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Share-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-based Compensation Activity Share‑based compensation expense consisted of the following:

 

 

2018

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Restricted stock

 

$

40

 

 

$

56

 

 

$

45

 

Stock options

 

 

10

 

 

 

9

 

 

 

7

 

Performance share units

 

 

22

 

 

 

21

 

 

 

21

 

Share-based compensation expense before income taxes

 

$

72

 

 

$

86

 

 

$

73

 

Income tax benefit on share-based compensation expense

 

$

—

 

 

$

1

 

 

$

28

 

 
Summary of Restricted Stock Award Activity The following is a summary of restricted stock award activity in 2018:

 

 

Shares of Restricted Common Stock

 

 

Weighted - Average Price on Date of Grant

 

 

(In thousands, except per share amounts)

 

Outstanding at January 1, 2018

 

 

3,202

 

 

$

54.04

 

Granted

 

 

1,258

 

 

 

50.78

 

Vested (a)

 

 

(1,099

)

 

 

65.80

 

Forfeited

 

 

(480

)

 

 

50.63

 

Outstanding at December 31, 2018

 

 

2,881

 

 

$

48.70

 
Summary of PSU Activity The following is a summary of PSU activity in 2018:

 

 

Performance Share Units

 

 

Weighted - Average Fair Value on Date of Grant

 

 

 

(In thousands, except per share amounts)

 

Outstanding at January 1, 2018

 

 

1,146

 

 

$

58.78

 

Granted

 

 

278

 

 

 

59.65

 

Vested (a)

 

 

(313

)

 

 

76.64

 

Forfeited

 

 

(48

)

 

 

53.62

 

Outstanding at December 31, 2018

 

 

1,063

 

 

$

53.98

 
Weighted Average Assumptions Utilized to Estimate Fair Value of PSU Awards

The following weighted average assumptions were utilized to estimate the fair value of PSU awards:

 

 

2018

 

 

2017

 

 

2016

 

Risk free interest rate

 

 

2.39

%

 

 

1.55

%

 

 

0.96

%

Stock price volatility

 

 

0.400

 

 

 

0.387

 

 

 

0.329

 

Contractual term in years

 

 

3.0

 

 

 

3.0

 

 

 

3.0

 

Grant date price of Hess common stock

 

$

48.48

 

 

$

51.03

 

 

$

44.31

 
Summary of Stock Option Activity The following is a summary of stock options activity in 2018:

 

 

Number of options

(In thousands)

 

 

Weighted Average Exercise Price per Share

 

 

Weighted Average Remaining Contractual Term

Outstanding at January 1, 2018

 

 

6,482

 

 

$

66.84

 

 

3.6 years

Granted

 

 

683

 

 

 

48.48

 

 

 

Exercised

 

 

(564

)

 

 

55.84

 

 

 

Forfeited

 

 

(1,431

)

 

 

80.23

 

 

 

Outstanding at December 31, 2018

 

 

5,170

 

 

$

61.91

 

 

4.3 years
Weighted Average Assumptions Utilized to Estimate Fair Value of Stock Options

At December 31, 2018, there were 5.2 million outstanding stock options (3.9 million exercisable) with a weighted average remaining contractual life of 4.3 years (2.9 years for exercisable options) and an aggregated intrinsic value of 0 (0 for exercisable options). 

The following weighted average assumptions were utilized to estimate the fair value of stock options:

 

 

2018

 

 

2017

 

 

2016

 

Risk free interest rate

 

 

2.74

%

 

 

2.17

%

 

 

1.47

%

Stock price volatility

 

 

0.322

 

 

 

0.333

 

 

0.326

 

Dividend yield

 

 

2.06

%

 

 

1.96

%

 

 

2.26

%

Expected life in years

 

 

6.0

 

 

 

6.0

 

 

 

6.0

 

Weighted average fair value per option granted

 

$

13.69

 

 

$

14.51

 

 

$

11.33