Hess(US:HES)2023-11-02 20:08Financial Performance - Total revenues for Q3 2023 were $2,837 million, a decrease of 10.1% from $3,157 million in Q3 2022[11] - Net income attributable to Hess Corporation for Q3 2023 was $504 million, down 2.1% from $515 million in Q3 2022[11] - The company reported a basic net income per share of $1.65 for Q3 2023, slightly down from $1.67 in Q3 2022[11] - For the nine months ended September 30, 2023, net income was $969 million, compared to $1,599 million for the same period in 2022[18] - Net income attributable to Hess Corporation for the three months ended September 30, 2023, was $504 million, a decrease of 2% from $515 million in the same period of 2022[52] - Adjusted net income for Q3 2023 was $504 million, compared to $583 million in Q3 2022, reflecting a decline of 13.5%[89] - Total sales and other operating revenues for the three months ended September 30, 2023, were $2.8 billion, down from $3.1 billion in the same period of 2022, representing a decline of 10%[62] Cash and Liquidity - Cash and cash equivalents decreased to $2,018 million as of September 30, 2023, from $2,486 million at the end of 2022, representing a decline of 18.8%[9] - Net cash provided by operating activities for the first nine months of 2023 was $2,598 million, compared to $2,692 million in the same period of 2022[132] - Common stock dividends paid in the first nine months of 2023 were $405 million, reflecting a 17% increase from $350 million in 2022[135] Assets and Liabilities - Total assets increased to $23,201 million as of September 30, 2023, compared to $21,695 million at the end of 2022, reflecting a growth of 6.9%[9] - Total liabilities rose to $13,902 million as of September 30, 2023, up from $13,199 million at the end of 2022, an increase of 5.3%[9] - Total accrued liabilities increased to $1,954 million as of September 30, 2023, compared to $1,840 million as of December 31, 2022[37] - Total debt as of September 30, 2023, was $8,548 million, an increase from $8,281 million at the end of 2022[129] Capital Expenditures - The company invested $2,504 million in property, plant, and equipment for exploration and production during the nine months ended September 30, 2023, an increase from $1,755 million in the same period of 2022[16] - Capital expenditures for the three months ended September 30, 2023, totaled $1.013 billion, an increase of 39% compared to $726 million in the same period of 2022[62] - Hess Corporation's capital expenditures for the nine months ended September 30, 2023, were $2.761 billion, compared to $1.971 billion for the same period in 2022, indicating a significant increase of 40%[62] Production and Sales - Total net production averaged 395,000 boepd in Q3 2023, compared to 351,000 boepd in Q3 2022, reflecting increased production volumes[81] - In Q3 2023, net production from the Bakken averaged 190,000 boepd, an increase from 166,000 boepd in Q3 2022[84] - Sales volumes for crude oil in Q3 2023 reached 20,519,000 barrels, a 7.3% increase from 19,118,000 barrels in Q3 2022, contributing to an after-tax earnings increase of approximately $285 million[106] Market and Pricing - The average realized crude oil selling price in Q3 2023 was $81.53 per barrel, down from $85.32 per barrel in Q3 2022[81] - Average selling price for crude oil (including hedging) in Q3 2023 was $81.53 per barrel, down from $85.32 per barrel in Q3 2022, a decline of 4.6%[97] Merger and Acquisition - The Merger Agreement with Chevron is expected to close in the first half of 2024, with stockholders receiving 1.025 shares of Chevron common stock for each share of Hess common stock[73] - The Merger Agreement includes a termination fee of approximately $1.715 billion payable to Chevron under certain circumstances[167] - The exchange ratio in the Merger Agreement is fixed at 1.025 shares of Chevron common stock for each share of Hess common stock[169] - The proposed merger with Chevron is under review for positive action by credit rating agencies, which could impact Hess Corporation's credit ratings[142] Risk Management - Hess Corporation has hedged 80,000 barrels of oil per day with WTI put options at an average floor price of $70 per barrel for the remainder of 2023[99] - The company has outstanding foreign exchange contracts with notional amounts totaling $214 million to mitigate exposure to fluctuating foreign exchange rates[147] Legal and Environmental Matters - The company is involved in various legal proceedings related to environmental matters, with a provision of $116 million established for asbestos-related claims as of September 30, 2023[58]