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Share-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-based Compensation Activity Share‑based compensation expense consisted of the following:

 

 

2019

 

 

2018

 

 

2017

 

 

 

(In millions)

 

Restricted stock

 

$

53

 

 

$

40

 

 

$

56

 

Stock options

 

 

10

 

 

 

10

 

 

 

9

 

Performance share units

 

 

22

 

 

 

22

 

 

 

21

 

Share-based compensation expense before income taxes

 

$

85

 

 

$

72

 

 

$

86

 

Income tax benefit on share-based compensation expense

 

$

—

 

 

$

—

 

 

$

1

 

 
Summary of Restricted Stock Award Activity The following is a summary of restricted stock award activity in 2019:

 

 

Shares of Restricted Common Stock

 

 

Weighted - Average Price on Date of Grant

 

 

(In thousands, except per share amounts)

 

Outstanding at January 1, 2019

 

 

2,881

 

 

$

48.70

 

Granted

 

 

965

 

 

 

56.87

 

Vested (a)

 

 

(1,742

)

 

 

47.35

 

Forfeited

 

 

(90

)

 

 

52.67

 

Outstanding at December 31, 2019

 

 

2,014

 

 

$

53.61

 

 

(a)

In 2019, restricted stock with fair values of $102 million were vested (2018: $54 million; 2017: $37 million).
Summary of PSU Activity The following is a summary of PSU activity in 2019:

 

 

Performance Share Units

 

 

Weighted - Average Fair Value on Date of Grant

 

 

 

(In thousands, except per share amounts)

 

Outstanding at January 1, 2019

 

 

1,063

 

 

$

53.98

 

Granted

 

 

269

 

 

 

68.87

 

Vested (a)

 

 

(391

)

 

 

51.00

 

Forfeited

 

 

(12

)

 

 

52.05

 

Outstanding at December 31, 2019

 

 

929

 

 

$

59.57

 

 

(a)

In 2019, PSU’s with fair value of $16 million were vested (2018: $9 million; 2017: $10 million).
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:

 

 

2019

 

 

2018

 

 

2017

 

Risk free interest rate

 

 

2.48

%

 

 

2.39

%

 

 

1.55

%

Stock price volatility

 

 

0.369

 

 

 

0.400

 

 

 

0.387

 

Contractual term in years

 

 

3.0

 

 

 

3.0

 

 

 

3.0

 

Grant date price of Hess common stock

 

$

56.74

 

 

$

48.48

 

 

$

51.03

 
Summary of Stock Option Activity The following is a summary of stock options activity in 2019:

 

 

Number of options

(In thousands)

 

 

Weighted Average Exercise Price per Share

 

 

Weighted Average Remaining Contractual Term

Outstanding at January 1, 2019

 

 

5,170

 

 

$

61.91

 

 

4.3 years

Granted

 

 

527

 

 

 

56.74

 

 

 

Exercised

 

 

(744

)

 

 

54.23

 

 

 

Forfeited

 

 

(652

)

 

 

57.69

 

 

 

Outstanding at December 31, 2019

 

 

4,301

 

 

$

63.24

 

 

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

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

 

 

2019

 

 

2018

 

 

2017

 

Risk free interest rate

 

 

2.55

%

 

 

2.74

%

 

 

2.17

%

Stock price volatility

 

 

0.359

 

 

 

0.322

 

 

0.333

 

Dividend yield

 

 

1.76

%

 

 

2.06

%

 

 

1.96

%

Expected life in years

 

 

6.0

 

 

 

6.0

 

 

 

6.0

 

Weighted average fair value per option granted

 

$

18.08

 

 

$

13.69

 

 

$

14.51