Hess reports estimated results for the second quarter of 2022
New york--(business wire)--hess corporation (nyse: hes) today reported net income of $667 million, or $2.15 per common share, in the second quarter of 2022, compared with a net loss of $73 million, or $0.24 per common share, in the second quarter of 2021. on an adjusted basis, the corporation had net income of $74 million, or $0.24 per common share, in the second quarter of 2021. the improvement in after-tax earnings compared with the prior-year quarter adjusted results was primarily due to higher realized selling prices in the second quarter of 2022. “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 and 8. “in a world that needs reliable, low cost oil and gas resources now and for decades to come, hess offers a highly differentiated value proposition,” ceo john hess said. “as our portfolio becomes increasingly free cash flow positive, we will continue both to invest to grow our company’s intrinsic value and to return capital to our shareholders through further dividend increases and share repurchases.” after-tax income (loss) by major operating activity was as follows: three months ended june 30, (unaudited) six months ended june 30, (unaudited) 2022 2021 2022 2021 (in millions, except per share amounts) net income (loss) attributable to hess corporation exploration and production $ 723 $ (25) $ 1,183 $ 283 midstream 65 76 137 151 corporate, interest and other (121) (124) (236) (255) net income (loss) attributable to hess corporation $ 667 $ (73) $ 1,084 $ 179 net income (loss) per common share (diluted) $ 2.15 $ (0.24) $ 3.49 $ 0.58 adjusted net income (loss) attributable to hess corporation exploration and production $ 723 $ 122 $ 1,183 $ 430 midstream 65 76 137 151 corporate, interest and other (121) (124) (249) (255) adjusted net income (loss) attributable to hess corporation $ 667 $ 74 $ 1,071 $ 326 adjusted net income (loss) per common share (diluted) $ 2.15 $ 0.24 $ 3.45 $ 1.06 weighted average number of shares (diluted) 310.9 307.5 310.6 308.7 exploration and production: e&p net income was $723 million in the second quarter of 2022, compared with a net loss of $25 million in the second quarter of 2021. on an adjusted basis, e&p second quarter 2021 net income was $122 million. the corporation’s average realized crude oil selling price, including the effect of hedging, was $99.16 per barrel in the second quarter of 2022, compared with $59.79 per barrel in the prior-year quarter. the average realized natural gas liquids (ngl) selling price in the second quarter of 2022 was $40.92 per barrel, compared with $23.12 per barrel in the prior-year quarter, while the average realized natural gas selling price was $6.45 per mcf, compared with $4.05 per mcf in the second quarter of 2021. net production, excluding libya, was 303,000 boepd in the second quarter of 2022, compared with 307,000 boepd in the second quarter of 2021, or 302,000 boepd proforma for assets sold. cash operating costs, which include operating costs and expenses, production and severance taxes, and e&p general and administrative expenses, were $13.90 per boe (excluding libya: $14.56 per boe) in the second quarter of 2022, compared with $11.63 per boe (excluding libya: $12.16 per boe) in the prior-year quarter. the increase in cash operating costs in the second quarter of this year, compared with the second quarter of last year, reflects higher production and severance taxes in north dakota due to higher realized selling prices, and higher workover activity in north dakota and the gulf of mexico. operational highlights for the second quarter of 2022: bakken (onshore u.s.): net production from the bakken was 140,000 boepd, which remained within our guidance range for the second quarter, reflecting unplanned production shut-ins caused by severe weather in april and may. net production in the second quarter of 2021 was 159,000 boepd. during the second quarter of 2022, the corporation operated three rigs and drilled 20 wells, completed 19 wells, and brought 19 new wells online. in july, the corporation added a fourth drilling rig. gulf of mexico (offshore u.s.): net production from the gulf of mexico was 29,000 boepd, compared with 52,000 boepd in the prior-year quarter, primarily due to field decline and unplanned downtime at the stampede and penn state fields. guyana (offshore): at the stabroek block (hess – 30%), net production totaled 67,000 bopd in the second quarter of 2022 compared with 26,000 bopd in the prior-year quarter. production from the liza destiny fpso reached its new production capacity of more than 140,000 gross bopd in the second quarter of 2022 following the completion of production optimization work initiated in march. net production from the liza unity fpso, which commenced in february, was 35,000 bopd in the second quarter of 2022, and reached its production capacity of 220,000 gross bopd in july. in the second quarter, we sold 6 one-million barrel cargos of crude oil from guyana compared with 2 one-million barrel cargos in the prior year quarter. net production guidance for guyana for the full year 2022 is expected to be approximately 75,000 bopd, which includes approximately 6,000 bopd of tax barrels. net production guidance for the third quarter of 2022 is expected to be in the range of 90,000 bopd to 95,000 bopd, which includes approximately 7,000 bopd of tax barrels. there were no tax barrels in the first or second quarters. the third development, payara, will utilize the prosperity fpso with an expected capacity of 220,000 gross bopd, with first production expected in late 2023. the fourth development, yellowtail, was sanctioned in april and will utilize the one guyana fpso with an expected capacity of approximately 250,000 gross bopd, with first production expected in 2025. two new discoveries were announced at seabob and kiru-kiru, which add to the previously announced gross discovered recoverable resource estimate for the stabroek block of approximately 11 billion boe. the seabob-1 well encountered 131 feet of high quality oil bearing sandstone reservoirs. the well was drilled in 4,660 feet of water and is located approximately 12 miles southeast of the yellowtail field. drilling operations at kiru-kiru are ongoing. the kiru-kiru-1 well has thus far encountered 98 feet of high quality hydrocarbon bearing sandstone reservoirs. the well is being drilled in 5,760 feet of water and is located approximately 3 miles southeast of the cataback-1 discovery. southeast asia (offshore): net production at north malay basin and jda was 67,000 boepd in the second quarter of 2022 compared with 66,000 boepd in the prior-year quarter. midstream: the midstream segment had net income of $65 million in the second quarter of 2022, compared with net income of $76 million in the prior-year quarter. corporate, interest and other: after-tax expense for corporate, interest and other was $121 million in the second quarter of 2022, compared with $124 million in the second quarter of 2021. capital and exploratory expenditures: e&p capital and exploratory expenditures were $622 million in the second quarter of 2022 compared with $429 million in the prior-year quarter, primarily due to higher drilling and development activities in the bakken, gulf of mexico, guyana, and malaysia and jda. midstream capital expenditures were $72 million in the second quarter of 2022, up from $47 million in the prior-year quarter. liquidity: excluding the midstream segment, hess corporation had cash and cash equivalents of $2.16 billion and debt and finance lease obligations totaling $5.61 billion at june 30, 2022. the midstream segment had cash and cash equivalents of $3 million and total debt of $2.9 billion at june 30, 2022. the corporation’s debt to capitalization ratio as defined in its debt covenants was 37.9% at june 30, 2022 and 42.3% at december 31, 2021. net cash provided by operating activities was $1,509 million in the second quarter of 2022, up from $785 million in the second quarter of 2021. net cash provided by operating activities before changes in operating assets and liabilities2 was $1,463 million in the second quarter of 2022, compared with $659 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 $46 million during the second quarter of 2022 and increased cash flow from operating activities by $126 million during the prior-year quarter. the corporation commenced common stock repurchases in the second quarter with the purchase of approximately 1.8 million shares for $190 million under the corporation’s existing $650 million board authorized stock repurchase program. the corporation intends to utilize the remaining amount under the stock repurchase program by the end of this year. total cash returned to shareholders in the second quarter amounted to $306 million including dividends. in april 2022, the corporation received net proceeds of $346 million from the public offering of approximately 5.1 million hess midstream lp (hesm) class a shares held by the corporation and the repurchase by hess midstream operations lp (hesm opco) of approximately 6.8 million hesm opco class b units held by the corporation. the repurchase of approximately 6.8 million hesm opco class b units was financed by the issuance of $400 million of 5.500% senior unsecured notes due 2030 by hesm opco. after giving effect to the above transactions, the corporation owns approximately 41% of hesm on a consolidated basis. in july 2022, the corporation replaced its $3.5 billion revolving credit facility expiring in may 2024 with a new $3.25 billion revolving credit facility maturing in july 2027. in july 2022, hesm opco extended the maturity of its $1.4 billion credit facilities, consisting of a $1.0 billion revolving credit facility and a fully drawn $400 million term loan, through july 2027. borrowings under both revolving credit facilities, including the fully drawn five-year term loan, will bear interest based on the secured overnight financing rate plus an applicable margin. “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 ended june 30, (unaudited) six months ended june 30, (unaudited) 2022 2021 2022 2021 (in millions) exploration and production $ — $ (147) $ — $ (147) midstream — — — — corporate, interest and other — — 13 — total items affecting comparability of earnings between periods $ — $ (147) $ 13 $ (147) second quarter 2021: e&p results included a charge of $147 million ($147 million after income taxes) in connection with abandonment obligations in the west delta 79/86 field in the gulf of mexico. these abandonment obligations were assigned to the corporation as a former owner after they were discharged from fieldwood energy llc (fieldwood) as part of fieldwood's approved bankruptcy plan. 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 june 30, (unaudited) six months ended june 30, (unaudited) 2022 2021 2022 2021 (in millions) net income (loss) attributable to hess corporation $ 667 $ (73) $ 1,084 $ 179 less: total items affecting comparability of earnings between periods — (147) 13 (147) adjusted net income (loss) attributable to hess corporation $ 667 $ 74 $ 1,071 $ 326 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 june 30, (unaudited) six months ended june 30, (unaudited) 2022 2021 2022 2021 (in millions) net cash provided by (used in) operating activities before changes in operating assets and liabilities $ 1,463 $ 659 $ 2,415 $ 1,474 changes in operating assets and liabilities 46 126 (1,062) (98) net cash provided by (used in) operating activities $ 1,509 $ 785 $ 1,353 $ 1,376 hess corporation will review second 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, 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, 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 limitations on investment in oil and gas activities 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 (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) second quarter 2022 second quarter 2021 first quarter 2022 income statement revenues and non-operating income sales and other operating revenues $ 2,955 $ 1,579 $ 2,313 gains (losses) on asset sales, net 3 — 22 other, net 30 19 36 total revenues and non-operating income 2,988 1,598 2,371 costs and expenses marketing, including purchased oil and gas 843 322 682 operating costs and expenses 356 315 313 production and severance taxes 67 44 61 exploration expenses, including dry holes and lease impairment 33 48 43 general and administrative expenses 95 84 110 interest expense 121 118 123 depreciation, depletion and amortization 391 385 337 impairment and other — 147 — total costs and expenses 1,906 1,463 1,669 income (loss) before income taxes 1,082 135 702 provision (benefit) for income taxes 328 122 197 net income (loss) 754 13 505 less: net income (loss) attributable to noncontrolling interests 87 86 88 net income (loss) attributable to hess corporation $ 667 $ (73) $ 417 hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) six months ended june 30, 2022 2021 income statement revenues and non-operating income sales and other operating revenues $ 5,268 $ 3,477 gains (losses) on asset sales, net 25 — other, net 66 40 total revenues and non-operating income 5,359 3,517 costs and expenses marketing, including purchased oil and gas 1,525 840 operating costs and expenses 669 580 production and severance taxes 128 81 exploration expenses, including dry holes and lease impairment 76 81 general and administrative expenses 205 178 interest expense 244 235 depreciation, depletion and amortization 728 781 impairment and other — 147 total costs and expenses 3,575 2,923 income (loss) before income taxes 1,784 594 provision (benefit) for income taxes 525 245 net income (loss) 1,259 349 less: net income (loss) attributable to noncontrolling interests 175 170 net income (loss) attributable to hess corporation $ 1,084 $ 179 hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) june 30, 2022 december 31, 2021 balance sheet information assets cash and cash equivalents $ 2,159 $ 2,713 other current assets 1,810 1,633 property, plant and equipment – net 14,818 14,182 operating lease right-of-use assets – net 446 352 finance lease right-of-use assets – net 136 144 other long-term assets 1,811 1,491 total assets $ 21,180 $ 20,515 liabilities and equity current maturities of long-term debt $ — $ 517 current portion of operating and finance lease obligations 114 89 other current liabilities 2,241 2,458 long-term debt 8,332 7,941 long-term operating lease obligations 457 394 long-term finance lease obligations 190 200 other long-term liabilities 2,088 1,890 total equity excluding other comprehensive income (loss) 7,621 6,706 accumulated other comprehensive income (loss) (485) (406) noncontrolling interests 622 726 total liabilities and equity $ 21,180 $ 20,515 hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) june 30, 2022 december 31, 2021 total debt hess corporation $ 5,395 $ 5,894 midstream (a) 2,937 2,564 hess consolidated $ 8,332 $ 8,458 (a) midstream debt is non-recourse to hess corporation. june 30, 2022 december 31, 2021 debt to capitalization ratio (a) hess consolidated 52.4 % 55.3 % hess corporation as defined in debt covenants 37.9 % 42.3 % (a) includes finance lease obligations. three months ended june 30, six months ended june 30, 2022 2021 2022 2021 interest expense gross interest expense – hess corporation $ 86 $ 95 $ 178 $ 189 less: capitalized interest – hess corporation (3) — (3) — interest expense – hess corporation 83 95 175 189 interest expense – midstream (a) 38 23 69 46 interest expense – hess consolidated $ 121 $ 118 $ 244 $ 235 (a) midstream interest expense is reported in the midstream operating segment. supplemental financial data (unaudited) (in millions) second quarter 2022 second quarter 2021 first quarter 2022 cash flow information cash flows from operating activities net income (loss) $ 754 $ 13 $ 505 adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: (gains) losses on asset sales, net (3) — (22) depreciation, depletion and amortization 391 385 337 impairment and other — 147 — exploratory dry hole costs — 9 — exploration lease and other impairment 4 6 6 pension settlement loss 2 3 — stock compensation expense 16 19 33 noncash (gains) losses on commodity derivatives, net 163 64 55 provision (benefit) for deferred income taxes and other tax accruals 136 13 38 net cash provided by (used in) operating activities before changes in operating assets and liabilities 1,463 659 952 changes in operating assets and liabilities 46 126 (1,108) net cash provided by (used in) operating activities 1,509 785 (156) cash flows from investing activities additions to property, plant and equipment - e&p (607) (329) (491) additions to property, plant and equipment - midstream (56) (26) (55) proceeds from asset sales, net of cash sold 4 297 24 other, net — (2) — net cash provided by (used in) investing activities (659) (60) (522) cash flows from financing activities net borrowings (repayments) of debt with maturities of 90 days or less (14) (65) 1 debt with maturities of greater than 90 days: borrowings 400 — — repayments (5) (2) (505) proceeds from sale of class a shares of hess midstream lp 146 — — employee stock options exercised 7 63 33 payments on finance lease obligations (2) (2) (2) common stock acquired and retired (190) — — cash dividends paid (116) (77) (119) noncontrolling interests, net (277) (70) (74) other, net (10) (8) 1 net cash provided by (used in) financing activities (61) (161) (665) net increase (decrease) in cash and cash equivalents 789 564 (1,343) cash and cash equivalents at beginning of period 1,370 1,866 2,713 cash and cash equivalents at end of period $ 2,159 $ 2,430 $ 1,370 additions to property, plant and equipment included within investing activities capital expenditures incurred $ (665) $ (443) $ (580) increase (decrease) in related liabilities 2 88 34 additions to property, plant and equipment $ (663) $ (355) $ (546) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) six months ended june 30, 2022 2021 cash flow information cash flows from operating activities net income (loss) $ 1,259 $ 349 adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: (gains) losses on asset sales, net (25) — depreciation, depletion and amortization 728 781 impairment and other — 147 exploratory dry hole costs — 9 exploration lease and other impairment 10 10 pension settlement loss 2 4 stock compensation expense 49 44 noncash (gains) losses on commodity derivatives, net 218 88 provision (benefit) for deferred income taxes and other tax accruals 174 42 net cash provided by (used in) operating activities before changes in operating assets and liabilities 2,415 1,474 changes in operating assets and liabilities (1,062) (98) net cash provided by (used in) operating activities 1,353 1,376 cash flows from investing activities additions to property, plant and equipment - e&p (1,098) (687) additions to property, plant and equipment - midstream (111) (53) proceeds from asset sales, net of cash sold 28 297 other, net — (2) net cash provided by (used in) investing activities (1,181) (445) cash flows from financing activities net borrowings (repayments) of debt with maturities of 90 days or less (13) (75) debt with maturities of greater than 90 days: borrowings 400 — repayments (510) (5) proceeds from sale of class a shares of hess midstream lp 146 70 employee stock options exercised 40 75 payments on finance lease obligations (4) (4) common stock acquired and retired (190) — cash dividends paid (235) (157) noncontrolling interests, net (351) (137) other, net (9) (7) net cash provided by (used in) financing activities (726) (240) net increase (decrease) in cash and cash equivalents (554) 691 cash and cash equivalents at beginning of period 2,713 1,739 cash and cash equivalents at end of period $ 2,159 $ 2,430 additions to property, plant and equipment included within investing activities capital expenditures incurred $ (1,245) $ (746) increase (decrease) in related liabilities 36 6 additions to property, plant and equipment $ (1,209) $ (740) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) second quarter 2022 second quarter 2021 first quarter 2022 capital and exploratory expenditures e&p capital and exploratory expenditures united states north dakota $ 188 $ 112 $ 135 offshore and other 72 25 56 total united states 260 137 191 guyana 286 250 319 malaysia and jda 66 36 59 other 10 6 11 e&p capital and exploratory expenditures $ 622 $ 429 $ 580 total exploration expenses charged to income included above $ 29 $ 33 $ 37 midstream capital expenditures $ 72 $ 47 $ 37 six months ended june 30, 2022 2021 capital and exploratory expenditures e&p capital and exploratory expenditures united states north dakota $ 323 $ 200 offshore and other 128 56 total united states 451 256 guyana 605 422 malaysia and jda 125 49 other 21 11 e&p capital and exploratory expenditures $ 1,202 $ 738 total exploration expenses charged to income included above $ 66 $ 62 midstream capital expenditures $ 109 $ 70 hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) second quarter 2022 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 1,860 $ 1,095 $ 2,955 other, net 25 1 26 total revenues and non-operating income 1,885 1,096 2,981 costs and expenses marketing, including purchased oil and gas (a) 827 31 858 operating costs and expenses 175 116 291 production and severance taxes 65 2 67 midstream tariffs 296 — 296 exploration expenses, including dry holes and lease impairment 24 9 33 general and administrative expenses 40 7 47 depreciation, depletion and amortization 192 153 345 total costs and expenses 1,619 318 1,937 results of operations before income taxes 266 778 1,044 provision (benefit) for income taxes — 321 321 net income (loss) attributable to hess corporation $ 266 (b) $ 457 (c) $ 723 second quarter 2021 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 1,088 $ 491 $ 1,579 other, net 11 3 14 total revenues and non-operating income 1,099 494 1,593 costs and expenses marketing, including purchased oil and gas (a) 335 8 343 operating costs and expenses 158 96 254 production and severance taxes 42 2 44 midstream tariffs 270 — 270 exploration expenses, including dry holes and lease impairment 26 22 48 general and administrative expenses 41 8 49 depreciation, depletion and amortization 260 84 344 impairment and other 147 — 147 total costs and expenses 1,279 220 1,499 results of operations before income taxes (180) 274 94 provision (benefit) for income taxes — 119 119 net income (loss) attributable to hess corporation $ (180) (d) $ 155 (e) $ (25) (a) includes amounts charged from the midstream segment. (b) includes after-tax losses from realized crude oil hedging activities of $99 million (noncash premium amortization: $99 million; cash settlement: $0 million). (c) includes after-tax losses from realized crude oil hedging activities of $64 million (noncash premium amortization: $64 million; cash settlement: $0 million). (d) includes after-tax losses from realized crude oil hedging activities of $51 million (noncash premium amortization: $51 million; cash settlement: $0 million). (e) includes after-tax losses from realized crude oil hedging activities of $13 million (noncash premium amortization: $13 million; cash settlement: $0 million). hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) first quarter 2022 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 1,704 $ 609 $ 2,313 other, net 27 6 33 total revenues and non-operating income 1,731 615 2,346 costs and expenses marketing, including purchased oil and gas (a) 701 2 703 operating costs and expenses 144 107 251 production and severance taxes 58 3 61 midstream tariffs 287 — 287 exploration expenses, including dry holes and lease impairment 32 11 43 general and administrative expenses 49 8 57 depreciation, depletion and amortization 195 97 292 total costs and expenses 1,466 228 1,694 results of operations before income taxes 265 387 652 provision (benefit) for income taxes — 192 192 net income (loss) attributable to hess corporation $ 265 (b) $ 195 (c) $ 460 (a) includes amounts charged from the midstream segment. (b) includes after-tax losses from realized crude oil hedging activities of $57 million (noncash premium amortization: $34 million; cash settlement: $23 million). (c) includes after-tax losses from realized crude oil hedging activities of $35 million (noncash premium amortization: $21 million; cash settlement: $14 million). hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) six months ended june 30, 2022 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 3,564 $ 1,704 $ 5,268 other, net 52 7 59 total revenues and non-operating income 3,616 1,711 5,327 costs and expenses marketing, including purchased oil and gas (a) 1,528 33 1,561 operating costs and expenses 319 223 542 production and severance taxes 123 5 128 midstream tariffs 583 — 583 exploration expenses, including dry holes and lease impairment 56 20 76 general and administrative expenses 89 15 104 depreciation, depletion and amortization 387 250 637 total costs and expenses 3,085 546 3,631 results of operations before income taxes 531 1,165 1,696 provision (benefit) for income taxes — 513 513 net income (loss) attributable to hess corporation $ 531 (b) $ 652 (c) $ 1,183 six months ended june 30, 2021 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 2,486 $ 991 $ 3,477 other, net 23 7 30 total revenues and non-operating income 2,509 998 3,507 costs and expenses marketing, including purchased oil and gas (a) 855 30 885 operating costs and expenses 293 169 462 production and severance taxes 78 3 81 midstream tariffs 532 — 532 exploration expenses, including dry holes and lease impairment 56 25 81 general and administrative expenses 83 15 98 depreciation, depletion and amortization 528 171 699 impairment and other 147 — 147 total costs and expenses 2,572 413 2,985 results of operations before income taxes (63) 585 522 provision (benefit) for income taxes — 239 239 net income (loss) attributable to hess corporation $ (63) (d) $ 346 (e) $ 283 (a) includes amounts charged from the midstream segment. (b) includes after-tax losses from realized crude oil hedging activities of $156 million (noncash premium amortization: $133 million; cash settlement: $23 million). (c) includes after-tax losses from realized crude oil hedging activities of $99 million (noncash premium amortization: $85 million; cash settlement: $14 million). (d) includes after-tax losses from realized crude oil hedging activities of $90 million (noncash premium amortization: $90 million; cash settlement: $0 million). (e) includes after-tax losses from realized crude oil hedging activities of $21 million (noncash premium amortization: $21 million; cash settlement: $0 million). hess corporation and consolidated subsidiaries exploration and production operating data second quarter 2022 second quarter 2021 first quarter 2022 net production per day (in thousands) crude oil - barrels united states north dakota 68 79 77 offshore 20 33 22 total united states 88 112 99 guyana 67 26 30 malaysia and jda 4 4 3 other (a) 17 24 19 total 176 166 151 natural gas liquids - barrels united states north dakota 47 52 49 offshore 2 5 1 total united states 49 57 50 natural gas - mcf united states north dakota 147 167 158 offshore 41 85 43 total united states 188 252 201 malaysia and jda 381 371 364 other (a) 11 9 12 total 580 632 577 barrels of oil equivalent 322 328 297 (a) other includes production from libya and the corporation's former interests in denmark, which were sold in the third quarter of 2021. libya net production was 19,000 boepd in the second quarter of 2022, 21,000 boepd in the second quarter of 2021 and 21,000 boepd in the first quarter of 2022. denmark net production was 4,000 boepd in the second quarter of 2021. hess corporation and consolidated subsidiaries exploration and production operating data six months ended june 30, 2022 2021 net production per day (in thousands) crude oil - barrels united states north dakota 73 82 offshore 20 34 total united states 93 116 guyana 49 29 malaysia and jda 3 4 other (a) 18 23 total 163 172 natural gas liquids - barrels united states north dakota 48 50 offshore 2 5 total united states 50 55 natural gas - mcf united states north dakota 152 159 offshore 41 90 total united states 193 249 malaysia and jda 373 366 other (a) 12 10 total 578 625 barrels of oil equivalent 309 331 (a) other includes production from libya and the corporation's former interests in denmark, which were sold in the third quarter of 2021. libya net production was 20,000 boepd in the first six months of 2022 and 20,000 boepd in the first six months of 2021. denmark net production was 5,000 boepd in the first six months of 2021. hess corporation and consolidated subsidiaries exploration and production operating data second quarter 2022 second quarter 2021 first quarter 2022 sales volumes per day (in thousands) (a) crude oil – barrels 173 157 140 natural gas liquids – barrels 46 57 50 natural gas – mcf 580 632 577 barrels of oil equivalent 316 319 286 sales volumes (in thousands) (a) crude oil – barrels 15,763 14,293 12,580 natural gas liquids – barrels 4,180 5,142 4,539 natural gas – mcf 52,811 57,557 51,898 barrels of oil equivalent 28,745 29,028 25,769 six months ended june 30, 2022 2021 sales volumes per day (in thousands) (a) crude oil – barrels 157 192 natural gas liquids – barrels 48 55 natural gas – mcf 578 625 barrels of oil equivalent 301 351 sales volumes (in thousands) (a) crude oil – barrels (b) 28,343 34,688 natural gas liquids – barrels 8,719 9,944 natural gas – mcf 104,709 113,070 barrels of oil equivalent 54,514 63,477 (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 first six months of 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 second quarter 2022 second quarter 2021 first quarter 2022 average selling prices crude oil - per barrel (including hedging) united states north dakota $ 93.60 $ 56.75 $ 84.77 offshore 95.22 59.33 85.17 total united states 93.96 57.52 84.85 guyana 104.19 65.63 90.90 malaysia and jda 106.21 65.88 89.27 other (a) 105.21 64.16 90.91 worldwide 99.16 59.79 86.75 crude oil - per barrel (excluding hedging) united states north dakota $ 106.01 $ 61.88 $ 91.55 offshore 107.58 64.42 91.52 total united states 106.37 62.63 91.54 guyana 112.57 68.44 99.76 malaysia and jda 106.21 65.88 89.27 other (a) 114.93 68.08 101.04 worldwide 109.51 64.27 94.04 natural gas liquids - per barrel united states north dakota $ 40.96 $ 23.23 $ 39.88 offshore 39.88 21.84 37.48 worldwide 40.92 23.12 39.79 natural gas - per mcf united states north dakota $ 6.89 $ 2.40 $ 4.32 offshore 7.63 2.35 4.46 total united states 7.06 2.38 4.35 malaysia and jda 6.18 5.22 5.81 other (a) 5.36 2.96 4.79 worldwide 6.45 4.05 5.28 (a) other includes prices related to production from libya and the corporation's former interests in denmark, which were sold in the third quarter of 2021. hess corporation and consolidated subsidiaries exploration and production operating data six months ended june 30, 2022 2021 average selling prices crude oil - per barrel (including hedging) united states north dakota (a) $ 88.98 $ 49.35 offshore 90.21 55.99 total united states 89.25 51.00 guyana 100.55 62.48 malaysia and jda 97.73 64.69 other (b) 98.14 60.94 worldwide 93.65 54.04 crude oil - per barrel (excluding hedging) united states north dakota (a) $ 98.46 $ 52.91 offshore 99.58 60.24 total united states 98.70 54.73 guyana 109.06 64.48 malaysia and jda 97.73 64.69 other (b) 108.06 63.88 worldwide 102.65 57.36 natural gas liquids - per barrel united states north dakota $ 40.40 $ 26.65 offshore 38.68 21.55 worldwide 40.33 26.20 natural gas - per mcf united states north dakota $ 5.57 $ 4.06 offshore 6.02 2.66 total united states 5.67 3.56 malaysia and jda 6.00 5.13 other (b) 5.07 2.82 worldwide 5.87 4.47 (a) excluding the two vlcc cargo sales totaling 4.2 million barrels sold in the first quarter of 2021, the north dakota crude oil price excluding hedging was $57.39 per barrel and $53.08 per barrel including hedging. (b) other includes prices related to production from libya and the corporation's former interests in denmark, which were sold in the third quarter of 2021. the following is a summary of the corporation’s outstanding commodity hedging program for the remainder of calendar 2022: wti brent barrels of oil per day 90,000 60,000 average monthly floor price $60 $65
