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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
Form 10-Q 
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 2023
or
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number 1-1204 
HESS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation or Organization)
13-4921002
(I.R.S. Employer Identification Number)

1185 AVENUE OF THE AMERICAS, NEW YORK, NY
(Address of Principal Executive Offices)
10036
(Zip Code)
(Registrant’s Telephone Number, Including Area Code is (212) 997-8500)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common StockHESNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company     
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes    No  ý
At September 30, 2023, there were 307,151,680 shares of Common Stock outstanding.




HESS CORPORATION
Form 10-Q
TABLE OF CONTENTS
 
Item
No.
 Page
Number
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
  
1A.
 
 
Unless the context indicates otherwise, references to “Hess”, the “Corporation”, “Registrant”, “we”, “us”, “our” and “its” refer to the consolidated business operations of Hess Corporation and its subsidiaries.




PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (UNAUDITED)
September 30,
2023
December 31,
2022
(In millions,
except share amounts)
Assets  
Current Assets:  
Cash and cash equivalents$2,018 $2,486 
Accounts receivable:
From contracts with customers1,286 1,041 
Joint venture and other174 121 
Inventories333 217 
Other current assets105 66 
Total current assets3,916 3,931 
Property, plant and equipment:
Total — at cost35,223 32,592 
Less: Reserves for depreciation, depletion, amortization and lease impairment18,802 17,494 
Property, plant and equipment — net16,421 15,098 
Operating lease right-of-use assets — net481 570 
Finance lease right-of-use assets — net113 126 
Goodwill360 360 
Deferred income taxes291 133 
Post-retirement benefit assets668 648 
Other assets951 829 
Total Assets$23,201 $21,695 
Liabilities
Current Liabilities:
Accounts payable$426 $285 
Accrued liabilities1,954 1,840 
Taxes payable109 47 
Current portion of long-term debt307 3 
Current portion of operating and finance lease obligations200 221 
Total current liabilities2,996 2,396 
Long-term debt8,241 8,278 
Long-term operating lease obligations392 469 
Long-term finance lease obligations163 179 
Deferred income taxes551 418 
Asset retirement obligations1,113 1,034 
Other liabilities and deferred credits446 425 
Total Liabilities13,902 13,199 
Equity
Hess Corporation stockholders’ equity:
Common stock, par value $1.00; Authorized — 600,000,000 shares
Issued 307,151,680 shares (2022: 306,176,864)
307 306 
Capital in excess of par value6,477 6,206 
Retained earnings2,039 1,474 
Accumulated other comprehensive income (loss)(192)(131)
Total Hess Corporation stockholders’ equity8,631 7,855 
Noncontrolling interests668 641 
Total Equity9,299 8,496 
Total Liabilities and Equity$23,201 $21,695 
See accompanying Notes to Consolidated Financial Statements.
2


PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT OF CONSOLIDATED INCOME (UNAUDITED)
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2023202220232022
 (In millions, except per share amounts)
Revenues and Non-Operating Income  
Sales and other operating revenues$2,800 $3,122 $7,500 $8,390 
Gains on asset sales, net2  2 25 
Other, net35 35 108 101 
Total revenues and non-operating income2,837 3,157 7,610 8,516 
Costs and Expenses
Marketing, including purchased oil and gas696 982 1,846 2,507 
Operating costs and expenses467 398 1,303 1,067 
Production and severance taxes61 72 155 200 
Exploration expenses, including dry holes and lease impairment65 58 230 134 
General and administrative expenses115 109 359 314 
Interest expense117 125 362 369 
Depreciation, depletion and amortization499 471 1,487 1,199 
Impairment and other 54 82 54 
Total costs and expenses2,020 2,269 5,824 5,844 
Income Before Income Taxes817 888 1,786 2,672 
Provision for income taxes215 282 551 807 
Net Income602 606 1,235 1,865 
Less: Net income attributable to noncontrolling interests98 91 266 266 
Net Income Attributable to Hess Corporation$504 $515 $969 $1,599 
Net Income Attributable to Hess Corporation Per Common Share:
Basic$1.65 $1.67 $3.17 $5.18 
Diluted$1.64 $1.67 $3.15 $5.16 
Weighted Average Number of Common Shares Outstanding:
Basic306.1 307.6 305.8 308.7 
Diluted307.7 308.9 307.5 310.1 
Common Stock Dividends Per Share$0.4375 $0.3750 $1.3125 $1.1250 
See accompanying Notes to Consolidated Financial Statements.

3


PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2023202220232022
 (In millions)
Net Income$602 $606 $1,235 $1,865 
Other Comprehensive Income (Loss):
Derivatives designated as cash flow hedges
Effect of hedge (gains) losses reclassified to income52 165 138 420 
Income taxes on effect of hedge (gains) losses reclassified to income    
Net effect of hedge (gains) losses reclassified to income52 165 138 420 
Change in fair value of cash flow hedges(97)(12)(187)(506)
Income taxes on change in fair value of cash flow hedges    
Net change in fair value of cash flow hedges(97)(12)(187)(506)
Change in derivatives designated as cash flow hedges, after taxes(45)153 (49)(86)
Pension and other postretirement plans
(Increase) reduction in unrecognized actuarial losses  (13)152 
Income taxes on actuarial changes in plan liabilities    
(Increase) reduction in unrecognized actuarial losses, net  (13)152 
Amortization of net actuarial losses 2 1 10 
Income taxes on amortization of net actuarial losses    
Net effect of amortization of net actuarial losses 2 1 10 
Change in pension and other postretirement plans, after taxes 2 (12)162 
Other Comprehensive Income (Loss)(45)155 (61)76 
Comprehensive Income557 761 1,174 1,941 
Less: Comprehensive income attributable to noncontrolling interests98 91 266 266 
Comprehensive Income Attributable to Hess Corporation$459 $670 $908 $1,675 
See accompanying Notes to Consolidated Financial Statements.

4


PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT OF CONSOLIDATED CASH FLOWS (UNAUDITED)
Nine Months Ended
September 30,
 20232022
 (In millions)
Cash Flows From Operating Activities  
Net income$1,235 $1,865 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Gains) losses on asset sales, net(2)(25)
Depreciation, depletion and amortization1,487 1,199 
Impairment and other82 54 
Exploratory dry hole costs97 19 
Exploration lease impairment24 14 
Pension settlement loss 2 
Stock compensation expense69 66 
Noncash (gains) losses on commodity derivatives, net104 383 
Provision for deferred income taxes and other tax accruals159 243 
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable(455)(500)
(Increase) decrease in inventories(116)(55)
Increase (decrease) in accounts payable and accrued liabilities208 37 
Increase (decrease) in taxes payable62 (361)
Changes in other operating assets and liabilities(356)(249)
Net cash provided by (used in) operating activities2,598 2,692 
Cash Flows From Investing Activities
Additions to property, plant and equipment - E&P(2,504)(1,755)
Additions to property, plant and equipment - Midstream(160)(177)
Proceeds from asset sales, net of cash sold3 28 
Other, net(5)(4)
Net cash provided by (used in) investing activities(2,666)(1,908)
Cash Flows From Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less258 (61)
Debt with maturities of greater than 90 days:
Borrowings 420 
Repayments (510)
Cash dividends paid(405)(350)
Common stock acquired and retired(20)(340)
Proceeds from sale of Class A shares of Hess Midstream LP167 146 
Noncontrolling interests, net(399)(430)
Employee stock options exercised10 44 
Payments on finance lease obligations(7)(5)
Other, net(4)(27)
Net cash provided by (used in) financing activities(400)(1,113)
Net Increase (Decrease) in Cash and Cash Equivalents(468)(329)
Cash and Cash Equivalents at Beginning of Year2,486 2,713 
Cash and Cash Equivalents at End of Period$2,018 $2,384 
See accompanying Notes to Consolidated Financial Statements.

5


PART I - FINANCIAL INFORMATION (CONT’D.)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT OF CONSOLIDATED EQUITY (UNAUDITED)
 Common StockCapital in Excess of ParRetained EarningsAccumulated Other Comprehensive LossTotal Hess Stockholders' EquityNoncontrolling InterestsTotal Equity
 
For the Three Months Ended September 30, 2023       
Balance at July 1, 2023$307 $6,442 $1,670 $(147)$8,272 $630 $8,902 
Net income— — 504 — 504 98 602 
Other comprehensive income (loss)— — — (45)(45)— (45)
Share-based compensation— 23 — — 23 — 23 
Dividends on common stock— — (135)— (135)— (135)
Sale of Class A shares of Hess Midstream LP— — — —  82 82 
Repurchase of Class B units of Hess Midstream Operations LP— 12 — — 12 (56)(44)
Noncontrolling interests, net— — — — — (86)(86)
Balance at September 30, 2023$307 $6,477 $2,039 $(192)$8,631 $668 $9,299 
For the Three Months Ended September 30, 2022
Balance at July 1, 2022$310 $6,236 $1,075 $(485)$7,136 $622 $7,758 
Net income— — 515 — 515 91 606 
Other comprehensive income (loss)— — — 155 155 — 155 
Share-based compensation— 20 — — 20 — 20 
Dividends on common stock— — (117)— (117)— (117)
Common stock acquired and retired(2)(29)(119)— (150)— (150)
Noncontrolling interests, net— — — — — (78)(78)
Balance at September 30, 2022$308 $6,227 $1,354 $(330)$7,559 $635 $8,194 
For the Nine Months Ended September 30, 2023
Balance at January 1, 2023$306 $6,206 $1,474 $(131)$7,855 $641 $8,496 
Net income— — 969 — 969 266 1,235 
Other comprehensive income (loss)— — — (61)(61)— (61)
Share-based compensation1 82 — — 83 — 83 
Dividends on common stock— — (404)— (404)— (404)
Sale of Class A shares of Hess Midstream LP— 158 — — 158 175 333 
Repurchase of Class B units of Hess Midstream Operations LP— 31 — — 31 (165)(134)
Noncontrolling interests, net— — — — — (249)(249)
Balance at September 30, 2023$307 $6,477 $2,039 $(192)$8,631 $668 $9,299 
For the Nine Months Ended September 30, 2022
Balance at January 1, 2022$310 $6,017 $379 $(406)$6,300 $726 $7,026 
Net income— — 1,599 — 1,599 266 1,865 
Other comprehensive income (loss)— — — 76 76 — 76 
Share-based compensation2 110 — — 112 — 112 
Dividends on common stock— — (350)— (350)— (350)
Sale of Class A shares of Hess Midstream LP— 130 — — 130 88 218 
Repurchase of Class B units of Hess Midstream Operations LP— 32 — — 32 (215)(183)
Common stock acquired and retired(4)(62)(274)(340)— (340)
Noncontrolling interests, net— — — — — (230)(230)
Balance at September 30, 2022$308 $6,227 $1,354 $(330)$7,559 $635 $8,194 
See accompanying Notes to Consolidated Financial Statements.

6

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1.  Basis of Presentation                    
The financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our consolidated financial position at September 30, 2023 and December 31, 2022, the consolidated results of operations for the three and nine months ended September 30, 2023 and 2022, and consolidated cash flows for the nine months ended September 30, 2023 and 2022.  The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year.
The financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (SEC) for interim reporting.  As permitted under those rules, certain notes or other financial information that are normally required by generally accepted accounting principles (GAAP) in the United States have been condensed or omitted from these interim financial statements.  These statements, therefore, should be read in conjunction with the consolidated financial statements and related notes included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022.
 2.  Inventories
Inventories consisted of the following:
September 30,
2023
December 31,
2022
 (In millions)
Crude oil and natural gas liquids$81 $63 
Materials and supplies252 154 
Total Inventories$333 $217 
3.  Property, Plant and Equipment
Capitalized Exploratory Well Costs:  
The following table discloses the net changes in capitalized exploratory well costs pending determination of proved reserves during the nine months ended September 30, 2023 (in millions):

Balance at January 1, 2023$886 
Additions to capitalized exploratory well costs pending the determination of proved reserves192 
Reclassifications to wells, facilities and equipment based on the determination of proved reserves(133)
Capitalized exploratory well costs charged to expense(6)
Balance at September 30, 2023$939 
In the first nine months, additions to capitalized exploratory well costs pending determination of proved reserves primarily related to wells drilled on the Stabroek Block (Hess 30%), offshore Guyana, and the Pickerel-1 exploration well (Hess 100%) in the Gulf of Mexico on Mississippi Canyon Block 727. Reclassifications to wells, facilities and equipment based on the determination of proved reserves resulted from the sanction of the Uaru development project, the fifth sanctioned project on the Stabroek Block, and the Pickerel-1 exploration well in the Gulf of Mexico. At September 30, 2023, 35 exploration and appraisal wells on the Stabroek Block, with a total cost of $777 million, were capitalized pending determination of proved reserves. The preceding table excludes well costs of $91 million that were incurred and expensed during the first nine months of 2023.
At September 30, 2023, exploratory well costs capitalized for greater than one year following completion of drilling of $714 million was comprised of the following:
Guyana: Approximately 86% of the capitalized well costs in excess of one year relate to successful exploration wells where hydrocarbons were encountered on the Stabroek Block.  In October 2023, the operator submitted a plan for the Whiptail development project, the sixth development project on the Stabroek Block, to the Government of Guyana for approval. The operator also plans further appraisal drilling on the block and is conducting pre-development planning for additional phases of development.
U.S.:  Approximately 8% of the capitalized well costs in excess of one year relate to the Huron-1 exploration well (Hess 40%) located on Green Canyon Block 69 in the Gulf of Mexico, where oil bearing reservoirs were encountered. Well results are being evaluated and planning for appraisal activities is underway.

7

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Joint Development Area (JDA):  Approximately 5% of the capitalized well costs in excess of one year relate to the JDA (Hess 50%) in the Gulf of Thailand, where hydrocarbons were encountered in three successful exploration wells drilled in the western part of Block A-18. The operator has submitted a development plan concept to the regulator to facilitate ongoing commercial negotiations for an extension of the existing gas sales contract to include development of the western part of the block.
Malaysia:  Approximately 1% of the capitalized well costs in excess of one year relate to the North Malay Basin (Hess 50%), offshore Peninsular Malaysia, where hydrocarbons were encountered in one successful exploration well.  Pre-development studies are ongoing.
4.  Hess Midstream LP
At September 30, 2023, Hess Midstream LP (Hess Midstream), a variable interest entity that is fully consolidated by Hess Corporation, had liabilities totaling $3,293 million (December 31, 2022: $3,027 million) that are on a nonrecourse basis to Hess Corporation, while Hess Midstream assets available to settle the obligations of Hess Midstream included cash and cash equivalents totaling $3 million (December 31, 2022: $3 million), property, plant and equipment with a carrying value of $3,208 million (December 31, 2022: $3,173 million) and an equity-method investment in the Little Missouri 4 (LM4) gas processing plant of $91 million (December 31, 2022: $94 million). Hess Corporation owns an approximate 38% interest in Hess Midstream LP, on a consolidated basis, at September 30, 2023.
LM4 is a 200 million standard cubic feet per day gas processing plant located south of the Missouri River in McKenzie County, North Dakota, that was constructed as part of a 50/50 joint venture between Hess Midstream and Targa Resources Corp. Hess Midstream has a natural gas processing agreement with LM4 under which it pays a processing fee and reimburses LM4 for its proportionate share of electricity costs. The processing fees included in Operating costs and expenses in the Statement of Consolidated Income for the three and nine months ended September 30, 2023 were $7 million and $18 million respectively, compared with $7 million and $16 million for the three and nine months ended September 30, 2022, respectively.
During the nine months ended September 30, 2023, Hess Midstream Operations LP (HESM Opco), a consolidated subsidiary of Hess Midstream LP, repurchased an aggregate of approximately 10.3 million HESM Opco Class B units in multiple transactions from affiliates of Hess Corporation and Global Infrastructure Partners (GIP) for total proceeds of $300 million. The unit repurchases were financed by borrowings under HESM Opco's revolving credit facility. The unit repurchases, in aggregate, resulted in an increase in Capital in excess of par and a decrease in Noncontrolling interests of $31 million, and an increase in deferred tax assets and Noncontrolling interests of $16 million resulting from adjustments in the carrying value of Hess Midstream LP's investment in HESM Opco without corresponding adjustments in the tax basis. The aggregate proceeds paid to GIP of $150 million reduced Noncontrolling interests.
During the nine months ended September 30, 2023, Hess Midstream LP completed multiple underwritten public equity offerings of an aggregate of approximately 24.3 million Hess Midstream LP Class A shares held by affiliates of Hess Corporation and GIP. Hess Corporation received an aggregate of $167 million of net proceeds from these transactions. These transactions, in aggregate, resulted in an increase in Capital in excess of par and Noncontrolling interests of $158 million and $175 million, respectively. The aggregate increase to Noncontrolling interests of $175 million is comprised of $9 million resulting from the changes in ownership interests and $166 million from increases to deferred tax assets resulting from step-ups in the tax basis of Hess Midstream LP's investment in HESM Opco.
During the nine months ended September 30, 2022, HESM Opco repurchased approximately 13.6 million HESM Opco Class B units held by affiliates of Hess Corporation and GIP for $400 million in a single transaction. HESM Opco issued $400 million in aggregate principal amount of 5.500% fixed-rate senior unsecured notes due 2030 in a private offering to repay borrowings under its revolving credit facility used to finance the repurchase. The transaction resulted in an increase in Capital in excess of par and a decrease in Noncontrolling interests of $32 million, and an increase in deferred tax assets and Noncontrolling interests of $17 million resulting from an adjustment in the carrying value of Hess Midstream LP's investment in HESM Opco without a corresponding adjustment in the tax basis. The $200 million paid to GIP reduced Noncontrolling interests.
During the nine months ended September 30, 2022, Hess Midstream LP completed a single underwritten public equity offering of approximately 10.2 million Hess Midstream LP Class A shares held by affiliates of Hess Corporation and GIP. Hess Corporation received net proceeds of $146 million from the transaction. The transaction resulted in an increase in Capital in excess of par and Noncontrolling interests of $130 million and $88 million, respectively. The increase to Noncontrolling interests of $88 million is comprised of $16 million resulting from the change in ownership interests and $72 million from an increase to deferred tax assets resulting from a step-up in the tax basis of Hess Midstream LP's investment in HESM Opco.

8

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
During the three months ended September 30, 2023, HESM Opco repurchased approximately 3.3 million HESM Opco Class B units held by affiliates of Hess Corporation and GIP for $100 million in a single transaction, which was financed by HESM Opco's revolving credit facility. The transaction resulted in an increase in Capital in excess of par and a decrease in Noncontrolling interests of $12 million, and an increase in deferred tax assets and Noncontrolling interests of $6 million resulting from an adjustment in the carrying value of Hess Midstream LP's investment in HESM Opco without a corresponding adjustment in the tax basis. The $50 million paid to GIP reduced Noncontrolling interests.
During the three months ended September 30, 2023, Hess Midstream LP completed a single underwritten public equity offering of 11.5 million Hess Midstream LP Class A shares held by an affiliate of GIP. Hess Corporation did not receive any proceeds from this public equity offering. The transaction resulted in an increase in Noncontrolling interests and deferred tax assets of $82 million resulting from a step-up in the tax basis of Hess Midstream LP's investment in HESM Opco.
5.  Accrued Liabilities
Accrued Liabilities consisted of the following:
September 30,
2023
December 31,
2022
(In millions)
Accrued capital expenditures$596 $499 
Accrued operating and marketing expenditures554 522 
Current portion of asset retirement obligations186 207 
Accrued payments to royalty and working interest owners234 201 
Accrued interest on debt111 143 
Accrued compensation and benefits140 132 
Other accruals133 136 
Total Accrued Liabilities$1,954 $1,840 
9

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
6.  Revenue
Revenue from contracts with customers on a disaggregated basis was as follows (in millions):
 Exploration and ProductionMidstreamEliminationsTotal
 United StatesGuyanaMalaysia and JDAOther (a)E&P Total   
Three Months Ended September 30, 2023        
Sales of net production volumes:        
Crude oil revenue$861 $896 $36 $ $1,793 $ $— $1,793 
Natural gas liquids revenue133    133  — 133 
Natural gas revenue44  223  267  — 267 
Sales of purchased oil and gas640 20   660  — 660 
Intercompany revenue     361 (361)— 
Total sales (b)1,678 916 259  2,853 361 (361)2,853 
Other operating revenues (c)(27)(17)(11) (55)2  (53)
Total sales and other operating revenues$1,651 $899 $248 $ $2,798 $363 $(361)$2,800 
Three Months Ended September 30, 2022        
Sales of net production volumes:        
Crude oil revenue$895 $838 $34 $97 $1,864 $ $— $1,864 
Natural gas liquids revenue191    191  — 191 
Natural gas revenue145  150 6 301  — 301 
Sales of purchased oil and gas889 20  22 931  — 931 
Intercompany revenue     335 (335)— 
Total sales (b)2,120 858 184 125 3,287 335 (335)3,287 
Other operating revenues (c)(98)(59) (8)(165)  (165)
Total sales and other operating revenues$2,022 $799 $184 $117 $3,122 $335 $(335)$3,122 
Nine Months Ended September 30, 2023
Sales of net production volumes:
Crude oil revenue$2,240 $2,508 $89 $ $4,837 $ $— $4,837 
Natural gas liquids revenue386    386  — 386 
Natural gas revenue136  585  721  — 721 
Sales of purchased oil and gas1,636 52   1,688  — 1,688 
Intercompany revenue     986 (986)— 
Total sales (b)4,398 2,560 674  7,632 986 (986)7,632 
Other operating revenues (c)(83)(44)(11) (138)6  (132)
Total sales and other operating revenues$4,315 $2,516 $663 $ $7,494 $992 $(986)$7,500 
Nine Months Ended September 30, 2022
Sales of net production volumes:
Crude oil revenue$2,626 $1,745 $102 $413 $4,886 $ $— $4,886 
Natural gas liquids revenue545    545  — 545 
Natural gas revenue356  555 16 927  — 927 
Sales of purchased oil and gas2,310 42  93 2,445  — 2,445 
Intercompany revenue     961 (961)— 
Total sales (b)5,837 1,787 657 522 8,803 961 (961)8,803 
Other operating revenues (c)(251)(126) (36)(413)  (413)
Total sales and other operating revenues$5,586 $1,661 $657 $486 $8,390 $961 $(961)$8,390 
(a)Other includes our interest in the Waha Concession in Libya, which was sold in November 2022.
(b)Guyana crude oil revenue includes $112 million and $308 million of revenue from non-customers for the three and nine months ended September 30, 2023, respectively, compared to $56 million for both the three and nine months ended September 30, 2022.
(c)Other operating revenues are not a component of revenues from contracts with customers, and primarily includes gains (losses) on commodity derivatives.
There have been no significant changes to contracts with customers or the composition thereof during the nine months ended September 30, 2023.  Generally, we receive payments from customers on a monthly basis, shortly after the physical delivery of the crude oil, natural gas liquids, or natural gas. At September 30, 2023, contract liabilities of $11 million (December 31, 2022: $24 million) were primarily due to a take-or-pay deficiency payment received in the fourth quarter of 2021 that is subject to a make-up period expiring in December 2023. During the nine months ended September 30, 2023, contract liabilities of $13 million were
10

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
recognized to Sales and other operating revenues. At September 30, 2023 and December 31, 2022, there were no contract assets.
7. Impairment and Other
In the second quarter of 2023, we recognized a pre-tax charge of $82 million ($82 million after income taxes) that resulted from revisions to estimated costs to abandon certain wells, pipelines and production facilities in the West Delta Field in the Gulf of Mexico. These abandonment obligations were assigned to us as a former owner after they were discharged from Fieldwood Energy LLC as part of its approved bankruptcy plan in 2021.
In the third quarter of 2022, we recognized a pre-tax charge of $28 million ($28 million after income taxes) that resulted from updates to our estimated abandonment liabilities for non-producing properties in the Gulf of Mexico and $26 million ($26 million after income taxes) to fully impair the net book value of our interests in the Penn State Field in the Gulf of Mexico due to a mechanical issue on the field's remaining production well.
8. Retirement Plans
Components of net periodic benefit cost consisted of the following:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023202220232022
(In millions)
 
Service cost$9 $11 $28 $36 
Interest cost (a)25 19 75 52 
Expected return on plan assets (a)(39)(47)(118)(152)
Amortization of unrecognized net actuarial losses (a) 2 1 8 
Settlement loss (a)   2 
Net periodic benefit cost (income) (a)$(5)$(15)$(14)$(54)
(a)  Net non-service cost, which is included in Other, net in the Statement of Consolidated Income, was income of $14 million and $42 million for the three and nine months ended September 30, 2023, respectively, compared with income of $26 million and $90 million for the three and nine months ended September 30, 2022, respectively.
In the second quarter of 2022, the Hess Corporation Employees’ Pension Plan purchased a single premium annuity contract at a cost of $166 million using assets of the plan to settle and transfer certain of its obligations to a third party. This partial settlement resulted in a noncash settlement loss of $13 million to recognize unamortized actuarial losses.
In the second quarter of 2022, the HOVENSA Legacy Employees' Pension Plan paid lump sums to certain participants totaling $20 million, and purchased a single premium annuity contract at a cost of $80 million, to settle the plan's projected benefit obligation in connection with terminating the plan. The settlement transactions resulted in a noncash settlement gain of $11 million to recognize unamortized actuarial gains. The assets remaining after settlement of the plan's projected benefit obligation of $15 million were transferred to the Hess Corporation Employees' Pension Plan in December 2022.
In 2023, we expect to contribute approximately $2 million to our funded pension plans.
11

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
9. Weighted Average Common Shares
The Net income and weighted average number of common shares used in the basic and diluted earnings per share computations were as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2023202220232022
 (In millions)
Net income attributable to Hess Corporation:  
Net income$602 $606 $1,235 $1,865 
Less: Net income attributable to noncontrolling interests98 91 266 266 
Net income attributable to Hess Corporation$504 $515 $969 $1,599 
Weighted average number of common shares outstanding:
Basic306.1 307.6 305.8 308.7 
Effect of dilutive securities
Restricted common stock0.4 0.6 0.5 0.7 
Stock options0.7 0.5 0.7 0.6 
Performance share units0.5 0.2 0.5 0.1 
Diluted307.7 308.9 307.5 310.1 
The following table summarizes the number of antidilutive shares excluded from the computation of diluted shares:
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2023202220232022
Restricted common stock 623 40,993 240 
Stock options189,479 269,748 143,977 204,970 
Performance share units   20,340 
During the nine months ended September 30, 2023, we granted 463,209 shares of restricted stock (2022: 586,287), 130,272 performance share units (2022: 178,008) and 189,479 stock options (2022: 269,748).
 10. Guarantees and Contingencies
We are subject to loss contingencies with respect to various claims, lawsuits and other proceedings. A liability is recognized in our consolidated financial statements when it is probable that a loss has been incurred and the amount can be reasonably estimated. If the risk of loss is probable, but the amount cannot be reasonably estimated or the risk of loss is only reasonably possible, a liability is not accrued; however, we disclose the nature of those contingencies. We cannot predict with certainty if, how or when existing claims, lawsuits and proceedings will be resolved or what the eventual relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages.
We, along with many companies that have been or continue to be engaged in refining and marketing of gasoline, have been a party to lawsuits and claims related to the use of methyl tertiary butyl ether (MTBE) in gasoline. A series of similar lawsuits, many involving water utilities or governmental entities, were filed in jurisdictions across the United States against producers of MTBE and petroleum refiners who produced gasoline containing MTBE, including us. The principal allegation in all cases was that gasoline containing MTBE was a defective product and that these producers and refiners are strictly liable in proportion to their share of the gasoline market for damage to groundwater resources and are required to take remedial action to ameliorate the alleged effects on the environment of releases of MTBE. The majority of the cases asserted against us have been settled. There are two remaining active cases, filed by Pennsylvania and Maryland. In June 2014, the Commonwealth of Pennsylvania filed a lawsuit alleging that we and all major oil companies with operations in Pennsylvania, have damaged the groundwater by introducing thereto gasoline with MTBE. The Pennsylvania suit has been forwarded to the existing MTBE multidistrict litigation pending in the Southern District of New York. In December 2017, the State of Maryland filed a lawsuit alleging that we and other major oil companies damaged the groundwater in Maryland by introducing thereto gasoline with MTBE. The suit, filed in Maryland state court, was served on us in January 2018 and has been removed to federal court by the defendants.
12

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
In March 2014, we received an Administrative Order from the EPA requiring us and 26 other parties to undertake the Remedial Design for the remedy selected by the EPA for the Gowanus Canal Superfund Site in Brooklyn, New York. Our alleged liability derives from our former ownership and operation of a fuel oil terminal and connected shipbuilding and repair facility adjacent to the Canal. The remedy selected by the EPA includes dredging of surface sediments and the placement of a cap over the deeper sediments throughout the Canal and in-situ stabilization of certain contaminated sediments that will remain in place below the cap. The EPA’s original estimate was that this remedy would cost $506 million; however, the ultimate costs that will be incurred in connection with the design and implementation of the remedy remain uncertain. We have complied with the EPA’s March 2014 Administrative Order and contributed funding for the Remedial Design based on an allocation of costs among the parties determined by a third-party expert. In January 2020, we received an additional Administrative Order from the EPA requiring us and several other parties to begin Remedial Action along the uppermost portion of the Canal. We intend to comply with this Administrative Order. The remediation work began in the fourth quarter of 2020. Based on currently known facts and circumstances, we do not believe that this matter will result in a significant liability to us, and the costs will continue to be allocated amongst the parties, as they were for the Remedial Design.
From time to time, we are involved in other judicial and administrative proceedings relating to environmental matters. We periodically receive notices from the EPA that we are a “potential responsible party” under the Superfund legislation with respect to various waste disposal sites. Under this legislation, all potentially responsible parties may be jointly and severally liable. For any site for which we have received such a notice, the EPA’s claims or assertions of liability against us relating to these sites have not been fully developed, or the EPA’s claims have been settled or a settlement is under consideration, in all cases for amounts that are not material. Beginning in 2017, certain states, municipalities and private associations in California, Delaware, Maryland, Rhode Island and South Carolina separately filed lawsuits against oil, gas and coal producers, including us, for alleged damages purportedly caused by climate change. These proceedings include claims for monetary damages and injunctive relief. Beginning in 2013, various parishes in Louisiana filed suit against approximately 100 oil and gas companies, including us, alleging that the companies’ operations and activities in certain fields violated the State and Local Coastal Resource Management Act of 1978, as amended, and caused contamination, subsidence and other environmental damages to land and water bodies located in the coastal zone of Louisiana. The plaintiffs seek, among other things, the payment of the costs necessary to clear, re-vegetate and otherwise restore the allegedly impacted areas. The ultimate impact of such climate and other aforementioned environmental proceedings, and of any related proceedings by private parties, on our business or accounts cannot be predicted at this time due to the large number of other potentially responsible parties and the speculative nature of clean-up cost estimates.
Hess Corporation and its subsidiary HONX, Inc. have been named as defendants in various personal injury claims alleging exposure to asbestos and/or other alleged toxic substances while working at a former refinery (owned and operated by subsidiaries or related entities) located in St. Croix, U.S. Virgin Islands. On April 28, 2022, HONX, Inc. initiated a Chapter 11 § 524G process in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, to resolve these asbestos-related claims. In February 2023, Hess, HONX, Inc., the Unsecured Creditors’ Committee, and counsel representing claimants, reached a mediated resolution of the matter, contingent upon final approvals of all parties and confirmation by the Bankruptcy Court. As of September 30, 2023, we have a provision of $116 million for the amounts expected to be funded to the § 524G trust established for the settlement of claims, based on the mediated resolution.
We are also involved in other judicial and administrative proceedings from time to time in addition to the matters described above, including claims related to post-production deductions from royalty and working interest payments. We may also be exposed to future decommissioning liabilities for divested assets in the event the current or future owners of facilities previously owned by us are determined to be unable to perform such actions, whether due to bankruptcy or otherwise. We cannot predict with certainty if, how or when such proceedings will be resolved or what the eventual relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters before a loss or range of loss can be reasonably estimated for any proceeding.
Subject to the foregoing, in management’s opinion, based upon currently known facts and circumstances, the outcome of lawsuits, claims and proceedings, including the matters disclosed above, is not expected to have a material adverse effect on our financial condition, results of operations or cash flows. However, we could incur judgments, enter into settlements, or revise our opinion regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations in the period in which the amounts are accrued and our cash flows in the period in which the amounts are paid.
13

PART I - FINANCIAL INFORMATION (CONT’D.)
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
11.  Segment Information
We currently have two operating segments, Exploration and Production and Midstream.  All unallocated costs are reflected under Corporate, Interest and Other.  The following table presents operating segment financial data:
 Exploration and ProductionMidstreamCorporate, Interest and OtherEliminationsTotal
 (In millions)
For the Three Months Ended September 30, 2023     
Sales and other operating revenues$2,798 $2 $— $— $2,800 
Intersegment revenues 361 — (361)— 
Total sales and other operating revenues$2,798 $363 $— $(361)$2,800 
Net income (loss) attributable to Hess Corporation$529 $66 $(91)$ $504 
Depreciation, depletion and amortization451 48   499 
Provision for income taxes203 12   215 
Capital expenditures948 65   1,013 
For the Three Months Ended September 30, 2022     
Sales and other operating revenues$3,122 $ $— $— $3,122 
Intersegment revenues 335 — (335)— 
Total sales and other operating revenues$3,122 $335 $— $(335)$3,122 
Net income (loss) attributable to Hess Corporation$572 $68 $(125)$ $515 
Depreciation, depletion and amortization425 46   471 
Impairment and other54    54 
Provision for income taxes275 7   282 
Capital expenditures666 60   726 
For the Nine Months Ended September 30, 2023
Sales and other operating revenues$7,494 $6 $— $— $7,500 
Intersegment revenues 986 — (986)— 
Total sales and other operating revenues$7,494 $992 $— $(986)$7,500 
Net income (loss) attributable to Hess Corporation$1,089 $189 $(309)$ $969 
Depreciation, depletion and amortization1,344 142 1  1,487 
Impairment and other82    82 
Provision for income taxes525 26   551 
Capital expenditures2,587 174   2,761 
For the Nine Months Ended September 30, 2022
Sales and other operating revenues$8,390 $ $— $— $8,390 
Intersegment revenues 961 — (961)— 
Total sales and other operating revenues$8,390 $961 $— $(961)$8,390 
Net income (loss) attributable to Hess Corporation$1,755 $205 $(361)$ $1,599 
Depreciation, depletion and amortization1,062 135 2  1,199 
Impairment and other54    54 
Provision for income taxes788 19   807 
Capital expenditures1,802 169