Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Debt

7.  Debt

Total debt at December 31 consisted of the following:

	2023		2022
	(In millions)
Debt – Hess Corporation:
Senior unsecured fixed-rate public notes:
3.500% due 2024	$	300	$	300
4.300% due 2027	997		996
7.875% due 2029	465		464
7.300% due 2031	629		629
7.125% due 2033	537		537
6.000% due 2040	743		742
5.600% due 2041	1,238		1,237
5.800% due 2047	495		494
Total senior unsecured fixed-rate public notes	5,404		5,399
Fair value adjustments – interest rate hedging	(2)		(4)
Total Debt – Hess Corporation	$	5,402	$	5,395
Debt – Midstream (Hess Midstream Operations LP):
Senior unsecured fixed-rate public notes:
5.625% due 2026	$	795	$	793
5.125% due 2028	545		544
4.250% due 2030	742		740
5.500% due 2030	395		395
Total senior unsecured fixed-rate public notes	2,477		2,472
Term Loan A facility	394		396
Revolving credit facility	340		18
Total Debt – Midstream	$	3,211	$	2,886
Total Debt:
Current portion of long-term debt	$	311	$	3
Long-term debt	8,302		8,278
Total Debt	$	8,613	$	8,281

At December 31, 2023, the maturity profile of total debt was as follows:

	Total		Hess Corporation		Midstream
	(In millions)
2024	$	311	$	298	$	13
2025	22		—		22
2026	832		—		832
2027	1,670		1,000		670
2028	550		—		550
Thereafter	5,290		4,140		1,150
Total Borrowings	8,675		5,438		3,237
Less: Deferred financing costs and discounts	(62)		(36)		(26)
Total Debt (excluding interest)	$	8,613	$	5,402	$	3,211

In 2023, $48 million of interest was capitalized (2022: $10 million; 2021: $0 million).

Debt – Hess Corporation:

Senior unsecured fixed-rate public notes:

At December 31, 2023, Hess Corporation’s fixed-rate senior unsecured notes had a gross principal amount of $5,438 million (2022: $5,438 million) and a weighted average interest rate of 5.9% (2022: 5.9%). The indentures for our fixed-rate senior unsecured notes limit the ratio of secured debt to Consolidated Net Tangible Assets (as that term is defined in the indentures) to 15%. As of December 31, 2023, Hess Corporation was in compliance with this financial covenant.

Credit facility:

The revolving credit facility can be used for borrowings and letters of credit. Borrowings on the facility will generally bear interest at 1.400% above SOFR, though the interest rate is subject to adjustment based on the credit rating of the Corporation’s senior, unsecured, non-credit enhanced long-term debt. The revolving credit facility is subject to customary representations, warranties, customary events of default and covenants, including a financial covenant limiting the ratio of Total Consolidated Debt to Total Capitalization of the Corporation and its consolidated subsidiaries to 65%, and a financial covenant limiting the ratio of secured debt to Consolidated Net Tangible Assets of the Corporation and its consolidated subsidiaries to 15% (as these capitalized terms are defined in the credit agreement for the revolving credit facility). As of December 31, 2023, Hess Corporation was in compliance with these financial covenants. At December 31, 2023, Hess Corporation had no outstanding borrowings or letters of credit under its revolving credit facility.

Other outstanding letters of credit at December 31 were as follows:

	2023		2022
	(In millions)
Committed lines (a)	$	2	$	—
Uncommitted lines (a)	86		83
Total	$	88	$	83

(a)At December 31, 2023, committed and uncommitted lines have expiration dates through 2024.

The most restrictive of the financial covenants relating to our fixed-rate senior unsecured notes and our revolving credit facility would allow us to borrow up to an additional $2,515 million of secured debt at December 31, 2023.

Debt – Midstream (Hess Midstream Operations LP):

Senior unsecured fixed-rate public notes:

At December 31, 2023, HESM Opco’s fixed-rate senior unsecured notes had a gross principal amount of $2,500 million (2022: $2,500 million) and a weighted average interest rate of 5.1% (2022: 5.1%). HESM Opco’s senior unsecured notes are guaranteed by certain of HESM Opco’s direct and indirect wholly owned material domestic subsidiaries. These senior unsecured notes are non-recourse to Hess Corporation.

In April 2022, HESM Opco issued $400 million in aggregate principal amount of 5.500% fixed-rate senior unsecured notes due in 2030 in a private offering to repay borrowings under its revolving credit facility used to finance the repurchase of approximately 13.6 million HESM Opco Class B units held by Hess and GIP. In August 2021, HESM Opco issued $750 million in aggregate principal amount of 4.250% fixed-rate senior unsecured notes due in 2030 in a private offering to finance the repurchase of 31.25 million HESM Opco Class B units held by Hess and GIP.

Credit facilities:

At December 31, 2023, HESM Opco had $1.4 billion of senior secured syndicated credit facilities, consisting of a $1.0 billion revolving credit facility and a $400 million term loan facility. Borrowings under the term loan facility will generally bear interest at SOFR plus an applicable margin ranging from 1.650% to 2.550%, while the applicable margin for the syndicated revolving credit facility ranges from 1.375% to 2.050%. Pricing levels for the facility fee and interest-rate margins are based on HESM Opco’s ratio of total debt to EBITDA (as defined in the credit facilities). If HESM Opco obtains an investment grade credit rating, the pricing levels will be based on HESM Opco’s credit ratings in effect from time to time. The credit facilities contain covenants that require HESM Opco to maintain a ratio of total debt to EBITDA (as defined in the credit facilities) for the prior four fiscal quarters of not greater than 5.00 to 1.00 as of the last day of each fiscal quarter (5.50 to 1.00 during the specified period following certain acquisitions) and, prior to HESM Opco obtaining an investment grade credit rating, a ratio of secured debt to EBITDA for the prior four fiscal quarters of not greater than 4.00 to 1.00 as of the last day of each fiscal quarter.  HESM Opco was in compliance with these financial covenants at December 31, 2023. The credit facilities are secured by first-priority perfected liens on substantially all of the assets of HESM Opco and its direct and indirect wholly owned material domestic subsidiaries, including equity interests directly owned by such entities, subject to certain customary exclusions.  At December 31, 2023, borrowings of $340 million were drawn under HESM Opco’s revolving credit facility, and borrowings of $397 million, excluding deferred issuance costs, were drawn under HESM Opco’s term loan facility.  Borrowings under these credit facilities are non-recourse to Hess Corporation.