Hess reports estimated results for the fourth quarter of 2019
New york--(business wire)--hess corporation (nyse: hes) today reported a net loss of $222 million, or $0.73 per common share, in the fourth quarter of 2019, compared with a net loss of $4 million, or $0.05 per common share, in the fourth quarter of 2018. on an adjusted basis, the corporation reported a net loss of $180 million, or $0.60 per common share, in the fourth quarter of 2019, compared with an adjusted net loss of $77 million, or $0.31 per common share, in the prior-year quarter. the decrease in after-tax adjusted results primarily reflects lower natural gas and natural gas liquids realized selling prices, partially offset by higher production volumes and improved midstream earnings, compared with the prior-year quarter. “our company had an outstanding year, achieving a number of important milestones and delivering higher production and lower capital and exploratory expenditures for the year than our guidance,” chief executive officer john hess said. “we look forward to continuing this momentum into 2020 and future years as we execute our differentiated long term strategy.” after-tax income (loss) by major operating activity was as follows: three months ended year ended december 31, december 31, (unaudited) (unaudited) 2019 2018 2019 2018 (in millions, except per share amounts) net income (loss) attributable to hess corporation exploration and production $ (64 ) $ (5 ) $ 53 $ 51 midstream 33 32 144 120 corporate, interest and other (191 ) (31 ) (605 ) (453 ) net income (loss) attributable to hess corporation $ (222 ) $ (4 ) $ (408 ) $ (282 ) net income (loss) per common share (diluted) (a) $ (0.73 ) $ (0.05 ) $ (1.37 ) $ (1.10 ) adjusted net income (loss) attributable to hess corporation exploration and production $ (124 ) $ (5 ) $ (10 ) $ 137 midstream 49 32 160 120 corporate, interest and other (105 ) (104 ) (431 ) (433 ) adjusted net income (loss) attributable to hess corporation $ (180 ) $ (77 ) $ (281 ) $ (176 ) adjusted net income (loss) per common share (diluted) (a) $ (0.60 ) $ (0.31 ) $ (0.95 ) $ (0.74 ) weighted average number of shares (diluted) 302.8 291.5 301.2 298.2 calculated as net income (loss) attributable to hess corporation less preferred stock dividends, divided by weighted average number of diluted shares. exploration and production: e&p net loss was $64 million in the fourth quarter of 2019, compared with a net loss of $5 million in the fourth quarter of 2018. on an adjusted basis, e&p’s fourth quarter 2019 net loss was $124 million. the corporation’s average realized crude oil selling price, including the effect of hedging, was $54.90 per barrel in the fourth quarter of 2019, versus $55.24 per barrel in the prior-year quarter. the average realized natural gas liquids (ngl) selling price in the fourth quarter of 2019 was $13.87 per barrel, versus $21.19 per barrel in the prior-year quarter, while the average realized natural gas selling price was $3.48 per mcf, compared with $4.82 per mcf in the fourth quarter of 2018. net production, excluding libya, was 316,000 boepd in the fourth quarter of 2019, up from fourth quarter 2018 net production of 267,000 boepd. the higher production was primarily driven by the bakken. libya net production was 22,000 boepd in both the fourth quarter of 2019 and 2018. cash operating costs, which include operating costs and expenses, production and severance taxes, and e&p general and administrative expenses, were $12.59 per boe in the fourth quarter, compared with $12.60 per boe in the prior-year quarter. excluding items affecting comparability of earnings between periods, income tax expense is comprised primarily of taxes in libya. oil and gas reserve estimates: oil and gas proved reserves at december 31, 2019, which are subject to final review, were 1,197 million boe, compared with 1,192 million boe at december 31, 2018. net proved reserve additions and revisions in 2019 of 121 million boe, included net negative revisions due to lower commodity prices of 35 million boe. the net additions and revisions were primarily related to the bakken and guyana. the corporation replaced 104 percent of its 2019 production (134 percent excluding price revisions) at a finding, development and acquisition cost of approximately $22.70 per boe ($17.60 per boe excluding price revisions). operational highlights for the fourth quarter of 2019: bakken (onshore u.s.): net production from the bakken increased 38 percent to 174,000 boepd from 126,000 boepd in the prior-year quarter, with net oil production up 28 percent to 106,000 barrels of oil per day (bopd) from 83,000 bopd, primarily due to increased drilling activity and new plug and perf well completion design. natural gas and ngl production was also higher due to the increased drilling activity, additional natural gas captured from the little missouri 4 natural gas processing plant that commenced operations in late july 2019, and additional volumes received under percentage of proceeds contracts resulting from lower prices. the corporation operated six rigs in the fourth quarter, drilling 42 wells, completing 37 wells and bringing 59 new wells online. gulf of mexico (offshore u.s.): net production from the gulf of mexico was 70,000 boepd, compared with 68,000 boepd in the prior-year quarter. the esox-1 oil discovery in mississippi canyon (hess – 57 percent) has been successfully completed and will be brought online in february as a low cost tieback to the tubular bells production facilities. at the oldfield exploration well in mississippi canyon (hess – 60 percent), the operator, kosmos energy, announced the well did not encounter commercial quantities of hydrocarbons. exploration expense in the fourth quarter includes $15 million for well costs incurred through december 31, 2019. guyana (offshore): at the stabroek block, the operator, esso exploration and production guyana limited, achieved first production from the liza field using the liza destiny floating production, offloading, and storage (fpso) vessel on december 20, 2019. production is expected to ramp up to the full capacity of 120,000 gross bopd in the coming months, with the first one million barrel of oil cargo allocated to hess scheduled to be sold in march 2020. a second fpso, liza unity, with an expected capacity of up to 220,000 gross bopd is under construction for the liza phase 2 development, with first oil expected by mid-2022. a third development, payara, is expected to be sanctioned following government and regulatory approvals and is expected to produce up to 220,000 gross bopd with startup as early as 2023. in december 2019, the corporation announced a 15th discovery at the mako-1 exploration well, which encountered approximately 164 feet of high-quality oil-bearing sandstone reservoir and is located approximately 6 miles southeast of the liza field. earlier this week, the corporation announced a 16th discovery at uaru located approximately 10 miles northeast of the liza field, which encountered 94 feet of high-quality oil-bearing sandstone reservoir. the company also announced an increase in the estimated gross discovered recoverable resources for the stabroek block to more than 8 billion boe, up from the previous estimate of 6 billion boe. the new recoverable resources estimate includes 15 discoveries offshore guyana through yearend 2019. the uaru discovery is the first of 2020 and will be added to the resources estimate at a later date. midstream: the midstream segment had net income of $33 million in the fourth quarter of 2019, compared with net income of $32 million in the prior-year quarter. on an adjusted basis, fourth quarter 2019 net income was $49 million. the improved fourth quarter 2019 results primarily reflect higher throughput volumes. in december 2019, hess midstream operations lp (formerly, hess midstream partners lp) (hesm) completed its previously announced acquisition of hess infrastructure partners lp (hip), including hip’s 80 percent interest in hesm’s oil and gas midstream assets, hip’s water services business and the outstanding economic general partner interest and incentive distribution rights in hesm. in addition, hesm’s organizational structure converted from a master limited partnership into an “up-c” structure in which hesm’s public unitholders received newly issued securities in a new public entity named “hess midstream lp” (hess midstream). upon completion of the transaction, hess corporation received approximately $300 million in cash and owns approximately 47 percent of hess midstream on a consolidated basis. the transaction was non-taxable to hess corporation. corporate, interest and other: after-tax expense for corporate, interest and other was $191 million in the fourth quarter of 2019, compared with $31 million in the fourth quarter of 2018. on an adjusted basis, after-tax expense was $105 million in the fourth quarter of 2019, compared with $104 million in the prior-year quarter. capital and exploratory expenditures: e&p capital and exploratory expenditures were $876 million in the fourth quarter of 2019, compared with $618 million in the prior-year quarter, primarily reflecting greater activity in guyana, the bakken, and the gulf of mexico. midstream capital expenditures were $108 million in the fourth quarter of 2019, up from $67 million in the prior-year quarter. liquidity: excluding the midstream segment, hess corporation had cash and cash equivalents of $1.54 billion and debt and finance lease obligations totaling $5.64 billion at december 31, 2019. the corporation’s debt to capitalization ratio, including finance leases, was 43.2 percent at december 31, 2019 and 38.0 percent at december 31, 2018. the midstream segment had cash and cash equivalents of $3 million and total debt of $1,753 million at december 31, 2019. in december 2019, as part of the hip acquisition, hesm assumed $800 million of outstanding hip notes and issued $550 million of new 5.125% senior notes due in 2028. in addition, the existing credit facilities at hip and hesm were terminated and hesm entered into a new $1.0 billion 5-year revolving credit facility and $400 million 5-year term loan a facility. proceeds from borrowings and the new notes were primarily used to fund the acquisition of hip. the notes and the credit facilities are non-recourse to hess corporation. net cash provided by operating activities was $286 million in the fourth quarter of 2019, down from $881 million in the fourth quarter of 2018. net cash provided by operating activities before changes in operating assets and liabilities2 was $520 million in the fourth quarter of 2019, which includes $30 million of nonrecurring transaction related costs for hesm’s acquisition of hip and corporate restructuring, compared with $588 million in the prior-year quarter. changes in operating assets and liabilities were a net outflow of $234 million in the fourth quarter of 2019, driven by premiums paid on calendar year 2020 crude oil hedge contracts. 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 year ended december 31, december 31, (unaudited) (unaudited) 2019 2018 2019 2018 (in millions) exploration and production $ 60 $ — $ 63 $ (86 ) midstream (16 ) — (16 ) — corporate, interest and other (86 ) 73 (174 ) (20 ) total items affecting comparability of earnings between periods $ (42 ) $ 73 $ (127 ) $ (106 ) fourth quarter 2019: e&p results include a noncash income tax benefit of $60 million resulting from the reversal of a valuation allowance against net deferred tax assets in guyana upon achieving first production. midstream results include a pre-tax charge of $30 million ($16 million after noncontrolling interests) for nonrecurring transaction related costs for hesm’s acquisition of hip and corporate restructuring. corporate, interest and other results include an allocation of noncash income tax expense of $86 million that was previously a component of accumulated other comprehensive income related to our 2019 crude oil hedge contracts. fourth quarter 2018: corporate, interest and other results included an allocation of noncash income tax benefit of $73 million to offset the recognition of a noncash income tax expense recorded in other comprehensive income that resulted from changes in fair value of crude oil hedge contracts for 2019. 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) 2019 2018 2019 2018 (in millions) net income (loss) attributable to hess corporation $ (222 ) $ (4 ) $ (408 ) $ (282 ) less: total items affecting comparability of earnings between periods (42 ) 73 (127 ) (106 ) adjusted net income (loss) attributable to hess corporation $ (180 ) $ (77 ) $ (281 ) $ (176 ) 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) 2019 2018 2019 2018 (in millions) net cash provided by (used in) operating activities before changes in operating assets and liabilities $ 520 $ 588 $ 2,237 $ 2,129 changes in operating assets and liabilities (234 ) 293 (595 ) (190 ) net cash provided by (used in) operating activities $ 286 $ 881 $ 1,642 $ 1,939 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 certain statements in this release may constitute "forward-looking statements" within the meaning of section 21e of the united states securities exchange act of 1934, as amended, and section 27a of the united states securities act of 1933, as amended. forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data. estimates and projections contained in this release are based on the corporation’s current understanding and assessment based on reasonable assumptions. actual results may differ materially from these estimates and projections due to certain risk factors discussed in the corporation’s periodic filings with the securities and exchange commission (sec) and other factors. 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 2019 2018 2019 income statement revenues and non-operating income sales and other operating revenues $ 1,683 $ 1,650 $ 1,580 other, net 16 32 (65 ) total revenues and non-operating income 1,699 1,682 1,515 costs and expenses marketing, including purchased oil and gas 428 472 423 operating costs and expenses 365 292 321 production and severance taxes 52 43 47 exploration expenses, including dry holes and lease impairment 106 91 50 general and administrative expenses 131 91 90 interest expense 95 99 90 depreciation, depletion and amortization 586 533 544 total costs and expenses 1,763 1,621 1,565 income (loss) before income taxes (64 ) 61 (50 ) provision (benefit) for income taxes 119 27 116 net income (loss) (183 ) 34 (166 ) less: net income (loss) attributable to noncontrolling interests 39 38 46 net income (loss) attributable to hess corporation (222 ) (4 ) (212 ) less: preferred stock dividends — 12 — net income (loss) attributable to hess corporation common stockholders $ (222 ) $ (16 ) $ (212 ) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) year ended december 31, 2019 2018 income statement revenues and non-operating income sales and other operating revenues $ 6,495 $ 6,323 gains (losses) on asset sales, net 22 32 other, net (7 ) 111 total revenues and non-operating income 6,510 6,466 costs and expenses marketing, including purchased oil and gas 1,736 1,771 operating costs and expenses 1,237 1,134 production and severance taxes 184 171 exploration expenses, including dry holes and lease impairment 233 362 general and administrative expenses 397 473 interest expense 380 399 loss on debt extinguishment — 53 depreciation, depletion and amortization 2,122 1,883 total costs and expenses 6,289 6,246 income (loss) before income taxes 221 220 provision (benefit) for income taxes 461 335 net income (loss) (240 ) (115 ) less: net income (loss) attributable to noncontrolling interests 168 167 net income (loss) attributable to hess corporation (408 ) (282 ) less: preferred stock dividends 4 46 net income (loss) attributable to hess corporation common stockholders $ (412 ) $ (328 ) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) december 31, 2019 2018 balance sheet information cash and cash equivalents $ 1,545 $ 2,694 other current assets 1,611 1,765 property, plant and equipment – net 16,814 16,083 operating lease right-of-use assets – net 447 — finance lease right-of-use assets – net 299 — other long-term assets 1,066 891 total assets $ 21,782 $ 21,433 current maturities of long-term debt $ — $ 67 current portion of operating and finance lease obligations 199 — other current liabilities 2,311 2,136 long-term debt 7,142 6,605 long-term operating lease obligations 353 — long-term finance lease obligations 238 — other long-term liabilities 1,833 1,737 total equity excluding other comprehensive income (loss) 9,431 9,935 accumulated other comprehensive income (loss) (699 ) (306 ) noncontrolling interests 974 1,259 total liabilities and equity $ 21,782 $ 21,433 december 31, 2019 2018 (a) total debt hess corporation $ 5,389 $ 5,691 midstream (b) 1,753 981 hess consolidated $ 7,142 $ 6,672 (a) prior to adoption of asc 842, leases, finance lease obligations were included in debt. (b) midstream debt is non-recourse to hess corporation. december 31, 2019 2018 debt to capitalization ratio (a) hess consolidated 43.2 % 38.0 % (a) includes finance lease obligations. three months ended year ended december 31, december 31, 2019 2018 2019 2018 interest expense gross interest expense – hess corporation $ 88 $ 90 $ 355 $ 359 less: capitalized interest – hess corporation (11 ) (6 ) (38 ) (20 ) interest expense – hess corporation 77 84 317 339 interest expense – midstream (a) 18 15 63 60 interest expense – consolidated $ 95 $ 99 $ 380 $ 399 (a) midstream interest expense is reported in the midstream operating segment. hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) fourth fourth third quarter quarter quarter 2019 2018 2019 cash flow information cash flows from operating activities net income (loss) $ (183 ) $ 34 $ (166 ) adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: depreciation, depletion and amortization 586 533 544 exploratory dry hole costs 39 33 10 exploration lease and other impairment 3 9 3 pension settlement loss 5 4 88 stock compensation expense 19 19 18 noncash (gains) losses on commodity derivatives, net 29 48 29 provision (benefit) for deferred income taxes and other tax accruals 22 (92 ) (4 ) net cash provided by (used in) operating activities before changes in operating assets and liabilities 520 588 522 changes in operating assets and liabilities (234 ) 293 (79 ) net cash provided by (used in) operating activities 286 881 443 cash flows from investing activities additions to property, plant and equipment - e&p (713 ) (589 ) (635 ) additions to property, plant and equipment - midstream (112 ) (75 ) (74 ) payments for midstream equity investments — — (10 ) other, net — (1 ) (2 ) net cash provided by (used in) investing activities (825 ) (665 ) (721 ) cash flows from financing activities net borrowings (repayments) of debt with maturities of 90 days or less (144 ) — 16 debt with maturities of greater than 90 days: borrowings 760 — — repayments — (23 ) (3 ) payments on finance lease obligations (2 ) — (2 ) common stock acquired and retired — (245 ) — cash dividends paid (75 ) (83 ) (77 ) noncontrolling interests, net (312 ) (175 ) (14 ) other, net (6 ) — 13 net cash provided by (used in) financing activities 221 (526 ) (67 ) net increase (decrease) in cash and cash equivalents (318 ) (310 ) (345 ) cash and cash equivalents at beginning of period 1,863 3,004 2,208 cash and cash equivalents at end of period $ 1,545 $ 2,694 $ 1,863 additions to property, plant and equipment included within investing activities: capital expenditures incurred $ (920 ) $ (636 ) $ (736 ) increase (decrease) in related liabilities 95 (28 ) 27 additions to property, plant and equipment $ (825 ) $ (664 ) $ (709 ) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) year ended december 31, 2019 2018 cash flow information cash flows from operating activities net income (loss) $ (240 ) $ (115 ) adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: (gains) losses on asset sales, net (22 ) (32 ) depreciation, depletion and amortization 2,122 1,883 exploratory dry hole costs 49 165 exploration lease and other impairment 17 37 pension settlement loss 93 4 stock compensation expense 85 72 noncash (gains) losses on commodity derivatives, net 116 182 provision (benefit) for deferred income taxes and other tax accruals 17 (120 ) loss on debt extinguishment — 53 net cash provided by (used in) operating activities before changes in operating assets and liabilities 2,237 2,129 changes in operating assets and liabilities (595 ) (190 ) net cash provided by (used in) operating activities 1,642 1,939 cash flows from investing activities additions to property, plant and equipment - e&p (2,433 ) (1,854 ) additions to property, plant and equipment - midstream (396 ) (243 ) payments for midstream equity investments (33 ) (67 ) proceeds from asset sales, net of cash sold 22 607 other, net (3 ) (9 ) net cash provided by (used in) investing activities (2,843 ) (1,566 ) cash flows from financing activities net borrowings (repayments) of debt with maturities of 90 days or less 32 — debt with maturities of greater than 90 days: borrowings 760 — repayments (8 ) (633 ) payments on finance lease obligations (49 ) — common stock acquired and retired (25 ) (1,365 ) cash dividends paid (316 ) (345 ) noncontrolling interests, net (353 ) (211 ) other, net 11 28 net cash provided by (used in) financing activities 52 (2,526 ) net increase (decrease) in cash and cash equivalents (1,149 ) (2,153 ) cash and cash equivalents at beginning of year 2,694 4,847 cash and cash equivalents at end of year $ 1,545 $ 2,694 additions to property, plant and equipment included within investing activities: capital expenditures incurred $ (2,992 ) $ (2,180 ) increase (decrease) in related liabilities 163 83 additions to property, plant and equipment $ (2,829 ) $ (2,097 ) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) fourth fourth third quarter quarter quarter 2019 2018 2019 capital and exploratory expenditures e&p capital and exploratory expenditures united states north dakota $ 369 $ 314 $ 350 offshore and other 173 107 107 total united states 542 421 457 guyana 274 128 161 malaysia and jda 28 24 24 other 32 45 19 e&p capital and exploratory expenditures $ 876 $ 618 $ 661 total exploration expenses charged to income included above $ 64 $ 49 $ 37 midstream capital expenditures $ 108 $ 67 $ 112 year ended december 31, 2019 2018 capital and exploratory expenditures e&p capital and exploratory expenditures united states north dakota $ 1,312 $ 967 offshore and other 471 411 total united states 1,783 1,378 guyana 783 383 malaysia and jda 109 123 other 68 185 e&p capital and exploratory expenditures $ 2,743 $ 2,069 total exploration expenses charged to income included above $ 167 $ 160 midstream capital expenditures $ 416 $ 271 hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) fourth quarter 2019 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 1,327 $ 356 $ 1,683 other, net 3 4 7 total revenues and non-operating income 1,330 360 1,690 costs and expenses marketing, including purchased oil and gas (a) 456 8 464 operating costs and expenses 194 82 276 production and severance taxes 50 2 52 midstream tariffs 213 — 213 exploration expenses, including dry holes and lease impairment 71 35 106 general and administrative expenses 56 7 63 depreciation, depletion and amortization 414 133 547 total costs and expenses 1,454 267 1,721 results of operations before income taxes (124 ) 93 (31 ) provision (benefit) for income taxes — 33 33 net income (loss) attributable to hess corporation $ (124 ) (b) $ 60 $ (64 ) fourth quarter 2018 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 1,273 $ 377 $ 1,650 other, net 9 8 17 total revenues and non-operating income 1,282 385 1,667 costs and expenses marketing, including purchased oil and gas (a) 478 12 490 operating costs and expenses 173 65 238 production and severance taxes 40 3 43 midstream tariffs 165 — 165 exploration expenses, including dry holes and lease impairment 27 64 91 general and administrative expenses 46 9 55 depreciation, depletion and amortization 370 129 499 total costs and expenses 1,299 282 1,581 results of operations before income taxes (17 ) 103 86 provision (benefit) for income taxes (24 ) 115 91 net income (loss) attributable to hess corporation $ 7 (c) $ (12 ) $ (5 ) (a) includes amounts charged from the midstream segment. (b) after-tax losses from realized crude oil hedging activities totaled $2 million (noncash premium amortization: $29 million; cash received: $27 million). (c) after-tax losses from realized crude oil hedging activities totaled $44 million (noncash premium amortization: $48 million; cash received: $4 million). hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) third quarter 2019 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 1,212 $ 368 $ 1,580 other, net — 17 17 total revenues and non-operating income 1,212 385 1,597 costs and expenses marketing, including purchased oil and gas (a) 423 30 453 operating costs and expenses 182 69 251 production and severance taxes 46 1 47 midstream tariffs 182 — 182 exploration expenses, including dry holes and lease impairment 27 23 50 general and administrative expenses 42 9 51 depreciation, depletion and amortization 390 117 507 total costs and expenses 1,292 249 1,541 results of operations before income taxes (80 ) 136 56 provision (benefit) for income taxes — 116 116 net income (loss) attributable to hess corporation $ (80 ) (b) $ 20 $ (60 ) includes amounts charged from the midstream segment. after-tax gains from realized crude oil hedging activities totaled $2 million (noncash premium amortization: $29 million; cash received: $31 million). hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) year ended december 31, 2019 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 5,043 $ 1,452 $ 6,495 gains (losses) on asset sales, net 22 — 22 other, net 4 47 51 total revenues and non-operating income 5,069 1,499 6,568 costs and expenses marketing, including purchased oil and gas (a) 1,798 51 1,849 operating costs and expenses 693 278 971 production and severance taxes 176 8 184 midstream tariffs 722 — 722 exploration expenses, including dry holes and lease impairment 144 89 233 general and administrative expenses 176 28 204 depreciation, depletion and amortization 1,489 488 1,977 total costs and expenses 5,198 942 6,140 results of operations before income taxes (129 ) 557 428 provision (benefit) for income taxes — 375 375 net income (loss) attributable to hess corporation $ (129 ) (b) $ 182 $ 53 year ended december 31, 2018 income statement united states international total total revenues and non-operating income sales and other operating revenues $ 4,842 $ 1,481 $ 6,323 gains (losses) on asset sales, net 14 13 27 other, net 25 28 53 total revenues and non-operating income 4,881 1,522 6,403 costs and expenses marketing, including purchased oil and gas (a) 1,777 56 1,833 operating costs and expenses 697 244 941 production and severance taxes 165 6 171 midstream tariffs 648 — 648 exploration expenses, including dry holes and lease impairment 119 243 362 general and administrative expenses 230 28 258 depreciation, depletion and amortization 1,297 451 1,748 total costs and expenses 4,933 1,028 5,961 results of operations before income taxes (52 ) 494 442 provision (benefit) for income taxes (63 ) 454 391 net income (loss) attributable to hess corporation $ 11 (c) $ 40 $ 51 includes amounts charged from the midstream segment. after-tax gains from realized crude oil hedging activities totaled $1 million (noncash premium amortization: $116 million; cash received: $117 million). after-tax losses from realized crude oil hedging activities totaled $173 million (noncash premium amortization: $172 million; cash paid: $1 million). after-tax noncash losses from unrealized crude oil hedging activities totaled $10 million. hess corporation and consolidated subsidiaries exploration and production operating data fourth fourth third quarter quarter quarter 2019 2018 2019 net production per day (in thousands) crude oil - barrels united states north dakota (a) 106 84 96 offshore 46 48 40 total united states 152 132 136 denmark 6 6 6 libya 19 20 20 malaysia and jda 5 3 4 guyana 1 — — total 183 161 166 natural gas liquids - barrels united states north dakota (a) 46 32 47 offshore 6 5 5 total united states 52 37 52 natural gas - mcf united states north dakota (a) 133 79 125 offshore 105 90 84 total united states 238 169 209 denmark 8 9 6 libya 15 13 12 malaysia and jda 357 354 336 total 618 545 563 barrels of oil equivalent 338 289 312 net production from the bakken was 174,000 boepd in the fourth quarter of 2019, 126,000 boepd in the fourth quarter of 2018 and 163,000 boepd in the third quarter of 2019. hess corporation and consolidated subsidiaries exploration and production operating data year ended december 31, 2019 2018 net production per day (in thousands) crude oil - barrels united states north dakota (a) 94 77 offshore 46 41 total united states 140 118 denmark 6 6 libya 19 18 malaysia and jda 4 4 total 169 146 natural gas liquids - barrels united states north dakota (a) 42 31 offshore 5 5 other (b) — 3 total united states 47 39 natural gas - mcf united states north dakota (a) 110 76 offshore 91 67 other (b) — 38 total united states 201 181 denmark 7 8 libya 13 12 malaysia and jda 351 352 total 572 553 barrels of oil equivalent 311 277 net production from the bakken was 152,000 boepd for the year ended december 31, 2019 and 117,000 boepd for the year ended december 31, 2018. the corporation sold its joint venture interests in the utica shale play in august 2018. net production was 9,000 boepd for the year ended december 31, 2018. hess corporation and consolidated subsidiaries exploration and production operating data fourth fourth third quarter quarter quarter 2019 2018 2019 sales volumes per day (in thousands) (a) crude oil - barrels 179 158 169 natural gas liquids - barrels 52 37 52 natural gas - mcf 618 545 563 barrels of oil equivalent 334 286 315 sales volumes (in thousands) (a) crude oil - barrels 16,467 14,587 15,593 natural gas liquids - barrels 4,749 3,395 4,756 natural gas - mcf 56,810 50,095 51,782 barrels of oil equivalent 30,684 26,331 28,979 year ended december 31, 2019 2018 sales volumes per day (in thousands) (a) crude oil - barrels 167 144 natural gas liquids - barrels 47 39 natural gas - mcf 572 553 barrels of oil equivalent 309 275 sales volumes (in thousands) (a) crude oil - barrels 61,061 52,742 natural gas liquids - barrels 17,067 14,019 natural gas - mcf 208,665 202,041 barrels of oil equivalent 112,906 100,435 sales volumes from purchased crude oil, natural gas liquids, and natural gas are not included in the sales volumes reported. hess corporation and consolidated subsidiaries exploration and production operating data fourth fourth third quarter quarter quarter 2019 2018 2019 average selling prices crude oil - per barrel (including hedging) united states onshore $ 51.83 $ 49.95 $ 53.03 offshore 56.48 58.46 58.72 total united states 53.25 53.02 54.72 denmark 63.09 65.48 63.13 libya 64.32 65.91 62.28 malaysia and jda 62.18 61.58 58.55 worldwide 54.90 55.24 56.03 crude oil - per barrel (excluding hedging) united states onshore $ 52.01 $ 53.44 $ 52.88 offshore 56.68 61.93 58.56 total united states 53.43 56.51 54.57 denmark 63.09 65.48 63.13 libya 64.32 65.91 62.28 malaysia and jda 62.18 61.58 58.55 worldwide 55.05 58.11 55.91 natural gas liquids - per barrel united states onshore $ 13.81 $ 21.34 $ 9.55 offshore 14.31 20.23 7.93 worldwide 13.87 21.19 9.41 natural gas - per mcf united states onshore $ 1.49 $ 3.02 $ 1.32 offshore 1.90 3.66 1.89 total united states 1.67 3.36 1.55 denmark 3.73 3.93 3.74 libya 4.48 4.44 5.11 malaysia and jda 4.64 5.55 5.18 worldwide 3.48 4.82 3.81 hess corporation and consolidated subsidiaries exploration and production operating data year ended december 31, 2019 2018 average selling prices crude oil - per barrel (including hedging) united states onshore $ 53.19 $ 56.90 offshore 59.18 62.02 total united states 55.15 58.69 denmark 66.29 70.08 libya 64.91 69.64 malaysia and jda 61.81 70.42 worldwide 56.77 60.77 crude oil - per barrel (excluding hedging) united states onshore $ 53.18 $ 60.64 offshore 59.17 65.73 total united states 55.14 62.41 denmark 66.29 70.08 libya 64.91 69.64 malaysia and jda 61.81 70.42 worldwide 56.76 63.80 natural gas liquids - per barrel united states onshore $ 13.20 $ 21.29 offshore 13.31 25.58 worldwide 13.21 21.81 natural gas - per mcf united states onshore $ 1.59 $ 2.29 offshore 2.12 2.68 total united states 1.83 2.43 denmark 3.81 3.61 libya 5.07 4.95 malaysia and jda 5.04 5.07 worldwide 3.90 4.18 the following is a summary of the corporation’s outstanding crude oil put options for calendar year 2020: wti brent barrels of oil per day 130,000 20,000 average monthly floor price $55 $60 1 “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 7 and 8. 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.
