluding hedging)

United States

North Dakota

$

59.90

$

33.87

Offshore

64.77

36.55

Total United States

61.05

34.63

Guyana

71.07

37.40

Malaysia and JDA

71.00

37.91

Other (a)

69.25

43.42

Worldwide

63.90

35.52

Natural gas liquids - per barrel

United States

North Dakota

$

30.74

$

11.29

Offshore

26.40

8.94

Worldwide

30.40

11.10

Natural gas - per mcf

United States

North Dakota

$

4.08

$

1.27

Offshore

3.25

1.23

Total United States

3.82

1.26

Malaysia and JDA

5.15

4.47

Other (a)

3.40

3.41

Worldwide

4.60

2.98

(a) Other includes prices related to production from Denmark, which was sold in the third quarter of 2021, and Libya.

The following is a summary of the Corporation's outstanding crude collars for calendar year 2022:

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION OPERATING DATA

Year Ended December 31,

2021 2020

Average Selling Prices



Crude oil - per barrel (including hedging)

United States

North Dakota $ 55.57 $ 42.63

Offshore 60.09 45.92

Total United States 56.64 43.56

Guyana 68.57 46.41

Malaysia and JDA 71.00 37.91

Other (a) 66.39 51.37

Worldwide 60.08 44.28



Crude oil - per barrel (excluding hedging)

United States

North Dakota $ 59.90 $ 33.87

Offshore 64.77 36.55

Total United States 61.05 34.63

Guyana 71.07 37.40

Malaysia and JDA 71.00 37.91

Other (a) 69.25 43.42

Worldwide 63.90 35.52



Natural gas liquids - per barrel

United States

North Dakota $ 30.74 $ 11.29

Offshore 26.40 8.94

Worldwide 30.40 11.10



Natural gas - per mcf

United States

North Dakota $ 4.08 $ 1.27

Offshore 3.25 1.23

Total United States 3.82 1.26

Malaysia and JDA 5.15 4.47

Other (a) 3.40 3.41

Worldwide 4.60 2.98

(a) Other includes prices related to production from Denmark, which was soldin the third quarter of 2021, and Libya.

The following is a summary of the Corporation's outstanding crude collars for calendar year 2022:

WTI Brent

Barrels of oil per day 90,000 60,000

Average monthly ceiling price $ 100 $ 105

Average monthly floor price $ 60 $ 65

View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005017/en/

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