Hess Corp. (NYSE:HES)

The data reflects the company's financial performance over an 18-year period, focusing on sales and net income figures.

Sales and Other Operating Revenues

The company's sales and operating revenues generally increased from 2005 through 2008, peaking in 2008 at $41,165 million. This period shows a strong upward trend, indicating growth in business activities or market expansion during these years.

From 2009 onwards, there is a noticeable volatility and overall declining trend until 2016, with revenues dropping sharply to $4,762 million by the end of 2016. The steep decline between 2013 and 2016 suggests significant operational challenges, market downturns, or divestitures.

Post-2016, sales figures exhibit a modest recovery trend, increasing gradually to $11,324 million by 2022. This recovery, although not reaching earlier peak levels, indicates some stabilization and potential growth initiatives taking effect.

Net Income (Loss) Attributable to Hess Corporation

Net income shows general growth from 2005 through 2008, moving from $1,242 million to a peak of $2,360 million. This aligns with the increase in sales during the same period and reflects improved profitability.

Starting in 2009, net income becomes more volatile with fluctuations between gains and losses. The company experienced significant net income swings with a major peak in 2013 at $5,052 million, suggesting a highly profitable year potentially due to one-time gains or exceptional operational performance.

However, from 2014 to 2016, the company recorded substantial losses, hitting a nadir in 2016 with a loss of $6,132 million. This large loss period corresponds with the significant reduction in revenues during these years, indicating severe financial distress or restructuring.

After 2016, net income shows erratic improvement, yet remains below earlier profitability peaks until it turns positive again by 2021 and 2022, posting $559 million and $2,096 million respectively. This suggests recovery efforts are bearing fruit and the company is regaining financial health.

Overall, the company experienced a cycle of growth followed by a steep downturn and recent recovery. Both sales and net income data reflect vulnerability to market conditions, operational performance, or strategic shifts, with significant challenges faced particularly in the mid-2010s. Recent years indicate a positive trajectory toward stabilization and improved profitability.

The analysis of the financial data over the period from 2005 to 2022 reveals the following key trends and observations regarding the assets of Hess Corp.

Current Assets

Current assets exhibited a general upward trend from 2005 through 2013, increasing from 5,290 million US dollars in 2005 to a peak of 8,599 million US dollars in 2013. This increase indicates growing liquidity or short-term resource availability during this period.

Following 2013, current assets demonstrated a marked decline, dropping significantly in 2014 to 6,687 million US dollars, continuing downward to a low of 3,081 million US dollars by 2020. This reduction suggests a contraction in current asset holdings, which may reflect changes in operational efficiency, liquidity management, or asset restructuring.

From 2020 onward, current assets showed a modest recovery up to 4,346 million US dollars in 2021 but declined slightly again to 3,931 million US dollars by 2022. This reflects some stabilization yet still lower levels compared to earlier years.

Total Assets

Total assets followed a rising trajectory from 19,115 million US dollars in 2005 to peak at 43,441 million US dollars in 2012, indicating significant asset base expansion over this timeframe.

Starting in 2013, total assets began a notable decline, falling from 42,754 million US dollars in 2013 to 18,821 million US dollars by 2020. This substantial decrease may suggest divestitures, depreciation, impairments, or strategic asset reductions.

After 2020, total assets experienced a slight increase, rising to 21,695 million US dollars in 2022. This suggests some recovery or asset acquisition after the extensive reduction phase.

In summary, both current and total assets saw significant growth up to approximately 2012-2013, followed by a pronounced contraction until 2020, with signs of modest recovery thereafter. The patterns indicate a phase of expansion and asset accumulation initially, followed by a strategic downsizing or reallocation of asset holdings in the subsequent years, reflective of changes in corporate strategy or market conditions.

The financial data reveals several noteworthy trends regarding the company's liabilities and stockholders' equity over the analyzed period.

Current liabilities

The current liabilities exhibit fluctuations with a peak in 2012 at 8,382 million USD, followed by a steady decline to the lowest value of 1,623 million USD in 2020. There is a slight increase observed in 2021 and 2022, reaching 3,064 million USD and 2,396 million USD respectively.

Total liabilities

Total liabilities generally rise from 12,829 million USD in 2005 to a peak of 22,238 million USD in 2012. After this peak, there is a decline to 10,758 million USD in 2017, followed by a gradual increase to roughly 13,199 million USD in 2022. This pattern suggests a period of liability expansion followed by deleveraging and subsequent stabilization.

Long-term debt and long-term finance lease obligations

Long-term debt remains relatively stable during the earlier years, ranging around 3,700 to 4,000 million USD from 2005 through 2008. Starting in 2009, this metric climbs steadily to a high of 8,658 million USD in 2021 before a slight decrease to 8,460 million USD in 2022. The increase points to a greater reliance on long-term financing over the latter part of the period.

Total stockholders’ equity

Stockholders’ equity shows consistent growth from 6,286 million USD in 2005 to a peak of 24,720 million USD in 2013, indicating strong equity base expansion during this timeframe. However, there is a notable decrease thereafter, declining to 5,366 million USD in 2020, which reflects a significant contraction in equity. A modest recovery is observed in the last two years, with equity values rising to 7,855 million USD by 2022.

In summary, the company experienced an expansion in both liabilities and equity up to approximately 2012–2013, followed by a phase of liability reduction and a marked decrease in equity through 2020. The long-term debt increased particularly after 2009, highlighting a shift in capital structure towards more long-term obligations. The modest recovery in equity and slight fluctuations in current and total liabilities post-2020 suggest efforts toward stabilization and possible restructuring.

The financial data over the observed periods reveal notable fluctuations and trends across operating, investing, and financing cash flows.

Net Cash Provided by Operating Activities

Operating cash flow demonstrates a generally positive trend with significant variability. Starting at $1,840 million in 2005, there is a marked increase reaching a peak around 2012 with $5,660 million. Post-2012, the cash flow experiences a decline, reaching a low of $795 million in 2016, followed by recovery and another peak of $3,944 million in 2022. This pattern indicates operational volatility but overall growth in cash-generating capability over the long term.

Net Cash (Used In) Provided by Investing Activities

Investing activities consistently show negative cash flows for most years, implying sustained investment outflows. The largest outflows are observed between 2008 and 2012, hovering around $6 billion to $7 billion annually, indicating substantial capital expenditure or asset acquisitions. A notable positive inflow is seen in 2017 with $1,358 million, breaking the prevailing negative pattern, though the trend returns to outflows in subsequent years with moderate values compared to previous peaks.

Net Cash Provided by (Used In) Financing Activities

Financing cash flows exhibit considerable volatility. Early years display relatively small negative or positive net cash changes, but from 2012 to 2014, there is a dramatic outflow, highlighted by $-4,274 million in 2013 and $-3,828 million in 2014. Following this period, financing cash flow fluctuates between inflows and outflows without a clear directional trend, with outflows again becoming prominent in 2021 and 2022. This variability reflects dynamic changes in funding strategy, possibly involving debt issuance or repayment and equity transactions.

The data indicates fluctuations in earnings per share (EPS) over the analyzed period. Basic EPS showed an overall increasing trend from 2005, rising from 4.38 US$ to a peak of 15.01 US$ in 2013. This peak was followed by a significant decline, dropping to negative values in 2015 and 2016, with the lowest point at -19.92 US$ in 2016. The EPS remained negative or close to zero through 2019, indicating a period of financial difficulty or losses. Starting in 2020, EPS began to recover, reaching 6.8 US$ by 2022, suggesting a return to profitability.

The diluted EPS mirrors the trend observed in basic EPS, with values slightly lower but closely aligned throughout the period. This indicates consistent dilution effects without substantial divergence from basic earnings.

Dividend per share showed stability in the early years, maintained at 0.4 US$ per share from 2005 until 2012. A notable increase occurred in 2013, rising first to 0.7 US$, then steadily increasing to 1 US$ per share from 2014 through 2021. In 2022, dividends were further raised to 1.5 US$, which may reflect improved financial performance or a strategic decision to enhance shareholder returns.

Earnings per Share (EPS) Trend

Strong growth until 2013 peak followed by sharp decline into negative figures in 2015 and 2016, recovering gradually post-2020.

Dividend per Share Trend

Steady payments initially, increase beginning 2013, plateau at 1 US$ from 2014 to 2021, with an increase to 1.5 US$ in 2022.

Financial Insights

The fluctuation in EPS, particularly the negative values in mid-2010s, suggests a challenging period impacting profitability. The recovery in recent years aligns with increased dividends, indicating restored financial health and confidence in future performance.