Stock Analysis on Net

Hess Corp. (NYSE:HES)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Hess Corp., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income (loss) attributable to Hess Corporation 2,096 559 (3,093) (408) (282)
Net income attributable to noncontrolling interests 351 331 254 168 167
Net noncash charges 2,674 2,101 4,642 2,477 2,244
Changes in operating assets and liabilities (1,177) (101) (470) (595) (190)
Net cash provided by operating activities 3,944 2,890 1,333 1,642 1,939
Interest paid, net of tax1 335 274 458 300 311
Capitalized interest, net of tax2 7 30 16
Capital expenditures incurred, E&P (2,589) (1,698) (1,678) (2,576) (1,909)
Capital expenditures incurred, Midstream (232) (183) (253) (416) (271)
Leased assets recognized for new finance lease obligations incurred
Free cash flow to the firm (FCFF) 1,465 1,283 (140) (1,020) 86

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).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Hess Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Hess Corp. FCFF increased from 2020 to 2021 and from 2021 to 2022.

Interest Paid, Net of Tax

Hess Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR1 31.00% 40.30% 0.40% 21.00% 21.00%
Interest Paid, Net of Tax
Interest paid, before tax 486 459 460 380 394
Less: Interest paid, tax2 151 185 2 80 83
Interest paid, net of tax 335 274 458 300 311
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax 10 38 20
Less: Capitalized interest, tax3 3 8 4
Capitalized interest, net of tax 7 30 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).

1 See details »

2 2022 Calculation
Interest paid, tax = Interest paid × EITR
= 486 × 31.00% = 151

3 2022 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 10 × 31.00% = 3


Enterprise Value to FCFF Ratio, Current

Hess Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 52,021
Free cash flow to the firm (FCFF) 1,465
Valuation Ratio
EV/FCFF 35.50
Benchmarks
EV/FCFF, Competitors1
Chevron Corp. 14.70
ConocoPhillips 15.79
Exxon Mobil Corp. 12.65
Marathon Petroleum Corp. 6.48
Occidental Petroleum Corp. 11.67
Pioneer Natural Resources Co. 15.75
Valero Energy Corp. 6.49
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 7.07
EV/FCFF, Industry
Energy 7.47

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Hess Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 49,180 38,098 27,881 26,579 22,717
Free cash flow to the firm (FCFF)2 1,465 1,283 (140) (1,020) 86
Valuation Ratio
EV/FCFF3 33.56 29.69 263.97
Benchmarks
EV/FCFF, Competitors4
Chevron Corp. 8.27 13.33 106.63 16.67
ConocoPhillips 7.43 10.72 92.48 13.21
Exxon Mobil Corp. 7.84 10.06 44.38
Marathon Petroleum Corp. 5.22 7.80 13.14
Occidental Petroleum Corp. 5.95 8.39 25.58 45.65
Pioneer Natural Resources Co. 6.73 9.41 67.23 173.74
Valero Energy Corp. 5.39 10.62 9.96
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 7.29 10.53 331.68 21.78
EV/FCFF, Industry
Energy 7.75 10.84 194.07 22.00

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 See details »

2 See details »

3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 49,180 ÷ 1,465 = 33.56

4 Click competitor name to see calculations.