Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Share-based Compensation Cost by Award Type

Share‑based compensation expense consisted of the following:

	2023		2022		2021
	(In millions)
Restricted stock	$	55	$	52	$	49
Performance share units	21		20		18
Stock options	11		11		10
Share-based compensation expense before income taxes	$	87	$	83	$	77
Income tax benefit on share-based compensation expense	$	—	$	—	$	—

Summary of Restricted Stock Award Activity

The following is a summary of restricted stock award activity in 2023:

	Shares of Restricted Common Stock	Weighted - Average Price on Date of Grant
	(In thousands, except per share amounts)
Outstanding at January 1, 2023	1,312	$	80.61
Granted	470	141.76
Vested (a)	(735)	73.24
Forfeited	(26)	104.14
Outstanding at December 31, 2023	1,021	$	113.47

(a)In 2023, restricted stock with a vesting date fair value of $104 million were vested (2022: $86 million; 2021: $72 million).

Summary of Performance Share Units Activity

The following is a summary of PSU activity in 2023:

	Performance Share Units	Weighted - Average Fair Value on Date of Grant
	(In thousands, except per share amounts)
Outstanding at January 1, 2023	686	$	81.25
Granted	130	178.80
Vested (a)	(303)	57.93
Forfeited	(1)	104.54
Outstanding at December 31, 2023	512	$	119.77

(a)In 2023, PSU’s with a vesting date fair value of $55 million were vested (2022: $37 million; 2021: $30 million).

Assumptions to Estimate Fair Value of Performance Share Units

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

	2023			2022			2021
Risk free interest rate	4.61		%	1.59		%	0.29		%
Stock price volatility	0.478			0.584			0.579
Contractual term in years	3.0			3.0			3.0
Grant date price of Hess common stock	$	141.95		$	101.17		$	75.04

Summary of Stock Options Activity

The following is a summary of stock options activity in 2023:

	Number of options (In thousands)	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term
Outstanding at January 1, 2023	1,481	$	69.31	6.6 years
Granted	189	141.71
Exercised	(157)	64.34
Forfeited	(3)	90.73
Outstanding at December 31, 2023	1,510	$	78.85	6.1 years

Assumptions to Estimate Fair Value of Stock Options

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

	2023			2022			2021
Risk free interest rate	4.20		%	1.66		%	0.95		%
Stock price volatility	0.469			0.457			0.470
Dividend yield	1.24		%	1.48		%	1.33		%
Expected life in years	6.0			6.0			6.0
Weighted average fair value per option granted	$	63.45		$	39.51		$	29.66