Name: Hess Corp. (NYSE:HES) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Download chart

Hess Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (loss)	2,447)	890)	(2,839)	(240)	(115)
Gains on asset sales, net	(101)	(29)	(87)	(22)	(32)
Depreciation, depletion and amortization	1,703)	1,528)	2,074)	2,122)	1,883)
Impairment and other	54)	147)	2,126)	—)	—)
Exploratory dry hole costs	56)	11)	192)	49)	165)
Exploration lease impairment	20)	20)	51)	17)	37)
Pension settlement loss	2)	9)	—)	93)	4)
Stock compensation expense	83)	77)	79)	85)	72)
Noncash losses on commodity derivatives, net	548)	216)	260)	116)	182)
Provision (benefit) for deferred income taxes and other tax accruals	309)	122)	(53)	17)	(120)
Loss on debt extinguishment	—)	—)	—)	—)	53)
(Increase) decrease in accounts receivable	(301)	(748)	267)	(383)	(138)
(Increase) decrease in inventories	2)	135)	(117)	(16)	(12)
Increase (decrease) in accounts payable and accrued liabilities	50)	241)	(533)	4)	88)
Increase (decrease) in taxes payable	(465)	447)	(16)	16)	(2)
Changes in other operating assets and liabilities	(463)	(176)	(71)	(216)	(126)
Changes in operating assets and liabilities	(1,177)	(101)	(470)	(595)	(190)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	1,497)	2,000)	4,172)	1,882)	2,054)
Net cash provided by operating activities	3,944)	2,890)	1,333)	1,642)	1,939)
Capital expenditures incurred, E&P	(2,589)	(1,698)	(1,678)	(2,576)	(1,909)
Increase (decrease) in related liabilities	102)	114)	(218)	143)	55)
Additions to property, plant and equipment, E&P	(2,487)	(1,584)	(1,896)	(2,433)	(1,854)
Capital expenditures incurred, Midstream	(232)	(183)	(253)	(416)	(271)
Increase (decrease) in related liabilities	(6)	20)	(48)	20)	28)
Additions to property, plant and equipment, Midstream	(238)	(163)	(301)	(396)	(243)
Payments for Midstream equity investments	—)	—)	—)	(33)	(67)
Proceeds from asset sales, net of cash sold	178)	427)	493)	22)	607)
Other, net	(8)	(5)	(3)	(3)	(9)
Net cash used in investing activities	(2,555)	(1,325)	(1,707)	(2,843)	(1,566)
Net borrowings (repayments) of debt with maturities of 90 days or less	(86)	(80)	152)	32)	—)
Debt with maturities of greater than 90 days, borrowings	420)	750)	1,000)	760)	—)
Debt with maturities of greater than 90 days, repayments	(510)	(510)	—)	(8)	(633)
Cash dividends paid	(465)	(311)	(309)	(316)	(345)
Common stock acquired and retired	(630)	—)	—)	(25)	(1,365)
Proceeds from sale of Class A shares of Hess Midstream LP	146)	178)	—)	—)	—)
Noncontrolling interests, net	(510)	(664)	(261)	(353)	(211)
Employee stock options exercised	52)	77)	15)	40)	—)
Payments on finance lease obligations	(9)	(10)	(7)	(49)	—)
Other, net	(24)	(21)	(22)	(29)	28)
Net cash provided by (used in) financing activities	(1,616)	(591)	568)	52)	(2,526)
Net increase (decrease) in cash and cash equivalents	(227)	974)	194)	(1,149)	(2,153)
Cash and cash equivalents at beginning of year	2,713)	1,739)	1,545)	2,694)	4,847)
Cash and cash equivalents at end of year	2,486)	2,713)	1,739)	1,545)	2,694)

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 analysis of cash flow trends from 2018 to 2022 reveals a period of significant volatility in earnings countered by resilient operational cash generation. While net income experienced severe fluctuations, reaching a low of negative $2.8 billion in 2020 before recovering to positive $2.4 billion in 2022, the net cash provided by operating activities remained consistently positive, indicating that the company's core operations continued to generate liquidity despite accounting losses.

Operating Cash Flow Dynamics: Net cash provided by operating activities grew from $1.9 billion in 2018 to $3.9 billion by 2022. This trajectory was supported by substantial non-cash adjustments that decoupled net income from cash flow. Depreciation, depletion, and amortization remained a primary driver, consistently contributing between $1.5 billion and $2.1 billion annually. A significant impairment charge of $2.1 billion in 2020 further explains the wide gap between the reported net loss and the positive operating cash flow of $1.3 billion during that year.
Investing Activity and Capital Intensity: Cash used in investing activities remained consistently negative, reflecting a capital-intensive strategy. Exploration and Production (E&P) capital expenditures were the primary outflow, fluctuating between $1.6 billion and $2.6 billion per year, with the highest expenditure occurring in 2022. Midstream capital expenditures were more stable, generally ranging from $160 million to $400 million. These investments were partially mitigated by proceeds from asset sales, which provided significant liquidity infusions in 2018 ($607 million) and 2020 ($493 million).
Financing and Capital Allocation Trends: Financing activities exhibited high variability, shifting from significant outflows to inflows and back to outflows. In 2018, a major outflow of $2.5 billion was recorded, largely due to the retirement of common stock. To manage liquidity during the downturn in 2019 and 2020, the company increased debt borrowings, with inflows of $760 million and $1 billion respectively. By 2022, financing activities shifted back to a net outflow of $1.6 billion, driven by $465 million in dividends and $630 million in common stock retirements.
Liquidity and Cash Position: The overall liquidity position showed a downward trend over the five-year horizon. Cash and cash equivalents decreased from a beginning balance of $4.8 billion in 2018 to an ending balance of $2.5 billion in 2022. This decline is attributable to the cumulative effect of sustained capital expenditures and shareholder distributions that, in certain years, exceeded the cash generated from operations.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?