Hess Corp. (NYSE:HES)

The quarterly financial data reveals several key trends in the company's financial performance, operating activities, investing activities, and financing activities over the observed periods.

Net Income (Loss)

Net income showed considerable volatility, with negative values during multiple quarters, particularly in 2020 with a sharp loss notably in March 2020 (-2366 million USD) likely indicating a significant adverse event or write-down. Starting in 2021 through 2023, net income trends generally improved, showing consistent positive earnings, with peaks in late 2021 and mid-2022.

Gains on Asset Sales

Gains on asset sales were inconsistent, with multiple quarters showing negative values and several quarters showing no data. There were occasional small gains, but the data does not show a consistent trend of sizeable asset sale gains.

Depreciation, Depletion, and Amortization

These expenses remained relatively stable across quarters, fluctuating modestly between approximately 337 million and 586 million USD, indicating steady levels of capital asset depreciation and resource depletion.

Impairment and Other

There was a large impairment charge recorded in one quarter in 2020 (2126 million USD), likely contributing considerably to the net loss seen during that period. Subsequent quarters showed much smaller impairment charges, suggesting normalization after a major one-time write-down.

Exploratory Dry Hole Costs and Lease Impairments

Exploratory dry hole costs were sporadic but with some peak in late 2018 and mid-2020, indicating varying exploration activity. Lease impairments were relatively small and consistent across quarters, reflecting ongoing, but limited, asset write-downs in exploration leases.

Noncash Losses on Commodity Derivatives

These losses fluctuated but saw notable increases in 2022 and 2023, reaching peaks of over 160 million USD, suggesting increased market risk exposure or volatility in commodity price hedging during those years.

Operating Assets and Liabilities Changes

Changes in operating assets and liabilities exhibited high variability between quarters, with some significant negative fluctuations, particularly in accounts receivable and accounts payable, indicating periods of tight working capital management and cash flow pressures.

Net Cash Provided by Operating Activities

Operating cash flows generally reflected net income trends with peaks in mid-to-late 2018 and strong growth from 2021 onward, reaching highs over 1 billion USD in several quarters. This represents improved operational cash generation capability in recent periods.

Investing Activities

Investing cash flows were predominantly negative, consistent with significant and ongoing capital expenditures in property, plant, and equipment (both Exploration & Production and Midstream segments). Capital expenditures showed a sustained increase over time, reaching nearly 1 billion USD in some recent quarters. Proceeds from asset sales were intermittent and generally small compared to capital outflows.

Financing Activities

Financing activities were variable with no consistent trend. The company engaged in both debt borrowings and repayments, with occasional substantial variations in borrowings noted in late 2019 and 2021. Common stock repurchase activity was significant in earlier years but diminished over time. Dividend payments remained relatively stable though slightly increased in recent years, reflecting return of capital to shareholders. Net borrowings generally fluctuated reflecting active management of capital structure.

Liquidity - Cash and Cash Equivalents

Cash flow fluctuations resulted in alternating increases and decreases in cash and equivalents, with notable declines at the onset of 2020, likely corresponding to the net income losses and capital expenditure demands. Subsequent recovery was observed with increased cash balances in mid-2021 and 2022, indicating improved liquidity management.