Name: Hess Corp. (NYSE:HES) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Hess Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	285)	220)	200)	411)	495)
Accrued operating and marketing expenditures	522)	462)	325)	479)	—)
Accrued capital expenditures	499)	479)	345)	616)	—)
Current portion of asset retirement obligations	207)	185)	105)	127)	—)
Accrued payments to royalty and working interest owners	201)	253)	170)	260)	—)
Accrued interest on debt	143)	138)	126)	126)	—)
Accrued compensation and benefits	132)	124)	117)	166)	—)
Other accruals	136)	69)	63)	29)	1,560)
Accrued liabilities	1,840)	1,710)	1,251)	1,803)	1,560)
Taxes payable	47)	528)	81)	97)	81)
Current portion of long-term debt	3)	517)	10)	—)	67)
Current portion of operating lease obligations	200)	70)	63)	182)	—)
Current portion of finance lease obligations	21)	19)	18)	17)	—)
Current liabilities	2,396)	3,064)	1,623)	2,510)	2,203)
Long-term debt, excluding current portion	8,278)	7,941)	8,286)	7,142)	6,605)
Long-term operating lease obligations	469)	394)	478)	353)	—)
Long-term finance lease obligations	179)	200)	220)	238)	—)
Deferred income taxes	418)	383)	342)	415)	421)
Asset retirement obligations	1,034)	1,005)	894)	897)	741)
Other liabilities and deferred credits	425)	502)	643)	521)	575)
Noncurrent liabilities	10,803)	10,425)	10,863)	9,566)	8,342)
Total liabilities	13,199)	13,489)	12,486)	12,076)	10,545)
Preferred stock, par value $1.00	—)	—)	—)	—)	1)
Common stock, par value $1.00	306)	310)	307)	305)	291)
Capital in excess of par value	6,206)	6,017)	5,684)	5,591)	5,386)
Retained earnings	1,474)	379)	130)	3,535)	4,257)
Accumulated other comprehensive loss	(131)	(406)	(755)	(699)	(306)
Total Hess Corporation stockholders’ equity	7,855)	6,300)	5,366)	8,732)	9,629)
Noncontrolling interests	641)	726)	969)	974)	1,259)
Total equity	8,496)	7,026)	6,335)	9,706)	10,888)
Total liabilities and equity	21,695)	20,515)	18,821)	21,782)	21,433)

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 financial position of the organization over the five-year period from 2018 to 2022 is characterized by a significant expansion of long-term debt and a notable volatility in stockholders' equity, particularly during the 2020 fiscal year.

Liability Structure and Debt Trends: Total liabilities increased from 10,545 million US dollars in 2018 to a peak of 13,489 million US dollars in 2021, before slightly moderating to 13,199 million US dollars by the end of 2022. This growth was primarily driven by long-term debt, which rose from 6,605 million US dollars in 2018 to 8,278 million US dollars in 2022.; Current liabilities exhibited significant volatility, peaking at 3,064 million US dollars in 2021. This spike was largely attributable to a temporary increase in the current portion of long-term debt, which reached 517 million US dollars that year, and a sharp rise in taxes payable to 528 million US dollars.; Asset retirement obligations showed a consistent upward trend, growing from 741 million US dollars in 2018 to 1,034 million US dollars in 2022, reflecting increasing long-term environmental and decommissioning liabilities.
Equity and Retained Earnings Analysis: Total equity experienced a severe contraction, falling from 10,888 million US dollars in 2018 to a low of 6,335 million US dollars in 2020. A recovery phase followed, with total equity rising to 8,496 million US dollars by December 31, 2022.; The volatility in equity is most evident in retained earnings, which plummeted from 4,257 million US dollars in 2018 to just 130 million US dollars in 2020. This figure recovered to 1,474 million US dollars by 2022, although it remained well below 2018 levels.; Accumulated other comprehensive loss also peaked in 2020 at negative 755 million US dollars, before improving significantly to negative 131 million US dollars by 2022.
Capital Structure and Leverage Observations: The balance between liabilities and equity shifted markedly over the period. In 2018, total liabilities were nearly equal to total equity. By 2020, the leverage ratio increased substantially as liabilities rose while equity decreased. While equity has since recovered, the organization maintains a higher debt profile in 2022 than it did at the start of the analyzed period.; Noncontrolling interests have steadily declined from 1,259 million US dollars in 2018 to 641 million US dollars in 2022, indicating a reduction in the value of equity held by minority shareholders.

Overall, the balance sheet reflects a period of increased leverage and a significant equity shock in 2020, followed by a gradual recovery in retained earnings and a stabilization of the total liability base.

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