Hess reports estimated results for the fourth quarter of 2022
New york--(business wire)-- hess corporation (nyse: hes) today reported net income of $624 million, or $2.03 per common share, in the fourth quarter of 2022 compared with net income of $265 million, or $0.85 per common share, in the fourth quarter of 2021. on an adjusted basis, the corporation had net income of $548 million or $1.78 per common share in the fourth quarter of 2022. the improvement in adjusted after-tax earnings compared with the prior-year period was primarily due to increased sales volumes in guyana in the fourth quarter of 2022. “our strategy is to grow our resource base, deliver a low cost of supply and generate industry leading cash flow growth – and at the same time maintain our industry leadership in environmental, social and governance performance and disclosure,” ceo john hess said. “our successful execution of this strategy has uniquely positioned our company to deliver significant value to shareholders by both growing intrinsic value and growing cash returns.” after-tax income (loss) by major operating activity was as follows: three months ended december 31, (unaudited) year ended december 31, (unaudited) 2022 2021 2022 2021 (in millions, except per share amounts) net income attributable to hess corporation exploration and production $ 667 $ 309 $ 2,422 $ 770 midstream 64 74 269 286 corporate, interest and other (107) (118) (468) (497) net income attributable to hess corporation $ 624 $ 265 $ 2,223 $ 559 net income per common share (diluted) $ 2.03 $ 0.85 $ 7.18 $ 1.81 adjusted net income attributable to hess corporation exploration and production $ 591 $ 309 $ 2,400 $ 888 midstream 64 74 269 286 corporate, interest and other (107) (118) (467) (497) adjusted net income attributable to hess corporation $ 548 $ 265 $ 2,202 $ 677 adjusted net income per common share (diluted) $ 1.78 $ 0.85 $ 7.11 $ 2.19 weighted average number of shares (diluted) 308.1 310.0 309.6 309.3 exploration and production: e&p net income was $667 million in the fourth quarter of 2022, compared with $309 million in the fourth quarter of 2021. on an adjusted basis, fourth quarter 2022 e&p net income was $591 million. the corporation’s average realized crude oil selling price, including the effect of hedging, was $76.07 per barrel in the fourth quarter of 2022, compared with $71.04 per barrel in the prior-year quarter. the average realized natural gas liquids (ngl) selling price in the fourth quarter of 2022 was $26.93 per barrel, compared with $36.47 per barrel in the prior-year quarter, while the average realized natural gas selling price was $5.17 per mcf, compared with $4.77 per mcf in the fourth quarter of 2021. net production, excluding libya, was 376,000 boepd in the fourth quarter of 2022, compared with 295,000 boepd in the fourth quarter of 2021, primarily due to higher production in guyana. cash operating costs, which include operating costs and expenses, production and severance taxes, and e&p general and administrative expenses, were $12.49 per boe (excluding libya: $12.72 per boe) in the fourth quarter of 2022, compared with $12.17 per boe (excluding libya: $12.84 per boe) in the prior-year quarter. oil and gas reserves estimates: oil and gas proved reserves at december 31, 2022, which are subject to final review, were 1.26 billion boe, compared with 1.31 billion boe at december 31, 2021. proved reserve additions and net revisions in 2022 totaled 184 million boe, primarily from guyana, which included sanctioning of the yellowtail development, and the bakken. asset sales during 2022 reduced proved reserves by 109 million boe. excluding asset sales, the corporation replaced 144 percent of its 2022 production at a finding and development cost of approximately $14.80 per boe. operational highlights for the fourth quarter of 2022: bakken (onshore u.s.): net production from the bakken of 158,000 boepd in the fourth quarter was impacted by unplanned production shut-ins caused by severe winter weather in december. net production in the fourth quarter of 2021 was 159,000 boepd. the corporation added a fourth drilling rig in july 2022, and drilled 19 wells, completed 14 wells, and brought 15 new wells online during the fourth quarter. net production is forecast to be in the range of 165,000 boepd to 170,000 boepd in 2023. gulf of mexico (offshore u.s.): net production from the gulf of mexico was 35,000 boepd in the fourth quarter of 2022, compared with 39,000 boepd in the prior-year quarter. guyana (offshore): at the stabroek block (hess – 30%), net production from the liza destiny and the liza unity floating production, storage and offloading vessels (fpsos) totaled 116,0002 bopd in the fourth quarter of 2022 compared with 31,000 bopd2 in the prior-year quarter. the liza unity fpso, which commenced production in february 2022, reached its production capacity of 220,000 gross bopd in july 2022. in the fourth quarter, we sold ten cargos of crude oil from guyana compared with three cargos in the prior year quarter. net production is forecast to be approximately 100,0002 bopd in 2023. the third development, payara, will utilize the prosperity fpso with an expected capacity of 220,000 gross bopd, with first production expected by the end of 2023. the fourth development, yellowtail, was sanctioned in april 2022 and will utilize the one guyana fpso with an expected capacity of 250,000 gross bopd, with first production expected in 2025. a fifth development, uaru, was submitted for approval to the government of guyana in the fourth quarter. pending government approvals and project sanctioning, the project is expected to have a capacity of approximately 250,000 gross bopd with first oil anticipated at the end of 2026. the corporation today announced a significant oil discovery at the fangtooth se-1 well on the stabroek block, offshore guyana. the fangtooth se-1 well encountered approximately 200 feet of oil bearing sandstone reservoirs. the well was drilled in 5,397 feet of water by the stena carron and is located approximately 8 miles southeast of the original fangtooth-1 well, which had encountered approximately 164 feet of oil bearing sandstone reservoirs. further appraisal activities are underway. fangtooth will add to the block's gross discovered recoverable resource estimate of more than 11 billion boe and has the potential to underpin a future oil development on the stabroek block. southeast asia (offshore): net production at north malay basin and jda was 67,000 boepd in the fourth quarter of 2022 compared with 66,000 boepd in the prior-year quarter. libya (onshore): in november 2022, the corporation completed the sale of its 8% interest in the waha concession for net proceeds of $150 million. net production from libya was 10,000 boepd in the fourth quarter of 2022 compared with 21,000 boepd in the prior-year quarter. midstream: the midstream segment had net income of $64 million in the fourth quarter of 2022, compared with net income of $74 million in the prior-year quarter. corporate, interest and other: after-tax expense for corporate, interest and other was $107 million in the fourth quarter of 2022, compared with $118 million in the fourth quarter of 2021. capital and exploratory expenditures: e&p capital and exploratory expenditures were $818 million in the fourth quarter of 2022 compared with $593 million in the prior-year quarter, primarily due to higher drilling and development activities in the bakken and guyana. midstream capital expenditures were $63 million in the fourth quarter of 2022 and $54 million in the prior-year quarter. liquidity: excluding the midstream segment, hess corporation had cash and cash equivalents of $2.48 billion and debt and finance lease obligations totaling $5.60 billion at december 31, 2022. the midstream segment had cash and cash equivalents of $4 million and total debt of $2.9 billion at december 31, 2022. the corporation’s debt to capitalization ratio as defined in its debt covenants was 35.8% at december 31, 2022 and 42.3% at december 31, 2021. net cash provided by operating activities was $1,252 million in the fourth quarter of 2022, up from $899 million in the fourth quarter of 2021. net cash provided by operating activities before changes in operating assets and liabilities3 was $1,402 million in the fourth quarter of 2022, compared with $886 million in the prior-year quarter primarily due to higher sales volumes. during the fourth quarter, the corporation received net proceeds of $150 million from the sale of its interest in the waha concession in libya and purchased 5 million redd+ carbon credits from the government of guyana for $75 million. total cash returned to stockholders in the fourth quarter through common stock repurchases and dividends amounted to $405 million. the corporation repurchased approximately 2.3 million shares of common stock for $310 million during the fourth quarter, bringing total share repurchases in 2022 to $650 million at an average price of approximately $120 per share. 2. net production from guyana in the fourth quarter of 2022 included 22,000 bopd of tax barrels. there were no tax barrels in the fourth quarter of 2021. net production guidance for guyana in 2023 of approximately 100,000 bopd includes approximately 10,000 bopd of tax barrels. 3. “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 6 and 7. 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 december 31, (unaudited) year ended december 31, (unaudited) 2022 2021 2022 2021 (in millions) exploration and production $ 76 $ — $ 22 $ (118) midstream — — — — corporate, interest and other — — (1) — total items affecting comparability of earnings between periods $ 76 $ — $ 21 $ (118) fourth quarter 2022: e&p results include a pre-tax gain of $76 million ($76 million after income taxes) associated with the sale of the corporation's interest in the waha concession in libya. reconciliation of u.s. gaap to non-gaap measures: the following table reconciles reported net income attributable to hess corporation and adjusted net income: three months ended december 31, (unaudited) year ended december 31, (unaudited) 2022 2021 2022 2021 (in millions) net income attributable to hess corporation $ 624 $ 265 $ 2,223 $ 559 less: total items affecting comparability of earnings between periods 76 — 21 (118) adjusted net income attributable to hess corporation $ 548 $ 265 $ 2,202 $ 677 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 december 31, (unaudited) year ended december 31, (unaudited) 2022 2021 2022 2021 (in millions) net cash provided by (used in) operating activities before changes in operating assets and liabilities $ 1,402 $ 886 $ 5,222 $ 2,991 changes in operating assets and liabilities (150) 13 (1,278) (101) net cash provided by (used in) operating activities $ 1,252 $ 899 $ 3,944 $ 2,890 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; information about sustainability goals and targets and planned social, safety and environmental policies, programs and initiatives; 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; reduced demand for our products, including due to perceptions regarding the oil and gas industry, 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, fracking bans as well as restrictions on oil and gas leases; 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, public health measures 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 limitations on investment in oil and gas activities, rising interest rates or negative outcomes within commodity and financial markets; liability resulting from environmental obligations and 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” presented in this release is defined as reported net income 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 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 or net cash provided by (used in) operating activities. a reconciliation of reported net income attributable to hess corporation (u.s. gaap) to adjusted net income, 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 quarter 2022 fourth quarter 2021 third quarter 2022 income statement revenues and non-operating income sales and other operating revenues $ 2,934 $ 2,237 $ 3,122 gains on asset sales, net 76 — — other, net 44 18 35 total revenues and non-operating income 3,054 2,255 3,157 costs and expenses marketing, including purchased oil and gas 821 672 982 operating costs and expenses 385 316 398 production and severance taxes 55 49 72 exploration expenses, including dry holes and lease impairment 40 45 58 general and administrative expenses 116 86 109 interest expense 124 121 125 depreciation, depletion and amortization 504 398 471 impairment and other — — 54 total costs and expenses 2,045 1,687 2,269 income before income taxes 1,009 568 888 provision for income taxes 300 212 282 net income 709 356 606 less: net income attributable to noncontrolling interests 85 91 91 net income attributable to hess corporation $ 624 $ 265 $ 515 hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) year ended december 31, 2022 2021 income statement revenues and non-operating income sales and other operating revenues $ 11,324 $ 7,473 gains on asset sales, net 101 29 other, net 145 81 total revenues and non-operating income 11,570 7,583 costs and expenses marketing, including purchased oil and gas 3,328 2,034 operating costs and expenses 1,452 1,229 production and severance taxes 255 172 exploration expenses, including dry holes and lease impairment 174 162 general and administrative expenses 430 340 interest expense 493 481 depreciation, depletion and amortization 1,703 1,528 impairment and other 54 147 total costs and expenses 7,889 6,093 income before income taxes 3,681 1,490 provision for income taxes 1,107 600 net income 2,574 890 less: net income attributable to noncontrolling interests 351 331 net income attributable to hess corporation $ 2,223 $ 559 hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) december 31, 2022 december 31, 2021 balance sheet information assets cash and cash equivalents $ 2,486 $ 2,713 other current assets 1,445 1,633 property, plant and equipment – net 15,132 14,182 operating lease right-of-use assets – net 570 352 finance lease right-of-use assets – net 126 144 other long-term assets 1,970 1,491 total assets $ 21,729 $ 20,515 liabilities and equity current portion of long-term debt $ 3 $ 517 current portion of operating and finance lease obligations 221 89 other current liabilities 2,056 2,458 long-term debt 8,278 7,941 long-term operating lease obligations 469 394 long-term finance lease obligations 179 200 other long-term liabilities 1,900 1,890 total equity excluding other comprehensive income 8,113 6,706 accumulated other comprehensive income (131) (406) noncontrolling interests 641 726 total liabilities and equity $ 21,729 $ 20,515 hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) december 31, 2022 december 31, 2021 total debt hess corporation $ 5,395 $ 5,894 midstream (a) 2,886 2,564 hess consolidated $ 8,281 $ 8,458 (a) midstream debt is non-recourse to hess corporation. december 31, 2022 december 31, 2021 debt to capitalization ratio (a) hess consolidated 49.6 % 55.3 % hess corporation as defined in debt covenants 35.8 % 42.3 % (a) includes finance lease obligations. three months ended december 31, year ended december 31, 2022 2021 2022 2021 interest expense gross interest expense – hess corporation $ 87 $ 90 $ 353 $ 376 less: capitalized interest – hess corporation (4) — (10) — interest expense – hess corporation 83 90 343 376 interest expense – midstream (a) 41 31 150 105 interest expense – hess consolidated $ 124 $ 121 $ 493 $ 481 (a) midstream interest expense is reported in the midstream operating segment. hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) fourth quarter 2022 fourth quarter 2021 third quarter 2022 cash flow information cash flows from operating activities net income $ 709 $ 356 $ 606 adjustments to reconcile net income to net cash provided by (used in) operating activities: (gains) losses on asset sales, net (76) — — depreciation, depletion and amortization 504 398 471 impairment and other — — 54 exploratory dry hole costs 3 — 19 exploration lease impairment 6 5 4 pension settlement loss — 4 — stock compensation expense 17 16 17 noncash (gains) losses on commodity derivatives, net 165 64 165 provision for deferred income taxes and other tax accruals 74 43 69 net cash provided by (used in) operating activities before changes in operating assets and liabilities 1,402 886 1,405 changes in operating assets and liabilities (150) 13 (66) net cash provided by (used in) operating activities 1,252 899 1,339 cash flows from investing activities additions to property, plant and equipment - e&p (732) (466) (657) additions to property, plant and equipment - midstream (61) (43) (66) proceeds from asset sales, net of cash sold 150 — — other, net (4) (1) (4) net cash provided by (used in) investing activities (647) (510) (727) cash flows from financing activities net borrowings (repayments) of debt with maturities of 90 days or less (25) (48) (48) debt with maturities of greater than 90 days: borrowings — — 20 repayments — (2) — cash dividends paid (115) (77) (115) common stock acquired and retired (290) — (150) proceeds from sale of class a shares of hess midstream lp — 108 — noncontrolling interests, net (80) (75) (79) employee stock options exercised 8 2 4 payments on finance lease obligations (4) (3) (1) other, net 3 — (18) net cash provided by (used in) financing activities (503) (95) (387) net increase (decrease) in cash and cash equivalents 102 294 225 cash and cash equivalents at beginning of period 2,384 2,419 2,159 cash and cash equivalents at end of period $ 2,486 $ 2,713 $ 2,384 additions to property, plant and equipment included within investing activities capital expenditures incurred $ (850) $ (607) $ (726) increase (decrease) in related liabilities 57 98 3 additions to property, plant and equipment $ (793) $ (509) $ (723) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) year ended december 31, 2022 2021 cash flow information cash flows from operating activities net income $ 2,574 $ 890 adjustments to reconcile net income to net cash provided by (used in) operating activities: (gains) losses on asset sales, net (101) (29) depreciation, depletion and amortization 1,703 1,528 impairment and other 54 147 exploratory dry hole costs 22 11 exploration lease impairment 20 20 pension settlement loss 2 9 stock compensation expense 83 77 noncash (gains) losses on commodity derivatives, net 548 216 provision for deferred income taxes and other tax accruals 317 122 net cash provided by (used in) operating activities before changes in operating assets and liabilities 5,222 2,991 changes in operating assets and liabilities (1,278) (101) net cash provided by (used in) operating activities 3,944 2,890 cash flows from investing activities additions to property, plant and equipment - e&p (2,487) (1,584) additions to property, plant and equipment - midstream (238) (163) proceeds from asset sales, net of cash sold 178 427 other, net (8) (5) net cash provided by (used in) investing activities (2,555) (1,325) cash flows from financing activities net borrowings (repayments) of debt with maturities of 90 days or less (86) (80) debt with maturities of greater than 90 days: borrowings 420 750 repayments (510) (510) cash dividends paid (465) (311) common stock acquired and retired (630) — proceeds from sale of class a shares of hess midstream lp 146 178 noncontrolling interests, net (510) (664) employee stock options exercised 52 77 payments on finance lease obligations (9) (10) other, net (24) (21) net cash provided by (used in) financing activities (1,616) (591) net increase (decrease) in cash and cash equivalents (227) 974 cash and cash equivalents at beginning of year 2,713 1,739 cash and cash equivalents at end of year $ 2,486 $ 2,713 additions to property, plant and equipment included within investing activities capital expenditures incurred $ (2,821) $ (1,881) increase (decrease) in related liabilities 96 134 additions to property, plant and equipment $ (2,725) $ (1,747) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) fourth quarter 2022 fourth quarter 2021 third quarter 2022 capital and exploratory expenditures e&p capital and exploratory expenditures united states north dakota $ 258 $ 153 $ 226 offshore and other 39 31 57 total united states 297 184 283 guyana 439 330 301 malaysia and jda 58 63 92 other 24 16 25 e&p capital and exploratory expenditures $ 818 $ 593 $ 701 total exploration expenses charged to income included above $ 31 $ 40 $ 35 midstream capital expenditures $ 63 $ 54 $ 60 year ended december 31, 2022 2021 capital and exploratory expenditures e&p capital and exploratory expenditures united states north dakota $ 807 $ 522 offshore and other 224 103 total united states 1,031 625 guyana 1,345 1,016 malaysia and jda 275 154 other 70 34 e&p capital and exploratory expenditures $ 2,721 $ 1,829 total exploration expenses charged to income included above $ 132 $ 131 midstream capital expenditures $ 232 $ 183 hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) fourth quarter 2022 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 1,628 $ 1,306 $ 2,934 gains on asset sales, net — 76 76 other, net 13 8 21 total revenues and non-operating income 1,641 1,390 3,031 costs and expenses marketing, including purchased oil and gas (a) 771 63 834 operating costs and expenses 193 129 322 production and severance taxes 52 3 55 midstream tariffs 297 — 297 exploration expenses, including dry holes and lease impairment 33 7 40 general and administrative expenses 55 11 66 depreciation, depletion and amortization 215 243 458 total costs and expenses 1,616 456 2,072 results of operations before income taxes 25 934 959 provision for income taxes — 292 292 net income attributable to hess corporation $ 25 (b) $ 642 (c) $ 667 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 for income taxes — 206 206 net income attributable to hess corporation $ 119 (d) $ 190 (e) $ 309 (a) includes amounts charged from the midstream segment. (b) includes after-tax losses from realized crude oil hedging activities of $100 million (noncash premium amortization: $100 million; cash settlement: $0 million). (c) includes after-tax losses from realized crude oil hedging activities of $65 million (noncash premium amortization: $65 million; cash settlement: $0 million). (d) includes after-tax losses from realized crude oil hedging activities of $50 million (noncash premium amortization: $50 million; cash settlement: $0 million). (e) includes after-tax losses from realized crude oil hedging activities of $14 million (noncash premium amortization: $14 million; cash settlement: $0 million). hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) third quarter 2022 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 2,022 $ 1,100 $ 3,122 other, net 16 6 22 total revenues and non-operating income 2,038 1,106 3,144 costs and expenses marketing, including purchased oil and gas (a) 972 27 999 operating costs and expenses 194 128 322 production and severance taxes 67 5 72 midstream tariffs 313 — 313 exploration expenses, including dry holes and lease impairment 33 25 58 general and administrative expenses 45 9 54 depreciation, depletion and amortization 208 217 425 impairment and other 54 — 54 total costs and expenses 1,886 411 2,297 results of operations before income taxes 152 695 847 provision for income taxes — 275 275 net income attributable to hess corporation $ 152 (b) $ 420 (c) $ 572 (a) includes amounts charged from the midstream segment. (b) includes after-tax losses from realized crude oil hedging activities of $100 million (noncash premium amortization: $100 million; cash settlement: $0 million). (c) includes after-tax losses from realized crude oil hedging activities of $65 million (noncash premium amortization: $65 million; cash settlement: $0 million). hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) year ended december 31, 2022 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 7,214 $ 4,110 $ 11,324 gains on asset sales, net — 76 76 other, net 81 21 102 total revenues and non-operating income 7,295 4,207 11,502 costs and expenses marketing, including purchased oil and gas (a) 3,271 123 3,394 operating costs and expenses 706 480 1,186 production and severance taxes 242 13 255 midstream tariffs 1,193 — 1,193 exploration expenses, including dry holes and lease impairment 122 52 174 general and administrative expenses 189 35 224 depreciation, depletion and amortization 810 710 1,520 impairment and other 54 — 54 total costs and expenses 6,587 1,413 8,000 results of operations before income taxes 708 2,794 3,502 provision for income taxes — 1,080 1,080 net income attributable to hess corporation $ 708 (b) $ 1,714 (c) $ 2,422 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 for income taxes — 585 585 net income attributable to hess corporation $ 60 (d) $ 710 (e) $ 770 (a) includes amounts charged from the midstream segment. (b) includes after-tax losses from realized crude oil hedging activities of $356 million (noncash premium amortization: $333 million; cash settlement: $23 million). (c) includes after-tax losses from realized crude oil hedging activities of $229 million (noncash premium amortization: $215 million; cash settlement: $14 million). (d) includes after-tax losses from realized crude oil hedging activities of $190 million (noncash premium amortization: $190 million; cash settlement: $0 million). (e) includes after-tax losses from realized crude oil hedging activities of $49 million (noncash premium amortization: $49 million; cash settlement: $0 million). hess corporation and consolidated subsidiaries exploration and production operating data fourth quarter 2022 fourth quarter 2021 third quarter 2022 net production per day (in thousands) crude oil - barrels united states north dakota 74 79 79 offshore 25 26 21 total united states 99 105 100 guyana (a) 116 31 98 malaysia and jda 4 3 4 other (b) 9 19 15 total 228 158 217 natural gas liquids - barrels united states north dakota 60 52 58 offshore 2 4 2 total united states 62 56 60 natural gas - mcf united states north dakota 143 170 176 offshore 50 55 41 total united states 193 225 217 malaysia and jda 377 375 320 other (b) 6 11 10 total 576 611 547 barrels of oil equivalent 386 316 368 (a) production from guyana includes 22,000 bopd of tax barrels in the fourth quarter of 2022 and 7,000 bopd of tax barrels in the third quarter of 2022. there were no tax barrels in the fourth quarter of 2021. (b) other includes production from libya. the corporation sold its interest in the waha concession in libya in november 2022. libya net production was 10,000 boepd in the fourth quarter of 2022, 21,000 boepd in the fourth quarter of 2021 and 17,000 boepd in the third quarter of 2022. hess corporation and consolidated subsidiaries exploration and production operating data year ended december 31, 2022 2021 net production per day (in thousands) crude oil - barrels united states north dakota 75 80 offshore 22 29 total united states 97 109 guyana (a) 78 30 malaysia and jda 4 3 other (b) 15 21 total 194 163 natural gas liquids - barrels united states north dakota 53 49 offshore 2 4 total united states 55 53 natural gas - mcf united states north dakota 156 162 offshore 44 72 total united states 200 234 malaysia and jda 360 347 other (b) 10 10 total 570 591 barrels of oil equivalent 344 315 (a) production from guyana includes 7,000 bopd of tax barrels in 2022. there were no tax barrels in 2021. (b) other includes production from libya and denmark. the corporation sold its interest in the waha concession in libya in november 2022. libya net production was 17,000 boepd in 2022 and 20,000 boepd in 2021. the corporation sold its interests in denmark in the third quarter of 2021. denmark net production was 3,000 boepd in 2021. hess corporation and consolidated subsidiaries exploration and production operating data fourth quarter 2022 fourth quarter 2021 third quarter 2022 sales volumes per day (in thousands) (a) crude oil – barrels 242 165 208 natural gas liquids – barrels 63 56 58 natural gas – mcf 576 611 547 barrels of oil equivalent 401 323 357 sales volumes (in thousands) (a) crude oil – barrels 22,218 15,225 19,118 natural gas liquids – barrels 5,825 5,124 5,299 natural gas – mcf 52,949 56,202 50,343 barrels of oil equivalent 36,868 29,716 32,807 year ended december 31, 2022 2021 sales volumes per day (in thousands) (a) crude oil – barrels 191 174 natural gas liquids – barrels 54 53 natural gas – mcf 570 591 barrels of oil equivalent 340 326 sales volumes (in thousands) (a) crude oil – barrels (b) 69,679 63,540 natural gas liquids – barrels 19,843 19,406 natural gas – mcf 208,001 215,589 barrels of oil equivalent 124,189 118,878 (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 (vlcc) at december 31, 2020 and sold in the first quarter of 2021. hess corporation and consolidated subsidiaries exploration and production operating data fourth quarter 2022 fourth quarter 2021 third quarter 2022 average selling prices crude oil - per barrel (including hedging) united states onshore $ 68.52 $ 67.39 $ 79.04 offshore 69.07 69.04 78.80 total united states 68.65 67.80 79.00 guyana 80.77 77.20 92.02 malaysia and jda 80.41 83.23 85.23 other (a) 86.83 75.24 87.90 worldwide 76.07 71.04 85.32 crude oil - per barrel (excluding hedging) united states onshore $ 79.47 $ 72.54 $ 89.80 offshore 79.99 74.11 89.47 total united states 79.60 72.93 89.74 guyana 85.93 79.94 98.91 malaysia and jda 80.41 83.23 85.23 other (a) 91.60 77.78 94.96 worldwide 83.50 75.22 93.95 natural gas liquids - per barrel united states onshore $ 26.95 $ 36.63 $ 35.41 offshore 26.13 34.23 36.30 worldwide 26.93 36.47 35.44 natural gas - per mcf united states onshore $ 4.68 $ 4.40 $ 6.67 offshore 4.98 4.63 8.12 total united states 4.76 4.46 6.94 malaysia and jda 5.34 4.97 5.07 other (a) 7.48 4.27 7.03 worldwide 5.17 4.77 5.85 (a) other includes prices related to production from libya. the corporation sold its interest in the waha concession in libya in november 2022. hess corporation and consolidated subsidiaries exploration and production operating data year ended december 31, 2022 2021 average selling prices crude oil - per barrel (including hedging) united states onshore $ 81.06 $ 55.57 offshore 81.38 60.09 total united states 81.14 56.64 guyana 89.86 68.57 malaysia and jda 89.77 71.00 other (a) 93.67 66.39 worldwide 85.76 60.08 crude oil - per barrel (excluding hedging) united states onshore $ 91.26 $ 59.90 offshore 91.51 64.77 total united states 91.32 61.05 guyana 96.52 71.07 malaysia and jda 89.77 71.00 other (a) 101.92 69.25 worldwide 94.15 63.90 natural gas liquids - per barrel united states onshore $ 35.09 $ 30.74 offshore 35.24 26.40 worldwide 35.09 30.40 natural gas - per mcf united states onshore $ 5.50 $ 4.08 offshore 6.21 3.25 total united states 5.66 3.82 malaysia and jda 5.62 5.15 other (a) 5.93 3.40 worldwide 5.64 4.60 (a) other includes prices related to production from libya and denmark. the corporation sold its interest in the waha concession in libya in november 2022, and sold its interests in denmark in the third quarter of 2021. the following is a summary of the corporation’s outstanding commodity hedging program for 2023: wti barrels of oil per day 75,000 average monthly floor price $70
