Hess Reports Estimated Results for the Second Quarter of 2019

Key Developments:

  • The Liza Destiny floating production, storage and offloading vessel (FPSO), with a capacity to produce up to 120,000 gross barrels of oil per day (bopd), has set sail from Singapore and is expected to arrive on the Stabroek Block (Hess – 30 percent), offshore Guyana in September 2019; first oil from Liza Phase 1 is expected by the first quarter of 2020
  • Sanctioned the second phase of development of the Liza Field; Phase 2 will utilize the Liza Unity FPSO, which will have a capacity to produce up to 220,000 gross bopd with first oil expected by mid-2022
  • Announced the 13th discovery on the Stabroek Block at Yellowtail; as a result of this year’s discoveries and further evaluation of previous discoveries, estimated gross discovered recoverable resources on the block have been increased to more than 6 billion barrels of oil equivalent (boe); growing resource base further underpins the potential for at least five FPSOs producing more than 750,000 gross bopd by 2025

Financial and Operational Highlights:

  • Net loss was $6 million, or $0.02 per common share, compared with a net loss of $130 million, or $0.48 per common share, in the second quarter of 2018
  • Adjusted net loss1 was $28 million, or $0.09 per common share, compared with an adjusted net loss of $56 million, or $0.23 per common share, in the second quarter of last year
  • Oil and gas net production averaged 273,000 barrels of oil equivalent per day (boepd), excluding Libya, up from 247,000 boepd in the second quarter of 2018; Bakken net production was 140,000 boepd, up 23 percent from 114,000 boepd in the prior-year quarter
  • Exploration and Production (E&P) capital and exploratory expenditures were $664 million, compared with $525 million in the prior-year quarter
  • Cash and cash equivalents, excluding Midstream, were $2.2 billion at June 30, 2019

2019 Updated Full Year Guidance:

  • Net production guidance, excluding Libya, increased to 275,000 boepd to 280,000 boepd, the upper end of previous guidance; Bakken net production guidance increased to 140,000 boepd to 145,000 boepd, also at the upper end of previous guidance
  • E&P capital and exploratory expenditures are projected to be $2.8 billion, down from original guidance of $2.9 billion

NEW YORK–(BUSINESS WIRE)–Hess Corporation (NYSE: HES) today reported a net loss of $6 million, or $0.02 per common share, in the second quarter of 2019, compared with a net loss of $130 million, or $0.48 per common share, in the second quarter of 2018. On an adjusted basis, the Corporation reported a net loss of $28 million, or $0.09 per common share, in the second quarter of 2019, compared with an adjusted net loss of $56 million, or $0.23 per common share, in the prior-year quarter. The improved after-tax adjusted results reflect increased U.S. crude oil production and reduced exploration expenses, partially offset by the impact of lower realized selling prices and higher depreciation, depletion and amortization expenses.

    “Our production is now expected to come in at the upper end of our full year guidance range, while our capital and exploratory expenditures are projected to come in below our original full year guidance,” Chief Executive Officer John Hess said. “In Guyana, we have just increased the estimate of gross discovered recoverable resources for the Stabroek Block to more than 6 billion barrels of oil equivalent and continue to see multibillion barrels of additional exploration potential. Our portfolio is on track to generate industry leading cash flow growth and increasing returns to shareholders.”

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

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(In millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Attributable to Hess Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration and Production

 

$

68

 

 

$

31

 

 

$

177

 

 

$

6

 

Midstream

 

 

35

 

 

 

30

 

 

 

72

 

 

 

58

 

Corporate, Interest and Other

 

 

(109

)

 

 

(191

)

 

 

(223

)

 

 

(300

)

Net income (loss) attributable to Hess Corporation

 

$

(6

)

 

$

(130

)

 

$

26

 

 

$

(236

)

Net income (loss) per common share (diluted) (a)

 

$

(0.02

)

 

$

(0.48

)

 

$

0.07

 

 

$

(0.85

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss) Attributable to Hess Corporation

 

Exploration and Production

 

$

46

 

 

$

21

 

 

$

155

 

 

$

33

 

Midstream

 

 

35

 

 

 

30

 

 

 

72

 

 

 

58

 

Corporate, Interest and Other

 

 

(109

)

 

 

(107

)

 

 

(223

)

 

 

(219

)

Adjusted net income (loss) attributable to Hess Corporation

 

$

(28

)

 

$

(56

)

 

$

4

 

 

$

(128

)

Adjusted net income (loss) per common share (diluted) (a)

 

$

(0.09

)

 

$

(0.23

)

 

$

 

 

$

(0.50

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares (diluted)

 

 

302.2

 

 

 

297.5

 

 

 

302.1

 

 

 

303.5

 

(a)

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 income was $68 million in the second quarter of 2019, compared with net income of $31 million in the second quarter of 2018. On an adjusted basis, second quarter 2019 net income was $46 million, compared with net income of $21 million in the prior-year quarter. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $60.45 per barrel in the second quarter of 2019, versus $62.65 per barrel in the prior-year quarter. The average realized natural gas liquids selling price in the second quarter of 2019 was $12.18 per barrel, versus $20.51 per barrel in the prior-year quarter, while the average realized natural gas selling price was $3.92 per mcf, compared with $4.12 per mcf in the second quarter of 2018.

    Net production, excluding Libya, was 273,000 boepd in the second quarter of 2019, up from second quarter 2018 net production of 247,000 boepd, or 234,000 boepd excluding assets sold. The higher production was primarily driven by the Bakken and the Gulf of Mexico. Libya net production was 20,000 boepd in the second quarter of 2019, compared with 18,000 boepd in the prior-year quarter.

    Excluding items affecting comparability of earnings between periods, cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $12.11 per boe in the second quarter, down 9 percent from $13.37 per boe in the prior-year quarter. Income tax expense is comprised primarily of taxes in Libya.

Operational Highlights for the Second Quarter of 2019:

    Bakken (Onshore U.S.): Net production from the Bakken increased 23 percent to 140,000 boepd from 114,000 boepd in the prior-year quarter, due to increased drilling activity and improved well performance. The Corporation operated six rigs in the second quarter, drilling 39 wells and bringing 39 new wells online. Full year net production for the Bakken is expected to be in the range of 140,000 boepd to 145,000 boepd, which is at the upper end of previous guidance.

    Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 65,000 boepd, compared with 47,000 boepd in the prior-year quarter, primarily reflecting increased production from the Conger Field which was shut-in in the prior-year quarter due to maintenance at the third-party operated Enchilada platform and higher production at the Penn State Field. In May, the Conger Field was temporarily shut-in for unplanned maintenance at the third-party operated Enchilada platform that reduced second quarter 2019 net production by approximately 4,000 boepd.

    Guyana (Offshore): At the Stabroek Block (Hess – 30 percent), the second phase of development at the Liza Field was sanctioned by the partners following regulatory approval from the government of Guyana. Liza Phase 2 will utilize the Liza Unity FPSO, which will have the capacity to produce up to 220,000 gross bopd. Six drill centers are planned with a total of 30 wells, including 15 production wells, nine water injection wells and six gas injection wells. First oil is expected by mid-2022. The development is expected to have a gross capital cost of approximately $6 billion, including a lease capitalization cost of approximately $1.6 billion for the FPSO, and will develop approximately 600 million barrels of oil. Excluding pre-sanction and lease costs, the Corporation’s net share of development costs is forecast to be approximately $1.6 billion, of which $210 million is included in our 2019 capital and exploratory budget.

    Liza Phase 1 remains on track to achieve first oil by the first quarter of 2020. It will produce up to 120,000 gross bopd at peak rates utilizing the Liza Destiny FPSO, which is expected to arrive offshore Guyana in September 2019.

    Planning is underway for a third phase of development at the Payara Field, which is expected to produce between 180,000 and 220,000 gross bopd with first oil as early as 2023.

    Exploration and appraisal activity on the Stabroek Block in the second quarter of 2019 was as follows:

Yellowtail: The Yellowtail-1 well encountered approximately 292 feet of high-quality oil-bearing sandstone reservoir and is located approximately 6 miles northwest of the Tilapia discovery. As the fifth discovery in the greater Turbot area, it underpins another potential major development hub.

Hammerhead: The Hammerhead-2 appraisal well, located approximately 0.9 miles from the Hammerhead-1 discovery well, and the Hammerhead-3 appraisal well, located approximately 1.9 miles from Hammerhead-1, were both successfully drilled and encountered high quality, oil bearing sandstone reservoir. A successful drill stem test was also performed on Hammerhead-3. The appraisal results will be evaluated for potential future development.

    The Stena Carron drillship is currently drilling a second well at the Ranger discovery, while the Noble Bob Douglas and the Noble Tom Madden drillships are conducting drilling operations for the Liza Phase 1 development. The Noble Tom Madden is next expected to drill the Tripletail exploration well, which is in the greater Turbot area, beginning in August 2019. The operator, Esso Exploration and Production Guyana Limited, plans to add another drillship, the Noble Don Taylor, in the fourth quarter, bringing the number of drillships offshore Guyana to four.

Midstream:

    The Midstream segment, comprised primarily of Hess Infrastructure Partners LP, our 50/50 midstream joint venture, had net income of $35 million in the second quarter of 2019, compared with net income of $30 million in the prior-year quarter.

Corporate, Interest and Other:

    After-tax expense for Corporate, Interest and Other was $109 million in the second quarter of 2019, compared with $191 million in the second quarter of 2018. On an adjusted basis, second quarter 2018 after-tax expense was $107 million.

Capital and Exploratory Expenditures:

    E&P capital and exploratory expenditures were $664 million in the second quarter of 2019, compared with $525 million in the prior-year quarter, reflecting increased drilling in the Bakken and greater development activity in Guyana. For full year 2019, our E&P capital and exploratory expenditures are projected to be $2.8 billion, down from original guidance of $2.9 billion.

    Midstream capital expenditures were $69 million in the second quarter of 2019, down from $84 million in the prior-year quarter. Midstream investments in its 50/50 joint venture with Targa Resources were $16 million in the second quarter of 2019, compared with $17 million in the prior-year quarter.

Liquidity:

    Excluding the Midstream segment, the Corporation had cash and cash equivalents of $2.2 billion and debt and finance lease obligations totaling $5.7 billion at June 30, 2019. The Midstream segment had cash and cash equivalents of $17 million and total debt of $1,137 million at June 30, 2019. The Corporation’s debt to capitalization ratio, including finance leases, was 39.2 percent at June 30, 2019 and 38.0 percent at December 31, 2018. In April 2019, the Corporation entered into a new fully undrawn $3.5 billion revolving credit facility maturing in May 2023 that replaced the Corporation’s previous credit facility that was scheduled to mature in January 2021.

    Net cash provided by operating activities was $675 million in the second quarter of 2019, up from $425 million in the second quarter of 2018. Net cash provided by operating activities before changes in operating assets and liabilities2 was $560 million in the second quarter of 2019, compared with $463 million in the prior-year quarter. Changes in operating assets and liabilities during the second quarter of 2019 was a net inflow of $115 million due to an increase in accrued liabilities and a reduction in accounts receivable.

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

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(In millions)

 

Exploration and Production

 

$

22

 

 

$

10

 

 

$

22

 

 

$

(27

)

Midstream

 

 

 

 

 

 

 

 

 

 

 

 

Corporate, Interest and Other

 

 

 

 

 

(84

)

 

 

 

 

 

(81

)

Total items affecting comparability of earnings between periods

 

$

22

 

 

$

(74

)

 

$

22

 

 

$

(108

)

    Second Quarter 2019: E&P results included an after-tax gain of $22 million ($22 million pre-tax) associated with the sale of our remaining acreage in the Utica shale play.

    Second Quarter 2018: E&P results included an after-tax gain of $10 million ($10 million pre-tax) associated with the sale of our interests in Ghana. Corporate, Interest and Other results included an after-tax charge of $26 million ($26 million pre-tax) related to the premium paid for debt repurchases, and an after-tax charge of $58 million ($58 million pre-tax) resulting from the settlement of legal claims related to former downstream interests.

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

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(In millions)

 

Net income (loss) attributable to Hess Corporation

 

$

(6

)

 

$

(130

)

 

$

26

 

 

$

(236

)

Less: Total items affecting comparability of earnings between periods

 

 

22

 

 

 

(74

)

 

 

22

 

 

 

(108

)

Adjusted net income (loss) attributable to Hess Corporation

 

$

(28

)

 

$

(56

)

 

$

4

 

 

$

(128

)

    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

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(In millions)

 

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

 

$

560

 

 

$

463

 

 

$

1,195

 

 

$

860

 

Changes in operating assets and liabilities

 

 

115

 

 

 

(38

)

 

 

(282

)

 

 

(225

)

Net cash provided by (used in) operating activities

 

$

675

 

 

$

425

 

 

$

913

 

 

$

635

 

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

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’ 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

 

 

Second

 

 

First

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

 

2019

 

 

2018

 

 

2019

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and non-operating income

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenues

 

$

1,660

 

 

$

1,534

 

 

$

1,572

 

Gains (losses) on asset sales, net

 

 

22

 

 

 

11

 

 

 

 

Other, net

 

 

15

 

 

 

21

 

 

 

27

 

Total revenues and non-operating income

 

 

1,697

 

 

 

1,566

 

 

 

1,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Marketing, including purchased oil and gas

 

 

477

 

 

 

450

 

 

 

408

 

Operating costs and expenses

 

 

285

 

 

 

288

 

 

 

266

 

Production and severance taxes

 

 

46

 

 

 

42

 

 

 

39

 

Exploration expenses, including dry holes and lease impairment

 

 

43

 

 

 

62

 

 

 

34

 

General and administrative expenses

 

 

89

 

 

 

129

 

 

 

87

 

Interest expense

 

 

97

 

 

 

98

 

 

 

98

 

Loss on debt extinguishment

 

 

 

 

 

26

 

 

 

 

Depreciation, depletion and amortization

 

 

494

 

 

 

444

 

 

 

498

 

Total costs and expenses

 

 

1,531

 

 

 

1,539

 

 

 

1,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

166

 

 

 

27

 

 

 

169

 

Provision (benefit) for income taxes

 

 

132

 

 

 

114

 

 

 

94

 

Net income (loss)

 

 

34

 

 

 

(87

)

 

 

75

 

Less: Net income (loss) attributable to noncontrolling interests

 

 

40

 

 

 

43

 

 

 

43

 

Net income (loss) attributable to Hess Corporation

 

 

(6

)

 

 

(130

)

 

 

32

 

Less: Preferred stock dividends

 

 

 

 

 

12

 

 

 

4

 

Net income (loss) attributable to Hess Corporation common stockholders

 

$

(6

)

 

$

(142

)

 

$

28

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and non-operating income

 

 

 

 

 

 

 

 

Sales and other operating revenues

 

$

3,232

 

 

$

2,880

 

Gains (losses) on asset sales, net

 

 

22

 

 

 

18

 

Other, net

 

 

42

 

 

 

58

 

Total revenues and non-operating income

 

 

3,296

 

 

 

2,956

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

Marketing, including purchased oil and gas

 

 

885

 

 

 

808

 

Operating costs and expenses

 

 

551

 

 

 

576

 

Production and severance taxes

 

 

85

 

 

 

81

 

Exploration expenses, including dry holes and lease impairment

 

 

77

 

 

 

102

 

General and administrative expenses

 

 

176

 

 

 

239

 

Interest expense

 

 

195

 

 

 

201

 

Loss on debt extinguishment

 

 

 

 

 

53

 

Depreciation, depletion and amortization

 

 

992

 

 

 

861

 

Total costs and expenses

 

 

2,961

 

 

 

2,921

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

335

 

 

 

35

 

Provision (benefit) for income taxes

 

 

226

 

 

 

187

 

Net income (loss)

 

 

109

 

 

 

(152

)

Less: Net income (loss) attributable to noncontrolling interests

 

 

83

 

 

 

84

 

Net income (loss) attributable to Hess Corporation

 

 

26

 

 

 

(236

)

Less: Preferred stock dividends

 

 

4

 

 

 

23

 

Net income (loss) attributable to Hess Corporation common stockholders

 

$

22

 

 

$

(259

)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Balance Sheet Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,208

 

 

$

2,694

 

Other current assets

 

 

1,476

 

 

 

1,765

 

Property, plant and equipment – net

 

 

16,107

 

 

 

16,083

 

Operating lease right-of-use assets – net

 

 

615

 

 

 

 

Finance lease right-of-use assets – net

 

 

322

 

 

 

 

Other long-term assets

 

 

967

 

 

 

891

 

Total assets

 

$

21,695

 

 

$

21,433

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

14

 

 

$

67

 

Current portion of operating and finance lease obligations

 

 

329

 

 

 

 

Other current liabilities

 

 

1,989

 

 

 

2,136

 

Long-term debt

 

 

6,511

 

 

 

6,605

 

Long-term operating lease obligations

 

 

395

 

 

 

 

Long-term finance lease obligations

 

 

246

 

 

 

 

Other long-term liabilities

 

 

1,680

 

 

 

1,737

 

Total equity excluding other comprehensive income (loss)

 

 

9,942

 

 

 

9,935

 

Accumulated other comprehensive income (loss)

 

 

(648

)

 

 

(306

)

Noncontrolling interests

 

 

1,237

 

 

 

1,259

 

Total liabilities and equity

 

$

21,695

 

 

$

21,433

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018 (a)

 

Total Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hess Corporation

 

$

5,388

 

 

$

5,691

 

Midstream (b)

 

 

1,137

 

 

 

981

 

Hess Consolidated

 

$

6,525

 

 

$

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.

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Debt to Capitalization Ratio (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hess Consolidated

 

 

39.2

%

 

 

38.0

%

(a)

Includes finance lease obligations.

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross interest expense – Hess Corporation

 

$

89

 

 

$

88

 

 

$

179

 

 

$

180

 

Less: Capitalized interest – Hess Corporation

 

 

(9

)

 

 

(5

)

 

 

(16

)

 

 

(9

)

Interest expense – Hess Corporation

 

 

80

 

 

 

83

 

 

 

163

 

 

 

171

 

Interest expense – Midstream (a)

 

 

17

 

 

 

15

 

 

 

32

 

 

 

30

 

Interest expense – Consolidated

 

$

97

 

 

$

98

 

 

$

195

 

 

$

201

Contacts

For Hess Corporation

Investors:

Jay Wilson

(212) 536-8940

Media:

Lorrie Hecker

(212) 536-8250

Jamie Tully

Sard Verbinnen & Co

(312) 895-4700

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