Hess Reports Estimated Results for the Fourth Quarter of 2016

Hess Corporation (NYSE: HES) today reported a net loss of
$4,892 million, or $15.65 per common share, in the fourth quarter of
2016 compared with a net loss of $1,821 million, or $6.43 per common
share, in the fourth quarter of 2015. Fourth quarter 2016 results
include a noncash accounting charge of $3,749 million on deferred tax
assets. This financial reporting requirement has no cash flow or
economic impact. Fourth quarter results also include an after-tax charge
of $693 million to impair our Equus natural gas project, offshore the
North West Shelf of Australia, and other after-tax charges totaling $145
million. Excluding items affecting comparability between periods, fourth
quarter 2016 net loss was $305 million, or $1.01 per common share,
compared to a net loss of $396 million, or $1.40 per share in the fourth
quarter of 2015. The adjusted fourth quarter 2016 results reflect higher
realized crude oil selling prices and improved total production unit
costs.

     “We see 2017 as the start of an exciting new chapter of
value-driven growth for our company and our shareholders,” Chief
Executive Officer John Hess said. “We are increasing activity in the
Bakken, our two offshore developments at North Malay Basin in the Gulf
of Thailand and Stampede in the Gulf of Mexico are on track to come
online in 2017 and 2018, and the Liza Field in Guyana is one of the
industry’s largest oil discoveries in the last 10 years.”

     After-tax income (loss) by major operating activity was as follows:

								Three Months Ended								Year Ended
								December 31,								December 31,
								(unaudited)								(unaudited)
								2016				2015				2016				2015
								(In millions, except per share amounts)
Net Income (Loss) Attributable to Hess Corporation
Exploration and Production								$	(3,950	)		$	(1,713	)		$	(4,963	)		$	(2,717	)
Bakken Midstream									3				11				41				86
Corporate, Interest and Other									(945	)			(111	)			(1,210	)			(377	)
Net income (loss) from continuing operations									(4,892	)			(1,813	)			(6,132	)			(3,008	)
Discontinued operations									—				(8	)			—				(48	)
Net income (loss) attributable to Hess Corporation								$	(4,892	)		$	(1,821	)		$	(6,132	)		$	(3,056	)
Net income (loss) per common share (diluted) (a)								$	(15.65	)		$	(6.43	)		$	(19.92	)		$	(10.78	)
Adjusted Net Income (Loss) Attributable to Hess Corporation (b)
Exploration and Production								$	(257	)		$	(328	)		$	(1,264	)		$	(866	)
Bakken Midstream									24				11				62				86
Corporate, Interest and Other									(72	)			(79	)			(287	)			(333	)
Adjusted net income (loss) from continuing operations									(305	)			(396	)			(1,489	)			(1,113	)
Discontinued operations									—				—				—				—
Adjusted net income (loss) attributable to Hess Corporation								$	(305	)		$	(396	)		$	(1,489	)		$	(1,113	)
Adjusted net income (loss) per common share (diluted) (a)								$	(1.01	)		$	(1.40	)		$	(4.94	)		$	(3.93	)
Weighted average number of shares (diluted)									313.3				283.2				309.9				283.6

			(a)		Calculated as net income (loss) attributable to Hess Corporation less preferred stock dividends as applicable, divided by weighted average number of diluted shares.
			(b)		Adjusted net income (loss) attributable to Hess Corporation excludes items affecting comparability summarized on page 6. A reconciliation of net income (loss) attributable to Hess Corporation to adjusted net income (loss) attributable to Hess Corporation is provided on page 8.

Exploration and Production:

     The Exploration and Production net loss in the fourth quarter of
2016 was $3,950 million compared to a net loss of $1,713 million in the
fourth quarter of 2015. On an adjusted basis, the fourth quarter of 2016
net loss was $257 million compared to $328 million in the prior-year
quarter.

     The Corporation’s average realized crude oil selling price was
$45.97 per barrel in the fourth quarter of 2016, up 5 percent from
$43.73 per barrel in the year-ago quarter, including the effect of
hedging. The average realized natural gas liquids selling price in the
fourth quarter of 2016 was $14.68 per barrel, up from $9.61 per barrel
in the prior-year quarter, while the average realized natural gas
selling price was $3.24 per mcf compared with $3.44 per mcf in the
fourth quarter of 2015.

     Excluding production from Libya and assets sold, pro forma net
production in the fourth quarter of 2016 was 307,000 boepd, compared to
358,000 boepd in the fourth quarter of 2015. Lower volumes were
primarily due to a reduced drilling program across our portfolio,
planned and unplanned downtime, and natural field declines. Production
in Libya resumed in the fourth quarter at a net rate of 4,000 boepd.

Oil and Gas Reserve Estimates:

     Oil and gas proved reserves were 1,109 million barrels of oil
equivalent (boe) at December 31, 2016, compared with 1,086 million boe
at December 31, 2015. Proved reserve additions and other technical
revisions added 172 million boe in 2016, primarily relating to the
Bakken, North Malay Basin in Malaysia, and the South Arne Field in
Denmark. Lower crude oil prices used for estimating proved reserves
resulted in negative revisions of 29 million boe. The net additions of
143 million boe, which are subject to final review, replaced
approximately 119 percent of the Corporation’s 2016 production at a
finding and development cost of approximately $13 per boe, and resulted
in a year-end 2016 reserve life of 9.2 years.

Operational Highlights for the Fourth Quarter of 2016:

     Bakken (Onshore U.S.): Net
production from the Bakken decreased approximately 13 percent to
95,000 boepd from the prior-year quarter due to constrained production
operations in the quarter caused by severe winter weather and a reduced
drilling program during 2016. The Corporation operated an average of two
rigs and brought 21 gross operated wells on production in the fourth
quarter of 2016, increasing the year-to-date total to 100 wells.
Drilling and completion costs per operated well averaged $4.6 million in
the fourth quarter of 2016, down 10 percent from the year-ago quarter,
despite increasing our standard well design to a 50-stage completion
from the previous 35-stage completion design used in the prior year.

     Gulf of Mexico (Offshore U.S.):
Net production from the Gulf of Mexico was 61,000 boepd compared to
73,000 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. At the Stampede project in the Gulf of
Mexico (Hess operated - 25 percent), drilling operations and
construction of production facilities continued on schedule with first
production targeted for 2018.

     North Malay Basin Full-field development (Offshore):
At the North Malay Basin project, offshore Malaysia (Hess operated - 50
percent), we completed subsea tie-in work, hook-up and commissioning of
the three wellhead platforms, and drilling operations continued. First
gas is projected for the third quarter of 2017.

     Guyana (Offshore): At the
Stabroek Block (Hess 30 percent), operated by Esso Exploration and
Production Guyana Limited, results from the Payara-1 well confirmed a
second oil discovery on the block located approximately 10 miles (16
kilometers) northwest of the world-class Liza oil discovery. The well
encountered more than 95 feet (29 meters) of high-quality, oil-bearing
sandstone reservoirs and a production test is planned in the first
quarter. In 2017, the co-venture partners plan to appraise the Liza and
Payara discoveries and continue to evaluate the resource potential on
the broader Stabroek block with additional exploration drilling and
seismic analysis planned. We expect to be in a position to sanction the
first phase of the Liza development in 2017.

Bakken Midstream:

     The Corporation’s Bakken Midstream segment had net income of $3
million in the fourth quarter of 2016 compared to $11 million in the
prior-year quarter. Revenues were higher in the quarter primarily due to
recognition of deferred minimum volume deficiency payments earned,
partly offset by lower throughput volumes caused by severe weather
conditions. Fourth quarter results include a pre-tax charge of $67
million ($21 million after income taxes and noncontrolling interest) to
impair older specification rail cars. Excluding the rail car charge,
adjusted fourth quarter 2016 net income was $24 million compared to $11
million in the prior-year quarter.

Capital and Exploratory Expenditures:

     Exploration and Production capital and exploratory expenditures
were $414 million in the fourth quarter of 2016, down 56 percent from
$943 million in the prior-year quarter, reflecting our reduced work
program in response to the low commodity price environment. Full year
2017 E&P capital and exploratory expenditures are forecast to be $2.25
billion.

     Bakken Midstream capital expenditures were $86 million in the
fourth quarter of 2016 and $103 million in the year-ago quarter. In
2017, Midstream capital expenditures are forecast to be $190 million,
down from full year 2016 capital expenditures of $276 million due to the
expected completion of the Hawkeye compressor station project in the
first quarter.

     In 2017, the Midstream segment will also include our interest in
the Permian gas plant in West Texas and related CO2 assets, and
additional water handling assets in North Dakota. These assets are
wholly owned by the Company and are not included in our Hess
Infrastructure Partners joint venture.

Liquidity:

     Net cash provided by operating activities was $326 million in the
fourth quarter of 2016 and $623 million in the fourth quarter of 2015.
Net cash provided by operating activities before changes in operating
assets and liabilities was $128 million in the fourth quarter of 2016,
which reflects a reduction of approximately $200 million associated with
cash-related charges in items affecting comparability of earnings and
higher well workover costs. In the fourth quarter of 2016, the
Corporation used $625 million of cash to purchase and redeem notes to
complete the previously announced debt refinancing that commenced in the
third quarter.

     The Corporation had cash and cash equivalents of $2,732 million and
total debt, excluding the Bakken Midstream, of $6,073 million at
December 31, 2016. The Corporation’s debt to capitalization ratio was
30.4 percent and 24.4 percent at December 31, 2016 and 2015,
respectively.

Items Affecting Comparability of Earnings Between Periods:

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

															Three Months Ended									Year Ended
															December 31,									December 31,
															(unaudited)									(unaudited)
															2016				2015					2016				2015
															(In millions)
Exploration and Production															$	(3,693	)		$	(1,385	)			$	(3,699	)		$	(1,851	)
Bakken Midstream																(21	)			—					(21	)			—
Corporate, Interest and Other																(873	)			(32	)				(923	)			(44	)
Discontinued operations																—				(8	)				—				(48	)
Total items affecting comparability of earnings between periods															$	(4,587	)		$	(1,425	)			$	(4,643	)		$	(1,943	)

     Fourth quarter 2016 results include:

• A noncash charge of $3,749 million (Exploration & Production: $2,920
  million; Corporate, Interest and Other: $829 million) to establish
  valuation allowances against net deferred tax assets as of December
  31, 2016, as required under accounting standards following a
  three-year cumulative loss.

• An after-tax charge of $693 million ($938 million pre-tax) in
  Exploration and Production to fully impair the carrying value of our
  interests in blocks WA-390-P and WA-474-P (Hess 100 percent) offshore
  the North West Shelf of Australia following the decision to defer
  further development of the Equus natural gas fields.

• Other after-tax charges of $145 million ($272 million pre-tax) related
  to exit costs for an offshore drilling rig, loss on debt
  extinguishment, impairment of rail cars (Bakken Midstream), severance
  and other charges.

     Fourth quarter 2015 results include:

• Noncash charges of $1,359 million in Exploration and Production,
  comprised of a goodwill impairment charge of $1,098 million and other
  charges totaling $261 million after income taxes ($404 million
  pre-tax) to write-off assets.
• Corporate, Interest and Other results include after-tax charges of $41
  million ($66 million pre-tax) for the Corporation’s estimated
  liability resulting from HOVENSA LLC’s bankruptcy settlement.

     The following table summarizes the items affecting comparability of
earnings between periods by line item in the income statement:

							Three Months Ended								Year Ended
							December 31,								December 31,
							(unaudited)								(unaudited)
							2016				2015				2016				2015
							(In millions)
Other non-operating income/(loss), net							$	—			$	(74	)		$	27			$	(35	)
Cost of products sold								—				(39	)			—				(39	)
Operating costs and expenses								(128	)			(30	)			(164	)			(51	)
Exploration expenses, including dry holes and lease impairment								(946	)			(275	)			(1,029	)			(518	)
General and administrative expenses								(1	)			(8	)			(1	)			(42	)
Loss on debt extinguishment								(68	)			—				(148	)			—
Depreciation, depletion and amortization								—				(3	)			—				(3	)
Impairments								(67	)			(1,231	)			(67	)			(1,616	)
Total pre-tax items affecting comparability								(1,210	)			(1,660	)			(1,382	)			(2,304	)
Provision (benefit) for income taxes (a)								3,410				(243	)			3,294				(409	)
Discontinued operations, net of taxes								—				(8	)			—				(48	)
Noncontrolling interests								33				—				33				—
Total items affecting comparability of earnings between periods							$	(4,587	)		$	(1,425	)		$	(4,643	)		$	(1,943	)

(a)		Amounts include the tax effect associated with pre-tax items affecting comparability of earnings between periods.

Reconciliation of U.S. GAAP to Non-GAAP measures:

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

					Three Months Ended								Year Ended
					December 31,								December 31,
					(unaudited)								(unaudited)
					2016				2015				2016				2015
					(In millions)
Net income (loss) attributable to Hess Corporation					$	(4,892	)		$	(1,821	)		$	(6,132	)		$	(3,056	)
Less: Total items affecting comparability of earnings between periods						(4,587	)			(1,425	)			(4,643	)			(1,943	)
Adjusted net income (loss) attributable to Hess Corporation					$	(305	)		$	(396	)		$	(1,489	)		$	(1,113	)

     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:

				Three Months Ended								Year Ended
				December 31,								December 31,
				(unaudited)								(unaudited)
				2016				2015				2016				2015
				(In millions)
Cash provided by operating activities before changes in operating assets and liabilities				$	128			$	236			$	842			$	1,956
Changes in operating assets and liabilities					198				391				(47	)			60
Cash provided by (used in) continuing operating activities					326				627				795				2,016
Cash used in discontinued operating activities					—				(4	)			—				(35	)
Net cash provided by (used in) operating activities				$	326			$	623			$	795			$	1,981

Hess Corporation will review fourth 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.

Forward-looking Statements
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
Corporation’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.

Non-GAAP financial measure
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.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS)
																																		Fourth						Fourth						Third
																																		Quarter						Quarter						Quarter
																																		2016						2015						2016
Income Statement
Revenues and non-operating income
Sales and other operating revenues																																		$		1,388				$		1,474				$		1,177
Other, net																																				(2	)					(87	)					19
Total revenues and non-operating income																																				1,386						1,387						1,196
Costs and expenses
Cost of products sold (excluding items shown separately below)																																				375						304						222
Operating costs and expenses																																				568						512						421
Production and severance taxes																																				27						36						27
Exploration expenses, including dry holes and lease impairment																																				1,033						378						78
General and administrative expenses																																				105						140						106
Interest expense																																				84						86						84
Loss on debt extinguishment																																				68						—						80
Depreciation, depletion and amortization																																				768						983						811
Impairments																																				67						1,231						—
Total costs and expenses																																				3,095						3,670						1,829
Income (loss) from continuing operations before income taxes																																				(1,709	)					(2,283	)					(633	)
Provision (benefit) for income taxes																																				3,189						(492	)					(316	)
Income (loss) from continuing operations																																				(4,898	)					(1,791	)					(317	)
Income (loss) from discontinued operations, net of income taxes																																				—						(8	)					—
Net income (loss)																																				(4,898	)					(1,799	)					(317	)
Less: Net income (loss) attributable to noncontrolling interests																																				(6	)					22						22
Net income (loss) attributable to Hess Corporation																																				(4,892	)					(1,821	)					(339	)
Less: Preferred stock dividends																																				11						—						12
Net income (loss) applicable to Hess Corporation common stockholders																																		$		(4,903	)			$		(1,821	)			$		(351	)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS)
																												Year Ended December 31,
																												2016					2015
Income Statement
Revenues and non-operating income
Sales and other operating revenues																												$	4,762				$	6,636
Other, net																													82					(75	)
Total revenues and non-operating income																													4,844					6,561
Costs and expenses
Cost of products sold (excluding items shown separately below)																													1,063					1,294
Operating costs and expenses																													1,880					2,029
Production and severance taxes																													101					146
Exploration expenses, including dry holes and lease impairment																													1,442					881
General and administrative expenses																													415					557
Interest expense																													338					341
Loss on debt extinguishment																													148					—
Depreciation, depletion and amortization																													3,244					3,955
Impairments																													67					1,616
Total costs and expenses																													8,698					10,819
Income (loss) from continuing operations before income taxes																													(3,854	)				(4,258	)
Provision (benefit) for income taxes																													2,222					(1,299	)
Income (loss) from continuing operations																													(6,076	)				(2,959	)
Income (loss) from discontinued operations, net of income taxes																													—					(48	)
Net income (loss)																													(6,076	)				(3,007	)
Less: Net income (loss) attributable to noncontrolling interests																													56					49
Net income (loss) attributable to Hess Corporation																													(6,132	)				(3,056	)
Less: Preferred stock dividends																													41					—
Net income (loss) applicable to Hess Corporation common stockholders																												$	(6,173	)			$	(3,056	)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS)
																																											December 31,
																																											2016					2015
Balance Sheet Information
Cash and cash equivalents																																											$	2,732				$	2,716
Other current assets																																												1,544					1,688
Property, plant and equipment – net																																												23,595					26,352
Other long-term assets																																												750					3,401
Total assets																																											$	28,621				$	34,157
Current maturities of long-term debt																																											$	112				$	86
Other current liabilities																																												2,139					2,542
Long-term debt																																												6,694					6,506
Other long-term liabilities																																												4,085					4,622
Total equity excluding other comprehensive income (loss)																																												16,238					21,050
Accumulated other comprehensive income (loss)																																												(1,704	)				(1,664	)
Noncontrolling interests																																												1,057					1,015
Total liabilities and equity																																											$	28,621				$	34,157
																																											December 31,
																																											2016					2015
Total Debt
Hess																																											$	6,073				$	5,888
Bakken Midstream (a)																																												733					704
Hess Consolidated																																											$	6,806				$	6,592

(a) Bakken Midstream debt is non-recourse to Hess Corporation.

																																																																												December 31,
																																																																												2016					2015
Debt to capitalization ratio
Hess Consolidated																																																																													30.4	%				24.4	%

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS)
							Fourth						Fourth						Third
							Quarter						Quarter						Quarter
							2016						2015						2016
Cash Flow Information
Cash Flows from Operating Activities
Net income (loss)							$		(4,898	)			$		(1,799	)			$		(317	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
(Gains) losses on asset sales, net									4						(1	)					—
Depreciation, depletion and amortization									768						983						811
Impairments									67						1,231						—
Loss from equity affiliates									—						15						—
Exploratory dry hole costs									830						230						16
Exploration lease and other impairment									111						43						9
Stock compensation expense									5						26						22
Provision (benefit) for deferred income taxes and other tax accruals									3,173						(500	)					(312	)
Loss on debt extinguishment									68						—						80
(Income) loss from discontinued operations, net of income taxes									—						8						—
Cash provided by operating activities before changes in operating assets and liabilities									128						236						309
Changes in operating assets and liabilities									198						391						23
Cash provided by (used in) continuing operating activities									326						627						332
Cash provided by (used in) discontinued operating activities									—						(4	)					—
Net cash provided by (used in) operating activities									326						623						332
Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P									(401	)					(724	)					(463	)
Additions to property, plant and equipment - Bakken Midstream									(86	)					(211	)					(66	)
Proceeds from asset sales									60						25						—
Other, net									3						—						3
Cash provided by (used in) continuing investing activities									(424	)					(910	)					(526	)
Cash provided by (used in) discontinued investing activities									—						1						—
Net cash provided by (used in) investing activities									(424	)					(909	)					(526	)
Cash Flows from Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less									57						110						6
Debt with maturities of greater than 90 days
Borrowings									—						—						1,496
Repayments									(649	)					(16	)					(771	)
Cash dividends paid									(90	)					(72	)					(91	)
Noncontrolling interests, net									(23	)					(33	)					—
Other, net									6						—						(12	)
Cash provided by (used in) continuing financing activities									(699	)					(11	)					628
Cash provided by (used in) discontinued financing activities									—						—						—
Net cash provided by (used in) financing activities									(699	)					(11	)					628
Net Increase (Decrease) in Cash and Cash Equivalents									(797	)					(297	)					434
Cash and Cash Equivalents at Beginning of Period									3,529						3,013						3,095
Cash and Cash Equivalents at End of Period							$		2,732				$		2,716				$		3,529
Additions to Property, plant and equipment included within Investing activities:
Capital expenditures incurred							$		(409	)			$		(941	)			$		(471	)
Increase (decrease) in related liabilities									(78	)					6						(58	)
Additions to property, plant and equipment							$		(487	)			$		(935	)			$		(529	)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS)
										Year Ended December 31,
										2016					2015
Cash Flow Information
Cash flows From Operating Activities
Net income (loss)										$	(6,076	)			$	(3,007	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
(Gains) losses on asset sales, net											(23	)				(51	)
Depreciation, depletion and amortization											3,244					3,955
Impairments											67					1,616
Loss from equity affiliates											—					25
Exploratory dry hole costs											1,064					410
Exploration lease and other impairment											144					182
Stock compensation expense											74					97
Provision (benefit) for deferred income taxes and other tax accruals											2,200					(1,319	)
Loss on debt extinguishment											148					—
(Income) loss from discontinued operations, net of income taxes											—					48
Cash provided by operating activities before changes in operating assets and liabilities											842					1,956
Changes in operating assets and liabilities											(47	)				60
Cash provided by (used in) continuing operating activities											795					2,016
Cash provided by (used in) discontinued operating activities											—					(35	)
Net cash provided by (used in) operating activities											795					1,981
Cash Flows from Investing Activities
Additions to property, plant and equipment - E&P											(1,979	)				(3,956	)
Additions to property, plant and equipment - Bakken Midstream											(272	)				(365	)
Proceeds from asset sales											140					50
Other, net											21					(44	)
Cash provided by (used in) continuing investing activities											(2,090	)				(4,315	)
Cash provided by (used in) discontinued investing activities											—					109
Net cash provided by (used in) investing activities											(2,090	)				(4,206	)
Cash Flows from Financing Activities
Net borrowings (repayments) of debt with maturities of 90 days or less											43					110
Debt with maturities of greater than 90 days
Borrowings											1,496					600
Repayments											(1,455	)				(67	)
Proceeds from issuance of preferred stock											557					—
Proceeds from issuance of common stock											1,087					—
Common stock acquired and retired											—					(142	)
Cash dividends paid											(350	)				(287	)
Employee stock options exercised, including income tax benefits											—					12
Noncontrolling interests, net											(23	)				2,296
Other, net											(44	)				(25	)
Cash provided by (used in) continuing financing activities											1,311					2,497
Cash provided by (used in) discontinued financing activities											—					—
Net cash provided by (used in) financing activities											1,311					2,497
Net Increase (Decrease) in Cash and Cash Equivalents											16					272
Cash and Cash Equivalents at Beginning of Year											2,716					2,444
Cash and Cash Equivalents at End of Year										$	2,732				$	2,716
Additions to Property, plant and equipment included within Investing activities:
Capital expenditures incurred										$	(1,921	)			$	(4,049	)
Increase (decrease) in related liabilities											(330	)				(272	)
Additions to property, plant and equipment										$	(2,251	)			$	(4,321	)

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS)
																												Fourth					Fourth				Third
																												Quarter					Quarter				Quarter
																												2016					2015				2016
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
Bakken																												$	99				$	248			$	126
Other Onshore																													5					72				4
Total Onshore																													104					320				130
Offshore																													171					257				191
Total United States																													275					577				321
Europe																													2					43				1
Africa																													3					2				4
Asia and other																													134					321				109
E&P Capital and exploratory expenditures																												$	414				$	943			$	435
Total exploration expenses charged to income included above																												$	91				$	105			$	52
Bakken Midstream Capital expenditures																												$	86				$	103			$	88
																																	Year Ended December 31,
																																	2016				2015
Capital and Exploratory Expenditures
E&P Capital and exploratory expenditures
United States
Bakken																																	$	429			$	1,308
Other Onshore																																		53				332
Total Onshore																																		482				1,640
Offshore																																		735				923
Total United States																																		1,217				2,563
Europe																																		65				298
Africa																																		10				161
Asia and other																																		586				1,020
E&P Capital and exploratory expenditures																																	$	1,878			$	4,042
Total exploration expenses charged to income included above																																	$	233			$	289
Bakken Midstream Capital expenditures																																	$	276			$	296

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) (IN MILLIONS)
																				Fourth Quarter 2016
Income Statement																				United States					International					Total
Total revenues and non-operating income
Sales and other operating revenues																				$	943				$	445				$	1,388
Other, net																					(8	)				(3	)				(11	)
Total revenues and non-operating income																					935					442					1,377
Costs and expenses
Cost of products sold (excluding items shown separately below) (a)																					342					41					383
Operating costs and expenses																					324					195					519
Production and severance taxes																					26					1					27
Bakken Midstream tariffs																					144					—					144
Exploration expenses, including dry holes and lease impairment																					41					992					1,033
General and administrative expenses																					56					2					58
Depreciation, depletion and amortization																					475					261					736
Total costs and expenses																					1,408					1,492					2,900
Results of operations before income taxes																					(473	)				(1,050	)				(1,523	)
Provision (benefit) for income taxes																					969		(b)			1,458		(b)			2,427
Net income (loss) attributable to Hess Corporation																				$	(1,442	)			$	(2,508	)			$	(3,950	)
																				Fourth Quarter 2015
Income Statement																				United States					International					Total
Total revenues and non-operating income
Sales and other operating revenues																				$	932				$	542				$	1,474
Other, net																					(15	)				(36	)				(51	)
Total revenues and non-operating income																					917					506					1,423
Costs and expenses
Cost of products sold (excluding items shown separately below) (a)																					342					(11	)				331
Operating costs and expenses																					199					244					443
Production and severance taxes																					32					4					36
Bakken Midstream tariffs																					114					—					114
Exploration expenses, including dry holes and lease impairment																					84					294					378
General and administrative expenses																					60					14					74
Depreciation, depletion and amortization																					602					351					953
Impairments																					601					630					1,231
Total costs and expenses																					2,034					1,526					3,560
Results of operations before income taxes																					(1,117	)				(1,020	)				(2,137	)
Provision (benefit) for income taxes																					(234	)				(190	)				(424	)
Net income (loss) attributable to Hess Corporation																				$	(883	)	(c)		$	(830	)	(c)		$	(1,713	)

(a)		Includes amounts charged from the Bakken Midstream.
(b)		Includes charges of $1,144 million (U.S.) and $1,776 million (International) to establish valuation allowances against net deferred tax assets.
(c)		After-tax realized net gains from crude oil hedging activities were $18 million (U.S.) and $37 million (International).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) (IN MILLIONS)
																				Third Quarter 2016
Income Statement																				United States							International							Total
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	)

(a) Includes amounts charged from the Bakken Midstream.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) (IN MILLIONS)
																				Year Ended December 31, 2016
Income Statement																				United States					International					Total
Total revenues and non-operating income
Sales and other operating revenues																				$	3,085				$	1,677				$	4,762
Other, net																					15					28					43
Total revenues and non-operating income																					3,100					1,705					4,805
Costs and expenses
Cost of products sold (excluding items shown separately below) (a)																					990					105					1,095
Operating costs and expenses																					955					742					1,697
Production and severance taxes																					94					7					101
Bakken Midstream tariffs																					478					—					478
Exploration expenses, including dry holes and lease impairment																					342					1,100					1,442
General and administrative expenses																					218					17					235
Depreciation, depletion and amortization																					2,031					1,101					3,132
Total costs and expenses																					5,108					3,072					8,180
Results of operations before income taxes																					(2,008	)				(1,367	)				(3,375	)
Provision (benefit) for income taxes																					386		(b)			1,202		(b)			1,588
Net income (loss) attributable to Hess Corporation																				$	(2,394	)			$	(2,569	)			$	(4,963	)
																				Year Ended December 31, 2015
Income Statement																				United States					International					Total
Total revenues and non-operating income
Sales and other operating revenues																				$	4,150				$	2,486				$	6,636
Other, net																					11					(41	)				(30	)
Total revenues and non-operating income																					4,161					2,445					6,606
Costs and expenses
Cost of products sold (excluding items shown separately below) (a)																					1,418					(9	)				1,409
Operating costs and expenses																					786					978					1,764
Production and severance taxes																					138					8					146
Bakken Midstream tariffs																					449					—					449
Exploration expenses, including dry holes and lease impairment																					255					626					881
General and administrative expenses																					262					55					317
Depreciation, depletion and amortization																					2,361					1,491					3,852
Impairments																					986					630					1,616
Total costs and expenses																					6,655					3,779					10,434
Results of operations before income taxes																					(2,494	)				(1,334	)				(3,828	)
Provision (benefit) for income taxes																					(574	)				(537	)				(1,111	)
Net income (loss) attributable to Hess Corporation																				$	(1,920	)	(c)		$	(797	)	(c)		$	(2,717	)

(a)		Includes amounts charged from the Bakken Midstream.
(b)		Includes charges of $1,144 million (U.S.) and $1,776 million (International) to establish valuation allowances against net deferred tax assets.
(c)		After-tax realized net gains from crude oil hedging activities were $30 million (U.S.) and $49 million (International).

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
																																																													Fourth				Fourth				Third
																																																													Quarter				Quarter				Quarter
																																																													2016				2015				2016
Net Production Per Day (in thousands)
Crude oil - barrels
United States
Bakken																																																														62				78				67
Other Onshore																																																														8				11				9
Total Onshore																																																														70				89				76
Offshore																																																														45				52				46
Total United States																																																														115				141				122
Europe																																																														37				38				34
Africa (a) (b)																																																														32				52				33
Asia																																																														2				2				1
Total																																																														186				233				190
Natural gas liquids - barrels
United States
Bakken																																																														24				21				29
Other Onshore																																																														10				12				11
Total Onshore																																																														34				33				40
Offshore																																																														5				6				4
Total United States																																																														39				39				44
Europe																																																														1				1				1
Total																																																														40				40				45
Natural gas - mcf
United States
Bakken																																																														52				60				66
Other Onshore																																																														123				138				139
Total Onshore																																																														175				198				205
Offshore																																																														68				90				65
Total United States																																																														243				288				270
Europe																																																														45				48				41
Asia																																																														224				235				161
Total																																																														512				571				472
Barrels of oil equivalent																																																														311				368				314

(a)		Production from Libya was 4,000 barrels of oil per day (bopd) in the fourth quarter of 2016.
(b)		The Corporation sold its Algerian operations on December 31, 2015, which had net production of 10,000 bopd in the fourth quarter of 2015.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
																																																																					Year Ended December 31,
																																																																					2016				2015
Net Production Per Day (in thousands)
Crude oil - barrels
United States
Bakken																																																																						68				81
Other Onshore																																																																						9				10
Total Onshore																																																																						77				91
Offshore																																																																						45				56
Total United States																																																																						122				147
Europe																																																																						33				38
Africa (a) (b)																																																																						34				51
Asia																																																																						2				2
Total																																																																						191				238
Natural gas liquids - barrels
United States
Bakken																																																																						27				20
Other Onshore																																																																						11				12
Total Onshore																																																																						38				32
Offshore																																																																						5				6
Total United States																																																																						43				38
Europe																																																																						1				1
Total																																																																						44				39
Natural gas - mcf
United States
Bakken																																																																						61				64
Other Onshore																																																																						133				109
Total Onshore																																																																						194				173
Offshore																																																																						64				87
Total United States																																																																						258				260
Europe																																																																						43				43
Asia																																																																						222				282
Total																																																																						523				585
Barrels of oil equivalent																																																																						322				375

(a)		Production from Libya was 1,000 bopd for the year ended December 31, 2016.
(b)		The Corporation sold its Algerian operations on December 31, 2015, which had net production of 7,000 bopd in 2015.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
																																																												Fourth					Fourth					Third
																																																												Quarter					Quarter					Quarter
																																																												2016					2015					2016
Sales Volumes Per Day (in thousands)
Crude oil - barrels																																																													190					221					190
Natural gas liquids - barrels																																																													40					41					45
Natural gas - mcf																																																													512					572					472
Barrels of oil equivalent																																																													315					357					314
Sales Volumes (in thousands)
Crude oil - barrels																																																													17,432					20,316					17,528
Natural gas liquids - barrels																																																													3,666					3,732					4,167
Natural gas - mcf																																																													47,101					52,591					43,413
Barrels of oil equivalent																																																													28,948					32,813					28,931

																																																																						Year Ended December 31,
																																																																						2016				2015
Sales Volumes Per Day (in thousands)
Crude oil - barrels																																																																							198				234
Natural gas liquids - barrels																																																																							44				39
Natural gas - mcf																																																																							523				584
Barrels of oil equivalent																																																																							329				371
Sales Volumes (in thousands)
Crude oil - barrels																																																																							72,462				85,344
Natural gas liquids - barrels																																																																							16,055				14,400
Natural gas - mcf																																																																							191,482				213,195
Barrels of oil equivalent																																																																							120,431				135,277

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
																																																													Fourth					Fourth				Third
																																																													Quarter					Quarter				Quarter
																																																													2016					2015				2016
Average Selling Prices
Crude oil - per barrel (including hedging)
United States
Onshore																																																													$		42.82			$	40.48			$	39.19
Offshore																																																															44.73				37.88				39.55
Total United States																																																															43.57				39.52				39.33
Europe																																																															50.37				52.81				46.01
Africa																																																															49.15				49.99				44.22
Asia																																																															40.96				40.89				47.36
Worldwide																																																															45.97				43.73				41.50
Crude oil - per barrel (excluding hedging)
United States
Onshore																																																													$		42.82			$	36.93			$	39.19
Offshore																																																															44.73				37.88				39.55
Total United States																																																															43.57				37.28				39.33
Europe																																																															50.37				44.49				46.01
Africa																																																															49.15				41.98				44.22
Asia																																																															40.96				40.89				47.36
Worldwide																																																															45.97				39.40				41.50
Natural gas liquids - per barrel
United States
Onshore																																																													$		13.70			$	8.34			$	8.48
Offshore																																																															18.89				13.74				13.94
Total United States																																																															14.38				9.13				9.00
Europe																																																															25.05				22.19				17.68
Worldwide																																																															14.68				9.61				9.23
Natural gas - per mcf
United States
Onshore																																																													$		1.99			$	1.31			$	1.49
Offshore																																																															2.66				1.37				2.24
Total United States																																																															2.18				1.33				1.67
Europe																																																															3.75				5.55				3.74
Asia																																																															4.30				5.60				5.66
Worldwide																																																															3.24				3.44				3.20

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
																																																																Year Ended December 31,
																																																																2016				2015
Average Selling Prices
Crude oil - per barrel (including hedging)
United States
Onshore																																																																$	36.92			$	42.67
Offshore																																																																	37.47				46.21
Total United States																																																																	37.13				44.01
Europe																																																																	43.33				55.10
Africa																																																																	41.88				53.89
Asia																																																																	42.98				52.74
Worldwide																																																																	39.20				47.85
Crude oil - per barrel (excluding hedging)
United States
Onshore																																																																$	36.92			$	41.22
Offshore																																																																	37.47				46.21
Total United States																																																																	37.13				43.11
Europe																																																																	43.33				52.37
Africa																																																																	41.88				51.57
Asia																																																																	42.98				52.74
Worldwide																																																																	39.20				46.37
Natural gas liquids - per barrel
United States
Onshore																																																																$	9.18			$	9.18
Offshore																																																																	13.96				14.40
Total United States																																																																	9.71				10.02
Europe																																																																	19.48				24.59
Worldwide																																																																	9.95				10.52
Natural gas - per mcf
United States
Onshore																																																																$	1.48			$	1.64
Offshore																																																																	1.99				2.03
Total United States																																																																	1.61				1.77
Europe																																																																	3.97				6.72
Asia																																																																	5.31				5.97
Worldwide																																																																	3.37				4.16

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES BAKKEN MIDSTREAM EARNINGS (UNAUDITED) (IN MILLIONS)
																																																			Fourth					Fourth					Third
																																																			Quarter					Quarter					Quarter
																																																			2016					2015					2016
Income Statement
Revenues and non-operating income
Total revenues and non-operating income																																																			$	152				$	141				$	120
Costs and expenses
Operating costs and expenses																																																				49					69					43
General and administrative expenses																																																				4					5					4
Depreciation, depletion and amortization																																																				29					23					25
Impairments																																																				67					—					—
Interest expense																																																				5					4					4
Total costs and expenses																																																				154					101					76
Results of operations before income taxes																																																				(2	)				40					44
Provision (benefit) for income taxes																																																				1					7					9
Net income (loss)																																																				(3	)				33					35
Less: Net income attributable to noncontrolling interests																																																				(6	)				22					22
Net income (loss) attributable to Hess Corporation																																																			$	3				$	11				$	13
																																																			Fourth					Fourth					Third
																																																			Quarter					Quarter					Quarter
																																																			2016					2015					2016
Bakken Midstream - Operating Volumes (in thousands)
Processing
Tioga gas plant – mcf of natural gas per day																																																				179					186					196
Export
Terminal throughput – bopd (a)																																																				59					62					51
Tioga rail terminal crude loading – bopd (b)																																																				43					42					43
Rail services – bopd (c)																																																				24					43					20
Pipelines
Oil gathering – bopd																																																				54					50					58
Gas gathering – mcf of natural gas per day																																																				197					198					208

(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.
(c)		Volume of crude oil transported by Hess Midstream rail cars from the Tioga rail terminal and third party terminals.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES BAKKEN MIDSTREAM EARNINGS (UNAUDITED) (IN MILLIONS)
																																																		Year Ended December 31,
																																																		2016				2015
Income Statement
Revenues and non-operating income
Total revenues and non-operating income																																																		$	510			$	564
Costs and expenses
Operating costs and expenses																																																			183				265
General and administrative expenses																																																			17				14
Depreciation, depletion and amortization																																																			102				88
Impairments																																																			67				—
Interest expense																																																			19				10
Total costs and expenses																																																			388				377
Results of operations before income taxes																																																			122				187
Provision (benefit) for income taxes																																																			25				52
Net income (loss)																																																			97				135
Less: Net income attributable to noncontrolling interests (a)																																																			56				49
Net income (loss) attributable to Hess Corporation																																																		$	41			$	86

(a)		On July 1, 2015, the Corporation completed the sale of a 50 percent interest in its Bakken Midstream segment. Our partner’s 50 percent share of net income is presented as a noncontrolling interest charge in the Bakken Midstream income statements effective from the third quarter of 2015.

																																																				Year Ended December 31,
																																																				2016				2015
Bakken Midstream - Operating Volumes (in thousands)
Processing
Tioga gas plant – mcf of natural gas per day																																																					188				194
Export
Terminal throughput – bopd (a)																																																					59				73
Tioga rail terminal crude loading – bopd (b)																																																					39				47
Rail services – bopd (c)																																																					26				43
Pipelines
Oil gathering – bopd																																																					57				39
Gas gathering – mcf of natural gas per day																																																					202				214

(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.
(c)		Volume of crude oil transported by Hess Midstream rail cars from the Tioga rail terminal and third party terminals.

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