Hess Corp. (NYSE:HES)

The analysis of the annual financial data reveals several key trends related to asset management over the five-year period from 2018 to 2022.

Total Assets

Total assets demonstrated a fluctuating trend during the examined period. Initially, there was a slight increase from $21,433 million in 2018 to $21,782 million in 2019. However, a notable decline occurred in 2020, with total assets decreasing to $18,821 million. This reduction may indicate asset divestitures, impairments, or other factors impacting the asset base. Subsequently, total assets showed recovery by increasing to $20,515 million in 2021 and further rising to $21,695 million in 2022, nearing the initial levels of 2018 and 2019. The rebound suggests a stabilization or growth phase following the 2020 decline.

Adjusted Total Assets

The adjusted total assets followed a similar pattern to total assets but consistently measured at slightly higher values across all years. Starting at $22,174 million in 2018, adjusted total assets marginally decreased to $21,702 million in 2019 and further declined to $18,762 million in 2020, mirroring the trend in total assets. Thereafter, adjusted total assets rose to $20,444 million in 2021 and $21,562 million in 2022. The adjusted metrics suggest that adjustments or revaluations consistently maintain asset values above reported totals, possibly reflecting accounting treatments or valuation methods that offer a more conservative or comprehensive asset assessment.

Overall, the data points to a contraction in asset base during 2020, likely driven by external or internal factors impacting the company’s balance sheet. The subsequent recovery in 2021 and 2022 indicates resilience and possible strategic asset management actions aimed at restoring or enhancing the asset base. The parallel movements between total and adjusted totals affirm consistency in asset measurement approaches with some adjustments applied for reporting accuracy or other considerations.

Total liabilities

The total liabilities exhibit an overall increasing trend from 2018 through 2021, rising from 10,545 million US dollars to 13,489 million US dollars. This represents a steady increase in the company's obligations over the four-year period. However, in 2022, there is a slight decline in total liabilities, decreasing to 13,199 million US dollars, indicating a modest reduction in liabilities after previous growth.

Adjusted total liabilities

The adjusted total liabilities show a somewhat similar pattern, with a rise from 10,886 million US dollars in 2018 to a peak of 13,106 million US dollars in 2021. The upward movement reflects increased obligation levels when adjusted for certain factors. In 2022, adjusted total liabilities decreased to 12,781 million US dollars, aligning with the overall reduction trend observed in total liabilities for the same year.

Summary of Trends

Both total liabilities and adjusted total liabilities increased consistently from 2018 to 2021, indicating a growing financial obligation during this period. The peak in 2021 followed by a reduction in 2022 suggests a potential shift in the company's financial strategy or operational conditions resulting in decreased liabilities. The similarity in trends between total liabilities and adjusted total liabilities indicates that adjustments have not significantly altered the overall liability pattern over the five-year span.

The analyzed financial data presents the equity positions of the company over a five-year period ending in 2022. The focus is on two primary measures: total stockholders' equity and adjusted total equity, both expressed in US dollars in millions.

Total Hess Corporation stockholders’ equity

There is a noticeable declining trend from 2018 to 2020, with equity decreasing from 9,629 million USD in 2018 to 5,366 million USD in 2020. This represents a significant reduction over the two-year period. However, in 2021 and 2022, the equity shows a recovery trend, increasing to 6,300 million USD and then further to 7,855 million USD by the end of 2022, indicating a positive turnaround in the company's net asset position.

Adjusted total equity

This metric also follows a similar pattern, beginning at 11,288 million USD in 2018 and declining steadily to 6,618 million USD in 2020. Subsequently, it recovers to 7,338 million USD in 2021 and continues an upward trajectory to 8,781 million USD in 2022. Throughout the period, adjusted total equity remains higher than the total stockholders’ equity, suggesting that adjustments typically result in a more favorable equity figure compared to the unadjusted measure.

In summary, both total and adjusted equity figures exhibit a substantial decrease during the 2018-2020 timeframe, indicative of potential operational challenges, asset impairment, or other adverse financial events. The subsequent two years show a clear recovery, although by 2022, the equity levels have not fully returned to their initial 2018 values. The consistent gap between adjusted and total equity suggests ongoing adjustments that maintain a higher equity base after considering certain valuation or accounting modifications.

The financial data over the five-year period reveals several notable trends in debt, equity, and overall capital structure.

Total reported debt

The total reported debt increased steadily from 2018 through 2021, rising from $6,672 million to $8,677 million. In 2022, there was a slight decrease to $8,481 million. This indicates an overall growth in debt levels over the period, with a minor reduction at the end.

Total Hess Corporation stockholders’ equity

Stockholders’ equity experienced a decline from $9,629 million in 2018 to a low of $5,366 million in 2020. Subsequently, equity rebounded to $6,300 million in 2021 and continued recovering to $7,855 million in 2022. This pattern suggests a significant equity erosion through 2020 followed by partial restoration in the following years.

Total reported capital

Total reported capital slightly decreased from $16,301 million in 2018 to $13,900 million in 2020. The capital base then showed a gradual recovery, rising to $16,336 million by 2022, which surpasses the initial level. This reflects the combined effects of changes in debt and equity components.

Adjusted total debt

The adjusted total debt shows a consistent upward trend over the full period, rising from $7,434 million in 2018 to $9,150 million in 2022. Unlike the slight dip noted in reported debt for 2022, adjusted debt appears stable at elevated levels, indicating a possibly more comprehensive measure of debt obligations.

Adjusted total equity

Adjusted total equity decreased from $11,288 million in 2018 to a minimum of $6,618 million in 2020, followed by a gradual recovery to $8,781 million in 2022. This movement closely mirrors the trend observed in reported stockholders' equity but generally reflects higher values, suggesting adjustments improve the equity position comparably.

Adjusted total capital

Adjusted total capital declined from $18,722 million in 2018 to $15,693 million in 2020, before rising steadily to $17,931 million in 2022. Though it has not fully returned to the 2018 peak, the upward trend in recent years indicates strengthening capital base.

Overall, the data indicates that the company faced pressures that reduced equity and capital through 2020, accompanied by increasing debt levels. Starting in 2021, both equity and capital showed improvement, while debt levels remained relatively high but stable. This suggests a period of financial strengthening after earlier challenges, with a capital structure that continues to balance elevated debt against recovering equity.

The financial data reveals volatility in the net income and adjusted net income figures over the five-year period ending in 2022. Initially, the company experienced losses, which deepened significantly in 2020 before a notable turnaround in subsequent years.

Net Income (Loss) Trend

From 2018 through 2020, net income attributable to the company was negative, indicating operational challenges or adverse market conditions. The loss expanded from -$282 million in 2018 to a peak of -$3,093 million in 2020. This suggests deteriorating profitability during this interval. However, beginning in 2021, net income shifted to a positive figure of $559 million, with a further increase to $2,096 million by 2022. This marked recovery indicates substantial improvement in financial performance, possibly due to changes in business conditions, cost management, or higher revenues.

Adjusted Net Income (Loss) Trend

The adjusted net income follows a similar negative trajectory from 2018 to 2020, declining from $290 million to -$2,949 million. The positive figure in 2018 contrasts with the negative net income, suggesting adjustments for one-time items or non-recurring effects. In 2019 and 2020, adjusted net income deteriorated markedly, consistent with the net income losses. From 2021 onward, adjusted net income improved significantly to $1,358 million and further to $3,027 million in 2022, exceeding even the level of net income. This indicates the company’s fundamental profitability strengthened when excluding certain items, underscoring operational recovery and possibly improved core earnings quality.

Overall Insights

The data illustrates a pronounced cyclical pattern with deterioration to a peak loss in 2020, followed by a robust rebound in 2021 and 2022. The divergence between reported net income and adjusted net income in certain years suggests the presence of significant non-recurring charges or one-time adjustments impacting reported results. The recovery phase from 2021 onwards reflects improved earnings capacity and likely enhanced financial health.