Stock Analysis on Net
Stock Analysis on Net

Hess Corp. (NYSE:HES)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Hess Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal — — (4) (1) 1
State 5 3 (1) 16 (45)
United States 5 3 (5) 15 (44)
Foreign 789 478 48 447 455
Current 794 481 43 462 411
Federal 22 12 6 72 (74)
United States 22 12 6 72 (74)
Foreign 283 107 (60) (73) (2)
Deferred taxes and other accruals 305 119 (54) (1) (76)
Provision (benefit) for income taxes 1,099 600 (11) 461 335

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Hess Corp. current increased from 2020 to 2021 and from 2021 to 2022.
Deferred taxes and other accruals Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Hess Corp. deferred taxes and other accruals increased from 2020 to 2021 and from 2021 to 2022.
Provision (benefit) for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Hess Corp. provision (benefit) for income taxes increased from 2020 to 2021 and from 2021 to 2022.

Effective Income Tax Rate (EITR)

Hess Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
U.S. statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effect of foreign operations 16.50% 28.00% 12.10% 142.90% 141.20%
State income taxes, net of federal income tax 0.10% 0.20% 0.10% 5.80% -18.90%
Valuation allowance on current year operations -4.80% -5.30% -36.50% 41.80% 55.20%
Release valuation allowance against previously unbenefited deferred tax assets 0.00% 0.00% 0.00% -24.50% 0.00%
Noncontrolling interests in Midstream -1.60% -4.00% 1.70% -16.00% -15.90%
Intraperiod allocation 0.00% 0.00% 0.00% 33.70% -37.30%
Credits 0.00% 0.00% 2.00% 0.00% 0.00%
Equity and executive compensation -0.20% 0.40% -0.10% 2.20% 7.40%
Other 0.00% 0.00% 0.10% 1.20% -0.30%
Effective income tax rate 31.00% 40.30% 0.40% 208.10% 152.40%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Hess Corp. effective income tax rate increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Components of Deferred Tax Assets and Liabilities

Hess Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net operating loss carryforwards 4,226 4,323 5,037 4,733 4,239
Tax credit carryforwards 98 89 135 66 134
Property, plant and equipment and investments 233 258 55 206 416
Accrued compensation, deferred credits and other liabilities 85 71 196 179 232
Asset retirement obligations 279 258 252 261 225
Other 293 277 325 317 161
Deferred tax assets 5,214 5,276 6,000 5,762 5,407
Valuation allowances (3,658) (3,838) (5,391) (4,734) (4,877)
Deferred tax assets, net of valuation allowances 1,556 1,438 609 1,028 530
Property, plant and equipment and investments (1,742) (1,712) (847) (1,318) (853)
Other (99) (38) (45) (45) (77)
Deferred tax liabilities (1,841) (1,750) (892) (1,363) (930)
Net deferred tax assets (liabilities) (285) (312) (283) (335) (400)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Hess Corp. deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred tax assets, net of valuation allowances Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Hess Corp. deferred tax assets, net of valuation allowances increased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Hess Corp. net deferred tax assets (liabilities) decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

Deferred Tax Assets and Liabilities, Classification

Hess Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred tax assets 133 71 59 80 21
Deferred tax liabilities 418 383 342 415 421

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Hess Corp. deferred tax assets increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Hess Corp. deferred tax liabilities increased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

Hess Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 21,695 20,515 18,821 21,782 21,433
Less: Noncurrent deferred tax assets, net 133 71 59 80 21
Total assets (adjusted) 21,562 20,444 18,762 21,702 21,412
Adjustment to Total Liabilities
Total liabilities (as reported) 13,199 13,489 12,486 12,076 10,545
Less: Noncurrent deferred tax liabilities, net 418 383 342 415 421
Total liabilities (adjusted) 12,781 13,106 12,144 11,661 10,124
Adjustment to Total Hess Corporation Stockholders’ Equity
Total Hess Corporation stockholders’ equity (as reported) 7,855 6,300 5,366 8,732 9,629
Less: Net deferred tax assets (liabilities) (285) (312) (283) (335) (400)
Total Hess Corporation stockholders’ equity (adjusted) 8,140 6,612 5,649 9,067 10,029
Adjustment to Net Income (loss) Attributable To Hess Corporation
Net income (loss) attributable to Hess Corporation (as reported) 2,096 559 (3,093) (408) (282)
Add: Deferred income tax expense (benefit) 305 119 (54) (1) (76)
Net income (loss) attributable to Hess Corporation (adjusted) 2,401 678 (3,147) (409) (358)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Hess Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Hess Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 18.51% 7.48% -66.27% -6.28% -4.46%
Adjusted net profit margin 21.20% 9.07% -67.43% -6.30% -5.66%
Total Asset Turnover
Reported total asset turnover 0.52 0.36 0.25 0.30 0.30
Adjusted total asset turnover 0.53 0.37 0.25 0.30 0.30
Financial Leverage
Reported financial leverage 2.76 3.26 3.51 2.49 2.23
Adjusted financial leverage 2.65 3.09 3.32 2.39 2.14
Return on Equity (ROE)
Reported ROE 26.68% 8.87% -57.64% -4.67% -2.93%
Adjusted ROE 29.50% 10.25% -55.71% -4.51% -3.57%
Return on Assets (ROA)
Reported ROA 9.66% 2.72% -16.43% -1.87% -1.32%
Adjusted ROA 11.14% 3.32% -16.77% -1.88% -1.67%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Hess Corp. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hess Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Hess Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Hess Corp. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Hess Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Hess Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hess Corporation 2,096 559 (3,093) (408) (282)
Sales and other operating revenues 11,324 7,473 4,667 6,495 6,323
Profitability Ratio
Net profit margin1 18.51% 7.48% -66.27% -6.28% -4.46%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Hess Corporation 2,401 678 (3,147) (409) (358)
Sales and other operating revenues 11,324 7,473 4,667 6,495 6,323
Profitability Ratio
Adjusted net profit margin2 21.20% 9.07% -67.43% -6.30% -5.66%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Hess Corporation ÷ Sales and other operating revenues
= 100 × 2,096 ÷ 11,324 = 18.51%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Hess Corporation ÷ Sales and other operating revenues
= 100 × 2,401 ÷ 11,324 = 21.20%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Hess Corp. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 11,324 7,473 4,667 6,495 6,323
Total assets 21,695 20,515 18,821 21,782 21,433
Activity Ratio
Total asset turnover1 0.52 0.36 0.25 0.30 0.30
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues 11,324 7,473 4,667 6,495 6,323
Adjusted total assets 21,562 20,444 18,762 21,702 21,412
Activity Ratio
Adjusted total asset turnover2 0.53 0.37 0.25 0.30 0.30

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 11,324 ÷ 21,695 = 0.52

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 11,324 ÷ 21,562 = 0.53

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hess Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets 21,695 20,515 18,821 21,782 21,433
Total Hess Corporation stockholders’ equity 7,855 6,300 5,366 8,732 9,629
Solvency Ratio
Financial leverage1 2.76 3.26 3.51 2.49 2.23
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 21,562 20,444 18,762 21,702 21,412
Adjusted total Hess Corporation stockholders’ equity 8,140 6,612 5,649 9,067 10,029
Solvency Ratio
Adjusted financial leverage2 2.65 3.09 3.32 2.39 2.14

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Financial leverage = Total assets ÷ Total Hess Corporation stockholders’ equity
= 21,695 ÷ 7,855 = 2.76

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Hess Corporation stockholders’ equity
= 21,562 ÷ 8,140 = 2.65

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Hess Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hess Corporation 2,096 559 (3,093) (408) (282)
Total Hess Corporation stockholders’ equity 7,855 6,300 5,366 8,732 9,629
Profitability Ratio
ROE1 26.68% 8.87% -57.64% -4.67% -2.93%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Hess Corporation 2,401 678 (3,147) (409) (358)
Adjusted total Hess Corporation stockholders’ equity 8,140 6,612 5,649 9,067 10,029
Profitability Ratio
Adjusted ROE2 29.50% 10.25% -55.71% -4.51% -3.57%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROE = 100 × Net income (loss) attributable to Hess Corporation ÷ Total Hess Corporation stockholders’ equity
= 100 × 2,096 ÷ 7,855 = 26.68%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Hess Corporation ÷ Adjusted total Hess Corporation stockholders’ equity
= 100 × 2,401 ÷ 8,140 = 29.50%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Hess Corp. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hess Corporation 2,096 559 (3,093) (408) (282)
Total assets 21,695 20,515 18,821 21,782 21,433
Profitability Ratio
ROA1 9.66% 2.72% -16.43% -1.87% -1.32%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Hess Corporation 2,401 678 (3,147) (409) (358)
Adjusted total assets 21,562 20,444 18,762 21,702 21,412
Profitability Ratio
Adjusted ROA2 11.14% 3.32% -16.77% -1.88% -1.67%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROA = 100 × Net income (loss) attributable to Hess Corporation ÷ Total assets
= 100 × 2,096 ÷ 21,695 = 9.66%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Hess Corporation ÷ Adjusted total assets
= 100 × 2,401 ÷ 21,562 = 11.14%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Hess Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.