Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Share-based Compensation Activity

Share‑based compensation expense consisted of the following:

	2020		2019		2018
	(In millions)
Restricted stock	$	51	$	53	$	40
Performance share units	18		22		22
Stock options	10		10		10
Share-based compensation expense before income taxes	$	79	$	85	$	72
Income tax benefit on share-based compensation expense	$	—	$	—	$	—

Summary of Restricted Stock Award Activity

The following is a summary of restricted stock award activity in 2020:

	Shares of Restricted Common Stock	Weighted - Average Price on Date of Grant
	(In thousands, except per share amounts)
Outstanding at January 1, 2020	2,014	$	53.61
Granted	1,122	49.71
Vested (a)	(1,028)	52.67
Forfeited	(191)	52.54
Outstanding at December 31, 2020	1,917	$	51.94

(a)In 2020, restricted stock with fair values of $51 million were vested (2019: $102 million; 2018: $54 million).

Summary of PSU Activity

The following is a summary of PSU activity in 2020:

	Performance Share Units	Weighted - Average Fair Value on Date of Grant
	(In thousands, except per share amounts)
Outstanding at January 1, 2020	929	$	59.57
Granted	308	58.14
Vested (a)	(416)	52.86
Forfeited	(15)	66.63
Outstanding at December 31, 2020	806	$	62.36

(a)In 2020, PSU’s with fair value of $48 million were vested (2019: $16 million; 2018: $9 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:

	2020			2019			2018
Risk free interest rate	0.52		%	2.48		%	2.39		%
Stock price volatility	0.374			0.369			0.400
Contractual term in years	3.0			3.0			3.0
Grant date price of Hess common stock	$	49.72		$	56.74		$	48.48

Summary of Stock Option Activity

The following is a summary of stock options activity in 2020:

	Number of options (In thousands)	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term
Outstanding at January 1, 2020	4,301	$	63.24	4.8 years
Granted	686	49.72
Exercised	(261)	59.88
Cancelled	(301)	61.13
Forfeited	(43)	52.70
Outstanding at December 31, 2020	4,382	$	61.57	5.1 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:

	2020			2019			2018
Risk free interest rate	0.64		%	2.55		%	2.74		%
Stock price volatility	0.372			0.359			0.322
Dividend yield	2.01		%	1.76		%	2.06		%
Expected life in years	6.0			6.0			6.0
Weighted average fair value per option granted	$	14.30		$	18.08		$	13.69