Hess Corp. (NYSE:HES)

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Area Asset Turnover: United States

Hess Corp.; United States; area asset turnover calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Sales and other operating revenues	7,214)	5,378)	3,604)	5,043)	—)
Property, plant and equipment, net	9,937)	9,721)	10,384)	12,182)	—)
Area Activity Ratio
Area asset turnover¹	0.73	0.55	0.35	0.41	—

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).

¹ 2022 Calculation
Area asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net
= 7,214 ÷ 9,937 = 0.73

The financial trajectory for the United States geographic area indicates a significant improvement in operational efficiency between 2019 and 2022. This period was characterized by an initial decline in productivity followed by a robust recovery and expansion in revenue generation relative to the asset base.

Revenue Performance: Sales and other operating revenues experienced a contraction in 2020, falling to 3,604 million US dollars from 5,043 million US dollars in 2019. A strong recovery followed, with revenues increasing to 5,378 million US dollars in 2021 and reaching 7,214 million US dollars by December 31, 2022, representing a substantial increase over the 2019 baseline.
Fixed Asset Base: Net property, plant, and equipment demonstrated a consistent downward trend from 2019 through 2021, decreasing from 12,182 million US dollars to 9,721 million US dollars. A slight increase to 9,937 million US dollars was observed in 2022, indicating a period of stabilization in the net asset base after several years of reduction.
Area Asset Turnover Efficiency: The area asset turnover ratio mirrored the volatility of revenues, dropping from 0.41 in 2019 to a period low of 0.35 in 2020. Subsequently, the ratio improved sharply, rising to 0.55 in 2021 and reaching 0.73 by the end of 2022. This positive trend reflects a marked increase in the efficiency of asset utilization, as the company generated significantly higher revenues from a smaller net asset base compared to 2019 levels.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Area Asset Turnover: Guyana

Hess Corp.; Guyana; area asset turnover calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Sales and other operating revenues	2,636)	754)	350)	—)	—)
Property, plant and equipment, net	4,042)	3,064)	2,114)	1,507)	—)
Area Activity Ratio
Area asset turnover¹	0.65	0.25	0.17	0.00	—

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).

¹ 2022 Calculation
Area asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net
= 2,636 ÷ 4,042 = 0.65

The Guyana operational area demonstrates a transition from an investment-heavy phase to a high-growth production phase between 2019 and 2022. Revenue growth has significantly outpaced the expansion of the asset base, leading to a marked improvement in operational efficiency.

Revenue Trajectory: Sales and other operating revenues exhibited exponential growth, increasing from 350 million USD in 2020 to 2,636 million USD in 2022. This suggests a rapid scaling of production and monetization capabilities within the region.
Capital Investment: Net property, plant, and equipment grew steadily over the observed period, rising from 1,507 million USD in 2019 to 4,042 million USD in 2022. This trend reflects continuous capital deployment to expand infrastructure and capacity.
Area Asset Turnover Efficiency: The area asset turnover ratio improved significantly from 0.17 in 2020 to 0.65 in 2022. This upward trend indicates that the assets are being utilized more efficiently to generate revenue, as the rate of revenue growth has exceeded the rate of asset accumulation.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Area Asset Turnover: Malaysia and JDA

Hess Corp.; Malaysia and JDA; area asset turnover calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Sales and other operating revenues	873)	738)	511)	762)	—)
Property, plant and equipment, net	1,065)	1,035)	1,067)	1,890)	—)
Area Activity Ratio
Area asset turnover¹	0.82	0.71	0.48	0.40	—

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).

¹ 2022 Calculation
Area asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net
= 873 ÷ 1,065 = 0.82

An analysis of the Malaysia and JDA area reveals a consistent improvement in asset utilization efficiency from 2019 through 2022. While operating revenues experienced volatility during this period, the area asset turnover ratio demonstrated a steady upward trajectory, more than doubling over the four-year timeframe.

Revenue Performance: Sales and other operating revenues exhibited a V-shaped recovery pattern. After a decline from $762 million in 2019 to $511 million in 2020, revenues grew significantly to reach $738 million in 2021 and peaked at $873 million in 2022.
Asset Base Evolution: Net property, plant, and equipment underwent a substantial reduction between 2019 and 2020, decreasing from $1,890 million to $1,067 million. Following this sharp decline, the asset base remained relatively stagnant, ending 2022 at $1,065 million.
Area Asset Turnover Trends: The area asset turnover ratio increased annually, rising from 0.40 in 2019 to 0.82 in 2022. The increase observed in 2020, despite lower revenues, was primarily driven by the significant contraction of the net asset base. The subsequent growth in 2021 (0.71) and 2022 (0.82) resulted from recovering revenue streams leveraging a stabilized and leaner asset base, indicating a marked increase in operational efficiency and capital productivity.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Area Asset Turnover: Other

Hess Corp.; Other; area asset turnover calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Sales and other operating revenues	601)	603)	202)	690)	—)
Property, plant and equipment, net	46)	352)	539)	1,223)	—)
Area Activity Ratio
Area asset turnover¹	13.07	1.71	0.37	0.56	—

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).

¹ 2022 Calculation
Area asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net
= 601 ÷ 46 = 13.07

The financial performance of the other geographic area is characterized by significant volatility in operating revenues paired with a consistent and aggressive reduction in the net property, plant, and equipment (PP&E) base over the period ending December 31, 2022.

Revenue Performance: Sales and other operating revenues experienced a sharp contraction in 2020, decreasing to 202 million USD from 690 million USD in 2019. A substantial recovery occurred in 2021, with revenues rising to 603 million USD and remaining nearly flat at 601 million USD through 2022.
Asset Base Erosion: A persistent downward trend is observed in net property, plant, and equipment. The asset value declined from 1,223 million USD in 2019 to 46 million USD by 2022. This represents a near-total depletion of the physical asset base within this specific geographic segment over the analyzed timeframe.
Area Asset Turnover Interpretation: The area asset turnover ratio exhibits an exponential increase, rising from 0.56 in 2019 to 13.07 in 2022. While the ratio initially declined to 0.37 in 2020 due to the revenue drop, the subsequent surge to 1.71 in 2021 and 13.07 in 2022 is primarily driven by the collapse of the asset denominator. The data indicates that revenue is being generated from a drastically smaller asset base, suggesting either a strategic shift toward an asset-light model or the systematic divestment of fixed assets in this region.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Hess Corp., sales and other operating revenues by geographic area

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
United States	7,214)	5,378)	3,604)	5,043)	—)
Guyana	2,636)	754)	350)	—)	—)
Malaysia and JDA	873)	738)	511)	762)	—)
Other	601)	603)	202)	690)	—)
Total	11,324)	7,473)	4,667)	6,495)	—)

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).

Total operating revenues exhibited significant volatility between 2019 and 2022, characterized by a sharp contraction in 2020 followed by an accelerated growth trajectory. Total revenue decreased from US$ 6,495 million in 2019 to US$ 4,667 million in 2020, before rebounding to US$ 11,324 million by the end of 2022, marking a substantial increase in overall financial scale.

United States Market Performance: The United States remains the primary revenue driver for the organization. Following a decline to US$ 3,604 million in 2020, domestic revenues surged to US$ 7,214 million by 2022. This represents a strong recovery and an expansion of the domestic revenue base beyond 2019 levels.
Guyana Growth Trajectory: Guyana has emerged as the most aggressive growth vector. With no reported revenue in 2019, the region contributed US$ 350 million in 2020, which escalated rapidly to US$ 2,636 million in 2022. The exponential increase in this region indicates a strategic shift in the geographic revenue mix and a rapid scaling of operational output.
Malaysia and JDA Stability: Revenues from Malaysia and JDA demonstrated resilience, experiencing a dip to US$ 511 million in 2020 before steadily climbing to US$ 873 million in 2022. This region provides a stable secondary revenue stream with a gradual upward trend over the four-year period.
Other Geographic Segments: The "Other" category experienced a severe contraction in 2020, falling to US$ 202 million from US$ 690 million in 2019. While a recovery occurred in 2021 and 2022, with revenues stabilizing around US$ 600 million, this segment remains the smallest contributor to the total revenue portfolio.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Hess Corp., property, plant and equipment, net by geographic area

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
United States	9,937)	9,721)	10,384)	12,182)	—)
Guyana	4,042)	3,064)	2,114)	1,507)	—)
Malaysia and JDA	1,065)	1,035)	1,067)	1,890)	—)
Other	46)	352)	539)	1,223)	—)
Corporate, Interest and other	8)	10)	11)	12)	—)
Total	15,098)	14,182)	14,115)	16,814)	—)

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).

Total net property, plant, and equipment exhibited a fluctuating trend between 2019 and 2022, declining from 16,814 million USD to a low of 14,115 million USD in 2020, before recovering to 15,098 million USD by the end of 2022. This trajectory reflects a significant reallocation of capital and asset weighting across different geographic operating segments.

Guyana Expansion: A consistent and aggressive upward trend is observed in Guyana, where net PP&E grew from 1,507 million USD in 2019 to 4,042 million USD in 2022. This represents the primary area of growth, with the asset base increasing by approximately 168% over the analyzed period.
United States Asset Trend: Net PP&E in the United States experienced a general decline, falling from 12,182 million USD in 2019 to 9,937 million USD in 2022. While a slight recovery occurred between 2021 and 2022, the overall trend indicates a reduction in the net book value of domestic assets.
International Retrenchment: Assets in Malaysia and the JDA showed a notable decrease from 1,890 million USD in 2019 to 1,065 million USD in 2022. A more severe contraction is observed in the "Other" geographic category, which plummeted from 1,223 million USD in 2019 to 46 million USD in 2022, suggesting a strategic divestment or significant impairment of assets in miscellaneous regions.
Corporate and Other Items: Corporate, interest, and other assets remained marginal and stable, exhibiting a slight downward trend from 12 million USD in 2019 to 8 million USD in 2022, representing a negligible portion of the total asset base.

AI Ask an analyst for more