Hess Corp., balance sheet: debt

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current portion of long-term debt	3)	517)	10)	—)	67)
Current portion of finance lease obligations	21)	19)	18)	17)	—)
Long-term debt, excluding current portion	8,278)	7,941)	8,286)	7,142)	6,605)
Long-term finance lease obligations	179)	200)	220)	238)	—)
Total debt and finance lease obligations (carrying amount)	8,481)	8,677)	8,534)	7,397)	6,672)

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Debt item	Description	The company
Total debt and finance lease obligations (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Hess Corp. total debt increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

	Dec 31, 2022
Selected Financial Data (US$ in millions)
Long-term debt	8,192)
Finance lease obligations	200)
Total debt and finance lease obligations (fair value)	8,392)
Financial Ratio
Debt, fair value to carrying amount ratio	0.99

Weighted-average interest rate on debt and finance lease obligations: 5.67%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.50%	300)	11)
4.30%	996)	43)
7.88%	464)	37)
7.30%	629)	46)
7.13%	537)	38)
6.00%	742)	45)
5.60%	1,237)	69)
5.80%	494)	29)
5.63%	793)	45)
5.13%	544)	28)
4.25%	740)	31)
5.50%	395)	22)
7.90%	200)	16)
Total	8,071)	458)
5.67%

¹ US$ in millions

² Weighted-average interest rate = 100 × 458 ÷ 8,071 = 5.67%

Hess Corp., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Interest expense	493)	481)	468)	380)	399)
Capitalized interest	10)	—)	—)	38)	20)
Interest costs incurred	503)	481)	468)	418)	419)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Hess Corp. interest expense increased from 2020 to 2021 and from 2021 to 2022.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Hess Corp. interest costs incurred increased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hess Corporation	2,096)	559)	(3,093)	(408)	(282)
Add: Net income attributable to noncontrolling interest	351)	331)	254)	168)	167)
Add: Income tax expense	1,099)	600)	(11)	461)	335)
Add: Interest expense	493)	481)	468)	380)	399)
Earnings before interest and tax (EBIT)	4,039)	1,971)	(2,382)	601)	619)

Interest costs incurred	503)	481)	468)	418)	419)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	8.19	4.10	-5.09	1.58	1.55
Adjusted interest coverage ratio (with capitalized interest)²	8.03	4.10	-5.09	1.44	1.48

2022 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 4,039 ÷ 493 = 8.19

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 4,039 ÷ 503 = 8.03

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Hess Corp. adjusted interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022.

Hess Corp. (NYSE:HES)

Analysis of Debt