Hess reports estimated results for the third quarter of 2022
New york--(business wire)-- hess corporation (nyse: hes) today reported net income of $515 million, or $1.67 per common share, in the third quarter of 2022, compared with net income of $115 million, or $0.37 per common share, in the third quarter of 2021. on an adjusted basis, the corporation had net income of $583 million or $1.89 per common share, compared with $86 million, or $0.28 per common share, in the third quarter of 2021. the improvement in adjusted after-tax earnings compared with the prior-year period was primarily due to higher realized selling prices and sales volumes in the third quarter of 2022. “we continue to successfully execute our strategy and deliver strong operational and esg performance,” ceo john hess said. “we offer a unique value proposition – to grow both our intrinsic value and our cash returns by increasing our resource base, delivering a lower cost of supply and generating industry leading cash flow growth. as our portfolio becomes increasingly free cash flow positive, we will continue to prioritize the return of capital to our shareholders through further dividend increases and share repurchases.” 1. “adjusted net income” 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 . after-tax income (loss) by major operating activity was as follows: three months ended september 30, (unaudited) nine months ended september 30, (unaudited) 2022 2021 2022 2021 (in millions, except per share amounts) net income attributable to hess corporation exploration and production $ 572 $ 178 $ 1,755 $ 461 midstream 68 61 205 212 corporate, interest and other (125) (124) (361) (379) net income attributable to hess corporation 515 115 1,599 294 net income per common share (diluted) 1.67 0.37 $ 5.16 0.95 adjusted net income attributable to hess corporation exploration and production $ 626 $ 149 $ 1,809 $ 579 midstream 68 61 205 212 corporate, interest and other (111) (124) (360) (379) adjusted net income attributable to hess corporation $ 583 $ 86 $ 1,654 $ 412 adjusted net income per common share (diluted) 1.89 0.28 5.33 1.33 weighted average number of shares (diluted) 308.9 309.9 310.1 309.1 exploration and production: e&p net income was $572 million in the third quarter of 2022, compared with $178 million in the third quarter of 2021. on an adjusted basis, third quarter 2022 e&p net income was $626 million, compared with $149 million in the prior-year quarter. the corporation’s average realized crude oil selling price, including the effect of hedging, was $85.32 per barrel in the third quarter of 2022, compared with $63.17 per barrel in the prior-year quarter. the average realized natural gas liquids (ngl) selling price in the third quarter of 2022 was $35.44 per barrel, compared with $32.88 per barrel in the prior-year quarter, while the average realized natural gas selling price was $5.85 per mcf, compared with $4.71 per mcf in the third quarter of 2021. net production, excluding libya, was 351,000 boepd in the third quarter of 2022, compared with 265,000 boepd in the third quarter of 2021, due to higher production in guyana and the bakken. cash operating costs, which include operating costs and expenses, production and severance taxes, and e&p general and administrative expenses, were $13.19 per boe (excluding libya: $13.64 per boe) in the third quarter of 2022, compared with $12.76 per boe (excluding libya: $13.45 per boe) in the prior-year quarter. the increase in cash operating costs in the third quarter of this year, compared with the third quarter of last year, reflects higher production and severance taxes in north dakota due to higher realized selling prices, and increased workover activity in the gulf of mexico. operational highlights for the third quarter of 2022: bakken (onshore u.s.): net production from the bakken was 166,000 boepd compared with 148,000 boepd in the prior-year quarter, primarily due to increased drilling and completion activity and a curtailment of production in the third quarter of 2021 resulting from a planned maintenance turnaround at the tioga gas plant. the corporation added a third drilling rig in september 2021 and a fourth drilling rig in july 2022. during the third quarter of 2022, the corporation drilled 20 wells, completed 20 wells, and brought 22 new wells online. bakken net production is forecast to be in the range of 165,000 boepd to 170,000 boepd in the fourth quarter and approximately 155,000 boepd for the full year 2022. gulf of mexico (offshore u.s.): net production from the gulf of mexico was 30,000 boepd, compared with 32,000 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 98,000 bopd in the third quarter of 2022 compared with 32,000 bopd in the prior-year quarter. net production from guyana in the third quarter of 2022 included 7,000 bopd of tax barrels. there were no tax barrels in the third quarter of 2021. the liza unity fpso, which commenced production in february 2022, reached its production capacity of 220,000 gross bopd in july 2022. in the third quarter, we sold eight cargos of crude oil from guyana compared with three cargos in the prior year quarter. in the fourth quarter of 2022, we expect to sell nine cargos of crude oil. guyana net production is forecast to be approximately 110,000 bopd in the fourth quarter, which includes approximately 20,000 bopd of tax barrels. for the full year 2022, guyana net production is forecast to be approximately 77,000 bopd, which includes approximately 7,000 bopd of tax barrels. the third development, payara, will utilize the prosperity fpso with an expected capacity of 220,000 gross bopd, with first production expected at 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. the eighth and ninth discoveries of this year were announced at yarrow-1 and sailfin-1, which adds to the previously announced gross discovered recoverable resource estimate for the stabroek block of approximately 11 billion boe. the yarrow-1 well encountered approximately 75 feet of high quality oil bearing sandstone reservoirs. the well was drilled in 3,560 feet of water and is located approximately 9 miles southeast of the barreleye-1 discovery. the sailfin-1 well encountered approximately 312 feet of high quality hydrocarbon bearing sandstone reservoirs. the well was drilled in 4,616 feet of water and is located approximately 15 miles southeast of the turbot-1 discovery. the banjo-1 exploration well was drilled during the quarter and did not encounter commercial quantities of hydrocarbons. southeast asia (offshore): net production at north malay basin and jda was 57,000 boepd in the third quarter of 2022 compared with 50,000 boepd in the prior-year quarter, primarily due to higher buyer nominations. midstream: the midstream segment had net income of $68 million in the third quarter of 2022, compared with net income of $61 million in the prior-year quarter. corporate, interest and other: after-tax expense for corporate, interest and other was $125 million in the third quarter of 2022, compared with $124 million in the third quarter of 2021. capital and exploratory expenditures: e&p capital and exploratory expenditures were $701 million in the third quarter of 2022 compared with $498 million in the prior-year quarter, primarily due to higher drilling and development activities in the bakken, malaysia and jda, gulf of mexico and guyana. midstream capital expenditures were $60 million in the third quarter of 2022 and $59 million in the prior-year quarter. liquidity: excluding the midstream segment, hess corporation had cash and cash equivalents of $2.38 billion and debt and finance lease obligations totaling $5.60 billion at september 30, 2022. the midstream segment had cash and cash equivalents of $3 million and total debt of $2.9 billion at september 30, 2022. the corporation’s debt to capitalization ratio as defined in its debt covenants was 36.8% at september 30, 2022 and 42.3% at december 31, 2021. net cash provided by operating activities was $1,339 million in the third quarter of 2022, up from $615 million in the third quarter of 2021. net cash provided by operating activities before changes in operating assets and liabilities2 was $1,405 million in the third quarter of 2022, compared with $631 million in the prior-year quarter primarily due to higher realized selling prices and sales volumes. total cash returned to stockholders in the third quarter through common stock repurchases and dividends amounted to $265 million. the corporation repurchased approximately 1.4 million shares of common stock for $150 million during the third quarter and intends to acquire the remaining available board authorized amount of $310 million in the fourth quarter. “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 september 30, (unaudited) nine months ended september 30, (unaudited) 2022 2021 2022 2021 (in millions) exploration and production $ (54) $ 29 $ (54) $ (118) midstream — — — — corporate, interest and other (14) — (1) — total items affecting comparability of earnings between periods $ (68) $ 29 $ (55) $ (118) third quarter 2022: e&p results include impairment charges of $28 million ($28 million after income taxes) that resulted from updates to the corporation’s estimated abandonment liabilities for non-producing properties in the gulf of mexico and $26 million ($26 million after income taxes) related to the penn state field in the gulf of mexico. results for corporate, interest and other include a charge of $14 million ($14 million after income taxes) for legal costs related to a former downstream business. third quarter 2021: e&p results include a pre-tax gain of $29 million ($29 million after income taxes) associated with the sale of the corporation's interests in denmark. 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 september 30, (unaudited) nine months ended september 30, (unaudited) 2022 2021 2022 2021 (in millions) net income attributable to hess corporation $ 515 $ 115 $ 1,599 $ 294 less: total items affecting comparability of earnings between periods (68) 29 (55) (118) adjusted net income attributable to hess corporation $ 583 $ 86 $ 1,654 $ 412 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 september 30, (unaudited) nine months ended september 30, (unaudited) 2022 2021 2022 2021 (in millions) net cash provided by (used in) operating activities before changes in operating assets and liabilities $ 1,405 $ 631 $ 3,820 $ 2,105 changes in operating assets and liabilities (66) (16) (1,128) (114) net cash provided by (used in) operating activities $ 1,339 $ 615 $ 2,692 $ 1,991 hess corporation will review third 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” 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) third quarter 2022 third quarter 2021 second quarter 2022 income statement revenues and non-operating income sales and other operating revenues $ 3,122 $ 1,759 $ 2,955 gains on asset sales, net — 29 3 other, net 35 23 30 total revenues and non-operating income 3,157 1,811 2,988 costs and expenses marketing, including purchased oil and gas 982 522 843 operating costs and expenses 398 333 356 production and severance taxes 72 42 67 exploration expenses, including dry holes and lease impairment 58 36 33 general and administrative expenses 109 76 95 interest expense 125 125 121 depreciation, depletion and amortization 471 349 391 impairment and other 54 — — total costs and expenses 2,269 1,483 1,906 income before income taxes 888 328 1,082 provision for income taxes 282 143 328 net income 606 185 754 less: net income attributable to noncontrolling interests 91 70 87 net income attributable to hess corporation 515 115 667 hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) nine months ended september 30, 2022 2021 income statement revenues and non-operating income sales and other operating revenues $ 8,390 $ 5,236 gains on asset sales, net 25 29 other, net 101 63 total revenues and non-operating income 8,516 5,328 costs and expenses marketing, including purchased oil and gas 2,507 1,362 operating costs and expenses 1,067 913 production and severance taxes 200 123 exploration expenses, including dry holes and lease impairment 134 117 general and administrative expenses 314 254 interest expense 369 360 depreciation, depletion and amortization 1,199 1,130 impairment and other 54 147 total costs and expenses 5,844 4,406 income before income taxes 2,672 922 provision for income taxes 807 388 net income 1,865 534 less: net income attributable to noncontrolling interests 266 240 net income attributable to hess corporation $ 1,599 $ 294 hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) september 30, 2022 december 31, 2021 balance sheet information assets cash and cash equivalents $ 2,384 $ 2,713 other current assets 1,739 1,633 property, plant and equipment – net 15,092 14,182 operating lease right-of-use assets – net 461 352 finance lease right-of-use assets – net 131 144 other long-term assets 1,836 1,491 total assets $ 21,643 20,515 liabilities and equity current maturities of long-term debt $ — $ 517 current portion of operating and finance lease obligations 121 89 other current liabilities 2,191 2,458 long-term debt 8,303 7,941 long-term operating lease obligations 461 394 long-term finance lease obligations 185 200 other long-term liabilities 2,188 1,890 total equity excluding other comprehensive loss 7,889 6,706 accumulated other comprehensive loss (330) (406) noncontrolling interests 635 726 total liabilities and equity $ 21,643 $ 20,515 hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) september 30, 2022 december 31, 2021 total debt hess corporation $ 5,394 $ 5,894 midstream (a) 2,909 2,564 hess consolidated 8,303 8,458 (a) midstream debt is non-recourse to hess corporation. september 30, 2022 december 31, 2021 debt to capitalization ratio (a) hess consolidated 50.9 % 55.3 % hess corporation as defined in debt covenants 36.8 % 42.3 % (a) includes finance lease obligations. three months ended september 30, nine months ended september 30, 2022 2021 2022 2021 interest expense gross interest expense – hess corporation $ 88 $ 97 $ 266 $ 286 less: capitalized interest – hess corporation (3) — (6) — interest expense – hess corporation 85 97 260 286 interest expense – midstream (a) 40 28 109 74 interest expense – hess consolidated 125 125 369 360 (a) midstream interest expense is reported in the midstream operating segment. hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) third quarter 2022 third quarter 2021 second quarter 2022 cash flow information cash flows from operating activities net income $ 606 $ 185 $ 754 adjustments to reconcile net income to net cash provided by (used in) operating activities: (gains) losses on asset sales, net — (29) (3) depreciation, depletion and amortization 471 349 391 impairment and other 54 — — exploratory dry hole costs 19 2 — exploration lease and other impairment 4 5 4 pension settlement loss — 1 2 stock compensation expense 17 17 16 noncash (gains) losses on commodity derivatives, net 165 64 163 provision for deferred income taxes and other tax accruals 69 37 136 net cash provided by (used in) operating activities before changes in operating assets and liabilities 1,405 631 1,463 changes in operating assets and liabilities (66) (16) 46 net cash provided by (used in) operating activities 1,339 615 1,509 cash flows from investing activities additions to property, plant and equipment - e&p (657) (431) (607) additions to property, plant and equipment - midstream (66) (67) (56) proceeds from asset sales, net of cash sold — 130 4 other, net (4) (2) — net cash provided by (used in) investing activities (727) (370) (659) cash flows from financing activities net borrowings (repayments) of debt with maturities of 90 days or less (48) 43 (14) debt with maturities of greater than 90 days: borrowings 20 750 400 repayments — (503) (5) cash dividends paid (115) (77) (116) common stock acquired and retired (150) — (190) proceeds from sale of class a shares of hess midstream lp — — 146 noncontrolling interests, net (79) (452) (277) employee stock options exercised 4 — 7 payments on finance lease obligations (1) (3) (2) other, net (18) (14) (10) net cash provided by (used in) financing activities (387) (256) (61) net increase (decrease) in cash and cash equivalents 225 (11) 789 cash and cash equivalents at beginning of period 2,159 2,430 1,370 cash and cash equivalents at end of period $ 2,384 $ 2,419 2,159 additions to property, plant and equipment included within investing activities capital expenditures incurred $ (726) $ (528) $ (665) increase (decrease) in related liabilities 3 30 2 additions to property, plant and equipment $ (723) $ (498) $ (663) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) nine months ended september 30, 2022 2021 cash flow information cash flows from operating activities net income $ 1,865 $ 534 adjustments to reconcile net income to net cash provided by (used in) operating activities: (gains) losses on asset sales, net (25) (29) depreciation, depletion and amortization 1,199 1,130 impairment and other 54 147 exploratory dry hole costs 19 11 exploration lease and other impairment 14 15 pension settlement loss 2 5 stock compensation expense 66 61 noncash (gains) losses on commodity derivatives, net 383 152 provision for deferred income taxes and other tax accruals 243 79 net cash provided by (used in) operating activities before changes in operating assets and liabilities 3,820 2,105 changes in operating assets and liabilities (1,128) (114) net cash provided by (used in) operating activities 2,692 1,991 cash flows from investing activities additions to property, plant and equipment - e&p (1,755) (1,118) additions to property, plant and equipment - midstream (177) (120) proceeds from asset sales, net of cash sold 28 427 other, net (4) (4) net cash provided by (used in) investing activities (1,908) (815) cash flows from financing activities net borrowings (repayments) of debt with maturities of 90 days or less (61) (32) debt with maturities of greater than 90 days: borrowings 420 750 repayments (510) (508) cash dividends paid (350) (234) common stock acquired and retired (340) — proceeds from sale of class a shares of hess midstream lp 146 70 noncontrolling interests, net (430) (589) employee stock options exercised 44 75 payments on finance lease obligations (5) (7) other, net (27) (21) net cash provided by (used in) financing activities (1,113) (496) net increase (decrease) in cash and cash equivalents (329) 680 cash and cash equivalents at beginning of period 2,713 1,739 cash and cash equivalents at end of period $ 2,384 $ 2,419 additions to property, plant and equipment included within investing activities capital expenditures incurred $ (1,971) $ (1,274) increase (decrease) in related liabilities 39 36 additions to property, plant and equipment $ (1,932) $ (1,238) hess corporation and consolidated subsidiaries supplemental financial data (unaudited) (in millions) third quarter 2022 third quarter 2021 second quarter 2022 capital and exploratory expenditures e&p capital and exploratory expenditures united states north dakota 226 169 188 offshore and other 57 16 72 total united states 283 185 260 guyana 301 264 286 malaysia and jda 92 42 66 other 25 7 10 e&p capital and exploratory expenditures 701 498 622 total exploration expenses charged to income included above $ 35 29 29 midstream capital expenditures $ 60 59 72 nine months ended september 30, 2022 2021 capital and exploratory expenditures e&p capital and exploratory expenditures united states north dakota $ 549 $ 369 offshore and other 185 72 total united states 734 441 guyana 906 686 malaysia and jda 217 91 other 46 18 e&p capital and exploratory expenditures $ 1,903 $ 1,236 total exploration expenses charged to income included above 101 91 midstream capital expenditures $ 169 $ 129 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 third quarter 2021 income statement united states international total total revenues and non-operating income sales and other operating revenues 1,280 479 1,759 gains on asset sales, net — 29 29 other, net 12 7 19 total revenues and non-operating income 1,292 515 1,807 costs and expenses marketing, including purchased oil and gas (a) 542 — 542 operating costs and expenses 150 99 249 production and severance taxes 41 1 42 midstream tariffs 270 — 270 exploration expenses, including dry holes and lease impairment 21 15 36 general and administrative expenses 35 7 42 depreciation, depletion and amortization 229 79 308 total costs and expenses 1,288 201 1,489 results of operations before income taxes 4 314 318 provision for income taxes — 140 140 net income attributable to hess corporation 4 (d) 174 (e) 178 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 for income taxes — 321 321 net income attributable to hess corporation 266 457 (c) 723 hess corporation and consolidated subsidiaries exploration and production earnings (unaudited) (in millions) nine months ended september 30, 2022 income statement united states international total total revenues and non-operating income sales and other operating revenues 5,586 2,804 8,390 other, net 68 13 81 total revenues and non-operating income 5,654 2,817 8,471 costs and expenses marketing, including purchased oil and gas (a) 2,500 60 2,560 operating costs and expenses 513 351 864 production and severance taxes 190 10 200 midstream tariffs 896 — 896 exploration expenses, including dry holes and lease impairment 89 45 134 general and administrative expenses 134 24 158 depreciation, depletion and amortization 595 467 1,062 impairment and other 54 — 54 total costs and expenses 4,971 957 5,928 results of operations before income taxes 683 1,860 2,543 provision for income taxes — 788 788 net income attributable to hess corporation 683 (b) 1,072 (c) 1,755 nine months ended september 30, 2021 income statement united states international total total revenues and non-operating income sales and other operating revenues 3,766 1,470 5,236 gains on asset sales, net — 29 29 other, net 35 14 49 total revenues and non-operating income 3,801 1,513 5,314 costs and expenses marketing, including purchased oil and gas (a) 1,397 30 1,427 operating costs and expenses 443 268 711 production and severance taxes 119 4 123 midstream tariffs 802 — 802 exploration expenses, including dry holes and lease impairment 77 40 117 general and administrative expenses 118 22 140 depreciation, depletion and amortization 757 250 1,007 impairment and other 147 — 147 total costs and expenses 3,860 614 4,474 results of operations before income taxes (59) 899 840 provision for income taxes — 379 379 net income (loss) attributable to hess corporation (59) (d) 520 (e) 461 hess corporation and consolidated subsidiaries exploration and production operating data third quarter 2022 third quarter 2021 second quarter 2022 net production per day (in thousands) crude oil - barrels united states north dakota 79 78 68 offshore 21 20 20 total united states 100 98 88 guyana (a) 98 32 67 malaysia and jda 4 3 4 other (b) 15 20 17 total 217 153 176 natural gas liquids - barrels united states north dakota 58 44 47 offshore 2 3 2 total united states 60 47 49 natural gas - mcf united states north dakota 176 158 147 offshore 41 52 41 total united states 217 210 188 malaysia and jda 320 284 381 other (b) 10 9 11 total 547 503 580 barrels of oil equivalent 368 284 322 hess corporation and consolidated subsidiaries exploration and production operating data nine months ended september 30, 2022 2021 net production per day (in thousands) crude oil - barrels united states north dakota 75 80 offshore 20 30 total united states 95 110 guyana (a) 65 30 malaysia and jda 4 4 other (b) 17 22 total 181 166 natural gas liquids - barrels united states north dakota 51 48 offshore 2 4 total united states 53 52 natural gas - mcf united states north dakota 160 159 offshore 42 77 total united states 202 236 malaysia and jda 355 339 other (b) 11 9 total 568 584 barrels of oil equivalent 329 315 hess corporation and consolidated subsidiaries exploration and production operating data third quarter 2022 third quarter 2021 second quarter 2022 sales volumes per day (in thousands) (a) crude oil – barrels 208 148 173 natural gas liquids – barrels 58 47 46 natural gas – mcf 547 503 580 barrels of oil equivalent 357 279 316 sales volumes (in thousands) (a) crude oil – barrels 19,118 13,627 15,763 natural gas liquids – barrels 5,299 4,338 4,180 natural gas – mcf 50,343 46,317 52,811 barrels of oil equivalent 32,807 25,685 28,745 nine months ended september 30, 2022 2021 sales volumes per day (in thousands) (a) crude oil – barrels 174 177 natural gas liquids – barrels 51 52 natural gas – mcf 568 584 barrels of oil equivalent 320 326 sales volumes (in thousands) (a) crude oil – barrels (b) 47,461 48,315 natural gas liquids – barrels 14,018 14,282 natural gas – mcf 155,052 159,387 barrels of oil equivalent 87,321 89,162 hess corporation and consolidated subsidiaries exploration and production operating data third quarter 2022 third quarter 2021 second quarter 2022 average selling prices crude oil - per barrel (including hedging) united states north dakota 79.04 59.65 93.60 offshore 78.80 62.23 95.22 total united states 79.00 60.14 93.96 guyana 92.02 70.05 104.19 malaysia and jda 85.23 69.87 106.21 other (a) 87.90 68.36 105.21 worldwide 85.32 63.17 99.16 crude oil - per barrel (excluding hedging) united states north dakota 89.80 65.11 106.01 offshore 89.47 67.88 107.58 total united states 89.74 65.64 106.37 guyana 98.91 73.12 112.57 malaysia and jda 85.23 69.87 106.21 other (a) 94.96 71.43 114.93 worldwide 93.95 67.88 109.51 natural gas liquids - per barrel united states north dakota 35.41 32.94 40.96 offshore 36.30 32.00 39.88 worldwide 35.44 32.88 40.92 natural gas - per mcf united states north dakota 6.67 3.75 6.89 offshore 8.12 3.76 7.63 total united states 6.94 3.75 7.06 malaysia and jda 5.07 5.45 6.18 other (a) 7.03 3.62 5.36 worldwide 5.85 4.71 6.45 hess corporation and consolidated subsidiaries exploration and production operating data nine months ended september 30, 2022 2021 average selling prices crude oil - per barrel (including hedging) united states north dakota (a) 85.39 52.27 offshore 86.13 57.36 total united states 85.56 53.46 guyana 96.24 65.31 malaysia and jda 93.16 64.94 other (b) 95.49 62.93 worldwide 90.30 56.62 crude oil - per barrel (excluding hedging) united states north dakota (a) 95.33 56.37 offshore 95.96 61.91 total united states 95.47 57.66 guyana 103.94 67.72 malaysia and jda 93.16 64.94 other (b) 104.67 65.91 worldwide 99.14 60.33 natural gas liquids - per barrel united states north dakota 38.51 28.59 offshore 37.86 24.08 worldwide 38.48 28.23 natural gas - per mcf united states north dakota 5.97 3.96 offshore 6.71 2.91 total united states 6.13 3.62 malaysia and jda 5.72 5.22 other (b) 5.65 3.05 worldwide 5.86 4.54 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
