hes-ex991

NEW YORK, October 26, 2016 — Hess Corporation (NYSE: HES) today reported a net loss of $339 million, or $1.12 per common share, in the third quarter of 2016 compared with a net loss of $279 million, or $0.98 per common share, in the third quarter of 2015. On an adjusted basis, the Corporation reported a net loss of $340 million, or $1.12 per common share, in the third quarter of 2016 compared with an adjusted net loss of $291 million, or $1.03 per common share, in the prior-

year quarter. Third quarter 2016 after-tax results reflect lower production and realized selling prices compared with the third quarter of 2015, as well as lower operating costs and depreciation, depletion and amortization expenses.

“Our company continues to take steps to maintain a strong balance sheet and materially reduce our spending,” Chief Executive Officer John Hess said. “We also are investing in growth projects including the world-class Liza oil discovery in Guyana that we believe will create significant value for our shareholders. Based on the positive results of the Liza-3 well, we now expect Liza to be at the upper end of the previously announced estimated recoverable resources range of 800 million to 1.4 billion barrels of oil equivalent.”

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	(unaudited)						(unaudited)
	2016			2015			2016			2015
	(In millions, except per share amounts)
Net Income (Loss) Attributable to Hess Corporation
Exploration and Production	$	(234	)	$	(188	)	$	(1,013	)	$	(1,004	)
Bakken Midstream		13			16			38			75
Corporate, Interest and Other		(118	)		(94	)		(265	)		(266	)
Net income (loss) from continuing operations		(339	)		(266	)		(1,240	)		(1,195	)
Discontinued operations		—			(13	)		—			(40	)
Net income (loss) attributable to Hess Corporation	$	(339	)	$	(279	)	$	(1,240	)	$	(1,235	)

Net income (loss) per common share (diluted) (a)	$	(1.12	)	$	(0.98	)	$	(4.11	)	$	(4.35	)

Adjusted Net Income (Loss) Attributable to Hess Corporation (b)
Exploration and Production	$	(285	)	$	(221	)	$	(1,007	)	$	(538	)
Bakken Midstream		13			16			38			75
Corporate, Interest and Other		(68	)		(86	)		(215	)		(254	)
Adjusted net income (loss) from continuing operations		(340	)		(291	)		(1,184	)		(717	)
Discontinued operations		—			—			—			—
Adjusted net income (loss) attributable to Hess Corporation	$	(340	)	$	(291	)	$	(1,184	)	$	(717	)

Adjusted net income (loss) per common share (diluted) (a)	$	(1.12	)	$	(1.03	)	$	(3.93	)	$	(2.53	)

Weighted average number of shares (diluted)		313.2			283.5			308.7			283.8

The Exploration and Production net loss in the third quarter of 2016 was $234 million compared to a net loss of $188 million in the prior-year quarter. On an adjusted basis, the third quarter 2016 adjusted net loss was $285 million compared to $221 million in the prior-year quarter.

The Corporation’s average realized crude oil selling price was $41.50 per barrel in the third quarter of 2016, down 9 percent from $45.66 per barrel in the year-ago quarter, including the effect of hedging. The average realized natural gas liquids selling price in the third quarter of 2016 was $9.23 per barrel compared to $7.17 per barrel in the prior-year quarter while the average realized natural gas selling price was $3.20 per mcf, down from $4.02 per mcf in the third quarter of 2015.

Net production in the third quarter of 2016 was 314,000 boepd compared to pro forma net production, which excludes assets sold, of 372,000 boepd in the third quarter of 2015. Lower volumes were primarily due to a reduced drilling program across our portfolio, planned and unplanned downtime, and natural field declines.

Bakken (Onshore U.S.): Net production from the Bakken was 107,000 boepd compared to 113,000 boepd in the prior-year quarter, due to a reduced drilling program. The Corporation operated an average of three rigs in the quarter and brought 22 gross operated wells on production. Drilling and completion costs averaged $4.7 million per operated well in the third quarter, down 11 percent from the year-ago quarter, while increasing our standard well design to a 50-stage completion from the previous 35-stage completion design.

Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 61,000 boepd compared to 83,000 boepd in the prior-year quarter, primarily as a result of unplanned well downtime due to subsurface valve failures at two fields and natural field declines.

Valhall (Offshore Norway): Net production from the Valhall Field (Hess 64 percent) averaged 31,000 boepd in the third quarter of 2016, down from 35,000 boepd in the year-ago quarter, primarily due to a reduced drilling program.

South Arne (Offshore Denmark): Net production from the South Arne Field (Hess 62 percent) averaged 11,000 boepd in the third quarter of 2016, down from 14,000 boepd in the year-ago quarter, as a result of a planned maintenance shutdown during the third quarter of 2016.

Joint Development Area of Malaysia / Thailand (Offshore): At the Joint Development Area of Malaysia / Thailand (Hess 50 percent), the operator shut down the field in the third quarter to commission the booster compressor project. Net production averaged 24,000 boepd in the third quarter of 2016, down from 36,000 boepd in the prior-year quarter due to the shut down and lower entitlement.

Development Projects: At the North Malay Basin project, offshore Malaysia (Hess operated - 50 percent), we completed installation of the topsides at three remote wellhead platforms and development drilling operations continued. First gas from the full field development is projected for the third quarter of 2017. At the Stampede project in the Gulf of Mexico (Hess operated - 25 percent), the topsides deck was installed on the hull and drilling operations in the field continued. First production is targeted for 2018.

Guyana (Offshore): The Liza-3 appraisal well on the Stabroek Block (Hess 30 percent), operated by Esso Exploration and Production Guyana Limited, was successfully completed. Based on the Liza-3 results, we now expect the estimated recoverable resources to be at the upper end of the previously announced range of 800 million to 1.4 billion barrels of oil equivalent. On a separate prospect 25 miles northwest of the Liza discovery, the operator completed drilling of the Skipjack exploration well, which was unsuccessful and expensed in the quarter.

The Corporation’s share of Bakken Midstream segment net income was $13 million in the third quarter of 2016 compared to $16 million in the prior-year quarter, primarily due to lower throughput volumes.

Exploration and Production capital and exploratory expenditures were $435 million in the third quarter of 2016 down 49 percent from $849 million in the prior-year quarter reflecting reduced activities in response to the weak commodity price environment. Bakken Midstream capital expenditures were $88 million in the third quarter of both 2016 and 2015.

Net cash provided by operating activities before changes in operating assets and liabilities was $309 million in the third quarter of 2016 compared to $509 million in the prior-year quarter. In the third quarter, the Corporation issued $1 billion of senior notes with a 4.30% coupon due in 2027 and $500 million of senior notes with a 5.80% coupon due in 2047, with proceeds to be used primarily to purchase or redeem higher-coupon bonds and near-term maturities. Through September 30, 2016, $750 million has been used to purchase the tendered 8.125% notes, due in 2019.

The Corporation had cash and cash equivalents of $3,529 million and total debt, excluding the Bakken Midstream, of $6,654 million at September 30, 2016. The Corporation’s debt to capitalization ratio was 26.0 percent at September 30, 2016.

In October, the Corporation expects to purchase and redeem notes for $625 million to complete the debt refinancing. Pro forma for the notes to be purchased or redeemed in October and excluding the Bakken Midstream, debt amounted to $6,095 million at September 30, 2016. The Corporation’s pro forma debt to capitalization ratio was 24.5 percent.

The following table reflects the total after‑tax income (expense) of items affecting comparability of earnings between periods:

Third quarter 2016 Exploration and Production results include a tax benefit of $51 million related to the resolution of certain international tax matters. Third quarter 2016 Corporate, Interest and Other results include an after-tax charge of $50 million ($80 million pre-tax) for the premium paid to purchase 65 percent of the principal amount of our 8.125% notes, due in 2019.

Third quarter 2015 Exploration and Production results include an after-tax gain of $31 million ($49 million pre-tax) from the sale of dry gas acreage in the Utica shale play and a tax benefit of $50 million associated with an international investment incentive. Exploration and Production results also include after-tax charges totaling $48 million ($74 million pre-tax) for undeveloped leasehold impairment and other exit costs. Third quarter 2015 Corporate, Interest and Other results include an after-tax charge of $8 million ($10 million pre-tax) related to the HOVENSA bankruptcy.

The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):

The following table reconciles reported net cash provided by (used in) operating activities to cash provided by continuing operating activities before changes in operating assets and liabilities:

A reconciliation of pro forma debt to total debt on a GAAP basis is provided on page 10.

Hess Corporation will review third quarter financial and operating results and other matters on a webcast at 10 a.m. today. For details about the event, refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data. Estimates and projections contained in this release are based on the Company’s current understanding and assessment based on reasonable assumptions. Actual results may differ materially from these estimates and projections due to certain risk factors discussed in the Corporation’s periodic filings with the Securities and Exchange Commission and other factors.

The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income (loss)” presented in this release is defined as reported net income (loss) attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by operating activities before changes in operating assets and liabilities” is defined as Cash provided by operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income (loss) to evaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by operating activities before changes in operating assets and liabilities demonstrates the company’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income (loss) or net cash provided by operating activities. A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss) as well as a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by operating activities before changes in operating assets and liabilities are provided in the release. In addition, “Pro forma debt” presented in this release is defined as reported debt less debt balances that we have committed to repurchase or redeem at September 30, 2016. Management used pro forma debt to evaluate the Corporation’s financing structure and believes that investors’ understanding of our liquidity and debt is enhanced by disclosing this measure.

We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess’ Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.

	Third			Third			Second
	Quarter			Quarter			Quarter
	2016			2015			2016
Income Statement

Revenues and non-operating income
Sales and other operating revenues	$	1,177		$	1,671		$	1,224
Other, net		19			18			45
Total revenues and non-operating income		1,196			1,689			1,269

Costs and expenses
Cost of products sold (excluding items shown separately below)		222			356			277
Operating costs and expenses		421			508			455
Production and severance taxes		27			29			28
Exploration expenses, including dry holes and lease impairment		78			144			199
General and administrative expenses		106			119			106
Interest expense		84			84			85
Loss on debt extinguishment		80			—			—
Depreciation, depletion and amortization		811			988			797
Total costs and expenses		1,829			2,228			1,947

Income (loss) from continuing operations before income taxes		(633	)		(539	)		(678	)
Provision (benefit) for income taxes		(316	)		(300	)		(305	)
Income (loss) from continuing operations		(317	)		(239	)		(373	)

Income (loss) from discontinued operations, net of income taxes		—			(13	)		—

Net income (loss)		(317	)		(252	)		(373	)
Less: Net income (loss) attributable to noncontrolling interests		22			27			19
Net income (loss) attributable to Hess Corporation		(339	)		(279	)		(392	)

Less: Preferred stock dividends		12			—			12
Net income (loss) applicable to Hess Corporation common stockholders	$	(351	)	$	(279	)	$	(404	)

	Nine Months Ended September 30,
	2016			2015
Income Statement

Revenues and non-operating income
Sales and other operating revenues	$	3,374		$	5,162
Other, net		84			12
Total revenues and non-operating income		3,458			5,174

Costs and expenses
Cost of products sold (excluding items shown separately below)		688			990
Operating costs and expenses		1,312			1,517
Production and severance taxes		74			110
Exploration expenses, including dry holes and lease impairment		409			503
General and administrative expenses		310			417
Interest expense		254			255
Loss on debt extinguishment		80			—
Depreciation, depletion and amortization		2,476			2,972
Impairments		—			385
Total costs and expenses		5,603			7,149

Income (loss) from continuing operations before income taxes		(2,145	)		(1,975	)
Provision (benefit) for income taxes		(967	)		(807	)
Income (loss) from continuing operations		(1,178	)		(1,168	)

Income (loss) from discontinued operations, net of income taxes		—			(40	)

Net income (loss)		(1,178	)		(1,208	)
Less: Net income (loss) attributable to noncontrolling interests		62			27
Net income (loss) attributable to Hess Corporation		(1,240	)		(1,235	)

Less: Preferred stock dividends		30			—
Net income (loss) applicable to Hess Corporation common stockholders	$	(1,270	)	$	(1,235	)

	September 30,			December 31,
	2016			2015
Balance Sheet Information

Cash and cash equivalents	$	3,529		$	2,716
Other current assets		1,364			1,688
Property, plant and equipment – net		25,537			26,352
Other long-term assets		4,029			3,401
Total assets	$	34,459		$	34,157

Current maturities of long-term debt	$	666		$	86
Other current liabilities		1,951			2,542
Long-term debt		6,671			6,506
Other long-term liabilities		4,256			4,622
Total equity excluding other comprehensive income (loss)		21,210			21,050
Accumulated other comprehensive income (loss)		(1,372	)		(1,664	)
Noncontrolling interests		1,077			1,015
Total liabilities and equity	$	34,459		$	34,157

	Third			Third			Second
	Quarter			Quarter			Quarter
	2016			2015			2016
Cash Flow Information

Cash Flows from Operating Activities
Net income (loss)	$	(317	)	$	(252	)	$	(373	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
(Gains) losses on asset sales, net		—			(50	)		(27	)
Depreciation, depletion and amortization		811			988			797
Exploratory dry hole costs		16			4			133
Exploration lease impairment		9			61			15
Loss from equity affiliates		—			10			—
Stock compensation expense		22			20			22
Provision (benefit) for deferred income taxes and other tax accruals		(312	)		(285	)		(310	)
Loss on debt extinguishment		80			—			—
(Income) loss from discontinued operations, net of income taxes		—			13			—
Cash provided by operating activities before changes in operating assets and liabilities		309			509			257
Changes in operating assets and liabilities		23			(217	)		(60	)
Cash provided by (used in) continuing operating activities		332			292			197
Cash provided by (used in) discontinued operating activities		—			(10	)		—
Net cash provided by (used in) operating activities		332			282			197

Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P		(463	)		(918	)		(547	)
Additions to property, plant and equipment - Bakken Midstream		(66	)		(45	)		(68	)
Proceeds from asset sales		—			25			80
Other, net		3			(31	)		8
Cash provided by (used in) continuing investing activities		(526	)		(969	)		(527	)
Cash provided by (used in) discontinued investing activities		—			13			—
Net cash provided by (used in) investing activities		(526	)		(956	)		(527	)

Cash Flows from Financing Activities
Debt with maturities of greater than 90 days
Borrowings		1,496			600			—
Repayments		(765	)		(17	)		(43	)
Common stock acquired and retired		—			(64	)		—
Cash dividends paid		(91	)		(71	)		(89	)
Noncontrolling interests, net		—			2,329			—
Other, net		(12	)		(21	)		—
Cash provided by (used in) continued financing activities		628			2,756			(132	)
Cash provided by (used in) discontinued financing activities		—			—			—
Net cash provided by (used in) financing activities		628			2,756			(132	)

Net Increase (Decrease) in Cash and Cash Equivalents		434			2,082			(462	)
Cash and Cash Equivalents at Beginning of Period		3,095			931			3,557
Cash and Cash Equivalents at End of Period	$	3,529		$	3,013		$	3,095

Additions to Property, plant and equipment included within Investing activities:
Capital expenditures incurred	$	(471	)	$	(858	)	$	(501	)
Increase (decrease) in related liabilities		(58	)		(105	)		(114	)
Additions to Property, plant and equipment	$	(529	)	$	(963	)	$	(615	)

	Nine Months Ended September 30,
	2016			2015
Cash Flow Information

Cash flows From Operating Activities
Net income (loss)	$	(1,178	)	$	(1,208	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
(Gains) losses on asset sales, net		(27	)		(50	)
Depreciation, depletion and amortization		2,476			2,972
Exploratory dry hole costs		234			180
Exploration lease impairment		33			139
Impairments		—			385
Loss from equity affiliates		—			10
Stock compensation expense		69			71
Provision (benefit) for deferred income taxes and other tax accruals		(973	)		(819	)
Loss on debt extinguishment		80			—
(Income) loss from discontinued operations, net of income taxes		—			40
Cash provided by operating activities before changes in operating assets and liabilities		714			1,720
Changes in operating assets and liabilities		(245	)		(331	)
Cash provided by (used in) continuing operating activities		469			1,389
Cash provided by (used in) discontinued operating activities		—			(31	)
Net cash provided by (used in) operating activities		469			1,358

Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P		(1,578	)		(3,232	)
Additions to property, plant and equipment - Bakken Midstream		(186	)		(154	)
Proceeds from asset sales		80			25
Other, net		18			(44	)
Cash provided by (used in) continuing investing activities		(1,666	)		(3,405	)
Cash provided by (used in) discontinued investing activities		—			108
Net cash provided by (used in) investing activities		(1,666	)		(3,297	)

Cash Flows from Financing Activities
Debt with maturities of greater than 90 days
Borrowings		1,501			600
Repayments		(825	)		(51	)
Proceeds from issuance of preferred stock		557			—
Proceeds from issuance of common stock		1,087			—
Common stock acquired and retired		—			(142	)
Cash dividends paid		(260	)		(215	)
Noncontrolling interests, net		—			2,329
Other, net		(50	)		(13	)
Cash provided by (used in) continued financing activities		2,010			2,508
Cash provided by (used in) discontinued financing activities		—			—
Net cash provided by (used in) financing activities		2,010			2,508

Net Increase (Decrease) in Cash and Cash Equivalents		813			569
Cash and Cash Equivalents at Beginning of Year		2,716			2,444
Cash and Cash Equivalents at End of Period	$	3,529		$	3,013

Additions to Property, plant and equipment included within Investing activities:
Capital expenditures incurred	$	(1,512	)	$	(3,108	)
Increase (decrease) in related liabilities		(252	)		(278	)
Additions to Property, plant and equipment	$	(1,764	)	$	(3,386	)

	Third		Third		Second
	Quarter		Quarter		Quarter
	2016		2015		2016
Capital and Exploratory Expenditures

E&P Capital and exploratory expenditures
United States
Bakken	$	126	$	295	$	88
Other Onshore		4		70		22
Total Onshore		130		365		110
Offshore		191		199		168
Total United States		321		564		278

Europe		1		58		14
Africa		4		13		—
Asia and other		109		214		193
E&P Capital and exploratory expenditures	$	435	$	849	$	485

Total exploration expenses charged to income included above	$	52	$	79	$	51

Bakken Midstream Capital expenditures	$	88	$	88	$	67

	Nine Months Ended September 30,
	2016		2015
Capital and Exploratory Expenditures

E&P Capital and exploratory expenditures
United States
Bakken	$	330	$	1,060
Other Onshore		48		260
Total Onshore		378		1,320
Offshore		564		666
Total United States		942		1,986

Europe		63		255
Africa		7		159
Asia and other		452		699
E&P Capital and exploratory expenditures	$	1,464	$	3,099

Total exploration expenses charged to income included above	$	142	$	184

Bakken Midstream Capital expenditures	$	190	$	193

	Third Quarter 2016
	United States				International				Total
Income Statement

Total revenues and non-operating income
Sales and other operating revenues	$	791			$	386			$	1,177
Other, net		(5	)			12				7
Total revenues and non-operating income		786				398				1,184

Costs and expenses
Cost of products sold (excluding items shown separately below) (a)		234				(5	)			229
Operating costs and expenses		180				198				378
Production and severance taxes		24				3				27
Bakken Midstream tariffs		113				—				113
Exploration expenses, including dry holes and lease impairment		29				49				78
General and administrative expenses		57				4				61
Depreciation, depletion and amortization		522				262				784
Total costs and expenses		1,159				511				1,670

Results of operations before income taxes		(373	)			(113	)			(486	)
Provision (benefit) for income taxes		(139	)			(113	)			(252	)
Net income (loss) attributable to Hess Corporation	$	(234	)		$	—			$	(234	)


	Third Quarter 2015
	United States				International				Total
Income Statement

Total revenues and non-operating income
Sales and other operating revenues	$	1,022			$	649			$	1,671
Other, net		46				(19	)			27
Total revenues and non-operating income		1,068				630				1,698

Costs and expenses
Cost of products sold (excluding items shown separately below) (a)		350				36				386
Operating costs and expenses		193				250				443
Production and severance taxes		28				1				29
Bakken Midstream tariffs		117				—				117
Exploration expenses, including dry holes and lease impairment		87				57				144
General and administrative expenses		47				13				60
Depreciation, depletion and amortization		622				341				963
Total costs and expenses		1,444				698				2,142

Results of operations before income taxes		(376	)			(68	)			(444	)
Provision (benefit) for income taxes		(129	)			(127	)			(256	)
Net income (loss) attributable to Hess Corporation	$	(247	)	(b)	$	59		(c)	$	(188	)

	Second Quarter 2016
	United States			International			Total
Income Statement

Total revenues and non-operating income
Sales and other operating revenues	$	752		$	472		$	1,224
Other, net		22			15			37
Total revenues and non-operating income		774			487			1,261

Costs and expenses
Cost of products sold (excluding items shown separately below) (a)		230			57			287
Operating costs and expenses		230			179			409
Production and severance taxes		27			1			28
Bakken Midstream tariffs		109			—			109
Exploration expenses, including dry holes and lease impairment		164			35			199
General and administrative expenses		54			6			60
Depreciation, depletion and amortization		497			273			770
Total costs and expenses		1,311			551			1,862

Results of operations before income taxes		(537	)		(64	)		(601	)
Provision (benefit) for income taxes		(203	)		(70	)		(273	)
Net income (loss) attributable to Hess Corporation	$	(334	)	$	6		$	(328	)

	Nine Months Ended September 30, 2016
	United States				International				Total
Income Statement

Total revenues and non-operating income
Sales and other operating revenues	$	2,142			$	1,232			$	3,374
Other, net		23				31				54
Total revenues and non-operating income		2,165				1,263				3,428

Costs and expenses
Cost of products sold (excluding items shown separately below)(a)		648				64				712
Operating costs and expenses		631				547				1,178
Production and severance taxes		68				6				74
Bakken Midstream tariffs		334				—				334
Exploration expenses, including dry holes and lease impairment		301				108				409
General and administrative expenses		162				15				177
Depreciation, depletion and amortization		1,556				840				2,396
Total costs and expenses		3,700				1,580				5,280

Results of operations before income taxes		(1,535	)			(317	)			(1,852	)
Provision (benefit) for income taxes		(583	)			(256	)			(839	)
Net income (loss) attributable to Hess Corporation	$	(952	)		$	(61	)		$	(1,013	)


	Nine Months Ended September 30, 2015
	United States				International				Total
Income Statement

Total revenues and non-operating income
Sales and other operating revenues	$	3,218			$	1,944			$	5,162
Other, net		26				(5	)			21
Total revenues and non-operating income		3,244				1,939				5,183

Costs and expenses
Cost of products sold (excluding items shown separately below)(a)		1,076				2				1,078
Operating costs and expenses		587				734				1,321
Production and severance taxes		106				4				110
Bakken Midstream tariffs		335				—				335
Exploration expenses, including dry holes and lease impairment		171				332				503
General and administrative expenses		202				41				243
Depreciation, depletion and amortization		1,759				1,140				2,899
Impairments		385				—				385
Total costs and expenses		4,621				2,253				6,874

Results of operations before income taxes		(1,377	)			(314	)			(1,691	)
Provision (benefit) for income taxes		(340	)			(347	)			(687	)
Net income (loss) attributable to Hess Corporation	$	(1,037	)	(b)	$	33		(c)	$	(1,004	)

	Third		Third		Second
	Quarter		Quarter		Quarter
	2016		2015		2016
Net Production Per Day (in thousands)

Crude oil - barrels
United States
Bakken		67		82		69
Other Onshore		9		10		8
Total Onshore		76		92		77
Offshore		46		60		41
Total United States		122		152		118

Europe		34		40		26
Africa (a)		33		50		33
Asia		1		2		2
Total		190		244		179

Natural gas liquids - barrels
United States
Bakken		29		20		27
Other Onshore		11		12		12
Total Onshore		40		32		39
Offshore		4		7		4
Total United States		44		39		43

Europe		1		1		1
Total		45		40		44

Natural gas - mcf
United States
Bakken		66		65		59
Other Onshore		139		125		134
Total Onshore		205		190		193
Offshore		65		93		52
Total United States		270		283		245

Europe		41		45		40
Asia		161		246		254
Total		472		574		539

Barrels of oil equivalent		314		380		313

	Nine Months Ended September 30,
	2016		2015
Net Production Per Day (in thousands)

Crude oil - barrels
United States
Bakken		70		82
Other Onshore		9		11
Total Onshore		79		93
Offshore		46		57
Total United States		125		150

Europe		32		38
Africa (a)		34		50
Asia		2		2
Total		193		240

Natural gas liquids - barrels
United States
Bakken		27		21
Other Onshore		12		11
Total Onshore		39		32
Offshore		5		6
Total United States		44		38

Europe		1		1
Total		45		39

Natural gas - mcf
United States
Bakken		64		65
Other Onshore		136		100
Total Onshore		200		165
Offshore		64		85
Total United States		264		250

Europe		42		41
Asia		221		297
Total		527		588

Barrels of oil equivalent		326		377

	Third		Third		Second
	Quarter		Quarter		Quarter
	2016		2015		2016
Sales Volumes Per Day (in thousands)

Crude oil - barrels		190		245		198
Natural gas liquids - barrels		45		40		44
Natural gas - mcf		472		574		539
Barrels of oil equivalent		314		381		332

Sales Volumes (in thousands)

Crude oil - barrels		17,528		22,592		18,053
Natural gas liquids - barrels		4,167		3,701		3,968
Natural gas - mcf		43,413		52,784		48,998
Barrels of oil equivalent		28,931		35,090		30,187


	Nine Months Ended September 30,
	2016		2015
Sales Volumes Per Day (in thousands)

Crude oil - barrels		201		238
Natural gas liquids - barrels		45		39
Natural gas - mcf		527		588
Barrels of oil equivalent		334		375

Sales Volumes (in thousands)

Crude oil - barrels		55,030		65,028
Natural gas liquids - barrels		12,389		10,668
Natural gas - mcf		144,381		160,604
Barrels of oil equivalent		91,483		102,463

	Third		Third		Second
	Quarter		Quarter		Quarter
	2016		2015		2016
Average Selling Prices

Crude oil - per barrel (including hedging)
United States
Onshore	$	39.19	$	40.43	$	39.96
Offshore		39.55		42.70		40.15
Total United States		39.33		41.33		40.02
Europe		46.01		53.49		45.28
Africa		44.22		51.98		44.66
Asia		47.36		—		38.96
Worldwide		41.50		45.66		41.95

Crude oil - per barrel (excluding hedging)
United States
Onshore	$	39.19	$	37.91	$	39.96
Offshore		39.55		42.70		40.15
Total United States		39.33		39.81		40.02
Europe		46.01		50.12		45.28
Africa		44.22		48.60		44.66
Asia		47.36		—		38.96
Worldwide		41.50		43.43		41.95

Natural gas liquids - per barrel
United States
Onshore	$	8.48	$	5.45	$	8.34
Offshore		13.94		12.56		13.52
Total United States		9.00		6.69		8.84
Europe		17.68		21.44		19.23
Worldwide		9.23		7.17		9.03

Natural gas - per mcf
United States
Onshore	$	1.49	$	1.70	$	1.30
Offshore		2.24		2.37		1.50
Total United States		1.67		1.92		1.34
Europe		3.74		6.43		3.74
Asia		5.66		5.98		5.70
Worldwide		3.20		4.02		3.58

	Nine Months Ended September 30,
	2016		2015
Average Selling Prices

Crude oil - per barrel (including hedging)
United States
Onshore	$	35.16	$	43.38
Offshore		35.08		48.75
Total United States		35.13		45.43
Europe		40.66		55.87
Africa		39.66		54.99
Asia		43.11		56.85
Worldwide		37.05		49.14

Crude oil - per barrel (excluding hedging)
United States
Onshore	$	35.16	$	42.61
Offshore		35.08		48.75
Total United States		35.13		44.95
Europe		40.66		55.01
Africa		39.66		54.26
Asia		43.11		56.85
Worldwide		37.05		48.55

Natural gas liquids - per barrel
United States
Onshore	$	7.89	$	9.47
Offshore		12.14		14.60
Total United States		8.33		10.32
Europe		17.50		25.50
Worldwide		8.55		10.84

Natural gas - per mcf
United States
Onshore	$	1.33	$	1.78
Offshore		1.74		2.26
Total United States		1.43		1.95
Europe		4.04		7.18
Asia		5.65		6.07
Worldwide		3.41		4.40

	Third		Third		Second
	Quarter		Quarter		Quarter
	2016		2015		2016
Income Statement

Revenues and non-operating income
Total revenues and non-operating income	$	120	$	148	$	119

Costs and expenses
Operating costs and expenses		43		65		46
General and administrative expenses		4		4		5
Depreciation, depletion and amortization		25		22		25
Interest expense		4		4		6
Total costs and expenses		76		95		82

Results of operations before income taxes		44		53		37
Provision (benefit) for income taxes		9		10		7
Net income (loss)		35		43		30
Less: Net income attributable to noncontrolling interests		22		27		19
Net income (loss) attributable to Hess Corporation	$	13	$	16	$	11

	Third		Third		Second
	Quarter		Quarter		Quarter
	2016		2015		2016
Bakken Midstream - Operating Volumes (in thousands)

Processing
Tioga gas plant – mcf of natural gas per day		196		210		183

Export
Terminal throughput – bopd (a)		51		72		64
Tioga rail terminal crude loading – bopd (b)		43		47		39
Rail services – bopd (c)		20		45		30

Pipelines
Oil gathering – bopd		58		41		59
Gas gathering – mcf of natural gas per day		208		226		199

(a) Volume of crude oil received at the Ramburg truck facility and transported through the Tioga rail terminal or third party pipelines.

(b) Volume of crude oil loaded to Hess Midstream and third party rail cars at the Tioga rail terminal.

	Nine Months Ended September 30,
	2016		2015
Income Statement

Revenues and non-operating income
Total revenues and non-operating income	$	358	$	423

Costs and expenses
Operating costs and expenses		134		196
General and administrative expenses		13		9
Depreciation, depletion and amortization		73		65
Interest expense		14		6
Total costs and expenses		234		276

Results of operations before income taxes		124		147
Provision (benefit) for income taxes		24		45
Net income (loss)		100		102
Less: Net income attributable to noncontrolling interests (a)		62		27
Net income (loss) attributable to Hess Corporation	$	38	$	75

(a) Volume of crude oil received at the Ramburg truck facility and transported through the Tioga rail terminal or third party pipelines.

(b) Volume of crude oil loaded to Hess Midstream and third party rail cars at the Tioga rail terminal.

	September 30,		December 31,
	2016		2015
Total Debt

Hess	$	6,654	$	5,888
Bakken Midstream (a)		683		704
Hess Consolidated	$	7,337	$	6,592

Debt to capitalization ratio
Hess Consolidated	26.0%		24.4%

	September 30,
	2016
Pro forma Debt (a)

Hess excluding Bakken Midstream
Total debt – GAAP	$	6,654
Less: October 2016 debt purchases and redemptions (a)		559
Hess excluding Bakken Midstream pro forma debt	$	6,095

Hess Consolidated
Total debt – GAAP	$	7,337
Less: October 2016 debt purchases and redemptions (a)		559
Hess pro forma debt	$	6,778

Pro forma Debt to capitalization ratio
Hess Consolidated	24.5%