Debt to Equity
since 2005
Calculation
Hess Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt and long-term finance lease obligations1 | ÷ | Total Hess Corporation stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.08 | = | 8,460) | ÷ | 7,855) |
| Dec 31, 2021 | 1.37 | = | 8,658) | ÷ | 6,300) |
| Dec 31, 2020 | 1.59 | = | 8,516) | ÷ | 5,366) |
| Dec 31, 2019 | 0.85 | = | 7,380) | ÷ | 8,732) |
| Dec 31, 2018 | 0.69 | = | 6,672) | ÷ | 9,629) |
| Dec 31, 2017 | 0.63 | = | 6,977) | ÷ | 11,051) |
| Dec 31, 2016 | 0.47 | = | 6,806) | ÷ | 14,534) |
| Dec 31, 2015 | 0.34 | = | 6,630) | ÷ | 19,386) |
| Dec 31, 2014 | 0.27 | = | 5,987) | ÷ | 22,205) |
| Dec 31, 2013 | 0.23 | = | 5,798) | ÷ | 24,720) |
| Dec 31, 2012 | 0.38 | = | 8,111) | ÷ | 21,090) |
| Dec 31, 2011 | 0.33 | = | 6,057) | ÷ | 18,516) |
| Dec 31, 2010 | 0.33 | = | 5,583) | ÷ | 16,689) |
| Dec 31, 2009 | 0.33 | = | 4,467) | ÷ | 13,384) |
| Dec 31, 2008 | 0.32 | = | 3,955) | ÷ | 12,307) |
| Dec 31, 2007 | 0.41 | = | 3,980) | ÷ | 9,774) |
| Dec 31, 2006 | 0.47 | = | 3,772) | ÷ | 8,111) |
| Dec 31, 2005 | 0.60 | = | 3,785) | ÷ | 6,286) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial leverage profile exhibits three distinct phases: a period of significant deleveraging, a period of equity erosion and rising leverage, and a recent peak followed by a moderate corrective trend.
- Debt to Equity Ratio Evolution
- Between 2005 and 2013, the debt to equity ratio followed a generally downward trajectory, decreasing from 0.60 to a low of 0.23. This trend indicates a strengthening of the solvency position through the accumulation of equity. However, from 2014 to 2020, the ratio reversed sharply, climbing from 0.27 to a peak of 1.59. This represents a transition from a conservative capital structure to a highly leveraged position where total debt exceeded stockholders' equity. Since 2020, the ratio has trended downward, reaching 1.08 by the end of 2022.
- Stockholders' Equity Dynamics
- A substantial expansion in equity is observed from 2005 to 2013, with values rising from 6,286 million USD to a peak of 24,720 million USD. Following this peak, a sustained decline occurred, with equity falling to a low of 5,366 million USD by 2020. This significant reduction in the equity base acted as the primary driver for the spike in the debt to equity ratio during the 2014-2020 period. A partial recovery is noted in the final two years of the period, with equity increasing to 7,855 million USD by December 31, 2022.
- Long-term Debt Trends
- Long-term debt and finance lease obligations remained relatively stable during the first decade, typically fluctuating between 3,700 million USD and 6,000 million USD, despite a temporary spike to 8,111 million USD in 2012. From 2015 onward, debt levels transitioned to a higher baseline, generally remaining between 6,600 million USD and 8,600 million USD. The combination of sustained high debt levels and a shrinking equity base resulted in the heightened leverage observed toward the end of the decade.
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Comparison to Competitors
Hess Corp., debt to equity, long-term trends, comparison to competitors
| Hess Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2022 | 1.08 | 0.15 | 0.35 | 0.21 |
| Dec 31, 2021 | 1.37 | 0.23 | 0.44 | 0.28 |
| Dec 31, 2020 | 1.59 | 0.34 | 0.51 | 0.43 |
| Dec 31, 2019 | 0.85 | 0.19 | 0.43 | 0.24 |
| Dec 31, 2018 | 0.69 | 0.22 | 0.47 | 0.20 |
| Dec 31, 2017 | 0.63 | 0.26 | 0.64 | 0.23 |
| Dec 31, 2016 | 0.47 | 0.32 | 0.78 | 0.26 |
| Dec 31, 2015 | 0.34 | 0.25 | 0.63 | 0.23 |
| Dec 31, 2014 | 0.27 | 0.18 | 0.43 | 0.17 |
| Dec 31, 2013 | 0.23 | 0.14 | 0.42 | 0.13 |
| Dec 31, 2012 | 0.38 | 0.09 | 0.45 | 0.07 |
| Dec 31, 2011 | 0.33 | 0.08 | 0.35 | 0.11 |
| Dec 31, 2010 | 0.33 | 0.11 | 0.34 | 0.10 |
| Dec 31, 2009 | 0.33 | 0.11 | 0.46 | 0.09 |
| Dec 31, 2008 | 0.32 | 0.10 | 0.50 | 0.08 |
| Dec 31, 2007 | 0.41 | 0.09 | 0.24 | 0.08 |
| Dec 31, 2006 | 0.47 | 0.14 | 0.33 | 0.07 |
| Dec 31, 2005 | 0.60 | 0.21 | 0.24 | 0.07 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Hess Corp., debt to equity, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Hess Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2022 | 1.08 | 0.20 |
| Dec 31, 2021 | 1.37 | 0.28 |
| Dec 31, 2020 | 1.59 | 0.40 |
| Dec 31, 2019 | 0.85 | 0.24 |
| Dec 31, 2018 | 0.69 | 0.23 |
| Dec 31, 2017 | 0.63 | 0.28 |
| Dec 31, 2016 | 0.47 | 0.33 |
| Dec 31, 2015 | 0.34 | 0.28 |
| Dec 31, 2014 | 0.27 | 0.21 |
| Dec 31, 2013 | 0.23 | 0.17 |
| Dec 31, 2012 | 0.38 | 0.13 |
| Dec 31, 2011 | 0.33 | 0.15 |
| Dec 31, 2010 | 0.33 | 0.16 |
| Dec 31, 2009 | 0.33 | 0.18 |
| Dec 31, 2008 | 0.32 | 0.18 |
| Dec 31, 2007 | 0.41 | 0.13 |
| Dec 31, 2006 | 0.47 | 0.17 |
| Dec 31, 2005 | 0.60 | 0.15 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Hess Corp., debt to equity, long-term trends, comparison to industry (energy)
| Hess Corp. | Energy | |
|---|---|---|
| Dec 31, 2022 | 1.08 | 0.22 |
| Dec 31, 2021 | 1.37 | 0.31 |
| Dec 31, 2020 | 1.59 | 0.44 |
| Dec 31, 2019 | 0.85 | 0.26 |
| Dec 31, 2018 | 0.69 | 0.25 |
| Dec 31, 2017 | 0.63 | 0.30 |
| Dec 31, 2016 | 0.47 | 0.35 |
| Dec 31, 2015 | 0.34 | 0.30 |
| Dec 31, 2014 | 0.27 | 0.22 |
| Dec 31, 2013 | 0.23 | 0.19 |
| Dec 31, 2012 | 0.38 | 0.15 |
| Dec 31, 2011 | 0.33 | 0.16 |
| Dec 31, 2010 | 0.33 | 0.17 |
| Dec 31, 2009 | 0.33 | 0.19 |
| Dec 31, 2008 | 0.32 | 0.19 |
| Dec 31, 2007 | 0.41 | 0.15 |
| Dec 31, 2006 | 0.47 | 0.19 |
| Dec 31, 2005 | 0.60 | 0.16 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).