Debt

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Debt

7.  Debt

Total debt at December 31 consisted of the following:

	2024		2023
	(In millions)
Debt – Hess Corporation:
Senior unsecured fixed-rate public notes:
3.500% due 2024	$	—	$	300
4.300% due 2027	998		997
7.875% due 2029	465		465
7.300% due 2031	629		629
7.125% due 2033	538		537
6.000% due 2040	743		743
5.600% due 2041	1,238		1,238
5.800% due 2047	495		495
Total senior unsecured fixed-rate public notes	5,106		5,404
Fair value adjustments – interest rate hedging	—		(2)
Total Debt – Hess Corporation	$	5,106	$	5,402
Debt – Midstream (Hess Midstream Operations LP):
Senior unsecured fixed-rate public notes:
5.625% due 2026 (a)	$	798	$	795
5.125% due 2028	545		545
6.500% due 2029	592		—
4.250% due 2030	743		742
5.500% due 2030	396		395
Total senior unsecured fixed-rate public notes	3,074		2,477
Term Loan A facility	383		394
Revolving credit facility	15		340
Total Debt – Midstream	$	3,472	$	3,211
Total Debt:
Current portion of long-term debt	$	23	$	311
Long-term debt	8,555		8,302
Total Debt	$	8,578	$	8,613

(a)In February 2025, HESM Opco refinanced these notes on a long-term basis. See Note 20, Subsequent Events.

At December 31, 2024, the maturity profile of total debt was as follows:

	Total		Hess Corporation		Midstream
	(In millions)
2025	$	23	$	—	$	23
2026	832		—		832
2027	1,345		1,000		345
2028	550		—		550
2029	1,067		467		600
Thereafter	4,821		3,671		1,150
Total Borrowings	8,638		5,138		3,500
Less: Deferred financing costs and discounts	(60)		(32)		(28)
Total Debt (excluding interest)	$	8,578	$	5,106	$	3,472

In 2024, $132 million of interest was capitalized (2023: $48 million; 2022: $10 million).

Debt – Hess Corporation:

Senior unsecured fixed-rate public notes:

At December 31, 2024, Hess Corporation’s fixed-rate senior unsecured notes had a gross principal amount of $5,138 million (2023: $5,438 million) and a weighted average interest rate of 6.0% (2023: 5.9%). In July, we repaid the $300 million principal amount of our 3.500% fixed-rate senior unsecured notes, which matured on July 15, 2024. The indentures for our fixed-rate senior

unsecured notes limit the ratio of secured debt to Consolidated Net Tangible Assets (as that term is defined in the indentures) to 15%. As of December 31, 2024, Hess Corporation was in compliance with this financial covenant.

Credit facility:

The revolving credit facility can be used for borrowings and letters of credit. Borrowings on the facility will generally bear interest at 1.400% above SOFR, though the interest rate is subject to adjustment based on the credit rating of the Corporation’s senior, unsecured, non-credit enhanced long-term debt. The revolving credit facility is subject to customary representations, warranties, customary events of default and covenants, including a financial covenant limiting the ratio of Total Consolidated Debt to Total Capitalization of the Corporation and its consolidated subsidiaries to 65%, and a financial covenant limiting the ratio of secured debt to Consolidated Net Tangible Assets of the Corporation and its consolidated subsidiaries to 15% (as these capitalized terms are defined in the credit agreement for the revolving credit facility). As of December 31, 2024, Hess Corporation was in compliance with these financial covenants. At December 31, 2024, Hess Corporation had no outstanding borrowings or letters of credit under its revolving credit facility.

Other outstanding letters of credit at December 31 were as follows:

	2024		2023
	(In millions)
Committed lines (a)	$	8	$	2
Uncommitted lines (a)	77		86
Total	$	85	$	88

(a)At December 31, 2024, committed and uncommitted lines have expiration dates through 2025.

The most restrictive of the financial covenants relating to our fixed-rate senior unsecured notes and our revolving credit facility would allow us to borrow up to an additional $3,226 million of secured debt at December 31, 2024.

Debt – Midstream (Hess Midstream Operations LP):

Senior unsecured fixed-rate public notes:

At December 31, 2024, HESM Opco’s fixed-rate senior unsecured notes had a gross principal amount of $3,100 million (2023: $2,500 million) and a weighted average interest rate of 5.4% (2023: 5.1%). HESM Opco’s senior unsecured notes are guaranteed by certain of HESM Opco’s direct and indirect wholly owned material domestic subsidiaries. These senior unsecured notes are non-recourse to Hess Corporation.

In May 2024, HESM Opco issued $600 million in aggregate principal amount of 6.500% fixed-rate senior unsecured notes due in 2029 in a private offering. At the time of issuance, the proceeds were primarily used to reduce indebtedness outstanding under HESM Opco’s revolving credit facility. In April 2022, HESM Opco issued $400 million in aggregate principal amount of 5.500% fixed-rate senior unsecured notes due in 2030 in a private offering to repay borrowings under its revolving credit facility used to finance the repurchase of 13.6 million HESM Opco Class B units held by Hess Corporation and GIP.

Credit facilities:

At December 31, 2024, HESM Opco had $1.4 billion of senior secured syndicated credit facilities, consisting of a $1.0 billion revolving credit facility and a $400 million term loan facility. Borrowings under the term loan facility will generally bear interest at SOFR plus an applicable margin ranging from 1.650% to 2.550%, while the applicable margin for the syndicated revolving credit facility ranges from 1.375% to 2.050%. Pricing levels for the facility fee and interest-rate margins are based on HESM Opco’s ratio of total debt to EBITDA (as defined in the credit facilities). If HESM Opco obtains an investment grade credit rating, the pricing levels will be based on HESM Opco’s credit ratings in effect from time to time. The credit facilities contain covenants that require HESM Opco to maintain a ratio of total debt to EBITDA (as defined in the credit facilities) for the prior four fiscal quarters of not greater than 5.00 to 1.00 as of the last day of each fiscal quarter (5.50 to 1.00 during the specified period following certain acquisitions) and, prior to HESM Opco obtaining an investment grade credit rating, a ratio of secured debt to EBITDA for the prior four fiscal quarters of not greater than 4.00 to 1.00 as of the last day of each fiscal quarter.  HESM Opco was in compliance with these financial covenants at December 31, 2024. The credit facilities are secured by first-priority perfected liens on substantially all of the assets of HESM Opco and its direct and indirect wholly owned material domestic subsidiaries, including equity interests directly owned by such entities, subject to certain customary exclusions.  At December 31, 2024, borrowings of $15 million were drawn under HESM Opco’s revolving credit facility, and borrowings of $385 million, excluding deferred issuance costs, were drawn under HESM Opco’s term loan facility.  Borrowings under these credit facilities are non-recourse to Hess Corporation.