Hess Corp. (NYSE:HES)

Total inventory levels experienced a period of volatility between 2018 and 2022, characterized by a significant peak in 2020 followed by a contraction to levels below the initial 2018 baseline. Total inventories rose from $245 million in 2018 to a peak of $378 million in 2020, before declining to $217 million by December 31, 2022.

Crude Oil and Natural Gas Liquids Volatility

This inventory component exhibited the most substantial variance over the analyzed period. Values increased from $74 million in 2018 to a peak of $226 million in 2020. A sharp contraction followed in 2021, with levels dropping to $52 million, before a slight recovery to $63 million in 2022. This indicates significant fluctuations in product stockpiling or market-driven storage adjustments during the 2020 period.

Materials and Supplies Stability

In contrast to product inventories, materials and supplies remained relatively stable. The balance fluctuated within a narrow corridor, ranging from a low of $152 million in 2020 to a high of $171 million in 2018 and 2021. This consistency suggests a disciplined and steady approach to maintaining operational supplies regardless of broader market volatility.

Inventory Composition Shift

The weighting of inventory components shifted dramatically over the five-year span. In 2020, crude oil and natural gas liquids constituted approximately 60% of total inventories. However, by 2022, the composition inverted, with materials and supplies representing approximately 71% of the total inventory balance, reflecting a return to a structure where operational supplies outweigh product inventories.