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.

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).

Net Income (Loss): Net income exhibited significant volatility over the five-year period, with losses recorded in the first three years (-115 million in 2018 to -2839 million in 2020) followed by a strong recovery with positive net income in 2021 (890 million) and a further increase in 2022 (2447 million). This indicates a turnaround in profitability post-2020.
Gains on Asset Sales, Net: Gains on asset sales were consistently negative or modestly negative throughout the years, fluctuating between -22 million and -101 million, suggesting persistent net losses or write-downs related to asset dispositions.
Depreciation, Depletion, and Amortization: This non-cash expense showed a generally downward trend after peaking at 2122 million in 2019, decreasing to 1528 million in 2021, before rising slightly to 1703 million in 2022, which may reflect changes in asset base or revised estimation methods.
Impairment and Other: There were no recorded impairments in 2018 and 2019; however, this item spiked sharply to 2126 million in 2020, before decreasing to 147 million in 2021 and 54 million in 2022, indicating a major impairment event in 2020 with diminishing effects in subsequent years.
Exploratory Dry Hole Costs: Costs fluctuated substantially, peaking at 192 million in 2020, then significantly dropping to 11 million in 2021, and recovering slightly to 56 million in 2022. This reflects variable exploration activity and associated risks.
Stock Compensation Expense: Stock-based compensation remained relatively stable over the years, ranging narrowly from 72 million to 85 million, suggesting a consistent approach to employee incentives via stock.
Noncash Losses on Commodity Derivatives, Net: There was a pronounced increase in noncash losses on commodity derivatives from 182 million in 2018 to a peak of 548 million in 2022, indicating increasing volatility or hedging outcomes related to commodity price fluctuations.
Provision (Benefit) for Deferred Income Taxes and Other Tax Accruals: This item fluctuated substantially, ranging from a benefit of -120 million in 2018 to a provision of 309 million in 2022, reflecting changing tax positions, income levels, and possibly regulatory impacts.
Changes in Operating Assets and Liabilities: The changes in operating working capital showed a general pattern of negative cash inflows or cash consumption, especially pronounced in 2019 and markedly negative in 2022 (-1177 million), which may affect liquidity negatively.
Net Cash Provided by Operating Activities: Operating cash flow showed growth over the period, despite volatility, moving from 1939 million in 2018 downwards to 1333 million in 2020, then recovering to 3944 million in 2022, reflecting improved cash generation capacity.
Capital Expenditures: Capital expenditures for exploration and production (E&P) and Midstream activities fluctuated but showed an overall increase in the latest year (2589 million for E&P in 2022), indicating renewed or sustained investments in asset base expansion or maintenance.
Proceeds from Asset Sales: Proceeds were highest in 2018 at 607 million, dropped significantly to 22 million in 2019, then fluctuated moderately, ending at 178 million in 2022, indicating selective divestiture activity.
Net Cash Used in Investing Activities: Investing cash flow was predominantly negative each year, reflecting continuous capital spending and acquisitions exceeding proceeds from sales, with notable highs in cash outflow in 2019 and 2022 (-2843 million and -2555 million respectively).
Financing Activities: Financing cash flows varied considerably. Large cash outflows were noted in 2018 (-2526 million) and 2022 (-1616 million), mainly due to dividends, debt repayments, and stock repurchases, reflecting an active capital management strategy and shift towards deleveraging and shareholder returns.
Cash and Cash Equivalents: Cash balances decreased substantially from the start of the period (4847 million in 2018) to a low of 1545 million in 2019, then recovered gradually, peaking at 2713 million in 2021 before a slight decrease to 2486 million in 2022, indicating fluctuating liquidity levels.

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Hess Corp. (NYSE:HES)

Cash Flow Statement