Name: Hess Corp. (NYSE:HES) | Analysis of Revenues
Creator: Stock Analysis on Net

Analysis of Revenues

Revenues as Reported

Revenues as Reported

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Hess Corp., income statement, revenues

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Crude oil revenue	6,821)	4,325)	2,363)	3,660)	3,523)
Natural gas liquids revenue	703)	594)	253)	229)	308)
Natural gas revenue	1,198)	1,015)	631)	829)	859)
Sales of net production volumes	8,722)	5,934)	3,247)	4,718)	4,690)
Sales of purchased oil and gas	3,143)	1,749)	847)	1,738)	1,768)
Sales	11,865)	7,683)	4,094)	6,456)	6,458)
Other operating revenues	(541)	(210)	573)	39)	(135)
Sales and other operating revenues	11,324)	7,473)	4,667)	6,495)	6,323)

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).

The overall revenue trajectory between 2018 and 2022 exhibits a significant V-shaped recovery, characterized by a sharp contraction in 2020 followed by an aggressive expansion through 2022. Total sales and other operating revenues grew from 6,323 million USD in 2018 to a peak of 11,324 million USD in 2022, representing a substantial increase in the company's top-line performance despite the volatility observed in the intervening years.

Core Production Revenue Trends: Sales of net production volumes serve as the primary driver of total revenue. After a decline to 3,247 million USD in 2020, this segment surged to 8,722 million USD by 2022. This growth is predominantly attributed to crude oil revenue, which rose from 3,523 million USD in 2018 to 6,821 million USD in 2022. Natural gas and natural gas liquids also demonstrated steady recovery and growth post-2020, with natural gas revenue increasing from 631 million USD in 2020 to 1,198 million USD in 2022, and liquids increasing from 253 million USD to 703 million USD over the same period.
Purchased Oil and Gas Performance: Revenue from the sale of purchased oil and gas remained relatively stable between 2018 and 2019 before dropping to a low of 847 million USD in 2020. A significant escalation is observed in 2022, where revenue in this category reached 3,143 million USD, nearly doubling the 2021 figure of 1,749 million USD. This suggests an increase in trading activity or strategic procurement during the latter part of the analyzed period.
Operating Revenue Volatility: Other operating revenues exhibit high volatility and lack a consistent directional trend. The values fluctuated from negative 135 million USD in 2018 to a peak of 573 million USD in 2020, before returning to negative values, reaching negative 541 million USD in 2022. Due to these fluctuations, this component represents a marginal and inconsistent contribution to the total revenue stream compared to production and purchasing sales.
Aggregate Sales Growth: Total sales experienced a marked acceleration between 2020 and 2022. The increase from 4,094 million USD in 2020 to 11,865 million USD in 2022 indicates a rapid expansion in revenue generation, driven by both the recovery of commodity prices and potentially increased production volumes across all energy categories.

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