hes-ex991

NEW YORK, July 26, 2017 — Hess Corporation (NYSE: HES) today reported a net loss of $449 million, or $1.46 per common share, in the second quarter of 2017 compared with a net loss of

$392 million, or $1.29 per common share, in the second quarter of 2016, reflecting a lower effective tax rate in 2017 from the required change in deferred tax accounting. Our loss before income taxes was $425 million in the second quarter of 2017, compared with a loss before income taxes of $678 million in the prior-year quarter. The improved second quarter 2017 pre-tax results reflect higher realized crude oil selling prices and lower operating costs and exploration expenses that were partially offset by lower sales volumes. On an adjusted basis, second quarter 2016 adjusted loss was $335 million, or $1.10 per common share.

“Our company delivered strong operational performance and achieved a number of major strategic milestones in the quarter,” Chief Executive Officer John Hess said. “We continue to take steps to reinforce our outstanding value-driven growth outlook and drive improving returns and lower capital and operating costs across our portfolio.”

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	(unaudited)						(unaudited)
	2017			2016			2017			2016
	(In millions, except per share amounts)
Net Income (Loss) Attributable to Hess Corporation
Exploration and Production	$	(354	)	$	(328	)	$	(587	)	$	(781	)
Midstream		16			11			34			27
Corporate, Interest and Other		(111	)		(75	)		(220	)		(147	)
Net income (loss) attributable to Hess Corporation	$	(449	)	$	(392	)	$	(773	)	$	(901	)

Net income (loss) per common share (diluted) (a)	$	(1.46	)	$	(1.29	)	$	(2.53	)	$	(3.00	)

Adjusted Net Income (Loss) Attributable to Hess Corporation (b)
Exploration and Production	$	(354	)	$	(271	)	$	(587	)	$	(724	)
Midstream		16			11			34			27
Corporate, Interest and Other		(111	)		(75	)		(220	)		(147	)
Adjusted net income (loss) attributable to Hess Corporation	$	(449	)	$	(335	)	$	(773	)	$	(844	)

Adjusted net income (loss) per common share (diluted) (a)	$	(1.46	)	$	(1.10	)	$	(2.53	)	$	(2.81	)

Weighted average number of shares (diluted)		314.4			313.2			314.2			306.5

The Exploration and Production net loss in the second quarter of 2017 was $354 million, compared to a net loss of $328 million in the second quarter of 2016. On an adjusted basis, second quarter 2016 net loss was $271 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $45.95 per barrel in the second quarter of 2017, up from $41.95 per barrel in the year-ago quarter. The average realized natural gas liquids selling price in the second quarter of 2017 was $14.85 per barrel, versus $9.03 per barrel in the prior-year quarter, while the average realized natural gas selling price was $3.19 per mcf, compared with $3.58 per mcf in the second quarter of 2016.

Net production, excluding Libya, was 294,000 boepd in the second quarter of 2017, compared to 313,000 boepd in the prior-year quarter. Lower volumes were due to a reduced drilling program across our portfolio, natural field declines, and planned shut-downs in the Gulf of Mexico. Net production in Libya, which recommenced in the fourth quarter of 2016, was 6,000 boepd in the second quarter of 2017.

Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $14.68 per boe in the second quarter, down 8 percent from $15.91 per boe in the prior-year quarter. Second quarter 2017 results included a charge of $15 million related to crude oil hedge ineffectiveness. The E&P effective tax rate, excluding Libya, was a benefit of 8 percent in the second quarter of 2017, down from a benefit of 47 percent, excluding special items, in the second quarter of 2016. Commencing in 2017, we do not recognize deferred tax benefit or expense in the U.S., Denmark (hydrocarbon tax only), and Malaysia until deferred tax assets are re-established in these jurisdictions. This financial reporting requirement has no cash flow or economic impact.

Bakken (Onshore U.S.): Net production from the Bakken averaged 108,000 boepd, compared to 106,000 boepd in the prior-year quarter. The Corporation operated an average of four rigs in the second quarter, drilling 23 wells and bringing 13 new wells online.

Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 51,000 boepd, compared to 54,000 boepd in the prior-year quarter, primarily reflecting lower production as a result of planned shut-downs, partially offset by higher production at the Tubular Bells Field. At the Stampede development (Hess operated - 25 percent), the tension leg platform (TLP) was installed in the field

and hook-up activities commenced. One well has been drilled and completed, and completion operations are underway on the second and third wells. First production from the field is expected in the first half of 2018.

North Malay Basin Full-field Development (Offshore Malaysia): At the North Malay Basin project (Hess operated - 50 percent), hook-up of the topsides for the central processing platform was completed in the quarter and first production of natural gas commenced in mid-July with commissioning activities ongoing. The field is expected to ramp up net production to approximately 165 million cubic feet per day during the third quarter.

Guyana (Offshore): At the Stabroek Block (Hess - 30 percent), operated by Esso Exploration and Production Guyana Limited, the partners sanctioned the first phase of the Liza Field development. This phase is expected to have a gross capital cost of approximately $3.2 billion for drilling and subsea infrastructure and will develop approximately 450 million barrels of oil, with first production expected by 2020. The Corporation’s net share of development costs is forecast to be approximately $955 million, of which $110 million is already included in our 2017 capital and exploratory budget. Of the remaining net development costs, approximately $250 million is expected in 2018 and approximately $330 million in 2019, with the balance expected in 2020 and 2021.

In June, the operator confirmed positive results from the Liza-4 well that encountered more than 197 feet of high-quality, oil-bearing sandstone reservoirs. On July 25^th, the operator announced the successful Payara-2 well, which encountered 59 feet of high-quality, oil bearing sandstone reservoirs and confirms a second giant field containing gross discovered recoverable resources of approximately 500 million boe. Gross discovered recoverable resources for the Stabroek Block are now estimated to be 2.25 billion to 2.75 billion barrels of oil equivalent.

The Midstream segment, which is comprised primarily of our 50/50 midstream joint venture, Hess Infrastructure Partners (HIP), had net income of $16 million in the second quarter of 2017, compared to $11 million in the prior-year quarter.

In April, Hess Midstream Partners LP (the “Partnership”) successfully sold common units representing limited partner interests in an initial public offering for net proceeds of $365.5 million, of which $175 million was distributed to the Corporation. The Partnership owns an approximate 20 percent controlling interest in the operating assets that comprise HIP, while HIP retains ownership of

the remaining 80 percent. The public unit holders own a 30.5 percent limited partner interest in the Partnership.

Exploration and Production capital and exploratory expenditures were $528 million in the second quarter of 2017, up from $484 million in the prior-year quarter, primarily reflecting increased drilling activity (Bakken, Stampede and Norway), partially offset by lower exploration activity and a reduction in development expenditures at North Malay Basin.

Net cash provided by operating activities was $165 million in the second quarter of 2017, compared to $197 million in the second quarter of 2016. Net cash provided by operating activities before changes in working capital was $332 million in the second quarter of 2017, up from $257 million in the year-ago quarter. Changes in working capital during the second quarter of 2017 included non-recurring cash outflows totaling approximately $130 million related to crude oil provided to Dakota Access Pipeline as line fill, termination payments for an offshore drilling rig, premiums on crude oil hedging contracts, and prepayments for frac sand in North Dakota.

At June 30, 2017, the Corporation had cash and cash equivalents of $2,492 million and total debt, excluding the Midstream segment, of $6,035 million. The Corporation’s debt to capitalization ratio was 30.9 percent at June 30, 2017 and 30.4 percent at December 31, 2016.

In August, the Corporation expects to complete the sale of its enhanced oil recovery assets in the Permian Basin for total consideration of $600 million.

The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:

Second quarter 2016 Exploration and Production results included after-tax charges totaling $74 million ($119 million pre-tax) associated with dry-hole costs for a well completed in the prior year and termination of a drilling rig contract, partially offset by an after-tax gain of $17 million ($27 million pre-tax) related to the sale of undeveloped acreage, onshore United States.

The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):

The following table reconciles reported net cash provided by (used in) operating activities to cash provided by operating activities before changes in operating assets and liabilities:

Hess Corporation will review second quarter financial and operating results and other matters on a webcast at 10 a.m. today. 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.

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 and other factors.

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 operating activities before changes in operating assets and liabilities” is defined as Cash provided by 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 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) as well as a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by operating activities before changes in operating assets and liabilities are provided in the release.

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.

	Second			Second			First
	Quarter			Quarter			Quarter
	2017			2016			2017
Income Statement

Revenues and non-operating income
Sales and other operating revenues	$	1,216		$	1,224		$	1,277
Other, net		12			45			(2	)
Total revenues and non-operating income		1,228			1,269			1,275

Costs and expenses
Cost of products sold (excluding items shown separately below)		272			277			219
Operating costs and expenses		375			455			359
Production and severance taxes		30			28			31
Exploration expenses, including dry holes and lease impairment		53			199			58
General and administrative expenses		100			106			96
Interest expense		82			85			84
Depreciation, depletion and amortization		741			797			737
Total costs and expenses		1,653			1,947			1,584

Income (loss) before income taxes		(425	)		(678	)		(309	)
Provision (benefit) for income taxes		(8	)		(305	)		(13	)
Net income (loss)		(417	)		(373	)		(296	)
Less: Net income (loss) attributable to noncontrolling interests		32			19			28
Net income (loss) attributable to Hess Corporation		(449	)		(392	)		(324	)

Less: Preferred stock dividends		11			12			12
Net income (loss) applicable to Hess Corporation common stockholders	$	(460	)	$	(404	)	$	(336	)

	Six Months Ended June 30,
	2017			2016
Income Statement

Revenues and non-operating income
Sales and other operating revenues	$	2,493		$	2,197
Other, net		10			65
Total revenues and non-operating income		2,503			2,262

Costs and expenses
Cost of products sold (excluding items shown separately below)		491			466
Operating costs and expenses		734			891
Production and severance taxes		61			47
Exploration expenses, including dry holes and lease impairment		111			331
General and administrative expenses		196			204
Interest expense		166			170
Depreciation, depletion and amortization		1,478			1,665
Total costs and expenses		3,237			3,774

Income (loss) before income taxes		(734	)		(1,512	)
Provision (benefit) for income taxes		(21	)		(651	)
Net income (loss)		(713	)		(861	)
Less: Net income (loss) attributable to noncontrolling interests		60			40
Net income (loss) attributable to Hess Corporation		(773	)		(901	)

Less: Preferred stock dividends		23			18
Net income (loss) applicable to Hess Corporation common stockholders	$	(796	)	$	(919	)

	June 30,			December 31,
	2017			2016
Balance Sheet Information

Cash and cash equivalents	$	2,492		$	2,732
Other current assets		1,778			1,544
Property, plant and equipment – net		22,793			23,595
Other long-term assets		735			750
Total assets	$	27,798		$	28,621

Current maturities of long-term debt	$	121		$	112
Other current liabilities		1,997			2,139
Long-term debt		6,612			6,694
Other long-term liabilities		3,990			4,085
Total equity excluding other comprehensive income (loss)		15,298			16,238
Accumulated other comprehensive income (loss)		(1,518	)		(1,704	)
Noncontrolling interests		1,298			1,057
Total liabilities and equity	$	27,798		$	28,621

	Second			Second			First
	Quarter			Quarter			Quarter
	2017			2016			2017
Cash Flow Information

Cash Flows from Operating Activities
Net income (loss)	$	(417	)	$	(373	)	$	(296	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
(Gains) losses on asset sales, net		—			(27	)		—
Depreciation, depletion and amortization		741			797			737
Exploratory dry hole costs		—			133			—
Exploration lease and other impairment		8			15			7
Stock compensation expense		22			22			22
Provision (benefit) for deferred income taxes and other tax accruals		(22	)		(310	)		(27	)
Cash provided by operating activities before changes in operating assets and liabilities		332			257			443
Changes in operating assets and liabilities		(167	)		(60	)		(94	)
Net cash provided by (used in) operating activities		165			197			349

Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P		(446	)		(547	)		(340	)
Additions to property, plant and equipment - Midstream		(34	)		(68	)		(50	)
Proceeds from asset sales		79			80			100
Other, net		—			8			—
Net cash provided by (used in) investing activities		(401	)		(527	)		(290	)

Cash Flows from Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less		(1	)		(25	)		5
Debt with maturities of greater than 90 days
Borrowings		—			—			—
Repayments		(51	)		(18	)		(26	)
Proceeds from issuance of Hess Midstream Partnership units		366			—			—
Cash dividends paid		(90	)		(89	)		(92	)
Noncontrolling interests, net		(175	)		—			—
Other, net		(7	)		—			8
Net cash provided by (used in) financing activities		42			(132	)		(105	)

Net Increase (Decrease) in Cash and Cash Equivalents		(194	)		(462	)		(46	)
Cash and Cash Equivalents at Beginning of Period		2,686			3,557			2,732
Cash and Cash Equivalents at End of Period	$	2,492		$	3,095		$	2,686



Additions to Property, Plant and Equipment included within Investing Activities:
Capital expenditures incurred	$	(503	)	$	(501	)	$	(370	)
Increase (decrease) in related liabilities		23			(114	)		(20	)
Additions to property, plant and equipment	$	(480	)	$	(615	)	$	(390	)

	Six Months Ended June 30,
	2017			2016
Cash Flow Information

Cash flows From Operating Activities
Net income (loss)	$	(713	)	$	(861	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
(Gains) losses on asset sales, net		—			(27	)
Depreciation, depletion and amortization		1,478			1,665
Exploratory dry hole costs		—			218
Exploration lease and other impairment		15			24
Stock compensation expense		44			47
Provision (benefit) for deferred income taxes and other tax accruals		(49	)		(661	)
Cash provided by operating activities before changes in operating assets and liabilities		775			405
Changes in operating assets and liabilities		(261	)		(268	)
Net cash provided by (used in) operating activities		514			137

Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P		(786	)		(1,114	)
Additions to property, plant and equipment - Midstream		(84	)		(121	)
Proceeds from asset sales		179			80
Other, net		—			15
Net cash provided by (used in) investing activities		(691	)		(1,140	)

Cash Flows from Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less		4			(20	)
Debt with maturities of greater than 90 days
Borrowings		—			—
Repayments		(77	)		(35	)
Proceeds from issuance of Hess Midstream Partnership units		366			—
Proceeds from issuance of preferred stock		—			557
Proceeds from issuance of common stock		—			1,087
Cash dividends paid		(182	)		(169	)
Noncontrolling interests, net		(175	)		—
Other, net		1			(38	)
Net cash provided by (used in) financing activities		(63	)		1,382

Net Increase (Decrease) in Cash and Cash Equivalents		(240	)		379
Cash and Cash Equivalents at Beginning of Year		2,732			2,716
Cash and Cash Equivalents at End of Period	$	2,492		$	3,095



Additions to Property, Plant and Equipment included within Investing Activities:
Capital expenditures incurred	$	(873	)	$	(1,041	)
Increase (decrease) in related liabilities		3			(194	)
Additions to property, plant and equipment	$	(870	)	$	(1,235	)

	Second		Second		First
	Quarter		Quarter		Quarter
	2017		2016		2017
Capital and Exploratory Expenditures

E&P Capital and exploratory expenditures
United States
Bakken	$	148	$	88	$	90
Other Onshore		9		21		8
Total Onshore		157		109		98
Offshore		191		168		158
Total United States		348		277		256
Europe		42		14		15
Africa		11		—		6
Asia and other		127		193		116
E&P Capital and exploratory expenditures	$	528	$	484	$	393

Total exploration expenses charged to income included above	$	45	$	51	$	51

Midstream Capital expenditures	$	20	$	68	$	28

	Six Months Ended June 30,
	2017		2016
Capital and Exploratory Expenditures

E&P Capital and exploratory expenditures
United States
Bakken	$	238	$	204
Other Onshore		17		42
Total Onshore		255		246
Offshore		349		373
Total United States		604		619
Europe		57		62
Africa		17		3
Asia and other		243		343
E&P Capital and exploratory expenditures	$	921	$	1,027

Total exploration expenses charged to income included above	$	96	$	90

Midstream Capital expenditures	$	48	$	104

	Second Quarter 2017
Income Statement	United States				International				Total

Total revenues and non-operating income
Sales and other operating revenues	$	837			$	376			$	1,213
Other, net		(5	)			11				6
Total revenues and non-operating income		832				387				1,219

Costs and expenses
Cost of products sold (excluding items shown separately below) (a)		283				8				291
Operating costs and expenses		171				146				317
Production and severance taxes		29				1				30
Midstream tariffs		135				—				135
Exploration expenses, including dry holes and lease impairment		29				24				53
General and administrative expenses		50				3				53
Depreciation, depletion and amortization		484				224				708
Total costs and expenses		1,181				406				1,587

Results of operations before income taxes		(349	)			(19	)			(368	)
Provision (benefit) for income taxes		(9	)			(5	)			(14	)
Net income (loss) attributable to Hess Corporation	$	(340	)	(b)	$	(14	)	(c)	$	(354	)

	Second Quarter 2016
Income Statement	United States				International				Total

Total revenues and non-operating income
Sales and other operating revenues	$	750			$	472			$	1,222
Other, net		22				15				37
Total revenues and non-operating income		772				487				1,259

Costs and expenses
Cost of products sold (excluding items shown separately below) (a)		238				57				295
Operating costs and expenses		221				179				400
Production and severance taxes		27				1				28
Midstream tariffs		113				—				113
Exploration expenses, including dry holes and lease impairment		164				35				199
General and administrative expenses		54				6				60
Depreciation, depletion and amortization		492				273				765
Total costs and expenses		1,309				551				1,860

Results of operations before income taxes		(537	)			(64	)			(601	)
Provision (benefit) for income taxes		(203	)			(70	)			(273	)
Net income (loss) attributable to Hess Corporation	$	(334	)		$	6			$	(328	)

	First Quarter 2017
Income Statement	United States			International				Total

Total revenues and non-operating income
Sales and other operating revenues	$	922		$	353			$	1,275
Other, net		(5	)		—				(5	)
Total revenues and non-operating income		917			353				1,270

Costs and expenses
Cost of products sold (excluding items shown separately below) (a)		295			(53	)			242
Operating costs and expenses		174			135				309
Production and severance taxes		31			—				31
Midstream tariffs		124			—				124
Exploration expenses, including dry holes and lease impairment		22			36				58
General and administrative expenses		51			5				56
Depreciation, depletion and amortization		445			258				703
Total costs and expenses		1,142			381				1,523

Results of operations before income taxes		(225	)		(28	)			(253	)
Provision (benefit) for income taxes		(14	)		(6	)			(20	)
Net income (loss) attributable to Hess Corporation	$	(211	)	$	(22	)	(b)	$	(233	)

(b) After-tax results from crude oil hedging activities amounted to realized losses of $1 million and unrealized gains of $1 million.

	Six Months Ended June 30, 2017
Income Statement	United States				International				Total

Total revenues and non-operating income
Sales and other operating revenues	$	1,759			$	729			$	2,488
Other, net		(10	)			11				1
Total revenues and non-operating income		1,749				740				2,489

Costs and expenses
Cost of products sold (excluding items shown separately below) (a)		578				(45	)			533
Operating costs and expenses		345				281				626
Production and severance taxes		60				1				61
Midstream tariffs		259				—				259
Exploration expenses, including dry holes and lease impairment		51				60				111
General and administrative expenses		101				8				109
Depreciation, depletion and amortization		929				482				1,411
Total costs and expenses		2,323				787				3,110

Results of operations before income taxes		(574	)			(47	)			(621	)
Provision (benefit) for income taxes		(23	)			(11	)			(34	)
Net income (loss) attributable to Hess Corporation	$	(551	)	(b)	$	(36	)	(c)	$	(587	)

	Six Months Ended June 30, 2016
Income Statement	United States				International				Total

Total revenues and non-operating income
Sales and other operating revenues	$	1,347			$	846			$	2,193
Other, net		28				19				47
Total revenues and non-operating income		1,375				865				2,240

Costs and expenses
Cost of products sold (excluding items shown separately below) (a)		430				69				499
Operating costs and expenses		435				349				784
Production and severance taxes		44				3				47
Midstream tariffs		231				—				231
Exploration expenses, including dry holes and lease impairment		272				59				331
General and administrative expenses		104				11				115
Depreciation, depletion and amortization		1,024				578				1,602
Total costs and expenses		2,540				1,069				3,609

Results of operations before income taxes		(1,165	)			(204	)			(1,369	)
Provision (benefit) for income taxes		(445	)			(143	)			(588	)
Net income (loss) attributable to Hess Corporation	$	(720	)		$	(61	)		$	(781	)

	Second		Second		First
	Quarter		Quarter		Quarter
	2017		2016		2017
Net Production Per Day (in thousands)

Crude oil - barrels
United States
Bakken		68		69		67
Other Onshore		9		8		8
Total Onshore		77		77		75
Offshore		38		41		47
Total United States		115		118		122

Europe		28		26		31
Africa (a)		32		33		35
Asia		2		2		2
Total		177		179		190

Natural gas liquids - barrels
United States
Bakken		29		27		23
Other Onshore		8		12		10
Total Onshore		37		39		33
Offshore		4		4		6
Total United States		41		43		39

Europe		1		1		1
Total		42		44		40

Natural gas - mcf
United States
Bakken		66		59		53
Other Onshore		99		134		106
Total Onshore		165		193		159
Offshore		51		52		75
Total United States		216		245		234

Europe		33		40		38
Asia		238		254		212
Total		487		539		484

Barrels of oil equivalent		300		313		311

(a) Production from Libya recommenced in the fourth quarter of 2016. Production was 6,000 barrels of oil per day (bopd) in the second quarter of 2017 and 4,000 bopd in the first quarter of 2017.

	Six Months Ended June 30,
	2017		2016
Net Production Per Day (in thousands)

Crude oil - barrels
United States
Bakken		68		71
Other Onshore		8		9
Total Onshore		76		80
Offshore		43		46
Total United States		119		126

Europe		30		30
Africa (a)		33		35
Asia		2		2
Total		184		193

Natural gas liquids - barrels
United States
Bakken		26		27
Other Onshore		9		12
Total Onshore		35		39
Offshore		5		5
Total United States		40		44

Europe		1		1
Total		41		45

Natural gas - mcf
United States
Bakken		59		63
Other Onshore		103		134
Total Onshore		162		197
Offshore		63		63
Total United States		225		260

Europe		36		43
Asia		225		252
Total		486		555

Barrels of oil equivalent		306		331

(a) Production from Libya recommenced in the fourth quarter of 2016. Production was 5,000 bopd in the first six months of 2017.

	Second		Second		First
	Quarter		Quarter		Quarter
	2017		2016		2017
Sales Volumes Per Day (in thousands)

Crude oil - barrels		174		198		175
Natural gas liquids - barrels		42		44		40
Natural gas - mcf		487		539		484
Barrels of oil equivalent		297		332		296

Sales Volumes (in thousands)

Crude oil - barrels		15,757		18,053		15,744
Natural gas liquids - barrels		3,848		3,968		3,623
Natural gas - mcf		44,390		48,998		43,544
Barrels of oil equivalent		27,003		30,187		26,624

	Six Months Ended June 30,
	2017		2016
Sales Volumes Per Day (in thousands)

Crude oil - barrels		174		206
Natural gas liquids - barrels		41		45
Natural gas - mcf		486		555
Barrels of oil equivalent		296		344

Sales Volumes (in thousands)

Crude oil - barrels		31,501		37,502
Natural gas liquids - barrels		7,471		8,222
Natural gas - mcf		87,934		100,968
Barrels of oil equivalent		53,628		62,552

	Second		Second		First
	Quarter		Quarter		Quarter
	2017		2016		2017
Average Selling Prices

Crude oil - per barrel (including hedging)
United States
Onshore	$	43.83	$	39.96	$	46.47
Offshore		44.60		40.15		47.18
Total United States		44.09		40.02		46.74
Europe		50.27		45.28		54.04
Africa		48.81		44.66		51.25
Asia		41.95		38.96		54.70
Worldwide		45.95		41.95		48.58

Crude oil - per barrel (excluding hedging)
United States
Onshore	$	43.72	$	39.96	$	46.47
Offshore		44.60		40.15		47.18
Total United States		44.01		40.02		46.74
Europe		49.72		45.28		54.18
Africa		48.40		44.66		51.37
Asia		41.95		38.96		54.70
Worldwide		45.74		41.95		48.61

Natural gas liquids - per barrel
United States
Onshore	$	14.25	$	8.34	$	18.07
Offshore		18.47		13.52		20.55
Total United States		14.64		8.84		18.43
Europe		23.95		19.23		28.06
Worldwide		14.85		9.03		18.71

Natural gas - per mcf
United States
Onshore	$	2.20	$	1.30	$	2.32
Offshore		2.29		1.50		2.40
Total United States		2.22		1.34		2.35
Europe		4.22		3.74		3.99
Asia		3.93		5.70		4.01
Worldwide		3.19		3.58		3.20

	Six Months Ended June 30,
	2017		2016
Average Selling Prices

Crude oil - per barrel (including hedging)
United States
Onshore	$	45.13	$	33.22
Offshore		46.01		32.84
Total United States		45.45		33.08
Europe		52.01		37.39
Africa		49.84		38.31
Asia		52.55		39.11
Worldwide		47.25		34.97

Crude oil - per barrel (excluding hedging)
United States
Onshore	$	45.07	$	33.22
Offshore		46.01		32.84
Total United States		45.41		33.08
Europe		51.78		37.39
Africa		49.66		38.31
Asia		52.55		39.11
Worldwide		47.16		34.97

Natural gas liquids - per barrel
United States
Onshore	$	16.04	$	7.59
Offshore		19.70		11.34
Total United States		16.47		8.00
Europe		26.19		17.40
Worldwide		16.72		8.21

Natural gas - per mcf
United States
Onshore	$	2.26	$	1.25
Offshore		2.35		1.48
Total United States		2.28		1.31
Europe		4.10		4.19
Asia		3.96		5.64
Worldwide		3.20		3.50

	June 30,		December 31,
	2017		2016
Total Debt

Hess	$	6,035	$	6,073
Midstream (a)		698		733
Hess Consolidated	$	6,733	$	6,806

	Brent	West Texas Intermediate
Outstanding Hedging Contracts – Oil Price Collars
Q3 and Q4 average barrels of oil per day	20,000	60,000
Ceiling price	$75	$70
Floor price	$55	$50
End date	December 31, 2017	December 31, 2017