false2020FY0000004447P1Yhes:OperatingAndFinanceLeaseLiabilitiesCurrenthes:OperatingAndFinanceLeaseLiabilitiesCurrenthes:OperatingAndFinanceLeaseLiabilitiesCurrenthes:OperatingAndFinanceLeaseLiabilitiesCurrent00000044472020-01-012020-12-31iso4217:USD00000044472020-06-30xbrli:shares00000044472021-01-3100000044472020-12-3100000044472019-12-31iso4217:USDxbrli:shares00000044472019-01-012019-12-3100000044472018-01-012018-12-3100000044472018-12-3100000044472017-12-310000004447us-gaap:PreferredStockMember2017-12-310000004447us-gaap:CommonStockMember2017-12-310000004447us-gaap:AdditionalPaidInCapitalMember2017-12-310000004447us-gaap:RetainedEarningsMember2017-12-310000004447us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310000004447us-gaap:ParentMember2017-12-310000004447us-gaap:NoncontrollingInterestMember2017-12-310000004447us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2017-12-310000004447us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2017-12-310000004447us-gaap:ParentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2017-12-310000004447srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2017-12-310000004447us-gaap:RetainedEarningsMember2018-01-012018-12-310000004447us-gaap:ParentMember2018-01-012018-12-310000004447us-gaap:NoncontrollingInterestMember2018-01-012018-12-310000004447us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-12-310000004447us-gaap:CommonStockMember2018-01-012018-12-310000004447us-gaap:AdditionalPaidInCapitalMember2018-01-012018-12-310000004447us-gaap:PreferredStockMember2018-12-310000004447us-gaap:CommonStockMember2018-12-310000004447us-gaap:AdditionalPaidInCapitalMember2018-12-310000004447us-gaap:RetainedEarningsMember2018-12-310000004447us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310000004447us-gaap:ParentMember2018-12-310000004447us-gaap:NoncontrollingInterestMember2018-12-310000004447us-gaap:RetainedEarningsMember2019-01-012019-12-310000004447us-gaap:ParentMember2019-01-012019-12-310000004447us-gaap:NoncontrollingInterestMember2019-01-012019-12-310000004447us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-12-310000004447us-gaap:PreferredStockMember2019-01-012019-12-310000004447us-gaap:CommonStockMember2019-01-012019-12-310000004447us-gaap:AdditionalPaidInCapitalMember2019-01-012019-12-310000004447us-gaap:PreferredStockMember2019-12-310000004447us-gaap:CommonStockMember2019-12-310000004447us-gaap:AdditionalPaidInCapitalMember2019-12-310000004447us-gaap:RetainedEarningsMember2019-12-310000004447us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000004447us-gaap:ParentMember2019-12-310000004447us-gaap:NoncontrollingInterestMember2019-12-310000004447us-gaap:RetainedEarningsMember2020-01-012020-12-310000004447us-gaap:ParentMember2020-01-012020-12-310000004447us-gaap:NoncontrollingInterestMember2020-01-012020-12-310000004447us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-12-310000004447us-gaap:CommonStockMember2020-01-012020-12-310000004447us-gaap:AdditionalPaidInCapitalMember2020-01-012020-12-310000004447us-gaap:PreferredStockMember2020-12-310000004447us-gaap:CommonStockMember2020-12-310000004447us-gaap:AdditionalPaidInCapitalMember2020-12-310000004447us-gaap:RetainedEarningsMember2020-12-310000004447us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000004447us-gaap:ParentMember2020-12-310000004447us-gaap:NoncontrollingInterestMember2020-12-31xbrli:pure0000004447hes:HessMidstreamLPMember2020-01-012020-12-310000004447srt:MinimumMember2020-12-310000004447srt:MaximumMember2020-12-310000004447hes:ExplorationAndProductionMember2019-12-310000004447hes:ExplorationAndProductionMember2020-12-310000004447hes:MidstreamMember2019-01-012019-12-310000004447hes:MidstreamMember2018-01-012018-12-310000004447hes:MidstreamMember2020-01-012020-12-310000004447hes:WaterHandlingServicesMemberhes:MidstreamMember2018-01-012018-12-310000004447hes:WaterHandlingServicesMemberhes:MidstreamMember2020-01-012020-12-310000004447hes:WaterHandlingServicesMemberhes:MidstreamMember2019-01-012019-12-310000004447hes:MidstreamMember2020-12-3100000044472020-01-012020-03-31hes:vlccutr:bbl00000044472020-09-012020-09-300000004447us-gaap:SubsequentEventMember2021-03-310000004447hes:VeryLargeCrudeCarriersVLCCsMember2020-12-310000004447us-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2020-12-310000004447us-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2019-12-310000004447us-gaap:OperatingSegmentsMemberhes:MidstreamMember2020-12-310000004447us-gaap:OperatingSegmentsMemberhes:MidstreamMember2019-12-310000004447us-gaap:CorporateNonSegmentMember2020-12-310000004447us-gaap:CorporateNonSegmentMember2019-12-31hes:Well0000004447hes:ShenziFieldMember2020-01-012020-12-310000004447hes:ShenziFieldMember2020-12-310000004447hes:AspyExplorationWellInCanadaOffshoreNovaScotiaMember2018-12-310000004447hes:AspyExplorationWellInCanadaOffshoreNovaScotiaMember2017-12-310000004447us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodOneMember2020-12-310000004447us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodTwoMember2020-12-310000004447us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodThreeMember2020-12-310000004447us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodFourMember2020-12-310000004447us-gaap:AgingOfCapitalizedExploratoryWellCostsPeriodFiveMember2020-12-310000004447hes:StabroekBlockOffshoreGuyanaMember2020-12-310000004447hes:ProjectEightMember2020-12-31hes:well0000004447hes:ProjectEightMember2020-01-012020-12-310000004447hes:NorthMalayBasinOffshorePeninsularMalaysiaMember2020-12-310000004447hes:NorthMalayBasinOffshorePeninsularMalaysiaMember2020-01-012020-12-310000004447hes:HessInfrastructurePartnersLPMembersrt:ParentCompanyMember2019-12-152019-12-150000004447hes:HessInfrastructurePartnersLPMemberhes:GlobalInfrastructurePartnersMember2019-12-150000004447hes:HessInfrastructurePartnersLPMembersrt:ParentCompanyMember2015-05-210000004447hes:HessInfrastructurePartnersLPMembersrt:ParentCompanyMember2015-07-012015-07-010000004447hes:HessInfrastructurePartnersLPSIPOOfHessMidstreamPartnersLPMember2017-04-102017-04-100000004447hes:HessInfrastructurePartnersLPMemberhes:HessNorthDakotaExportLogisticsOperationsLPMember2017-04-102017-04-100000004447hes:HessMentorStorageHoldingsLLCMemberhes:HessInfrastructurePartnersLPMember2017-04-102017-04-100000004447hes:HessMidstreamPartnersLPMemberhes:GlobalInfrastructurePartnersMember2017-04-102017-04-100000004447hes:HIPAcquisitionOfHessExistingWaterServicesBusinessMember2019-03-012019-03-010000004447hes:HIPAndHessMidstreamPartnersAcquisitionOfWaterGatheringAssetsOfSummitMidstreamPartnersLPsTiogaGatheringSystemMember2019-03-222019-03-220000004447hes:HIPAndHessMidstreamPartnersAcquisitionOfWaterGatheringAssetsOfSummitMidstreamPartnersLPsTiogaGatheringSystemMember2019-03-220000004447hes:LittleMissouriFourMemberhes:HessMidstreamPartnersLPMember2018-01-252018-01-25utr:MMcf0000004447hes:HessInfrastructurePartnersLPMemberhes:HessMidstreamPartnersLPMember2019-12-162019-12-160000004447hes:CreationOfHessMidstreamLPMember2019-12-162019-12-160000004447us-gaap:CommonClassAMembersrt:ParentCompanyMemberhes:CreationOfHessMidstreamLPMember2019-12-162019-12-160000004447hes:GlobalInfrastructurePartnersMemberhes:CreationOfHessMidstreamLPMember2019-12-162019-12-160000004447hes:CreationOfHessMidstreamLPMember2020-01-012020-12-310000004447hes:HessMidstreamLPMembersrt:ParentCompanyMember2019-12-162019-12-160000004447hes:HessMidstreamLPMemberus-gaap:NonrecourseMember2020-12-310000004447hes:HessMidstreamLPMemberus-gaap:NonrecourseMember2019-12-310000004447hes:HessMidstreamLPMember2020-12-310000004447hes:HessMidstreamLPMember2019-12-310000004447hes:HessMidstreamLPMemberhes:LittleMissouriFourMember2020-12-310000004447hes:HessMidstreamLPMemberhes:LittleMissouriFourMember2019-12-310000004447hes:FloatingStorageAndOffloadingVesselMember2020-12-310000004447srt:MinimumMember2019-12-310000004447srt:MaximumMember2019-12-310000004447hes:ThreePointFivePercentageDueTwoThousandTwentyFourMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:ThreePointFivePercentageDueTwoThousandTwentyFourMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:ThreePointFivePercentageDueTwoThousandTwentyFourMember2019-12-310000004447hes:NotesFourPointThreePercentageDueTwoThousandTwentySevenMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesFourPointThreePercentageDueTwoThousandTwentySevenMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesFourPointThreePercentageDueTwoThousandTwentySevenMember2019-12-310000004447hes:NotesSevenPointNinePercentageDueTwoThousandTwentyNineMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesSevenPointNinePercentageDueTwoThousandTwentyNineMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesSevenPointNinePercentageDueTwoThousandTwentyNineMember2019-12-310000004447hes:NotesSevenPointThreePercentageDueTwoThousandThirtyOneMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesSevenPointThreePercentageDueTwoThousandThirtyOneMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesSevenPointThreePercentageDueTwoThousandThirtyOneMember2019-12-310000004447hes:NotesSevenPointOnePercentageDueTwoThousandThirtyThreeMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesSevenPointOnePercentageDueTwoThousandThirtyThreeMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesSevenPointOnePercentageDueTwoThousandThirtyThreeMember2019-12-310000004447hes:NotesSixPointZeroPercentageDueTwoThousandFortyMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesSixPointZeroPercentageDueTwoThousandFortyMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesSixPointZeroPercentageDueTwoThousandFortyMember2019-12-310000004447hes:NotesFivePointSixPercentageDueTwoThousandFortyOneMember2020-12-310000004447hes:NotesFivePointSixPercentageDueTwoThousandFortyOneMemberus-gaap:CorporateAndOtherMember2020-12-310000004447hes:NotesFivePointSixPercentageDueTwoThousandFortyOneMemberus-gaap:CorporateAndOtherMember2019-12-310000004447hes:NotesFivePointEightPercentageDueTwoThousandFortySevenMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesFivePointEightPercentageDueTwoThousandFortySevenMember2020-12-310000004447us-gaap:CorporateAndOtherMemberhes:NotesFivePointEightPercentageDueTwoThousandFortySevenMember2019-12-310000004447us-gaap:CorporateAndOtherMember2020-12-310000004447us-gaap:CorporateAndOtherMember2019-12-310000004447hes:NotesFivePointSixPercentageDueTwoThousandTwentySixMember2020-12-310000004447hes:NotesFivePointSixPercentageDueTwoThousandTwentySixMemberhes:MidstreamMember2020-12-310000004447hes:NotesFivePointSixPercentageDueTwoThousandTwentySixMemberhes:MidstreamMember2019-12-310000004447hes:NotesFivePointOnePercentageDueTwoThousandTwentyEightMember2020-12-310000004447hes:NotesFivePointOnePercentageDueTwoThousandTwentyEightMemberhes:MidstreamMember2020-12-310000004447hes:NotesFivePointOnePercentageDueTwoThousandTwentyEightMemberhes:MidstreamMember2019-12-310000004447hes:MidstreamMember2019-12-310000004447us-gaap:RevolvingCreditFacilityMemberhes:MidstreamMember2020-12-310000004447us-gaap:RevolvingCreditFacilityMemberhes:MidstreamMember2019-12-310000004447hes:HessFixedRateNotesMember2020-12-310000004447hes:HessFixedRateNotesMember2019-12-310000004447hes:TermLoanAgreementMember2020-12-310000004447hes:TermLoanAgreementMember2020-01-012020-12-310000004447hes:TermLoanAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-12-310000004447hes:HessCorpRevolvingCreditFacilityMember2019-12-310000004447hes:HessCorpRevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-01-012019-12-310000004447hes:HessCorpRevolvingCreditFacilityMember2020-12-310000004447hes:CommittedLinesMember2020-12-310000004447hes:CommittedLinesMember2019-12-310000004447hes:UncommittedLinesMember2020-12-310000004447hes:UncommittedLinesMember2019-12-310000004447hes:HessInfrastructurePartnersLPMemberhes:NotesFivePointSixTwoFivePercentageDueTwoThousandTwentySixMemberhes:MidstreamMember2017-11-300000004447hes:HessInfrastructurePartnersLPMemberhes:MidstreamMember2019-12-160000004447hes:FivePointOneTwoFivePercentageSeniorUnsecuredNotesDueInTwentyTwentyEightMemberhes:HessMidstreamOperationsLPMemberhes:MidstreamMember2019-12-310000004447hes:HessInfrastructurePartnersMemberhes:FiveYearSeniorSecuredRevolvingCreditFacilityMember2019-12-160000004447hes:HessInfrastructurePartnersMemberhes:FiveYearSeniorSecuredRevolvingCreditFacilityMember2019-12-162019-12-160000004447hes:HessInfrastructurePartnersMemberhes:SeniorSecuredTermLoanAFacilityMember2019-12-160000004447hes:FourYearSeniorSecuredSyndicatedRevolvingCreditFacilityMemberhes:HessMidstreamPartnersLPMember2019-12-310000004447hes:FourYearSeniorSecuredSyndicatedRevolvingCreditFacilityMemberhes:HessMidstreamPartnersLPMember2019-01-012019-12-310000004447hes:HessMidstreamOperationsLPMemberhes:FiveYearSeniorSecuredSyndicatedRevolvingCreditFacilityMember2019-01-012019-12-310000004447hes:HessMidstreamOperationsLPMemberhes:FiveYearSeniorSecuredSyndicatedRevolvingCreditFacilityMember2019-12-310000004447hes:SeniorSecuredTermLoanAFacilityMemberhes:HessInfrastructurePartnersLPMember2019-12-160000004447hes:FiveYearTermLoanAFacilityMemberhes:HessMidstreamPartnersLPMember2019-12-310000004447hes:FiveYearTermLoanAFacilityMemberhes:HessMidstreamOperationsLPMember2019-01-012019-12-310000004447hes:FiveYearTermLoanAFacilityMemberhes:HessMidstreamPartnersLPMember2019-01-012019-12-310000004447srt:MinimumMemberhes:FiveYearTermLoanAFacilityMemberhes:HessMidstreamOperationsLPMember2019-01-012019-12-310000004447hes:FiveYearTermLoanAFacilityMembersrt:MaximumMemberhes:HessMidstreamOperationsLPMember2019-01-012019-12-310000004447hes:HessMidstreamOperationsLPMemberhes:FiveYearSyndicatedRevolvingCreditFacilityMember2019-01-012019-12-310000004447srt:MinimumMemberhes:HessMidstreamOperationsLPMemberhes:FiveYearSyndicatedRevolvingCreditFacilityMember2019-01-012019-12-310000004447srt:MaximumMemberhes:HessMidstreamOperationsLPMemberhes:FiveYearSyndicatedRevolvingCreditFacilityMember2019-01-012019-12-310000004447hes:HessMidstreamOperationsLPMember2019-01-012019-12-310000004447hes:HessMidstreamOperationsLPMemberus-gaap:RevolvingCreditFacilityMember2020-12-310000004447hes:HessMidstreamOperationsLPMemberhes:TermLoanAFacilityMember2020-12-310000004447us-gaap:FundedPlanMember2019-12-310000004447us-gaap:FundedPlanMember2018-12-310000004447us-gaap:UnfundedPlanMember2019-12-310000004447us-gaap:UnfundedPlanMember2018-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2019-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2018-12-310000004447us-gaap:FundedPlanMember2020-01-012020-12-310000004447us-gaap:FundedPlanMember2019-01-012019-12-310000004447us-gaap:UnfundedPlanMember2020-01-012020-12-310000004447us-gaap:UnfundedPlanMember2019-01-012019-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2020-01-012020-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2019-01-012019-12-310000004447us-gaap:FundedPlanMember2020-12-310000004447us-gaap:UnfundedPlanMember2020-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2020-12-310000004447hes:ChangesInDiscountRateMember2020-01-012020-12-310000004447hes:ChangesInDiscountRateMember2019-01-012019-12-310000004447hes:ChangesInMortalityImprovementMember2020-01-012020-12-310000004447hes:ChangesInMortalityImprovementMember2019-01-012019-12-310000004447us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-12-310000004447us-gaap:PensionPlansDefinedBenefitMember2019-01-012019-12-310000004447us-gaap:PensionPlansDefinedBenefitMember2018-01-012018-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2020-01-012020-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2019-01-012019-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2018-01-012018-12-310000004447us-gaap:PensionPlansDefinedBenefitMember2019-01-012019-09-300000004447srt:ScenarioForecastMember2021-01-012021-12-310000004447us-gaap:PensionPlansDefinedBenefitMember2020-12-310000004447us-gaap:PensionPlansDefinedBenefitMember2019-12-310000004447us-gaap:PensionPlansDefinedBenefitMember2018-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2020-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2019-12-310000004447us-gaap:DefinedBenefitPostretirementHealthCoverageMember2018-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesMember2020-12-310000004447us-gaap:FixedIncomeSecuritiesMember2020-12-310000004447hes:OtherTypesOfInvestmentsMember2020-12-310000004447us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2020-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2020-12-310000004447us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2020-12-310000004447us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2020-12-310000004447us-gaap:FairValueInputsLevel1Memberus-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2020-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2020-12-310000004447us-gaap:FairValueInputsLevel3Memberus-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2020-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2020-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMemberus-gaap:FairValueInputsLevel1Member2020-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMemberus-gaap:FairValueInputsLevel2Member2020-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMemberus-gaap:FairValueInputsLevel3Member2020-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2020-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMember2020-12-310000004447us-gaap:FairValueInputsLevel1Memberhes:GlobalEquitiesMember2020-12-310000004447us-gaap:FairValueInputsLevel2Memberhes:GlobalEquitiesMember2020-12-310000004447us-gaap:FairValueInputsLevel3Memberhes:GlobalEquitiesMember2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberhes:GlobalEquitiesMember2020-12-310000004447hes:GlobalEquitiesMember2020-12-310000004447us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMember2020-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2020-12-310000004447us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryAndGovernmentMember2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:USTreasuryAndGovernmentMember2020-12-310000004447us-gaap:USTreasuryAndGovernmentMember2020-12-310000004447us-gaap:FairValueInputsLevel1Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000004447us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000004447us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-12-310000004447us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2020-12-310000004447us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310000004447us-gaap:CorporateDebtSecuritiesMember2020-12-310000004447us-gaap:HedgeFundsMemberus-gaap:FairValueInputsLevel1Member2020-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:HedgeFundsMember2020-12-310000004447us-gaap:HedgeFundsMemberus-gaap:FairValueInputsLevel3Member2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:HedgeFundsMember2020-12-310000004447us-gaap:HedgeFundsMember2020-12-310000004447us-gaap:PrivateEquityFundsMemberus-gaap:FairValueInputsLevel1Member2020-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:PrivateEquityFundsMember2020-12-310000004447us-gaap:PrivateEquityFundsMemberus-gaap:FairValueInputsLevel3Member2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:PrivateEquityFundsMember2020-12-310000004447us-gaap:PrivateEquityFundsMember2020-12-310000004447us-gaap:FairValueInputsLevel1Memberus-gaap:DefinedBenefitPlanRealEstateMember2020-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:DefinedBenefitPlanRealEstateMember2020-12-310000004447us-gaap:FairValueInputsLevel3Memberus-gaap:DefinedBenefitPlanRealEstateMember2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DefinedBenefitPlanRealEstateMember2020-12-310000004447us-gaap:DefinedBenefitPlanRealEstateMember2020-12-310000004447us-gaap:FairValueInputsLevel1Member2020-12-310000004447us-gaap:FairValueInputsLevel2Member2020-12-310000004447us-gaap:FairValueInputsLevel3Member2020-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2020-12-310000004447us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2019-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2019-12-310000004447us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel3Member2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2019-12-310000004447us-gaap:DefinedBenefitPlanCashAndCashEquivalentsMember2019-12-310000004447us-gaap:FairValueInputsLevel1Memberus-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2019-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2019-12-310000004447us-gaap:FairValueInputsLevel3Memberus-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2019-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesUsMember2019-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMemberus-gaap:FairValueInputsLevel1Member2019-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMemberus-gaap:FairValueInputsLevel2Member2019-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMemberus-gaap:FairValueInputsLevel3Member2019-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMemberus-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2019-12-310000004447us-gaap:DefinedBenefitPlanEquitySecuritiesNonUsMember2019-12-310000004447us-gaap:FairValueInputsLevel1Memberhes:GlobalEquitiesMember2019-12-310000004447us-gaap:FairValueInputsLevel2Memberhes:GlobalEquitiesMember2019-12-310000004447us-gaap:FairValueInputsLevel3Memberhes:GlobalEquitiesMember2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberhes:GlobalEquitiesMember2019-12-310000004447hes:GlobalEquitiesMember2019-12-310000004447us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMember2019-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2019-12-310000004447us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryAndGovernmentMember2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:USTreasuryAndGovernmentMember2019-12-310000004447us-gaap:USTreasuryAndGovernmentMember2019-12-310000004447us-gaap:FairValueInputsLevel1Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310000004447us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310000004447us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310000004447us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2019-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2019-12-310000004447us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:CorporateDebtSecuritiesMember2019-12-310000004447us-gaap:CorporateDebtSecuritiesMember2019-12-310000004447us-gaap:HedgeFundsMemberus-gaap:FairValueInputsLevel1Member2019-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:HedgeFundsMember2019-12-310000004447us-gaap:HedgeFundsMemberus-gaap:FairValueInputsLevel3Member2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:HedgeFundsMember2019-12-310000004447us-gaap:HedgeFundsMember2019-12-310000004447us-gaap:PrivateEquityFundsMemberus-gaap:FairValueInputsLevel1Member2019-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:PrivateEquityFundsMember2019-12-310000004447us-gaap:PrivateEquityFundsMemberus-gaap:FairValueInputsLevel3Member2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:PrivateEquityFundsMember2019-12-310000004447us-gaap:PrivateEquityFundsMember2019-12-310000004447us-gaap:FairValueInputsLevel1Memberus-gaap:DefinedBenefitPlanRealEstateMember2019-12-310000004447us-gaap:FairValueInputsLevel2Memberus-gaap:DefinedBenefitPlanRealEstateMember2019-12-310000004447us-gaap:FairValueInputsLevel3Memberus-gaap:DefinedBenefitPlanRealEstateMember2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMemberus-gaap:DefinedBenefitPlanRealEstateMember2019-12-310000004447us-gaap:DefinedBenefitPlanRealEstateMember2019-12-310000004447us-gaap:FairValueInputsLevel1Member2019-12-310000004447us-gaap:FairValueInputsLevel2Member2019-12-310000004447us-gaap:FairValueInputsLevel3Member2019-12-310000004447us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember2019-12-310000004447hes:ExplorationAndProductionMembercountry:USsrt:CrudeOilMember2020-01-012020-12-310000004447country:GYhes:ExplorationAndProductionMembersrt:CrudeOilMember2020-01-012020-12-310000004447country:MYhes:ExplorationAndProductionMembersrt:CrudeOilMember2020-01-012020-12-310000004447srt:AfricaMemberhes:ExplorationAndProductionMembersrt:CrudeOilMember2020-01-012020-12-310000004447hes:ExplorationAndProductionMembersrt:CrudeOilMember2020-01-012020-12-310000004447srt:CrudeOilMemberhes:MidstreamMember2020-01-012020-12-310000004447srt:CrudeOilMember2020-01-012020-12-310000004447hes:ExplorationAndProductionMembercountry:UShes:NaturalGasLiquidsRevenueMember2020-01-012020-12-310000004447country:GYhes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2020-01-012020-12-310000004447country:MYhes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2020-01-012020-12-310000004447srt:AfricaMemberhes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2020-01-012020-12-310000004447hes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2020-01-012020-12-310000004447hes:NaturalGasLiquidsRevenueMemberhes:MidstreamMember2020-01-012020-12-310000004447hes:NaturalGasLiquidsRevenueMember2020-01-012020-12-310000004447hes:NaturalGasRevenueMemberhes:ExplorationAndProductionMembercountry:US2020-01-012020-12-310000004447country:GYhes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447country:MYhes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447srt:AfricaMemberhes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447hes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447hes:NaturalGasRevenueMemberhes:MidstreamMember2020-01-012020-12-310000004447hes:NaturalGasRevenueMember2020-01-012020-12-310000004447hes:ExplorationAndProductionMembercountry:UShes:SalesOfPurchasedOilAndGasMember2020-01-012020-12-310000004447country:GYhes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2020-01-012020-12-310000004447country:MYhes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2020-01-012020-12-310000004447srt:AfricaMemberhes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2020-01-012020-12-310000004447hes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2020-01-012020-12-310000004447hes:MidstreamMemberhes:SalesOfPurchasedOilAndGasMember2020-01-012020-12-310000004447hes:SalesOfPurchasedOilAndGasMember2020-01-012020-12-310000004447us-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMembercountry:US2020-01-012020-12-310000004447country:GYus-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447country:MYus-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447srt:AfricaMemberus-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447us-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447us-gaap:IntersegmentEliminationMemberhes:MidstreamMember2020-01-012020-12-310000004447us-gaap:IntersegmentEliminationMember2020-01-012020-12-310000004447us-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMembercountry:US2020-01-012020-12-310000004447country:GYus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447country:MYus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447srt:AfricaMemberus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447us-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2020-01-012020-12-310000004447us-gaap:OperatingSegmentsMemberhes:MidstreamMember2020-01-012020-12-310000004447hes:ExplorationAndProductionMembercountry:USsrt:CrudeOilMember2019-01-012019-12-310000004447country:GYhes:ExplorationAndProductionMembersrt:CrudeOilMember2019-01-012019-12-310000004447country:MYhes:ExplorationAndProductionMembersrt:CrudeOilMember2019-01-012019-12-310000004447srt:AfricaMemberhes:ExplorationAndProductionMembersrt:CrudeOilMember2019-01-012019-12-310000004447hes:ExplorationAndProductionMembersrt:CrudeOilMember2019-01-012019-12-310000004447srt:CrudeOilMemberhes:MidstreamMember2019-01-012019-12-310000004447srt:CrudeOilMember2019-01-012019-12-310000004447hes:ExplorationAndProductionMembercountry:UShes:NaturalGasLiquidsRevenueMember2019-01-012019-12-310000004447country:GYhes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2019-01-012019-12-310000004447country:MYhes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2019-01-012019-12-310000004447srt:AfricaMemberhes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2019-01-012019-12-310000004447hes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2019-01-012019-12-310000004447hes:NaturalGasLiquidsRevenueMemberhes:MidstreamMember2019-01-012019-12-310000004447hes:NaturalGasLiquidsRevenueMember2019-01-012019-12-310000004447hes:NaturalGasRevenueMemberhes:ExplorationAndProductionMembercountry:US2019-01-012019-12-310000004447country:GYhes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447country:MYhes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447srt:AfricaMemberhes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447hes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447hes:NaturalGasRevenueMemberhes:MidstreamMember2019-01-012019-12-310000004447hes:NaturalGasRevenueMember2019-01-012019-12-310000004447hes:ExplorationAndProductionMembercountry:UShes:SalesOfPurchasedOilAndGasMember2019-01-012019-12-310000004447country:GYhes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2019-01-012019-12-310000004447country:MYhes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2019-01-012019-12-310000004447srt:AfricaMemberhes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2019-01-012019-12-310000004447hes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2019-01-012019-12-310000004447hes:MidstreamMemberhes:SalesOfPurchasedOilAndGasMember2019-01-012019-12-310000004447hes:SalesOfPurchasedOilAndGasMember2019-01-012019-12-310000004447us-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMembercountry:US2019-01-012019-12-310000004447country:GYus-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447country:MYus-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447srt:AfricaMemberus-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447us-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447us-gaap:IntersegmentEliminationMemberhes:MidstreamMember2019-01-012019-12-310000004447us-gaap:IntersegmentEliminationMember2019-01-012019-12-310000004447us-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMembercountry:US2019-01-012019-12-310000004447country:GYus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447country:MYus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447srt:AfricaMemberus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447us-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2019-01-012019-12-310000004447us-gaap:OperatingSegmentsMemberhes:MidstreamMember2019-01-012019-12-310000004447hes:ExplorationAndProductionMembercountry:USsrt:CrudeOilMember2018-01-012018-12-310000004447country:GYhes:ExplorationAndProductionMembersrt:CrudeOilMember2018-01-012018-12-310000004447country:MYhes:ExplorationAndProductionMembersrt:CrudeOilMember2018-01-012018-12-310000004447srt:AfricaMemberhes:ExplorationAndProductionMembersrt:CrudeOilMember2018-01-012018-12-310000004447hes:ExplorationAndProductionMembersrt:CrudeOilMember2018-01-012018-12-310000004447srt:CrudeOilMemberhes:MidstreamMember2018-01-012018-12-310000004447srt:CrudeOilMember2018-01-012018-12-310000004447hes:ExplorationAndProductionMembercountry:UShes:NaturalGasLiquidsRevenueMember2018-01-012018-12-310000004447country:GYhes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2018-01-012018-12-310000004447country:MYhes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2018-01-012018-12-310000004447srt:AfricaMemberhes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2018-01-012018-12-310000004447hes:ExplorationAndProductionMemberhes:NaturalGasLiquidsRevenueMember2018-01-012018-12-310000004447hes:NaturalGasLiquidsRevenueMemberhes:MidstreamMember2018-01-012018-12-310000004447hes:NaturalGasLiquidsRevenueMember2018-01-012018-12-310000004447hes:NaturalGasRevenueMemberhes:ExplorationAndProductionMembercountry:US2018-01-012018-12-310000004447country:GYhes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447country:MYhes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447srt:AfricaMemberhes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447hes:NaturalGasRevenueMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447hes:NaturalGasRevenueMemberhes:MidstreamMember2018-01-012018-12-310000004447hes:NaturalGasRevenueMember2018-01-012018-12-310000004447hes:ExplorationAndProductionMembercountry:UShes:SalesOfPurchasedOilAndGasMember2018-01-012018-12-310000004447country:GYhes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2018-01-012018-12-310000004447country:MYhes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2018-01-012018-12-310000004447srt:AfricaMemberhes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2018-01-012018-12-310000004447hes:ExplorationAndProductionMemberhes:SalesOfPurchasedOilAndGasMember2018-01-012018-12-310000004447hes:MidstreamMemberhes:SalesOfPurchasedOilAndGasMember2018-01-012018-12-310000004447hes:SalesOfPurchasedOilAndGasMember2018-01-012018-12-310000004447us-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMembercountry:US2018-01-012018-12-310000004447country:GYus-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447country:MYus-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447srt:AfricaMemberus-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447us-gaap:IntersegmentEliminationMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447us-gaap:IntersegmentEliminationMemberhes:MidstreamMember2018-01-012018-12-310000004447us-gaap:IntersegmentEliminationMember2018-01-012018-12-310000004447us-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMembercountry:US2018-01-012018-12-310000004447country:GYus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447country:MYus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447srt:AfricaMemberus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447us-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447us-gaap:OperatingSegmentsMemberhes:MidstreamMember2018-01-012018-12-310000004447stpr:OHhes:InterestsInUticaShalePlayMember2019-01-012019-12-310000004447stpr:OHhes:InterestsInUticaShalePlayMember2018-01-012018-12-310000004447country:GH2018-12-310000004447country:GH2018-01-012018-12-310000004447us-gaap:OilAndGasPropertiesMembercountry:MYhes:NorthMalayBasinOffshorePeninsularMalaysiaMember2020-01-012020-12-310000004447us-gaap:OilAndGasPropertiesMembercountry:DKhes:SouthArneFieldMember2020-01-012020-12-310000004447hes:GulfOfMexicoMemberus-gaap:OilAndGasPropertiesMemberhes:StampedeFieldMember2020-01-012020-12-310000004447hes:GulfOfMexicoMemberus-gaap:OilAndGasPropertiesMemberhes:TubularBellsFieldMember2020-01-012020-12-310000004447us-gaap:OilAndGasPropertiesMember2020-03-31iso4217:USDutr:bbl0000004447us-gaap:OilAndGasPropertiesMemberhes:WTIMember2020-03-310000004447us-gaap:OilAndGasPropertiesMemberhes:BrentMember2020-03-310000004447us-gaap:OilAndGasPropertiesMember2020-01-012020-03-310000004447us-gaap:OtherAssetsMember2020-01-012020-03-310000004447us-gaap:RestrictedStockMember2020-01-012020-12-310000004447us-gaap:RestrictedStockMember2019-01-012019-12-310000004447us-gaap:RestrictedStockMember2018-01-012018-12-310000004447us-gaap:PerformanceSharesMember2020-01-012020-12-310000004447us-gaap:PerformanceSharesMember2019-01-012019-12-310000004447us-gaap:PerformanceSharesMember2018-01-012018-12-310000004447us-gaap:EmployeeStockOptionMember2020-01-012020-12-310000004447us-gaap:EmployeeStockOptionMember2019-01-012019-12-310000004447us-gaap:EmployeeStockOptionMember2018-01-012018-12-310000004447us-gaap:RestrictedStockMember2019-12-310000004447us-gaap:RestrictedStockMember2020-12-310000004447us-gaap:PerformanceSharesMember2019-12-310000004447us-gaap:PerformanceSharesMember2020-12-310000004447us-gaap:PerformanceSharesMember2018-12-310000004447us-gaap:ForeignCountryMember2020-12-310000004447us-gaap:DomesticCountryMember2020-12-310000004447us-gaap:StateAndLocalJurisdictionMember2020-12-310000004447us-gaap:DomesticCountryMemberhes:MidstreamMember2020-12-310000004447us-gaap:StateAndLocalJurisdictionMemberhes:MidstreamMember2020-12-310000004447us-gaap:ConvertiblePreferredStockMember2020-01-012020-12-310000004447us-gaap:ConvertiblePreferredStockMember2019-01-012019-12-310000004447us-gaap:ConvertiblePreferredStockMember2018-01-012018-12-310000004447us-gaap:RestrictedStockMember2020-01-012020-12-310000004447us-gaap:RestrictedStockMember2019-01-012019-12-310000004447us-gaap:RestrictedStockMember2018-01-012018-12-310000004447us-gaap:EmployeeStockOptionMember2020-01-012020-12-310000004447us-gaap:EmployeeStockOptionMember2019-01-012019-12-310000004447us-gaap:EmployeeStockOptionMember2018-01-012018-12-310000004447us-gaap:PerformanceSharesMember2020-01-012020-12-310000004447us-gaap:PerformanceSharesMember2019-01-012019-12-310000004447us-gaap:PerformanceSharesMember2018-01-012018-12-310000004447hes:CommonSharesFromConversionOfPreferredStocksMember2020-01-012020-12-310000004447hes:CommonSharesFromConversionOfPreferredStocksMember2019-01-012019-12-310000004447hes:CommonSharesFromConversionOfPreferredStocksMember2018-01-012018-12-310000004447us-gaap:ConvertiblePreferredStockMember2016-02-012016-02-290000004447us-gaap:ConvertiblePreferredStockMember2016-02-290000004447hes:SeriesAMandatoryConvertiblePreferredStockMember2019-01-312019-01-3100000044472020-07-012020-09-3000000044472020-04-012020-06-3000000044472019-10-012019-12-3100000044472018-07-012018-09-3000000044472019-04-012019-06-3000000044472018-04-012018-06-3000000044472020-10-012020-12-3100000044472019-07-012019-09-3000000044472018-01-012018-03-3100000044472019-01-012019-03-3100000044472018-10-012018-12-310000004447hes:ExplorationAndProductionMember2020-01-012020-12-310000004447hes:ExplorationAndProductionMember2019-01-012019-12-310000004447hes:ExplorationAndProductionMember2018-01-012018-12-310000004447hes:HessInfrastructurePartnersLPMemberhes:MidstreamMember2019-12-31hes:case0000004447hes:MTBECasesMember2020-12-310000004447hes:LowerPassaicRiverMember2016-03-042016-03-040000004447hes:GowanusCanalSuperfundSiteMember2014-03-012014-03-310000004447us-gaap:CapitalAdditionsMember2020-12-310000004447hes:ContractualObligationsRelatedToOperatingExpensesMember2020-12-310000004447hes:TransportationAndRelatedContractsMember2020-12-31hes:segment0000004447us-gaap:CorporateNonSegmentMember2020-01-012020-12-310000004447us-gaap:IntersegmentEliminationMember2020-12-310000004447us-gaap:CorporateNonSegmentMember2019-01-012019-12-310000004447us-gaap:IntersegmentEliminationMember2019-12-310000004447us-gaap:CorporateNonSegmentMember2018-01-012018-12-310000004447srt:ProFormaMemberus-gaap:OperatingSegmentsMemberhes:MidstreamMember2018-01-012018-12-310000004447srt:ProFormaMemberus-gaap:OperatingSegmentsMemberhes:ExplorationAndProductionMember2018-01-012018-12-310000004447us-gaap:OperatingSegmentsMembercountry:US2020-01-012020-12-310000004447country:GYus-gaap:OperatingSegmentsMember2020-01-012020-12-310000004447us-gaap:OperatingSegmentsMemberhes:MalaysiaAndJDAMember2020-01-012020-12-310000004447srt:AfricaMemberus-gaap:OperatingSegmentsMember2020-01-012020-12-310000004447us-gaap:OperatingSegmentsMembercountry:US2020-12-310000004447country:GYus-gaap:OperatingSegmentsMember2020-12-310000004447us-gaap:OperatingSegmentsMemberhes:MalaysiaAndJDAMember2020-12-310000004447srt:AfricaMemberus-gaap:OperatingSegmentsMember2020-12-310000004447us-gaap:OperatingSegmentsMembercountry:US2019-01-012019-12-310000004447country:GYus-gaap:OperatingSegmentsMember2019-01-012019-12-310000004447us-gaap:OperatingSegmentsMemberhes:MalaysiaAndJDAMember2019-01-012019-12-310000004447srt:AfricaMemberus-gaap:OperatingSegmentsMember2019-01-012019-12-310000004447us-gaap:OperatingSegmentsMembercountry:US2019-12-310000004447country:GYus-gaap:OperatingSegmentsMember2019-12-310000004447us-gaap:OperatingSegmentsMemberhes:MalaysiaAndJDAMember2019-12-310000004447srt:AfricaMemberus-gaap:OperatingSegmentsMember2019-12-310000004447us-gaap:OperatingSegmentsMembercountry:US2018-01-012018-12-310000004447country:GYus-gaap:OperatingSegmentsMember2018-01-012018-12-310000004447us-gaap:OperatingSegmentsMemberhes:MalaysiaAndJDAMember2018-01-012018-12-310000004447srt:AfricaMemberus-gaap:OperatingSegmentsMember2018-01-012018-12-31utr:MMBbls0000004447us-gaap:CommodityContractMember2020-12-310000004447us-gaap:CommodityContractMember2019-12-310000004447us-gaap:ForeignExchangeContractMember2020-12-310000004447us-gaap:ForeignExchangeContractMember2019-12-310000004447us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMember2020-12-310000004447us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMember2019-12-310000004447us-gaap:PutOptionMemberhes:WTIMember2020-12-31utr:bblutr:D0000004447us-gaap:SubsequentEventMemberus-gaap:PutOptionMemberhes:DerivativeActivityChangedPriceMemberhes:WTIMember2021-03-010000004447us-gaap:PutOptionMemberhes:DerivativeActivityChangedPriceMemberhes:WTIMember2020-12-310000004447us-gaap:SubsequentEventMemberus-gaap:PutOptionMemberhes:WTIMemberhes:DerivativeActivityPurchasedMember2021-03-010000004447us-gaap:SubsequentEventMemberus-gaap:PutOptionMemberhes:BrentMemberhes:DerivativeActivityPurchasedMember2021-03-010000004447us-gaap:SubsequentEventMemberus-gaap:PutOptionMemberhes:WTIMember2021-03-010000004447us-gaap:SubsequentEventMemberus-gaap:PutOptionMemberhes:BrentMember2021-03-010000004447us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:PutOptionMember2020-12-310000004447us-gaap:SwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2020-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMember2020-12-310000004447us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2019-12-310000004447us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2020-12-310000004447us-gaap:NondesignatedMember2020-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:PutOptionMember2019-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2019-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMember2019-12-310000004447us-gaap:NondesignatedMember2019-12-310000004447hes:VeryLargeCrudeCarriersVLCCsMember2020-01-012020-12-310000004447us-gaap:SwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberhes:BrentMember2020-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:PutOptionMemberhes:WTIMemberhes:VeryLargeCrudeCarriersVLCCsMember2020-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMembersrt:CrudeOilMember2020-01-012020-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMembersrt:CrudeOilMember2019-01-012019-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMembersrt:CrudeOilMember2018-01-012018-12-310000004447us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityOptionMemberus-gaap:CashFlowHedgingMember2020-01-012020-12-310000004447us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMember2020-01-012020-12-310000004447us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMember2019-01-012019-12-310000004447us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMember2018-01-012018-12-310000004447us-gaap:ForeignExchangeContractMember2020-01-012020-12-310000004447us-gaap:ForeignExchangeContractMember2019-01-012019-12-310000004447us-gaap:ForeignExchangeContractMember2018-01-012018-12-310000004447us-gaap:NondesignatedMembersrt:CrudeOilMember2018-01-012018-12-310000004447hes:IntegratedCompaniesMember2020-12-310000004447hes:IndependentExplorationAndProductionCompaniesMember2020-12-310000004447hes:RefiningAndMarketingCompaniesMember2020-12-310000004447hes:NationalOilCompaniesMember2020-12-310000004447hes:StorageAndTransportationCompaniesMember2020-12-310000004447hes:OtherCounterpartyMember2020-12-310000004447us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-31

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                 to                
Commission File Number 1-1204
Hess Corporation
(Exact name of Registrant as specified in its charter)
DELAWARE
 13-4921002
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification Number)
1185 AVENUE OF THE AMERICAS, 10036
NEW YORK,NY (Zip Code)
(Address of principal executive offices)  
Registrant’s telephone number, including area code (212997-8500
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock (par value $1.00)HESNew York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes  No 
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes  No 
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes  No 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” - “smaller reporting company” and “emerging growth company” -  in Rule 12b-2 of the Exchange Act:
Large accelerated filer        
Accelerated filer               
Non-accelerated filer
Smaller reporting company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes  No
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No
The aggregate market value of voting stock held by non-affiliates of the Registrant amounted to $14,091,000,000, computed using the outstanding Common Stock and closing market price on June 30, 2020, the last business day of the Registrant’s most recently completed second fiscal quarter.
At January 31, 2021, there were 306,986,553 shares of Common Stock outstanding.
Part III is incorporated by reference from the Proxy Statement for the 2021 annual meeting of stockholders.



HESS CORPORATION
Form 10-K
TABLE OF CONTENTS
 
Item No.   Page
  PART I  
1 and 2.  
  
1A.  
1B.  
3.  
4.  
  PART II  
5.  
6.  
7.  
7A.  
8.  
9.  
9A.  
9B.  
  PART III  
10.  
11.  
12.  
13.  
14.  
  PART IV  
15.  
   
Unless the context indicates otherwise, references to “Hess”, the “Corporation”, “Registrant”, “we”, “us”, “our” and “its” refer to the consolidated business operations of Hess Corporation and its subsidiaries.
2


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K, including information incorporated by reference herein, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, natural gas liquids and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects; and future economic and market conditions in the oil and gas industry.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements:
fluctuations in market prices of crude oil, natural gas liquids and natural gas and competition in the oil and gas exploration and production industry, including as a result of the global COVID-19 pandemic (COVID-19);
reduced demand for our products, including due to COVID-19 or the outbreak of any other public health threat, or due to the impact of competing or alternative energy products and political conditions and events;
potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels;
changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring as well as fracking bans;
disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks or health measures related to COVID-19;
the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control;
unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits;
availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services;
any limitations on our access to capital or increase in our cost of capital, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets;
liability resulting from litigation, including heightened risks associated with being a general partner of Hess Midstream LP; and
other factors described in Item 1A—Risk Factors in this Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission.
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
3


Glossary
Throughout this report, the following company or industry specific terms and abbreviations are used:
Appraisal well – An exploration well drilled to confirm the results of a discovery well, or a well that is used to determine the boundaries of a productive formation.
Bbl – One stock tank barrel, which is 42 United States gallons liquid volume.
Barrel of oil equivalent or Boe – This reflects natural gas reserves converted on the basis of relative energy content of six mcf equals one barrel of oil equivalent (one mcf represents one thousand cubic feet).  Barrel of oil equivalence does not necessarily result in price equivalence, as the equivalent price of natural gas on a barrel of oil equivalent basis has been substantially lower than the corresponding price for crude oil over the recent past.
Boepd – Barrels of oil equivalent per day.
Bopd – Barrels of oil per day.
CGA – Clean Gulf Associates.
Condensate – A mixture of hydrocarbons that exists in the gaseous phase at original reservoir temperature and pressure, but that when produced, is in the liquid phase at surface pressure and temperature.
DAPL – Dakota Access Pipeline.
DD&A – Depreciation, depletion and amortization.
Development well – A well drilled within the proved area of an oil and/or natural gas reservoir with the intent of producing oil and/or natural gas from that area of the reservoir.
Dry hole – An exploratory or development well that does not find oil or natural gas in commercial quantities.
EPA – Environmental Protection Agency.
EHS & SR – Environment, health, safety and social responsibility.
Exploratory well – A well drilled to find oil or natural gas in an unproved area or find a new reservoir in a field previously found to be productive by another reservoir.
E&P  – Exploration and Production.
Fractionation – A process by which the mixture of natural gas liquids that results from natural gas processing is separated into the NGL components, such as ethane, propane, butane, isobutane, and natural gasoline, prior to their sale to various petrochemical and industrial end users.  Fractionation is accomplished by controlling the temperature of the stream of mixed liquids in order to take advantage of the difference in boiling points of separate products.
Field – An area consisting of a single reservoir or multiple reservoirs all grouped or related to the same individual geological structural feature and/or stratigraphic condition.
FPSO – Floating production, storage, and offloading vessel.
GHG – Greenhouse gas.
Gross acres Acreage in which a working interest is held by the Corporation.
Gross well – A well in which a working interest is held by the Corporation.
ICE – Integrity critical equipment.
JOA – Joint operating agreement.
LIBOR – The London Interbank Offered Rate.
Mcf – One thousand cubic feet of natural gas.
Mmcfd – One thousand mcf of natural gas per day.
MWCC Marine Well Containment Company.
4


MSRC – Marine Spill Response Corporation.
MTBE – Methyl tertiary butyl ether.
Net acreage or Net wells – The sum of the fractional working interests owned by the Corporation in gross acres or gross wells.
NGL or Natural gas liquids – Naturally occurring hydrocarbon substances that are separated and produced by fractionating natural gas, including ethane, butane, isobutane, propane and natural gasoline.  NGL do not sell at prices equivalent to crude oil.
Non-operated – Projects in which the Corporation has a working interest but does not perform the role of Operator.
OPEC – Organization of Petroleum Exporting Countries.
Operator – The entity responsible for conducting and managing exploration, development, and/or production operations for an oil or gas project.
OSHA – Occupational Safety and Health Administration.
OSRL – Oil Spill Response Limited.
Plug and perf completion – A well completion technique which involves creating perforations in the well casing that penetrate the hydrocarbon reservoir section between set plugs.
Participating interest – Reflects the proportion of exploration and production costs each party will bear as set out in an operating agreement.
Production sharing contract – An agreement between a host government and the owners (or co-owners) of a well or field regarding the percentage of production each party will receive after the parties have recovered a specified amount of capital and operational expenses.
Productive well – A well that is capable of producing hydrocarbons in sufficient quantities to justify commercial exploitation.
Proved properties – Properties with proved reserves.
Proved reserves – In accordance with the Securities and Exchange Commission regulations and practices recognized in the publication of the Society of Petroleum Engineers entitled, “Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information,” those quantities of crude oil and condensate, NGL and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation.  The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.
Proved developed reserves – Proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or for which the cost of the required equipment is relatively minor compared to the cost of a new well.
Proved undeveloped reserves – Proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.  Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.
SOFR – Secured Overnight Financing Rate.
Unproved properties – Properties with no proved reserves.
VLCC Very large crude carrier.
Working interest – An interest in an oil and gas property that provides the owner of the interest the right to participate in the drilling for and production of oil and gas on the relevant acreage and requires the owner to pay a share of the costs of drilling and production operations.
WWC Wild Well Control.
5


PART I
Items 1 and 2.  Business and Properties
Hess Corporation, incorporated in the State of Delaware in 1920, is a global E&P company engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids, and natural gas with production operations located primarily in the United States (U.S.), Guyana, the Malaysia/Thailand Joint Development Area (JDA), Malaysia, and Denmark. We conduct exploration activities primarily offshore Guyana, in the U.S. Gulf of Mexico, and offshore Suriname and Canada. At the Stabroek Block (Hess 30%), offshore Guyana, we have announced eighteen significant discoveries. The Liza Phase 1 development achieved first production in December 2019, and reached its nameplate production capacity of approximately 120,000 gross bopd in December 2020. The Liza Phase 2 development was sanctioned in the second quarter of 2019 and is expected to achieve first production by early 2022, with production capacity of approximately 220,000 gross bopd. A third development, Payara, was sanctioned in the third quarter of 2020 and is expected to achieve first production in 2024, with production capacity of approximately 220,000 gross bopd. The discovered resources to date on the Stabroek Block are expected to underpin up to ten FPSOs with the first five FPSOs producing more than 750,000 gross bopd by 2026.
Our Midstream operating segment, which is comprised of Hess Corporation’s 47% consolidated ownership interest in Hess Midstream LP at December 31, 2020, provides fee-based services, including gathering, compressing and processing natural gas and fractionating NGL; gathering, terminaling, loading and transporting crude oil and NGL; storing and terminaling propane, and water handling services primarily in the Bakken shale play in the Williston Basin area of North Dakota. See Midstream on page 12.
Exploration and Production
Proved Reserves
Proved reserves are calculated using the average price during the twelve-month period ending December 31 determined as an unweighted arithmetic average of the price on the first day of each month within the year, unless prices are defined by contractual agreements, and exclude escalations based on future conditions.  Crude oil prices used in the determination of proved reserves at December 31, 2020 were $39.77 per barrel for West Texas Intermediate (WTI) (2019: $55.73) and $43.43 per barrel for Brent (2019: $62.54).  Our total proved developed and undeveloped reserves at December 31 were as follows:
 Crude Oil & CondensateNatural Gas LiquidsNatural GasTotal Barrels of Oil Equivalent (BOE)
 20202019202020192020201920202019
 (Millions of bbls)(Millions of bbls)(Millions of mcf)(Millions of bbls)
Developed        
United States282 293 120 90 490 400 484 450 
Guyana (a)72 31  — 36 78 31 
Malaysia and JDA4  — 543 497 94 88 
Other (b)134 139  — 165 183 162 170 
 492 468 120 90 1,234 1,083 818 739 
Undeveloped        
United States119 215 42 79 163 300 188 344 
Guyana (a)132 55  — 47 140 56 
Malaysia and JDA2  — 132 188 24 33 
Other (b) 22  —  18  25 
 253 294 42 79 342 510 352 458 
Total        
United States401 508 162 169 653 700 672 794 
Guyana (a)204 86  — 83 218 87 
Malaysia and JDA6  — 675 685 118 121 
Other (b)134 161  — 165 201 162 195 
 745 762 162 169 1,576 1,593 1,170 1,197 
(a)Guyana natural gas reserves will be consumed for fuel.
(b)Other includes our interests in Denmark and Libya. At December 31, 2020, total proved reserves for Denmark and Libya were 40 million boe and 122 million boe, respectively. At December 31, 2019, total proved reserves for Denmark and Libya were 54 million boe and 141 million boe, respectively.
Proved undeveloped reserves were 30% of our total proved reserves at December 31, 2020 on a boe basis (2019: 38%).  Proved reserves held under production sharing contracts totaled 28% of our crude oil reserves and 48% of our natural gas reserves at December 31, 2020 (2019: 12% and 43%, respectively).
For additional information regarding our proved oil and gas reserves, see the Supplementary Oil and Gas Data to the Consolidated Financial Statements presented on pages 91 through 99.
6


Production
Worldwide crude oil, NGL, and natural gas net production was as follows:
 202020192018
Crude oil – Thousands of barrels 
United States   
North Dakota39,047 34,299 28,052 
Offshore (a)13,961 16,628 15,026 
Total United States53,008 50,927 43,078 
Guyana7,457 67 — 
Malaysia and JDA1,287 1,479 1,397 
Other (b)3,358 9,161 8,885 
Total65,110 61,634 53,360 
Natural gas liquids – Thousands of barrels   
United States   
North Dakota20,514 15,150 11,497 
Other Onshore (c) — 917 
Total Onshore20,514 15,150 12,414 
Offshore (a)1,878 1,942 1,703 
Total United States22,392 17,092 14,117 
Natural gas – Thousands of mcf 
United States   
North Dakota65,786 40,222 27,740 
Other Onshore (c) — 14,052 
Total Onshore65,786 40,222 41,792 
Offshore (a)27,985 33,212 24,452 
Total United States93,771 73,434 66,244 
Malaysia and JDA106,618 128,071 128,472 
Other (b)2,540 7,144 7,246 
Total202,929 208,649 201,962 
Total Barrels of Oil Equivalent (in millions) (a) (b) (c)121 114 101 
(a)In November 2020, we sold our working interest in the Shenzi Field in the deepwater Gulf of Mexico. Shenzi net production was 3.3 million boe in 2020 (2019: 4.5 million boe; 2018: 5.8 million boe).
(b)Other includes our interests in Denmark and Libya. Net production from Libya was 1.6 million boe for 2020 (2019: 7.8 million boe; 2018: 7.4 million boe). Net production from Denmark was 2.2 million boe for 2020 (2019: 2.6 million boe; 2018: 2.7 million boe).
(c)In August 2018, we sold our interests in the Utica shale play, onshore U.S.  Utica net production was 3.3 million boe in 2018.
E&P Operations
At December 31, 2020, our significant E&P assets included the following:
United States
Our production in the U.S. was from the Bakken shale play in the Williston Basin of North Dakota (Bakken) and from offshore properties in the Gulf of Mexico.
North Dakota:
Bakken:  At December 31, 2020, we held approximately 532,000 net acres in the Bakken with varying working interest percentages.  Net production averaged 193,000 boepd in 2020.  We operated six rigs in the Bakken through May, before reducing to one rig for the remainder of 2020 in response to the sharp decline in oil prices resulting from the COVID-19 pandemic. We drilled 71 wells and brought 111 wells on production, bringing the total operated production wells to 1,686 by year-end.  We reduced the average cost of a plug and perf well in 2020 to $6.2 million per well from $6.8 million per well in 2019.  
During 2021, we plan to operate two rigs, drill approximately 55 wells and bring approximately 45 wells on production.  We forecast net production to average approximately 170,000 boepd for the full year 2021.  In 2021, the Tioga Gas Plant will be shut down for approximately 45 days for a planned maintenance turnaround and tie-in of the plant expansion project completed in 2020 which will increase gas processing capacity to 400 million cubic feet per day from 250 million cubic feet per day.  The shutdown is expected to reduce 2021 average net production, mostly natural gas, by approximately 7,500 boepd.
7


Offshore:
Gulf of Mexico:  At December 31, 2020, we held approximately 61,000 net developed acres, with our production operations principally at the Baldpate (Hess 50%), Conger (Hess 38%), Hack Wilson (Hess 25%), Llano (Hess 50%), Penn State (Hess 50%), Stampede (Hess 25%) and Tubular Bells (Hess 57%) fields.  At December 31, 2020, we held approximately 286,000 net undeveloped acres, of which leases covering approximately 112,000 acres are due to expire in the next three years.
In November 2020, we completed the sale of our 28% working interest in the Shenzi Field for net proceeds of $482 million, after closing adjustments. Our net share of production from the Shenzi Field during 2020 was 9,000 boepd.
We participated in two outside operated exploration wells that were completed in 2020, the Oldfield-1 well and the Galapagos Deep well, both located in the Mississippi Canyon area. Both wells were unsuccessful.
Guyana
Stabroek Block:  The Stabroek Block (Hess 30%), offshore Guyana, covers approximately 6.6 million acres.  The operator, Esso Exploration and Production Guyana Limited, has made eighteen significant discoveries since 2015.  The discovered resources to date on the Stabroek Block are expected to underpin the potential for up to ten FPSOs with the first five FPSOs producing more than 750,000 gross bopd by 2026.
The Liza Phase 1 development, which was sanctioned in 2017, began producing oil in December 2019 from the Liza Destiny FPSO and reached its nameplate production capacity of 120,000 gross bopd in December 2020. The Liza Phase 2 development was sanctioned in 2019 and will utilize the Liza Unity FPSO to produce up to 220,000 gross bopd, with first production expected by early 2022.  A total of 30 wells are planned at six drill centers, including 15 production wells, nine water injection wells and six gas injection wells. In 2021, the operator plans to continue development drilling, complete installation of subsea flow lines and equipment, complete installation of topside facilities on the FPSO and sail the Liza Unity FPSO from Singapore to the Liza Field.
On September 30, 2020, we announced the final investment decision to proceed with development of the Payara Field on the Stabroek Block after the development plan received approval from the government of Guyana. Payara will utilize the Prosperity FPSO, which will have the capacity to produce up to 220,000 gross bopd, with first production expected in 2024. Ten drill centers with a total of 41 wells are planned, including 20 production wells and 21 injection wells. Excluding pre-sanction costs and FPSO purchase cost, our net share of development costs is forecast to be approximately $1.8 billion.
The operator is currently utilizing four drillships for exploration, appraisal and development drilling activities, and intends to bring in a fifth and sixth drillship in 2021.
In 2020, the following exploration and appraisal wells were drilled on the Stabroek Block (in chronological order):
Uaru:  The Uaru-1 well encountered approximately 94 feet of high-quality oil-bearing sandstone reservoir and is located approximately 10 miles northeast of the Liza Field.  
Yellowtail: The Yellowtail-2 well encountered approximately 69 feet of high-quality oil-bearing reservoirs and is located adjacent to and below the Yellowtail-1 discovery.
Redtail: The Redtail-1 well encountered approximately 232 feet of high-quality oil-bearing sandstone and is located approximately 1.5 miles northwest of the Yellowtail discovery.
In 2021, the operator completed drilling of the Hassa-1 well. The Hassa-1 well encountered approximately 50 feet of oil bearing reservoir in deeper geologic intervals, although the well did not encounter oil in the primary target areas. The operator plans to drill an additional 12 to 15 exploration and appraisal wells in 2021 that will target a variety of prospects and play types. These will include both lower risk wells near existing discoveries and higher risk step-out wells, and several penetrations that will test deeper Lower Campanian and Santonian intervals.
Kaieteur Block:  In 2018, we acquired a participating interest in the Kaieteur Block (Hess 15%), which is adjacent to the Stabroek Block. In 2020, the operator, Esso Exploration and Production Guyana Limited, completed drilling of the Tanager-1 exploration well. The well did encounter hydrocarbons but was not a commercial success on a stand-alone basis.
8


Malaysia and JDA
Malaysia/Thailand Joint Development Area (JDA):  Production comes from the Carigali Hess operated Block A-18 in the Malaysia/Thailand joint development area in the Gulf of Thailand (Hess 50%).  A multi-year drilling program is planned to commence in the first half of 2021.
Malaysia:  Our production in Malaysia comes from our interest in Block PM302 (Hess 50%) located in the North Malay Basin (NMB), offshore Peninsular Malaysia and Block PM301 (Hess 50%), which is adjacent to and is unitized with Block A‑18 of the JDA. In 2021, we plan to continue drilling and development activities at NMB.
Other
Denmark:  Production comes from our operated interest in the South Arne Field (Hess 62%).
Libya:  At the onshore Waha concession in Libya, which includes the Defa, Faregh, Gialo, North Gialo and Belhedan fields (Hess 8%), net production averaged 4,000 boepd in 2020, 21,000 boepd in 2019 and 20,000 boepd in 2018. Production was shut-in by the operator between January and October of 2020 due to force majeure caused by civil unrest. The Company’s net investment in Libya was approximately $85 million at December 31, 2020.
Suriname:  We hold a 33% non-operated participating interest in Block 42, offshore Suriname.  In 2022, the operator, a subsidiary of Royal Dutch Shell plc, plans to drill an exploration well.  We also hold a 33% non-operated participating interest in Block 59, offshore Suriname, where the operator, ExxonMobil Exploration and Production Suriname B.V., is interpreting recently acquired 2D seismic and is planning a 3D seismic acquisition.
Canada:  We hold a 50% non-operated participating interest in four exploration licenses offshore Nova Scotia and a 25% non-operated participating interest in three exploration licenses offshore Newfoundland.  In 2023, the operator, BP Canada, plans to drill one exploration well in Newfoundland.
Sales Commitments
We have certain long-term contracts with fixed minimum sales volume commitments for natural gas and NGL production.  At the JDA in the Gulf of Thailand, we have annual minimum net sales commitments of approximately 80 billion cubic feet of natural gas per year through 2025 and approximately 40 billion cubic feet per year in 2026 and 2027.  At the North Malay Basin development project offshore Peninsular Malaysia, we have annual net sales commitments of approximately 55 billion cubic feet per year through 2024.  Our estimated total volume of production subject to these sales commitments is approximately 710 billion cubic feet of natural gas.  We also have multiple minimum delivery commitments in the Bakken for natural gas and NGL with various end dates up through 2032, with total commitments of approximately 100 million boe over the remaining life of the contracts.
We have not experienced any significant constraints in satisfying the committed quantities required by our sales commitments, and we anticipate being able to meet future requirements from available proved and probable reserves, as well as projected third-party supply in the case of NGL.
9


Selling Prices and Production Costs
The following table presents our average selling prices and average production costs:
202020192018
Average Selling Prices (a)
Crude Oil - Per Barrel (Including Hedging)
United States
North Dakota$42.63 $53.19 $56.90 
Offshore45.92 59.18 62.02 
Total United States43.56 55.15 58.69 
Guyana46.41 — — 
Malaysia and JDA37.91 61.81 70.42 
Other (b)51.37 65.22 69.76 
Worldwide44.28 56.77 60.77 
Crude Oil - Per Barrel (Excluding Hedging)
United States
North Dakota$33.87 $53.18 $60.64 
Offshore36.55 59.17 65.73 
Total United States34.63 55.14 62.41 
Guyana37.40 — — 
Malaysia and JDA37.91 61.81 70.42 
Other (b)43.42 65.22 69.76 
Worldwide35.52 56.76 63.80 
Natural Gas Liquids - Per Barrel
United States
North Dakota$11.29 $13.20 $21.48 
Other Onshore (c) — 18.55 
Offshore8.94 13.31 25.58 
Worldwide11.10 13.21 21.81 
Natural Gas - Per Mcf
United States
North Dakota$1.27 $1.59 $2.42 
Other Onshore (c) — 2.02 
Offshore1.23 2.12 2.68 
Total United States1.26 1.83 2.43 
Malaysia and JDA4.47 5.04 5.07 
Other (b)3.41 4.63 4.41 
Worldwide2.98 3.90 4.18 
Average production (lifting) costs per barrel of oil equivalent produced (d)   
United States   
North Dakota (e)$17.67 $19.68 $23.00 
Other Onshore (c) — 14.32 
Offshore11.27 11.27 13.80 
Total United States16.59 17.66 19.74 
Guyana (f)18.25 — — 
Malaysia and JDA5.77 6.07 5.65 
Other (b)22.78 8.87 9.04 
Worldwide15.19 14.93 15.73 
(a)Includes inter‑company transfers valued at approximate market prices, primarily onshore U.S., which include certain processing and distribution fees.
(b)Other includes our interests in Denmark and Libya.
(c)In August 2018, we sold our interests in the Utica shale play, onshore U.S.
(d)Production (lifting) costs consist of amounts incurred to operate and maintain our producing oil and gas wells, related equipment and facilities and transportation costs, including Midstream tariff expense.  Lifting costs do not include costs of finding and developing proved oil and gas reserves, production and severance taxes, or the costs of related general and administrative expenses, interest expense and income taxes.
(e)Includes Midstream tariff expense of $13.42 per boe in 2020 (2019: $12.89 per boe; 2018: $14.72 per boe).
(f)Includes pre-development costs from the operator for future phases of development and Hess internal costs totaling $5.11 per boe.
10


Gross and Net Undeveloped Acreage
At December 31, 2020, gross and net undeveloped acreage amounted to:
Undeveloped
Acreage (a)
 GrossNet
 (In thousands)
United States333 300 
Guyana9,873 2,461 
Malaysia and JDA655 327 
Denmark
Libya3,334 272 
Canada3,405 1,283 
Suriname4,363 1,454 
Total (b)21,972 6,098 
(a)Includes acreage held under production sharing contracts.
(b)At December 31, 2020, 59% of our net undeveloped acreage, primarily in Suriname, Canada, and Guyana, is scheduled to expire during the next three years pending results of exploration activities.
Gross and Net Developed Acreage, and Productive Wells
At December 31, 2020 gross and net developed acreage and productive wells amounted to:
 Developed Acreage Applicable to Productive WellsProductive Wells (a)
 OilGas
 GrossNetGrossNetGrossNet
 (In thousands)    
United States967 578 3,061 1,424 11 
Guyana95 29 — — 
Malaysia and JDA454 227 — — 129 62 
Denmark23 14 18 11 — — 
Libya9,564 782 1,123 92 10 
Total11,103 1,630 4,208 1,529 150 68 
(a)Includes multiple completion wells (wells producing from different formations in the same bore hole) totaling 24 gross wells and 21 net wells.
Exploratory and Development Wells
Net exploratory and net development wells completed during the years ended December 31 were:
 Net Exploratory WellsNet Development Wells
 202020192018202020192018
Productive wells      
United States9814092 
Guyana1222— 
Malaysia and JDA233
Libya2— 
 1 101 147 93 
Dry holes      
United States1 — —  — — 
Guyana (a) — —  — — 
Malaysia and JDA —  — — 
Denmark —  — — 
Suriname (b) — —  — — 
Canada —  — — 
 1  — — 
Total2 101 147 93 
(a)Includes the Tanager-1 well at the Kaieteur Block, offshore Guyana in 2020 and the Sorubim-1 well at the Stabroek Block, offshore Guyana in 2018.
(b)Includes the Pontoenoe-1 well in Block 42, offshore Suriname in 2018.
11


Number of Wells in the Process of Being Drilled
At December 31, 2020, the number of wells in the process of drilling amounted to:
Gross
Wells
Net
Wells
United States187 34 
Guyana (a)18 
Libya
Total213 40 
(a)Includes ten gross (and three net) water injection and gas injection wells in process at December 31, 2020.
Midstream
Prior to December 16, 2019, the Midstream segment was primarily comprised of Hess Infrastructure Partners LP (HIP), a 50/50 joint venture between Hess Corporation and Global Infrastructure Partners (GIP), formed to own, operate, develop and acquire a diverse set of midstream assets to provide fee-based services to Hess and third-party customers.  HIP was initially formed on May 21, 2015, with Hess selling 50% of HIP to GIP for approximately $2.6 billion on July 1, 2015.
On April 10, 2017, HIP completed an initial public offering (IPO) of 16,997,000 common units, representing 30.5% limited partnership interests in its subsidiary Hess Midstream Partners LP (Hess Midstream Partners), for net proceeds of approximately $365.5 million.  In connection with the IPO, HIP contributed a 20% controlling economic interest in each of Hess North Dakota Pipeline Operations LP, Hess TGP Operations LP, and Hess North Dakota Export Logistics Operations LP, and a 100% economic interest in Hess Mentor Storage Holdings LLC (collectively the “Contributed Businesses”).  In exchange for the contributed businesses, Hess and GIP each received common and subordinated units representing a direct 33.75% limited partner interest in Hess Midstream Partners and a 50% indirect ownership interest through HIP in Hess Midstream Partners’ general partner, which had a 2% economic interest in Hess Midstream Partners plus incentive distribution rights.
On March 1, 2019, HIP acquired Hess’s existing Bakken water services business for $225 million in cash.  As a result of this transaction, we recorded an after-tax gain of $78 million in additional paid-in capital with an offsetting reduction to noncontrolling interest to reflect the adjustment to GIP’s noncontrolling interest in HIP.  On March 22, 2019, HIP and Hess Midstream Partners acquired crude oil and gas gathering assets, and HIP acquired water gathering assets of Summit Midstream Partners LP’s Tioga Gathering System for aggregate cash consideration of approximately $90 million, with the potential for up to an additional $10 million of contingent payments in future periods subject to certain future performance metrics.  On January 25, 2018, Hess Midstream Partners entered into a 50/50 joint venture with Targa Resources Corp. to construct a new 200 million standard cubic feet per day gas processing plant call Little Missouri 4.  The plant, which is operated by Targa, was placed into service in the third quarter of 2019.
On December 16, 2019, Hess Midstream Partners acquired HIP, including HIP’s 80% interest in Hess Midstream Partners’ oil and gas midstream assets, HIP’s water services business and the outstanding economic general partner interest and incentive distribution rights in Hess Midstream Partners LP.  In addition, Hess Midstream Partners’ organizational structure converted from a master limited partnership into an “Up-C” structure in which Hess Midstream Partners’ public unitholders received newly issued Class A shares in a new public entity  named Hess Midstream LP (Hess Midstream), which is taxed as a corporation for U.S. federal and state income tax purposes.  Hess Midstream Partners changed its name to “Hess Midstream Operations LP” (HESM Opco) and became a consolidated subsidiary of Hess Midstream, the new publicly listed entity.  As consideration for the acquisition, Hess received a cash payment of $301 million and approximately 115 million newly issued HESM Opco Class B units.  After giving effect to the acquisition and related transactions, public shareholders of Class A shares in Hess Midstream own 6% of the consolidated entity on an as-exchanged basis and Hess and GIP each own 47% of the consolidated entity on an as-exchanged basis, primarily through the sponsors’ ownership of Class B units in HESM Opco that are exchangeable into Class A shares of Hess Midstream on a one-for-one basis, or referred to as “Hess Corporation’s 47% consolidated ownership interest in Hess Midstream LP”.
At December 31, 2020, Midstream assets included the following:
Natural Gas Gathering and Compression: A natural gas gathering and compression system located primarily in McKenzie, Williams and Mountrail Counties, North Dakota connecting Hess and third-party owned or operated wells to the Tioga Gas Plant, Little Missouri 4 Gas Plant, and third-party pipeline facilities.  This gathering system consists of approximately 1,350 miles of high and low pressure natural gas and NGL gathering pipelines with a current capacity of up to approximately 450 mmcfd, including an aggregate compression capacity of approximately 310 mmcfd.  In 2020, compression capacity was increased by approximately 70 mmcfd by expanding two existing compressor stations and restarting two additional legacy compression facilities. The system also includes the Hawkeye Gas Facility, which contributes approximately 50 mmcfd of the system’s current compression capacity.
Crude Oil Gathering: A crude oil gathering system located primarily in McKenzie, Williams and Mountrail Counties, North Dakota, connecting Hess and third-party owned or operated wells to the Ramberg Terminal Facility, the Tioga Rail Terminal
12


and the Johnson’s Corner Header System.  The crude oil gathering system consists of approximately 550 miles of crude oil gathering pipelines with a current capacity of up to approximately 240,000 bopd.  The system also includes the Hawkeye Oil Facility, which contributes approximately 75,000 bopd of the system’s current capacity.
Tioga Gas Plant: A natural gas processing and fractionation plant located in Tioga, North Dakota, with a current processing capacity of approximately 250 mmcfd and fractionation capacity of approximately 60,000 boepd.  In 2019, Hess Midstream LP announced plans to expand processing capacity at the plant by 150 mmcfd for total processing capacity of 400 mmcfd.  In 2020, the facility construction was completed for the expansion. Incremental gas processing capacity is expected to be available in 2021 upon completion of a scheduled plant maintenance turnaround, during which the expansion and residue and NGL takeaway pipelines will be tied in. The plant maintenance turnaround was originally planned to occur in the third quarter of 2020 but was deferred to 2021 to ensure safe execution in light of the COVID-19 pandemic.
Little Missouri 4: A natural gas processing plant in McKenzie County, North Dakota, with processing capacity of approximately 200 mmcfd, which was placed in service during 2019 and is operated by Targa Resources Corp.  Hess Midstream LP owns a 50% interest in Little Missouri 4 through a joint venture with Targa Resources Corp. and is entitled to half of the plant’s processing capacity.
Mentor Storage Terminal: A propane storage cavern and rail and truck loading and unloading facility located in Mentor, Minnesota, with approximately 330,000 boe of working storage capacity.
Ramberg Terminal Facility: A crude oil pipeline and truck receipt terminal located in Williams County, North Dakota with a delivery capacity of up to approximately 285,000 bopd of crude oil into an interconnecting pipeline for transportation to the Tioga Rail Terminal and to multiple third-party pipelines and storage facilities.
Tioga Rail Terminal: A 140,000 bopd crude oil and 30,000 boepd NGL rail loading terminal in Tioga, North Dakota that is connected to the Tioga Gas Plant, the Ramberg Terminal Facility and our crude oil gathering system.
Crude Oil Rail Cars: A total of 550 crude oil rail cars, which are operated as unit trains consisting of approximately 100 to 110 crude oil rail cars.  These crude oil rail cars have been constructed to DOT-117 standards.
Johnson’s Corner Header System: A crude oil pipeline header system located in McKenzie County, North Dakota that receives crude oil by pipeline from Hess and third parties and delivers crude oil to third-party interstate pipeline systems.  The facility has a delivery capacity of approximately 100,000 bopd of crude oil.
Produced Water Gathering and Disposal: A produced water gathering system located primarily in Williams and Mountrail Counties, North Dakota, that transports produced water from the wellsite by approximately 270 miles of pipeline in gathering systems or by third-party trucking to water handling facilities for disposal.  As of December 31, 2020, five water handling and disposal facilities with a combined capacity of 70,000 barrels per day were in service. These water handling and disposal facilities are owned and operated by Hess Water Services Holdings LLC, an indirect wholly owned subsidiary of Hess Midstream LP. Produced water is also transported to twelve water handling and disposal facilities operated by third parties that have a combined permitted disposal capacity of approximately 170,000 barrels per day.
Hess Midstream has multiple long-term, fee-based commercial agreements effective January 1, 2014 with certain subsidiaries of Hess for gas gathering, crude oil gathering, gas processing and fractionation, storage services, and terminal and export services, each generally with an initial ten-year term that can be extended for an additional ten-year term at the unilateral right of Hess Midstream. These contracts have minimum volumes that the Hess subsidiaries are obligated to provide each calendar quarter. The minimum volume commitments are subject to fluctuation based on nominations covering substantially all of our E&P segment’s production and projected third-party volumes that will be purchased in the Bakken. On December 30, 2020, Hess Midstream exercised its renewal options to extend the terms of certain gas gathering, crude oil gathering, gas processing and fractionation, storage, and terminal and export commercial agreements for the secondary term through December 31, 2033. There were no changes to any provisions of the existing commercial agreements as a result of the exercise of the renewal options. Hess Midstream also has long-term, fee based commercial agreements for water handling services effective January 1, 2019 with a subsidiary of Hess, with an initial 14 year term that can be extended for an additional ten-year term at the unilateral right of Hess Midstream. Water handling services are provided for an agreed-upon fee per barrel or the reimbursement of third-party fees.
Competition and Market Conditions
See Item 1A. Risk Factors for a discussion of competition and market conditions.
Emergency Preparedness and Response Plans and Procedures
We have in place a series of business and asset-specific emergency preparedness, response and business continuity plans that detail procedures for rapid and effective emergency response and environmental mitigation activities.  These plans are maintained,
13


reviewed and updated as necessary to confirm their accuracy and suitability.  Where applicable, they are also reviewed and approved by the relevant host government authorities.
Responder training and drills are routinely held worldwide to assess and continually improve the effectiveness of our plans.  Our contractors, service providers, representatives from government agencies and, where applicable, joint venture partners participate in the drills to help ensure that emergency procedures are comprehensive and can be effectively implemented.
To complement internal capabilities and to help ensure coverage for our global operations, we maintain membership contracts with a network of local, regional and global oil spill response and emergency response organizations.  At the regional and global level, these organizations include CGA, MSRC, MWCC, WWC and OSRL.  CGA and MSRC are domestic spill response organizations and MWCC provides the equipment and personnel to contain underwater well control incidents in the Gulf of Mexico. WWC provides firefighting, well control and engineering services globally.  OSRL is a global response organization and is available, when needed, to assist us with any of our assets.  In addition to owning response assets in their own right, the organization maintains business relationships that provide immediate access to additional critical response support services if required.  OSRL’s response assets include nearly 300 recovery and storage vessels and barges, more than 250 skimmers, over 600,000 feet of boom, nine capping stacks and significant quantities of dispersants and other ancillary equipment, including aircraft.  In addition to external well control and oil spill response support, we have contracts with wildlife, environmental, meteorology, incident management, medical and security resources.  If we were to engage these organizations to obtain additional critical response support services, we would fund such services and, where appropriate, seek reimbursement under our insurance coverage, as described below.  In certain circumstances, we pursue and enter into mutual aid agreements with other companies and government cooperatives to receive and provide oil spill response equipment and personnel support.  We maintain close associations with emergency response organizations through our representation on the Executive Committees of CGA and MSRC, as well as the Board of Directors of OSRL.
We continue to participate in several industry-wide task forces that are studying better ways to assess the risk of and prevent onshore and offshore incidents, access and control blowouts in subsea environments, and improve containment and recovery methods.  The task forces are working closely with the oil and gas industry and international government agencies to implement improvements and increase the effectiveness of oil spill prevention, preparedness, response and recovery processes.
Insurance Coverage and Indemnification
We maintain insurance coverage that includes coverage for physical damage to our property, third-party liability, workers’ compensation and employers’ liability, general liability, sudden and accidental pollution and other coverage.  This insurance coverage is subject to deductibles, exclusions and limitations and there is no assurance that such coverage will adequately protect us against liability from all potential consequences and damages.
The amount of insurance covering physical damage to our property and liability related to negative environmental effects resulting from a sudden and accidental pollution event, excluding Atlantic Named Windstorm coverage for which we are self-insured, varies by asset, based on the asset's estimated replacement value or the estimated maximum loss.  In the case of a catastrophic event, first party coverage consists of two tiers of insurance.  The first $400 million of coverage is provided through an industry mutual insurance group.  Above this $400 million threshold, insurance is carried which ranges in value up to $1.27 billion in total, depending on the asset coverage level, as described above.  The insurance programs covering physical damage to our property exclude business interruption protection for our E&P operations.  Additionally, we carry insurance that provides third-party coverage for general liability, and sudden and accidental pollution, up to $850 million, which coverage under a standard joint operating arrangement would be reduced to our participating interest.  Our insurance policies renew at various dates each year.  Future insurance coverage could increase in cost and may include higher deductibles or retentions, or additional exclusions or limitations.  In addition, some forms of insurance may become unavailable in the future or unavailable on terms that are deemed economically acceptable.
Generally, our drilling contracts (and most of our other offshore services contracts) provide for a mutual hold harmless indemnity structure whereby each party to the contract (the Corporation and Contractor) indemnifies the other party for injuries or damages to their personnel and property (and, often, those of its contractors/subcontractors) regardless of fault.  Variations may include indemnity exclusions to the extent a claim is attributable to the gross negligence and/or willful misconduct of a party.  Third-party claims, on the other hand, are generally allocated on a fault basis.
We are customarily responsible for, and indemnify the Contractor against, all claims including those from third parties, to the extent attributable to pollution or contamination by substances originating from our reservoirs or other property and the Contractor is responsible for and indemnifies us for all claims attributable to pollution emanating from the Contractor’s property.  Variations may include indemnity exclusions to the extent a claim is attributable to the gross negligence and/or willful misconduct of a party.  Additionally, we are generally liable for all of our own losses and most third-party claims associated with catastrophic losses such as damage to reservoirs, blowouts, cratering and loss of hole, regardless of cause, although exceptions for losses attributable to gross negligence and/or willful misconduct do exist.  Lastly, some offshore services contracts include overall limitations of the Contractor’s liability equal to a fixed negotiated amount.  Variations may include exclusions of all contractual indemnities from the liability cap.
14


Under a standard JOA, each party is liable for all claims arising under the JOA, to the extent of its participating interest (operator or non-operator).  Variations include indemnity exclusions when the claim is based upon the gross negligence and/or willful misconduct of the operator, in which case the operator is solely liable.  The parties to the JOA may continue to be jointly and severally liable for claims made by third parties in some jurisdictions.  Further, under some production sharing contracts between a governmental entity and commercial parties, liability of the commercial parties to the government entity is joint and several.
Government Regulations
The crude oil and natural gas industry is regulated at federal, state, local and foreign government levels. Regulations affecting elements of the energy sector are under continuous review for amendment or expansion over time, which may result in incremental costs of doing business and affect our profitability. See Regulatory, Legal and Environmental Risks in Item 1A. Risk Factors. Compliance with various existing environmental, health and safety regulations is not expected to have a material adverse effect on our financial condition or results of operations. However, increasingly stringent environmental regulations have resulted and will likely continue to result in higher capital expenditures and operating expenses for us and the oil and gas industry in general and may reduce demand for our products. We spent approximately $15 million in 2020 for environmental remediation. The level of other expenditures to comply with federal, state, local and foreign country regulations is difficult to quantify as such costs are captured as mostly indistinguishable components of our capital expenditures and operating expenses. For further discussion of environmental, health and safety regulations affecting our business, see Environment, Health and Safety in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Human Capital Management
Corporate Culture and Overview
Our human capital strategy aims to attract and retain our talent by investing in their professional development and providing them with challenging and rewarding opportunities for personal growth. Our workplace culture is guided by our Corporation’s values and reinforced by developing quality leadership, fostering diversity and inclusion, emphasizing continuous learning, creating opportunities for engagement, driving innovation and embracing Lean processes. We are pursuing a Life at Hess initiative to optimize the work experience for our multigenerational workforce and unlock the discretionary effort that is required to perform at a high level on a sustained basis. The Life at Hess framework encompasses programs, policies and practices, and a listening system that draws on in-person dialogues, pulse polls and data analytics to help leaders understand employees’ issues and perspectives and inform their decision making.
As of December 31, 2020, we had 1,621 employees globally, as detailed below.
United StatesGuyanaMalaysia and JDAOther (a)Total
Job Category
Executives and Senior Officers31 — — 32 
First and Mid-Level Managers328 — 59 17 404 
Professionals686 — 78 23 787 
Other360 — 36 398 
Total1,405  140 76 1,621 
(a)Other includes our interests in Denmark and Libya.
COVID-19 Response
We prioritize the safety of our workforce. Our safety programs and practices are designed to help ensure that everyone, everywhere gets home safe every day. Our response to COVID-19 reflects this commitment. A multidisciplinary Hess emergency response team has been overseeing plans and precautions to reduce the risks of COVID-19 in the work environment while maintaining business continuity based on the most current recommendations by government and public health agencies. The Corporation has implemented a variety of health and safety measures including enhanced cleaning procedures and modified work practices such as travel restrictions, health screenings, reduced personnel at offshore platforms and onshore work sites wherever this can be done safely, and remote working arrangements for office workers. We continue to adapt our work policies and benefits to prioritize emotional, mental and physical health and well-being. We are taking a deliberate and measured approach to returning to the physical work environment in each of our office locations.
During 2020, we adapted our Life at Hess initiative for a work experience that was largely away from the office and with stringent health and safety protocols throughout our operations, including:
activated emergency response teams representing all Hess work locations to coordinate effective local deployment of our COVID-19 protocols;
15


introduced policies reinforcing that COVID-19 will not negatively impact pay and benefits for employees who may miss work due to COVID-19 exposure, quarantine or test positive;
provided work from home guidance, technology and training to allow office-based employees to complete their tasks effectively while working remotely;
modified work schedules for field operations to lessen virus exposure and to accommodate quarantine protocols; and
offered supplemental medical resources, such as at-home COVID-19 testing kits, mental wellness programs and access to third-party medical experts, at no cost to employees.
Inclusion, Diversity and Equity
In keeping with our values and purpose, we have a longstanding commitment to inclusion and diversity. Our Corporation is committed to providing a global workplace free from discrimination and harassment, where everyone can achieve their full potential. We provide equal employment opportunities for all employees and job candidates regardless of race, color, religion, gender, age, sexual orientation, gender identity, creed, national origin, genetic information, disability, veteran status or any other protected status. Hess’ Inclusion, Diversity and Equity Council provides executive leadership and guidance in our hiring, work environment and development activities. Our expectations for an inclusive and diverse workplace and our culture of mutual respect and trust are spelled out in our Code of Conduct and Ethics and related policies and reinforced regularly with employees at every level of our Corporation through training. Additional information regarding our policies and practices, including training and employee engagement initiatives, is included in our annual Sustainability Report, which is available on our website at www.hess.com.
During 2020, Hess maintained or improved diversity among our first and mid-level managers and professionals. Employee turnover, diversity, inclusion and equity, and leadership development metrics, along with qualitative data, are shared with our Board of Directors annually, with more detailed reviews by the Compensation and Management Development Committee throughout the year.
Women
(U.S. and International)
Minorities (a)
(U.S. Based Employees)
202020192018202020192018
Job Category
Executives and Senior Officers13 %16 %16 %13 %13 %10 %
First and Mid-Level Managers23 %22 %21 %20 %19 %18 %
Professionals32 %31 %33 %27 %26 %27 %
Other17 %18 %19 %16 %17 %17 %
Total26 %26 %26 %22 %22 %22 %
(a)As defined by the U.S. Department of Labor.
Reward Programs
Our compensation and benefits programs are focused on attracting and retaining a highly skilled workforce in a rapidly changing industry. We benchmark our compensation programs annually through industry specific surveys and conduct an annual review to identify and address compensation inequities. Our Corporation maintains an annual incentive plan that applies to all employees, including executive officers, that shares the same enterprise performance metrics for all participants. In addition, we provide a comprehensive wellness program that addresses physical wellness and also focuses on the financial, social and emotional well-being of our employees.
16


Information about our Executive Officers
The following table presents information as of March 1, 2021 regarding executive officers of the Corporation:
 Name
AgeOffice Held* and Business ExperienceYear Individual Became an Executive Officer
John B. Hess66
Chief Executive Officer and Director
Mr. Hess has been Chief Executive Officer of the Corporation since 1995 and employed by the Corporation since 1977.  He has over 40 years of experience in the oil and gas industry.
1983
Gregory P. Hill59
President and Chief Operating Officer
Mr. Hill has been Chief Operating Officer since 2014 and President of the Corporation’s worldwide Exploration and Production business since joining the Corporation in January 2009.  Prior to joining the Corporation, Mr. Hill spent 25 years at Royal Dutch Shell and its affiliates in a variety of operations, engineering, technical and managerial roles in Asia-Pacific, Europe and the United States.
2009
Timothy B. Goodell63
Executive Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer
Mr. Goodell has been General Counsel of the Corporation since 2009, Corporate Secretary since 2016, Chief Compliance Officer since 2017 and Executive Vice President since 2020.  Prior to joining the Corporation in 2009, he was a partner at the law firm of White & Case, LLP where he spent 25 years.
2009
John P. Rielly58
Executive Vice President and Chief Financial Officer
Mr. Rielly has been Chief Financial Officer of the Corporation since 2004 and Executive Vice President since 2020.  Mr. Rielly previously served as Vice President and Controller of the Corporation from 2001 to 2004.  Prior to joining the Corporation in 2001, he was a Partner at Ernst & Young, LLP where he was employed for 17 years.
2002
Richard Lynch63
Senior Vice President, Technology and Services
Mr. Lynch has been Senior Vice President, Technology and Services of the Corporation since 2018.  Mr. Lynch previously was Senior Vice President Global Developments, Drilling and Completions from 2014.  Prior to joining the Corporation in 2014, Mr. Lynch spent over 30 years in well delivery and operations, as well as project and asset management, with BP plc and ARCO.
2018
Gerbert Schoonman55
Senior Vice President, Global Production
Mr. Schoonman has been Senior Vice President, Global Production of the Corporation since January 2020.  Since joining the Company in 2011, he served in various operational leadership roles, including as Vice President, Production – Asia Pacific, from January 2011 through August 2012; Vice President, Onshore – Bakken from September 2012 through December 2016; and most recently, as Vice President, Offshore since January 2017.  Prior to joining the Corporation, he spent 20 years with Royal Dutch Shell where he served in operational and leadership roles.
2020
Andrew Slentz59
Senior Vice President, Human Resources and Office Management
Mr. Slentz has been Senior Vice President, Human Resources of the Corporation since April 2016 and responsible for Office Management since 2018.  Prior to joining the Corporation in 2016, Mr. Slentz served as Executive Vice President of Administration and Human Resources at Peabody Energy since 2010.  Mr. Slentz has over 25 years in human resources experience at large international public companies.
2016
Barbara Lowery-Yilmaz64
Senior Vice President and Chief Exploration Officer
Ms. Lowery-Yilmaz has been the Senior Vice President, Exploration of the Corporation since August 2014.  Ms. Lowery-Yilmaz has over 30 years of oil and gas industry experience in exploration and technology with BP plc and its affiliates including senior leadership roles.
2014
*All officers referred to herein hold office in accordance with the By-laws until the first meeting of directors in connection with the annual meeting of stockholders of the Registrant and until their successors shall have been duly chosen and qualified.  Each of said officers was elected to the office opposite their name on June 2, 2020.
Except for Mr. Slentz, each of the above officers has been employed by the Corporation or its affiliates in various managerial and executive capacities for more than five years.  Prior to joining the Corporation, Mr. Slentz served in senior executive positions in human resources at Peabody Energy and its affiliates.
17


Access to Our Reports
We make available free of charge through our website, www.hess.com, our annual report on Form 10‑K, quarterly reports on Form 10‑Q, current reports on Form 8‑K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission.  The information on our website is not incorporated by reference in this report.  Our Code of Business Conduct and Ethics, Corporate Governance Guidelines, and the charters for the Audit Committee, Compensation and Management Development Committee, Corporate Governance and Nominating Committee and Environmental, Health and Safety Committee of the Board of Directors are available on our website and are also available free of charge upon request to Investor Relations at our principal executive office.  We also file with the New York Stock Exchange (NYSE) an annual certification that our Chief Executive Officer is unaware of any violation of the NYSE’s corporate governance standards.
18


Item 1A.  Risk Factors
Our business activities and the value of our securities are subject to significant risks, including the risk factors described below. These risk factors could negatively affect our operations, financial condition, liquidity and results of operations, and as a result, holders and purchasers of our securities could lose part or all of their investments. It is possible that additional risks relating to our securities may be described in a prospectus supplement if we issue securities in the future.
Market and Third-Party Risks
Our business and operating results are highly dependent on the market prices of crude oil, NGL and natural gas, which can be very volatile.  Our estimated proved reserves, revenue, operating cash flows, operating margins, liquidity, financial condition and future earnings are highly dependent on the benchmark market prices of crude oil, NGL and natural gas, and our associated realized price differentials, which are volatile and influenced by numerous factors beyond our control.  The major foreign oil producing countries, including members of OPEC, may exert considerable influence over the supply and price of crude oil and refined petroleum products.  Their ability to agree on a common policy on rates of production and other matters may have a significant impact on the oil markets.  Other factors include, but are not limited to: worldwide and domestic supplies of and demand for crude oil, NGL and natural gas, political conditions and events (including weather, instability, changes in governments, armed conflict, economic sanctions and outbreaks of infectious diseases, such as COVID-19) around the world and in particular in crude oil or natural gas producing regions, the cost of exploring for, developing and producing crude oil, NGL and natural gas, the price and availability of alternative fuels or other forms of energy, the effect of energy conservation and environmental protection efforts and overall economic conditions globally.  The sentiment of commodities trading markets as well as other supply and demand factors, including COVID-19, may also influence the selling prices of crude oil, NGL and natural gas. Average benchmark prices for 2020 were $39.34 per barrel for WTI (2019: $57.04; 2018: $64.90) and $43.21 per barrel for Brent (2019: $64.16; 2018: $71.69).  In order to manage the potential volatility of cash flows and credit requirements, we maintain significant bank credit facilities. An inability to access, renew or replace such credit facilities or access other sources of funding as they mature would negatively impact our liquidity. Furthermore, from time to time we have entered into, and may in the future, enter into or modify commodity price hedging arrangements to manage commodity price volatility. These arrangements may limit potential upside from commodity price increases, or expose us to additional risks, such as counterparty credit risk, which could adversely impact our cash flow, liquidity or financial condition.
Our business and operations have been and may continue to be adversely affected by COVID-19 or other similar public health developments and the recent reduced demand for oil and natural gas. COVID-19 and the related actions taken by governments and businesses to manage the pandemic, including voluntary and mandatory quarantines and travel and other restrictions, have resulted in a significant and swift reduction in economic activity. Certain jurisdictions have begun re-opening only to return to restrictions in the face of increases in new COVID-19 cases. As a result of COVID-19, our operations, and those of our business partners, service companies and suppliers, have experienced and may continue to experience further adverse effects, including but not limited to: disruptions, delays or temporary suspensions of operations and supply chains; temporary inaccessibility or closures of facilities; and workforce impacts from illness, school closures and other community response measures. We have implemented a variety of health and safety measures, including enhanced cleaning procedures and modified work practices, such as travel restrictions; health screenings; reduced personnel at offshore platforms and onshore work sites, wherever such reduction can be done safely; and remote working arrangements for office workers. There is no certainty that these or any other future measures will be sufficient to mitigate the risks posed by the disease, including the risk of infection of key employees, and our ability to perform certain functions could be impaired by these new business practices. For example, our reliance on technology has necessarily increased due to our encouragement of remote communications and other work-from-home practices, which could make us more vulnerable to cyber-attacks. To the extent we or our business partners, service companies or suppliers continue to experience restrictions or other effects, our financial condition, results of operations and future expansion projects may be adversely affected.
In addition to the global health concerns of COVID-19, the pandemic has negatively affected the U.S. and global economy and severely adversely impacted demand for oil and natural gas. The prolonged continuation or amplification of the outbreak of COVID-19 could result in further economic downturn that may affect our operating results in the long-term. In addition, the effects of COVID-19 and concerns regarding its global spread have negatively impacted the domestic and international demand for crude oil and natural gas, which has contributed to price volatility and adversely affected the demand for and marketability of crude oil, natural gas and NGL. Containment measures implemented to mitigate the spread of COVID-19 could continue to be widespread and lead to sustained adoption of certain behavioral changes, such as reduced travel and work-from-home policies, which could result in further reductions in demand for and consumption of energy commodities. The reduction in consumer demand for crude oil, natural gas and NGL has created a supply imbalance, which could require further curtailments and shut-ins of production by the industry and further increase the costs of commercial storage and midstream contracts.
The timeline and potential magnitude of COVID-19 remains unknown and will depend on future developments, including, among others, the availability of vaccines and effective treatments and the extent to which normal economic and operating conditions resume. In the event one or more of our business partners is adversely affected by COVID-19 or the current market environment, that may impact our costs and ability to conduct business with them. In addition, we may face an increased risk of changes in the regulation related to our business resulting from COVID-19, such as the imposition of limitations on our workforce's ability to access our facilities. We also are subject to litigation risk and possible loss contingencies related to COVID-19, including with respect to
19


commercial contracts, employee matters and insurance arrangements. We may face additional asset impairments, decreases in proved reserves, along with other accounting charges as demand for crude oil, natural gas and NGL decreases. The current environment may make it more difficult to comply with covenants and other restrictions in agreements governing our debt, and a lack of confidence in our industry on the part of the financial markets may result in a lack of access to capital, any of which could lead to reduced liquidity.
As the impact from COVID-19 remains difficult to predict, the extent to which it may negatively affect our operating results is uncertain. Any impact will depend on future developments and new information that may emerge regarding the severity and duration of COVID-19 and the actions taken by authorities to contain it or treat its impact, all of which are beyond our control.
We do not always control decisions made under joint operating agreements and the parties under such agreements may fail to meet their obligations. We conduct many of our E&P operations through joint operating agreements with other parties under which we may not control decisions, either because we do not have a controlling interest or are not operator under the agreement. There is risk that these parties may at any time have economic, business, or legal interests or goals that are inconsistent with ours, and therefore decisions may be made which are not what we believe is in our best interest. Moreover, parties to these agreements may be unable to meet their economic or other obligations and we may be required to fulfill those obligations alone. In either case, the value of our investment may be adversely affected.
Our industry is highly competitive and many of our competitors are larger and have greater resources and more diverse portfolios than we have. The petroleum industry is highly competitive and very capital intensive. We encounter competition from numerous companies, including acquiring rights to explore for crude oil and natural gas. To a lesser extent, we are also in competition with producers of alternative fuels or other forms of energy, including wind, solar and electric power, and in the future, could face increasing competition due to the development and adoption of new technologies. Many competitors, including national oil companies, are larger and have substantially greater resources to acquire and develop oil and gas assets. In addition, competition for drilling services, technical expertise and equipment may affect the availability of technical personnel and drilling rigs, resulting in increased capital and operating costs. Many of our competitors have a more diverse portfolio of assets, which may minimize the impact of adverse events occurring at any one location.
Operational and Strategic Risks
If we fail to successfully increase our reserves, our future crude oil and natural gas production will be adversely impacted. We own or have access to a finite amount of oil and gas reserves, which will be depleted over time. Replacement of oil and gas production and reserves, including proved undeveloped reserves, is subject to successful exploration drilling, development activities, and enhanced recovery programs. Therefore, future oil and gas production is dependent on technical success in finding and developing additional hydrocarbon reserves. Exploration activity involves the interpretation of seismic and other geological and geophysical data, which does not always successfully predict the presence of commercial quantities of hydrocarbons. Drilling risks include unexpected adverse conditions, irregularities in pressure or formations, equipment failure, blowouts and weather interruptions. Future developments may be affected by unforeseen reservoir conditions, which negatively affect recovery factors or flow rates. Similar risks may be encountered in the production of oil and gas on properties acquired from others. In addition, replacing reserves and developing future production are also influenced by the price of crude oil and natural gas and costs of drilling and development activities. Lower crude oil and natural gas prices may reduce capital available for our exploration and development activities, render certain development projects uneconomic or delay their completion, and result in negative revisions to existing reserves while increasing drilling and development costs could negatively affect expected economic returns.
There are inherent uncertainties in estimating quantities of proved reserves and discounted future net cash flows, and actual quantities may be lower than estimated. Numerous uncertainties exist in estimating quantities of proved reserves and future net revenues from those reserves. Actual future production, oil and gas prices, revenues, taxes, capital expenditures, operating expenses, and quantities of recoverable oil and gas reserves may vary substantially from those assumed in the estimates and could materially affect the estimated quantities of our proved reserves and the related future net revenues. In addition, reserve estimates may be subject to downward or upward changes based on production performance, purchases or sales of properties, results of future development, prevailing oil and gas prices, production sharing contracts, which may decrease reserves as crude oil and natural gas prices increase, and other factors. Crude oil prices declined in 2020 and 2019, relative to comparative periods, resulting in reductions to our reported proved reserves. If crude oil prices in 2021 average below prices used to determine proved reserves at December 31, 2020, it could have an adverse effect on our estimates of proved reserve volumes and on the value of our business. See Crude Oil and Natural Gas Reserves in Critical Accounting Policies and Estimates in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Catastrophic and other events, whether naturally occurring or man-made, may materially affect our operations and financial condition. Our oil and gas operations are subject to numerous risks and hazards inherent to operating in the crude oil and natural gas industry, including catastrophic events, which may damage or destroy assets, interrupt operations, result in personal injury and have other significant adverse effects. These events include unexpected drilling conditions, pressure conditions or irregularities in reservoir formations, equipment malfunctions or failures, derailments, fires, explosions, blowouts, cratering, pipeline interruptions and ruptures, hurricanes, severe weather, geological events, shortages in availability of skilled labor, cyber-attacks or health measures related to COVID-19. We maintain insurance coverage against many, but not all, potential losses and liabilities in amounts we deem
20


prudent, including for property and casualty losses. There can be no assurance that such insurance will adequately protect us against liability from all potential consequences and damages. Moreover, some forms of insurance may be unavailable in the future or be available only on terms that are deemed economically unacceptable.
Significant time delays between the estimated and actual occurrence of critical events associated with development projects may result in material negative economic consequences. As part of our business, we are involved in large development projects, the completion of which may be delayed beyond what was originally planned. Such examples include, but are not limited to, delays in receiving necessary approvals from project members or regulatory or other government agencies, timely access to necessary equipment, availability of necessary personnel, construction delays, unfavorable weather conditions, equipment failures, and outbreaks of infectious diseases, such as COVID-19. These delays could impact our future results of operations and cash flows.
An inability to secure personnel, drilling rigs, equipment, supplies and other required services or to retain key employees may result in material negative economic consequences. We are dependent on oilfield service companies for items including drilling rigs, equipment, supplies and skilled labor. The availability and cost of drilling rigs, equipment, supplies and skilled labor will fluctuate over time given the cyclical nature of the E&P industry. As a result, we may encounter difficulties in obtaining required services or could face an increase in cost, including as a result of changes to our industry due to COVID-19, which may impact our ability to run our operations and deliver projects on time with the potential for material negative economic consequences. In addition, difficulty in recruiting and retaining adequate numbers of experienced technical personnel could negatively impact our ability to deliver on our strategic goals. Our future success also depends upon the continued service of key members of our senior management team, who play an important role in developing and implementing our strategy. An inability to recruit and retain adequate numbers of experienced technical and professional personnel in the necessary locations or the loss or departure of key members of senior management may prevent us from executing our strategy in full or, in part, which could negatively impact our business.
Disruption, failure or cyber security breaches affecting or targeting computer, telecommunications systems, and infrastructure used by the Corporation or our business partners may materially impact our business and operations. Computers and telecommunication systems are an integral part of our exploration, development and production activities and the activities of our business partners. We use these systems to analyze and store financial and operating data and to communicate within our corporation and with outside business partners. Our reliance on technology has increased due to the increased use of remote communications and other work-from-home practices in response to COVID-19. Technical system flaws, power loss, cyber security risks, including cyber or phishing-attacks, unauthorized access, malicious software, data privacy breaches by employees or others with authorized access, ransomware, and other cyber security issues could compromise our computer and telecommunications systems or those of our business partners and result in disruptions to our business operations or the access, disclosure or loss of our data and proprietary information. In addition, computers control oil and gas production, processing equipment, and distribution systems globally and are necessary to deliver our production to market. A disruption, failure or a cyber breach of these operating systems, or of the networks and infrastructure on which they rely, could damage critical production, distribution and/or storage assets, delay or prevent delivery to markets, and make it difficult or impossible to accurately account for production and settle transactions. As a result, any such disruption, failure or cyber breach and any resulting investigation or remediation costs, litigation or regulatory action could have a material adverse impact on our cash flows and results of operations, reputation and competitiveness. We routinely experience attempts by external parties to penetrate and attack our networks and systems. Although such attempts to date have not resulted in any material breaches, disruptions, financial loss, or loss of business-critical information, our systems and procedures for protecting against such attacks and mitigating such risks may prove to be insufficient in the future and such attacks could have an adverse impact on our business and operations, including damage to our reputation and competitiveness, remediation costs, litigation or regulatory actions. In addition, as technologies evolve and these cyber security attacks become more sophisticated, we may incur significant costs to upgrade or enhance our security measures to protect against such attacks and we may face difficulties in fully anticipating or implementing adequate preventive measures or mitigating potential harm.
Financial Risks
We have substantial capital requirements, and we may not be able to obtain needed financing on satisfactory terms. The exploration, development and production of crude oil and natural gas involve substantial costs, which may not be fully funded from operations. Two of the three major credit rating agencies that rate our debt have assigned an investment grade rating. Although currently we do not have any borrowings under our long-term credit facility, a ratings downgrade, continued weakness in the oil and gas industry or negative outcomes within commodity and financial markets could adversely impact our access to capital markets by increasing the costs of financing, or by impacting our ability to obtain financing on satisfactory terms. In addition, a ratings downgrade may require that we issue letters of credit or provide other forms of collateral under certain contractual requirements. Environmental concerns and other factors have led to lower oil and gas representation in certain key equity market indices and may increase our costs to access the equity capital markets. Any inability to access capital markets could adversely impact our financial adaptability and our ability to execute our strategy.

21


We engage in risk management transactions designed to mitigate commodity price volatility and other risks that may impede our ability to benefit from commodity price increases and can expose us to similar potential counterparty credit risk as amounts due from the sale of hydrocarbons. We may enter into commodity price hedging arrangements to protect us from commodity price declines. These arrangements may, depending on the instruments used and the level of additional hedges involved, limit any potential upside from commodity price increases. As with accounts receivable from the sale of hydrocarbons, we may be exposed to potential economic loss should a counterparty be unable or unwilling to perform their obligations under the terms of a hedging agreement. In addition, we are exposed to risks related to changes in interest rates and foreign currency values, and may engage in hedging activities to mitigate related volatility.
The alteration or discontinuation of LIBOR may adversely affect our borrowing costs. Certain borrowings on our credit facilities and term loan may use LIBOR as a benchmark for establishing the rate. LIBOR is the subject of recent national, international and other regulatory guidance and proposals for reform. These reforms and other pressures may cause LIBOR to be discontinued after 2021 or to perform differently than in the past. In the U.S., the Alternative Reference Rates Committee, which was convened by the Federal Reserve Board and the Federal Reserve Bank of New York, has proposed SOFR as an alternative to LIBOR. At this time, the consequences of these developments cannot be entirely predicted, but could include fluctuations in interest rates or an increase in the cost of our credit facility borrowings.
Regulatory, Legal and Environmental Risks
Our oil and gas operations are subject to environmental risks and environmental, health and safety laws and regulations that can result in significant costs and liabilities. Our oil and gas operations are subject to environmental risks such as oil spills, produced water spills, gas leaks and ruptures and discharges of substances or gases that could expose us to substantial liability for pollution or other environmental damage. Our operations are also subject to numerous U.S. federal, state, local and foreign environmental, health and safety laws and regulations. Non-compliance with these laws and regulations may subject us to administrative, civil or criminal penalties, remedial clean-ups, natural resource damages and other liabilities. In addition, increasingly stringent environmental regulations have resulted and will likely continue to result in higher capital expenditures and operating expenses for us. Similarly, we have material legal obligations to dismantle, remove and abandon production facilities and wells that will occur many years in the future, in most cases. These estimates may be impacted by future changes in regulations, solvency of subsequent owners and partners and other uncertainties.
Concerns have been raised in certain jurisdictions where we have operations concerning the safety and environmental impact of the drilling and development of shale oil and gas resources, particularly hydraulic fracturing, water usage, flaring of associated natural gas and air emissions. While we believe that these operations can be conducted safely and with minimal impact on the environment, regulatory bodies are responding to these concerns and may impose moratoriums and new regulations on such drilling operations that would likely have the effect of prohibiting or delaying such operations and increasing their cost.
Climate change and sustainability initiatives may result in significant operational changes and expenditures, reduced demand for our products and adversely affect our business. We recognize that climate change and sustainability is a growing global environmental concern. Continuing political and social attention to the issue of climate change and sustainability has resulted in both existing and pending international agreements and national, regional or local legislation and regulatory measures to limit GHG emissions. These agreements and measures may require, or could result in future legislation and regulatory measures that require, significant equipment modifications, operational changes, taxes, or purchase of emission credits to reduce emission of GHGs from our operations, which may result in substantial capital expenditures and compliance, operating, maintenance and remediation costs. In addition, our production is sold to third parties that produce petroleum fuels, which through normal end user consumption result in the emission of GHGs. As a result of heightened public awareness and attention to climate change and sustainability as well as continued regulatory initiatives to reduce the use of these fuels, demand for crude oil and other hydrocarbons may be reduced, which may have an adverse effect on our sales volumes, revenues and margins. The imposition and enforcement of stringent GHG emissions reduction requirements could severely and adversely impact the oil and gas industry and therefore significantly reduce the value of our business. Shareholder activism has been recently increasing in our industry, and shareholders may attempt to effect changes to our business or governance, whether by shareholder proposals, public campaigns, proxy solicitations or otherwise. In addition, certain financial institutions, institutional investors and other sources of capital have begun to limit or eliminate their investment in oil and gas activities due to concerns about climate change, which could make it more difficult to finance our business. Furthermore, increasing attention to climate change risks and sustainability has resulted in governmental investigations, and public and private litigation, which could increase our costs or otherwise adversely affect our business. For example, beginning in 2017, certain states, municipalities and private associations in California, Delaware, Maryland, Rhode Island and South Carolina separately filed lawsuits against oil, gas and coal producers, including us, for alleged damages purportedly caused by climate change. Such actions could adversely impact our business by distracting management and other personnel from their primary responsibilities, require us to incur increased costs, and/or result in reputational harm.
We are subject to changing laws and regulations and other governmental actions that can significantly and adversely affect our business. Political or regulatory developments and governmental actions, including federal, state, local, territorial and foreign laws and regulations may adversely affect our operations and those of our counterparties with whom we have contracted, which may affect our financial results. These requirements relate to tax increases and retroactive tax claims, disallowance of tax credits and
22


deductions, including post-production deductions from royalty payments; limitations or prohibitions on the sales of new and extensions on existing oil and gas leases; expropriation or nationalization of property; mandatory government participation, cancellation or amendment of contract rights; imposition of capital controls or blocking of funds; changes in import and export regulations; the imposition of tariffs; and anti-bribery or anti-corruption laws. In recent years, proposals for limitations on access to oil and gas exploration and development opportunities and related litigation have grown in certain areas and may include efforts to reduce access to public and private lands; restriction of exploration and production activities within government-owned and other lands; delaying or canceling permits for drilling or pipeline construction; restrictions or changes to existing pipeline easements; limiting or banning industry techniques such as hydraulic fracturing and/or adding restrictions on the use of water and associated disposal; imposition of set-backs on oil and gas sites; reduction of sulfur content in bunker fuel; delaying or denying air-quality or siting permits; advocating for increased regulations, punitive taxation, or citizen ballot initiatives or moratoriums on industry activity; and the use of social media channels to cause reputational harm. Costs associated with responding to these anti-development efforts or complying with any new legal or regulatory requirements could significantly and adversely affect our business, financial condition and results of operations. For example, if a temporary or permanent shutdown of the DAPL occurs as a result of the on-going litigation related to use of its easement to cross under the Missouri River, we will need to use alternative means to transport approximately 55,000 bopd of crude oil production in the Bakken, which may increase Bakken price differentials because it would require the use of additional rail cars and personnel to move any displaced DAPL barrels.
Political instability in areas where we operate can adversely affect our business. Some of the international areas in which we operate are politically less stable than other areas and may be subject to civil unrest, conflict, insurgency, corruption, security risks and labor unrest. Political instability and civil unrest in North Africa, South America and the Middle East has affected and may continue to affect our interests in these areas as well as oil and gas markets generally. In addition, geographic territorial border disputes may affect our business in certain areas, such as the border dispute between Guyana and Venezuela over a portion of the Stabroek Block. Political instability exposes our operations to increased risks, including increased difficulty in obtaining required permits and government approvals, enforcing our agreements in those jurisdictions and potential adverse actions by local government authorities. The threat of terrorism around the world also poses additional risks to our operations and the operations of the oil and gas industry in general.
One of our subsidiaries is the general partner of a publicly traded limited partnership, Hess Midstream LP. The responsibilities associated with being a general partner expose us to a broader range of legal liabilities. Our control of Hess Midstream LP bestows upon us additional duties and obligations including, but not limited to, the obligations associated with managing potential conflicts of interests and additional reporting requirements from the Securities and Exchange Commission. These heightened duties expose us to additional potential for legal claims that may have a material negative economic impact on our shareholders. Moreover, these increased duties may lead to an increase in compliance costs.
Item 1B.  Unresolved Staff Comments
None.
23


Item 3.  Legal Proceedings
We are subject to loss contingencies with respect to various claims, lawsuits and other proceedings. A liability is recognized in our consolidated financial statements when it is probable that a loss has been incurred and the amount can be reasonably estimated. If the risk of loss is probable, but the amount cannot be reasonably estimated or the risk of loss is only reasonably possible, a liability is not accrued; however, we disclose the nature of those contingencies. We cannot predict with certainty if, how or when existing claims, lawsuits and proceedings will be resolved or what the eventual relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages.
We, along with many companies that have been or continue to be engaged in refining and marketing of gasoline, have been a party to lawsuits and claims related to the use of MTBE in gasoline. A series of similar lawsuits, many involving water utilities or governmental entities, were filed in jurisdictions across the U.S. against producers of MTBE and petroleum refiners who produced gasoline containing MTBE, including us. The principal allegation in all cases was that gasoline containing MTBE was a defective product and that these producers and refiners are strictly liable in proportion to their share of the gasoline market for damage to groundwater resources and are required to take remedial action to ameliorate the alleged effects on the environment of releases of MTBE. The majority of the cases asserted against us have been settled. There are three remaining active cases, filed by Pennsylvania, Rhode Island, and Maryland. In June 2014, the Commonwealth of Pennsylvania filed a lawsuit alleging that we and all major oil companies with operations in Pennsylvania, have damaged the groundwater by introducing thereto gasoline with MTBE. The Pennsylvania suit has been forwarded to the existing MTBE multidistrict litigation pending in the Southern District of New York. In September 2016, the State of Rhode Island also filed a lawsuit alleging that we and other major oil companies damaged the groundwater in Rhode Island by introducing thereto gasoline with MTBE. The suit filed in Rhode Island is proceeding in federal court. In December 2017, the State of Maryland filed a lawsuit alleging that we and other major oil companies damaged the groundwater in Maryland by introducing thereto gasoline with MTBE. The suit, filed in Maryland state court, was served on us in January 2018 and has been removed to federal court by the defendants.
In September 2003, we received a directive from the New Jersey Department of Environmental Protection (NJDEP) to remediate contamination in the sediments of the Lower Passaic River. The NJDEP is also seeking natural resource damages. The directive, insofar as it affects us, relates to alleged releases from a petroleum bulk storage terminal in Newark, New Jersey we previously owned. We and over 70 companies entered into an Administrative Order on Consent with the EPA to study the same contamination; this work remains ongoing. We and other parties settled a cost recovery claim by the State of New Jersey and agreed with the EPA to fund remediation of a portion of the site. On March 4, 2016, the EPA issued a Record of Decision (ROD) in respect of the lower eight miles of the Lower Passaic River, selecting a remedy that includes bank-to-bank dredging at an estimated cost of $1.38 billion. The ROD does not address the upper nine miles of the Lower Passaic River or the Newark Bay, which may require additional remedial action. In addition, the federal trustees for natural resources have begun a separate assessment of damages to natural resources in the Passaic River. Given that the EPA has not selected a remedy for the entirety of the Lower Passaic River or the Newark Bay, total remedial costs cannot be reliably estimated at this time. Based on currently known facts and circumstances, we do not believe that this matter will result in a significant liability to us because our former terminal did not store or use contaminants which are of concern in the river sediments and could not have contributed contamination along the river’s length. Further, there are numerous other parties who we expect will bear the cost of remediation and damages.
In March 2014, we received an Administrative Order from the EPA requiring us and 26 other parties to undertake the Remedial Design for the remedy selected by the EPA for the Gowanus Canal Superfund Site in Brooklyn, New York. Our alleged liability derives from our former ownership and operation of a fuel oil terminal and connected shipbuilding and repair facility adjacent to the Canal. The remedy selected by the EPA includes dredging of surface sediments and the placement of a cap over the deeper sediments throughout the Canal and in-situ stabilization of certain contaminated sediments that will remain in place below the cap. The EPA’s original estimate was that this remedy would cost $506 million; however, the ultimate costs that will be incurred in connection with the design and implementation of the remedy remain uncertain. We have complied with the EPA’s March 2014 Administrative Order and contributed funding for the Remedial Design based on an allocation of costs among the parties determined by a third-party expert. In January 2020, we received an additional Administrative Order from the EPA requiring us and several other parties to begin Remedial Action along the uppermost portion of the Canal. We intend to comply with this Administrative Order. The remediation work began in the fourth quarter of 2020. Based on currently known facts and circumstances, we do not believe that this matter will result in a significant liability to us, and the costs will continue to be allocated amongst the parties, as they were for the Remedial Design.
From time to time, we are involved in other judicial and administrative proceedings relating to environmental matters. We periodically receive notices from the EPA that we are a “potential responsible party” under the Superfund legislation with respect to various waste disposal sites. Under this legislation, all potentially responsible parties may be jointly and severally liable. For any site for which we have received such a notice, the EPA’s claims or assertions of liability against us relating to these sites have not been fully developed, or the EPA’s claims have been settled or a settlement is under consideration, in all cases for amounts that are not material. Beginning in 2017, certain states, municipalities and private associations in California, Delaware, Maryland, Rhode Island and South Carolina separately filed lawsuits against oil, gas and coal producers, including us, for alleged damages purportedly caused by climate change. These proceedings include claims for monetary damages and injunctive relief. Beginning in 2013, various
24


parishes in Louisiana filed suit against approximately 100 oil and gas companies, including us, alleging that the companies’ operations and activities in certain fields violated the State and Local Coastal Resource Management Act of 1978, as amended, and caused contamination, subsidence and other environmental damages to land and water bodies located in the coastal zone of Louisiana. The plaintiffs seek, among other things, the payment of the costs necessary to clear, re-vegetate and otherwise restore the allegedly impacted areas. The ultimate impact of the aforementioned proceedings, and of any related proceedings by private parties, on our business or accounts cannot be predicted at this time due to the large number of other potentially responsible parties and the speculative nature of clean-up cost estimates.
We are also involved in other judicial and administrative proceedings from time to time in addition to the matters described above, including claims related to post-production deductions from royalty payments. We cannot predict with certainty if, how or when such proceedings will be resolved or what the eventual relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters before a loss or range of loss can be reasonably estimated for any proceeding.
Subject to the foregoing, in management’s opinion, based upon currently known facts and circumstances, the outcome of lawsuits, claims and proceedings, including the matters disclosed above, is not expected to have a material adverse effect on our financial condition, results of operations or cash flows. However, we could incur judgments, enter into settlements, or revise our opinion regarding the outcome of certain matters, and such developments could have a material adverse effect on our results of operations in the period in which the amounts are accrued and our cash flows in the period in which the amounts are paid.
Item 4.  Mine Safety Disclosures
None.
25


PART II
Item 5.  Market for the Registrant’s Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities
Stock Market Information, Holders and Dividends
Our common stock is traded principally on the New York Stock Exchange (ticker symbol: HES).  At January 31, 2021, there were 2,867 stockholders (based on the number of holders of record) who owned a total of 306,986,553 shares of common stock.  In 2020, 2019 and 2018, cash dividends on common stock totaled $1.00 per share per year ($0.25 per quarter).
Performance Graph
Set forth below is a line graph comparing the five-year shareholder returns on a $100 investment in our common stock assuming reinvestment of dividends, against the cumulative total returns for the following:
Standard & Poor’s (S&P) 500 Stock Index, which includes us.
Proxy Peer Group comprising 10 oil and gas peer companies, including us, as disclosed in our 2020 Proxy Statement, excluding Chesapeake Energy Corporation, which filed for bankruptcy in June 2020, and Noble Energy, Inc. which was acquired in October 2020.
Comparison of Five-Year Shareholder Returns
Years Ended December 31,

hes-20201231_g1.jpg
201520162017201820192020
hes-20201231_g2.jpgHess Corporation
$100.00$130.90$102.01$88.61$148.62$120.10
hes-20201231_g3.jpgS&P 500
$100.00$111.95$136.38$130.39$171.44$202.96
hes-20201231_g4.jpgProxy Peer Group
$100.00$143.91$138.85$111.28$117.20$70.48

26


Share Repurchase Activities
Our share repurchases for the year ended December 31, 2020, were as follows:
2020Total Number of
Shares Purchased (a)(b)
Average
Price Paid
per Share (a)
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs (c)
Maximum Approximate
Dollar Value of
Shares that May
Yet be Purchased
Under the Plans
or Programs (d)
(In millions)
March 1, 2020 through March 31, 202035,202 $32.34 — $650 
Total for 202035,202 $32.34 —  
(a)Repurchased in open-market transactions. The average price paid per share is inclusive of transaction fees.
(b)All of the shares repurchased were subsequently granted to directors in accordance with the Non-Employee Directors' Stock Award Program.
(c)Since initiation of the buyback program in August 2013, total shares repurchased through December 31, 2020 amounted to 91.9 million at a total cost of $6.85 billion including transaction fees.
(d)In March 2013, we announced that our Board of Directors approved a stock repurchase program that authorized the purchase of common stock up to a value of $4.0 billion.  In May 2014, the share repurchase program was increased to $6.5 billion and in March 2018, it was increased further to $7.5 billion.
Equity Compensation Plans
Following is information related to our equity compensation plans at December 31, 2020.
Plan CategoryNumber of Securities
to be Issued Upon Exercise of Outstanding Options, Warrants and Rights *
Weighted Average
Exercise Price of
Outstanding Options,
Warrants and Rights
Number of Securities
Remaining Available
for Future Issuance
Under Equity
Compensation Plans
(Excluding Securities
Reflected in
Column*)
Equity compensation plans approved by security holders4,382,243 (a)$61.57 13,006,658 (b)
Equity compensation plans not approved by security holders (c)—  — —  
(a)This amount includes 4,382,243 shares of common stock issuable upon exercise of outstanding stock options.  This amount excludes 806,270 performance share units (PSUs) for which the number of shares of common stock to be issued may range from 0% to 200%, based on our total shareholder return (TSR) relative to the TSR of a predetermined group of peer companies over a three‑year performance period ending December 31 of the year prior to settlement of the grant.  Beginning with the PSUs granted in 2020, the Corporation's TSR is compared to the TSR of a predetermined group of peer companies and the S&P 500 index over the three-year performance period. In addition, this amount also excludes 1,917,459 shares of common stock issued as restricted stock pursuant to our equity compensation plans.
(b)These securities may be awarded as stock options, restricted stock, PSUs or other awards permitted under our equity compensation plan.
(c)We have a Non-Employee Director’s Stock Award Plan pursuant to which each of our non-employee directors received $175,000 in value of our common stock.  These awards are made from shares we have purchased in the open market.
See Note 14, Share‑based Compensation in the Notes to Consolidated Financial Statements for further discussion of our equity compensation plans.
27


Item 6.  Selected Financial Data
The following is a five‑year summary of selected financial data that should be read in conjunction with both our Consolidated Financial Statements and Accompanying Notes, and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Annual Report:
 20202019201820172016
 (In millions, except per share amounts)
Income Statement Selected Financial Data     
Sales and other operating revenues     
Crude oil (a)$3,149 $5,233 $4,960 $4,239 $3,639 
Natural gas liquids (a)297 347 533 457 264 
Natural gas (a)648 876 965 750 766 
Other operating revenues (b)573 39 (135)20 93 
Total Sales and other operating revenues$4,667 $6,495 $6,323 $5,466 $4,762 
Net income (loss)$(2,839)$(240)$(115)$(3,941)$(6,076)
Less: Net income (loss) attributable to noncontrolling interests254 168 167 133 56 
Net income (loss) attributable to Hess Corporation$(3,093)(d)$(408)(e)$(282)(f)$(4,074)(g)$(6,132)(h)
Net Income (Loss) Attributable to Hess Corporation Per Common Share:
Basic$(10.15)$(1.37)$(1.10)$(13.12)$(19.92)
Diluted(10.15)(1.37)(1.10)(13.12)(19.92)
Balance Sheet Selected Financial Data     
Total assets$18,821 $21,782 $21,433 $23,112 $28,621 
Total debt and finance lease obligations (c)$8,534 $7,397 $6,672 $6,977 $6,806 
Total equity$6,335 $9,706 $10,888 $12,354 $15,591 
Dividends Per Share     
Dividends per share of common stock$1.00 $1.00 $1.00 $1.00 $1.00 
(a)Represents sales of Hess net production and purchased third-party volumes.
(b)Commencing with the adoption of Accounting Standards Codification 606, Revenue from Contracts with Customers, using the modified retrospective method effective January 1, 2018, gains (losses) on commodity derivatives are included within Other operating revenues.  Prior to January 1, 2018, gains (losses) on commodity derivatives were included within Crude oil revenues.
(c)At December 31, 2020 includes debt from our Midstream operating segment of $1,910 million that is non-recourse to Hess Corporation (2019: $1,753 million; 2018: $981 million; 2017: $980 million; 2016: $733 million).
(d)Includes after-tax asset impairment charges of $2.0 billion, after-tax charges of $150 million primarily related to the write-off of previously capitalized exploratory wells in the Gulf of Mexico and the write-off of leasehold costs, after-tax charges of $99 million, related to the reduction of crude oil inventories to their net realizable value, employee termination benefits incurred, and the write-off of right of use assets and surplus materials and supplies inventories, partially offset by an after-tax gain of $79 million related to the sale of our working interest in the Shenzi Field in the Gulf of Mexico.
(e)Includes an allocation of noncash income tax expense of $86 million that was previously a component of accumulated other comprehensive income related to our 2019 crude oil hedge contracts, an after-tax charge of $88 million related to a pension settlement, a charge after income taxes and noncontrolling interests of $16 million for transaction related costs for Hess Midstream Partners LP acquisition of HIP and corporate restructuring, and an after-tax charge of $19 million related to a settlement on historical cost recovery balances in the JDA.  These charges were partially offset by a noncash income tax benefit of $60 million to reverse a valuation allowance against net deferred tax assets in Guyana upon achieving first production, and an after-tax gain of $22 million related to the sale of our remaining acreage in the Utica shale play.
(f)Includes after-tax charges of $221 million related to exit costs, settlement of legal claims related to a former downstream interest, and a loss from debt extinguishment.  These charges were, partially offset by a noncash income tax benefit of $91 million primarily related to intraperiod income tax allocation requirements resulting from changes in fair value of our 2019 crude oil hedging program, and gains totaling $24 million related to asset sales.
(g)Includes after-tax asset impairment charges of $2,250 million, an after-tax dry hole and lease impairment charge of $280 million, a combined after-tax loss of $91 million related to asset sales (Norway, Equatorial Guinea and Permian), and after-tax charges of $52 million primarily for de-designated crude oil hedging contracts and other exit costs.
(h)Includes noncash charges of $3,749 million to establish valuation allowances on deferred tax assets following a three-year cumulative loss and after-tax charges of $894 million primarily for dry hole and other exploration expenses, loss on debt extinguishment, offshore rig costs, severance, and impairment of older specification rail cars.











28


Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read together with the Consolidated Financial Statements and the Notes to Consolidated Financial Statements, which are included in this Form 10-K in Item 8, and the information set forth in Risk Factors under Item 1A.
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations omits certain discussions of our financial condition and results of operations for the year ended December 31, 2018 compared with the year ended December 31, 2019, which can be found in Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2019 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on February 20, 2020, and such comparisons are incorporated herein by reference.
Index
Overview
Consolidated Results of Operations
Liquidity and Capital Resources
Critical Accounting Policies and Estimates

Overview
Hess Corporation is a global E&P company engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids, and natural gas with production operations located primarily in the United States (U.S.), Guyana, the Malaysia/Thailand Joint Development Area (JDA), Malaysia, and Denmark. We conduct exploration activities primarily offshore Guyana, in the U.S. Gulf of Mexico, and offshore Suriname and Canada. At the Stabroek Block (Hess 30%), offshore Guyana, we have announced eighteen significant discoveries. The Liza Phase 1 development achieved first production in December 2019, and reached its nameplate production capacity of approximately 120,000 gross bopd in December 2020. The Liza Phase 2 development was sanctioned in the second quarter of 2019 and is expected to achieve first production by early 2022, with production capacity of approximately 220,000 gross bopd. A third development, Payara, was sanctioned in the third quarter of 2020 and is expected to achieve first production in 2024, with production capacity of approximately 220,000 gross bopd. The discovered resources to date on the Stabroek Block are expected to underpin up to ten FPSOs with the first five FPSOs producing more than 750,000 gross bopd by 2026.
Our Midstream operating segment, which is comprised of Hess Corporation’s 47% consolidated ownership interest in Hess Midstream LP at December 31, 2020, provides fee-based services, including gathering, compressing and processing natural gas and fractionating NGL; gathering, terminaling, loading and transporting crude oil and NGL; storing and terminaling propane, and water handling services primarily in the Bakken shale play in the Williston Basin area of North Dakota.
Hess Response to COVID-19 and Market Conditions
COVID-19 continues to have a profound impact on society and industry. The Corporation’s first priority in the midst of the pandemic has been the health and safety of the Hess workforce and local communities where the Corporation operates. A multidisciplinary Hess emergency response team has been overseeing plans and precautions to reduce the risks of COVID-19 in the work environment while maintaining business continuity based on the most current recommendations by government and public health agencies. The Corporation has implemented a variety of health and safety measures including enhanced cleaning procedures and modified work practices such as travel restrictions, health screenings, reduced personnel at offshore platforms and onshore work sites wherever this can be done safely, and remote working arrangements for office workers. In July 2020, Hess Midstream LP announced that the planned maintenance turnaround at the Tioga Gas Plant originally scheduled for the third quarter of 2020 will be deferred until 2021 to ensure safe execution in light of COVID-19.
In addition to the global health concerns of COVID-19, the pandemic has severely impacted demand for oil. Our realized crude oil selling prices, including hedging, were $44.28 per barrel in 2020 (2019: $56.77; 2018: $60.77). In response to the resulting sharp decline in oil prices, the Corporation’s focus is on preserving cash and capability, while protecting the long-term value of its assets. In the first quarter of 2020, we reduced our E&P capital and exploratory budget of $3.0 billion for 2020 to $1.9 billion, and we ended the year with actual capital and exploratory expenditures of $1.8 billion. This reduction was achieved primarily by shifting from a six rig program to one rig in the Bakken, which was accomplished in May, deferral of some 2020 development activities on the Stabroek Block, offshore Guyana, and deferring discretionary spending across the portfolio. In March 2020, Hess entered into a $1.0 billion three year term loan agreement, and in November, we sold our 28% working interest in the Shenzi Field for net proceeds of $482 million, after closing adjustments.
29


2021 Outlook
Our E&P capital and exploratory expenditures are projected to be approximately $1.9 billion in 2021.  Capital investment for our Midstream operations is expected to be approximately $160 million.  Oil and gas net production in 2021 is forecast to be approximately 310,000 boepd excluding Libya. For 2021, we have WTI put options with an average monthly floor price of $50 per barrel for 120,000 bopd, and Brent put options with an average monthly floor price of $55 per barrel for 30,000 bopd.
Net cash provided by operating activities was $1,333 million in 2020, compared with $1,642 million in 2019, while net cash provided by operating activities before changes in operating assets and liabilities was $1,803 million in 2020 and $2,237 million in 2019.  Capital expenditures for 2020 and 2019 were $1,931 million and $2,992 million, respectively.  In 2021, based on current forward strip crude oil prices, we expect cash flow from operating activities, proceeds from the first quarter 2021 sale of 4.2 million barrels of crude oil stored on two VLCCs at year-end, and cash and cash equivalents existing at December 31, 2020 of $1.74 billion will be sufficient to fund our capital investment program and dividends. Due to the volatile commodity price environment, we may take any of the following steps, or a combination thereof, to improve our liquidity and financial position: reduce the planned capital program and other cash outlays, including dividends, pursue asset sales, borrow against our committed revolving credit facility, or issue debt or equity securities.
Consolidated Results
Net loss attributable to Hess Corporation was $3,093 million in 2020 (2019: $408 million).  Excluding items affecting comparability of earnings between periods summarized on page 33, the adjusted net loss was $894 million in 2020 (2019: $281 million).  Annual net production averaged 331,000 boepd in 2020 (2019: 311,000 boepd).  Total proved reserves were 1,170 million boe at December 31, 2020 (2019: 1,197 million boe).
Significant 2020 Activities
The following is an update of significant E&P activities during 2020:
E&P assets:
In North Dakota, net production from the Bakken shale play averaged 193,000 boepd in 2020 (2019: 152,000 boepd), with net oil production up 15% to 107,000 bopd from 93,000 bopd primarily due to increased wells online and improved well performance. Natural gas and NGL production also increased from higher wells online, additional natural gas captured and processed, and approximately 7,000 boepd of additional volumes received under percentage of proceeds contracts resulting from lower prices. During the year, we operated six rigs in the Bakken through May, before reducing to one rig for the remainder of 2020 in response to the sharp decline in oil prices resulting from the COVID-19 pandemic. We drilled 71 wells and brought 111 wells on production, bringing the total operated production wells to 1,686 by year-end.  We reduced the average cost of a plug and perf well in 2020 to $6.2 million per well from $6.8 million per well in 2019. We forecast net production from the Bakken to average approximately 170,000 boepd in 2021.
In the second quarter, we chartered three VLCCs and loaded a total of 6.3 million barrels of oil for sale in Asian markets to enhance cash flow and maximize value from our Bakken production. The first VLCC cargo of 2.1 million barrels was sold in China in September. We have agreements in place to sell the remaining two VLCC cargos totaling 4.2 million barrels in the first quarter of 2021. We expect to recognize net income of approximately $60 million in the first quarter of 2021 from these sales, including associated hedging gains and costs.
In the Gulf of Mexico, net production averaged 56,000 boepd (2019: 66,000 boepd) reflecting the effect of increased hurricane-related downtime, higher planned maintenance and lower production from the Shenzi Field, which was sold in November 2020, partially offset by initial production from the Esox-1 well, which commenced in February of 2020. Net production from the Shenzi Field was 9,000 boepd in 2020 (2019: 12,000 boepd). We forecast Gulf of Mexico net production for 2021 to average approximately 45,000 boepd.
We participated in two outside operated exploration wells that were completed in 2020, the Oldfield-1 well and the Galapagos Deep well, both located in the Mississippi Canyon area. Both wells were unsuccessful.
At the Stabroek Block (Hess 30%), offshore Guyana, net production from the Liza Phase 1 development averaged 20,000 bopd in 2020 following first production in December 2019 from the Liza Destiny FPSO. During the fourth quarter, the operator Esso Exploration and Production Guyana Limited, reached its nameplate capacity of 120,000 gross bopd. For 2021, net production from Guyana is expected to average approximately 30,000 bopd.
The Liza Phase 2 development was sanctioned in 2019 and will utilize the Liza Unity FPSO to produce up to 220,000 gross bopd, with first production expected by early 2022.  A total of 30 wells are planned at six drill centers, including 15 production wells, nine water injection wells and six gas injection wells. In 2021, the operator plans to continue development
30


drilling, complete installation of subsea flow lines and equipment, complete installation of topside facilities on the FPSO and sail the Liza Unity FPSO from Singapore to the Liza Field.
On September 30, 2020, we announced the final investment decision to proceed with development of the Payara Field on the Stabroek Block after the development plan received approval from the government of Guyana. Payara will utilize the Prosperity FPSO, which will have the capacity to produce up to 220,000 gross bopd, with first production expected in 2024. Ten drill centers with a total of 41 wells are planned, including 20 production wells and 21 injection wells. Excluding pre-sanction costs and FPSO purchase cost, our net share of development costs is forecast to be approximately $1.8 billion.
In addition to the first three developments, planning is underway for additional FPSOs.  The ultimate sizing and timing of these potential developments will be a function of further exploration and appraisal drilling.
In 2020, two successful exploration wells and one successful appraisal well were drilled on the Stabroek Block.  For 2021, the operator plans to bring in a fifth drillship in March and a sixth drillship in April and drill 12 to 15 exploration and appraisal wells during the year.
At the Kaieteur Block (Hess 15%), offshore Guyana, the operator, Esso Exploration and Production Guyana Limited, completed drilling of the Tanager-1 exploration well. The well did encounter hydrocarbons but was not a commercial success on a stand-alone basis.
In the Gulf of Thailand, net production from Block A‑18 of the JDA averaged 29,000 boepd for the year (2019: 35,000 boepd), including contribution from unitized acreage in Malaysia, while net production from North Malay Basin averaged 23,000 boepd for the year (2019: 28,000 boepd).  During 2020, we drilled seven production wells at North Malay Basin, and plan to continue the drilling program and development activities in 2021.  We also expect to commence a multi-year drilling program in the first half of 2021 at the JDA.  Combined net production from our JDA and North Malay Basin assets is forecast to average approximately 60,000 boepd in 2021.
The following is an update of significant Midstream activities during 2020:
In 2019, Hess Midstream LP announced plans to expand processing capacity at the Tioga Gas Plant by 150 mmcfd for total processing capacity of 400 mmcfd.  In 2020, the facility construction was completed for the expansion. The incremental gas processing capacity is expected to be available in 2021 upon completion of a scheduled plant maintenance turnaround, during which the expansion and residue and NGL takeaway pipelines will be tied in. The plant maintenance turnaround was originally planned to occur in the third quarter of 2020 but was deferred to 2021 to ensure safe execution in light of the COVID-19 pandemic.
On December 30, 2020, Hess Midstream LP exercised its renewal options to extend the terms of certain gas gathering, crude oil gathering, gas processing and fractionation, storage, and terminal and export commercial agreements for the secondary term through December 31, 2033. There were no changes to any provisions of the existing commercial agreements as a result of the exercise of the renewal options.
31


Liquidity and Capital and Exploratory Expenditures
In 2020, net cash provided by operating activities was $1,333 million (2019: $1,642 million).  At December 31, 2020, cash and cash equivalents were $1,739 million (2019: $1,545 million), consolidated debt was $8,296 million (2019: $7,142 million), and our debt to capitalization ratio (as defined in the credit agreement for our revolving credit facility and the term loan agreement) was 47.5% (2019: 39.6%).  Hess Midstream debt, which is nonrecourse to Hess Corporation, was $1,910 million at December 31, 2020 (2019: $1,753 million).
Capital and exploratory expenditures were as follows (in millions):
 202020192018
E&P Capital and Exploratory Expenditures:   
United States   
North Dakota$661 $1,312 $967 
Offshore and other258 471 411 
Total United States919 1,783 1,378 
Guyana743 783 383 
Malaysia and JDA99 109 123 
Other (a)25 68 185 
E&P Capital and Exploratory Expenditures$1,786 $2,743 $2,069 
Exploration Expenses Charged to Income Included Above:   
United States$91 $105 $106 
International17 62 54 
Total Exploration Expenses Charged to Income included above$108 $167 $160 
Midstream Capital Expenditures:   
Midstream Capital Expenditures (b)$253 $416 $271 
(a)Other includes our interests in Denmark, Libya and other non-producing countries.
(b)Excludes equity investments of $33 million in 2019 and $67 million in 2018.
In 2021, we project our E&P capital and exploratory expenditures will be approximately $1.9 billion and Midstream capital expenditures to be approximately $160 million.
Consolidated Results of Operations
Results by Segment:
The after-tax income (loss) by major operating activity is summarized below:
 202020192018
 (In millions, except per share amounts)
Net Income (Loss) Attributable to Hess Corporation:   
Exploration and Production$(2,841)$53 $51 
Midstream230 144 120 
Corporate, Interest and Other(482)(605)(453)
Total$(3,093)$(408)$(282)
Net Income (Loss) Attributable to Hess Corporation Per Common Share - Diluted (a)$(10.15)$(1.37)$(1.10)
(a)Calculated as net income (loss) attributable to Hess Corporation less preferred stock dividends, divided by weighted average number of diluted shares.
In the following discussion and elsewhere in this report, the financial effects of certain transactions are disclosed on an after-tax basis.  Management reviews segment earnings on an after-tax basis and uses after-tax amounts in its review of variances in segment earnings.  Management believes that after-tax amounts are a preferable method of explaining variances in earnings, since they show the entire effect of a transaction rather than only the pre-tax amount.  After-tax amounts are determined by applying the income tax rate in each tax jurisdiction to pre-tax amounts.

32


Items Affecting Comparability of Earnings Between Periods:
The following table summarizes items of income (expense) that are included in net income (loss) and affect comparability of earnings between periods.  The items in the table below are explained on pages 38 through 41.
 202020192018
 (In millions)
Items Affecting Comparability of Earnings Between Periods, After Income Taxes:   
Exploration and Production$(2,198)$63 $