Hess Corp., FCFF calculation

US$ in millions

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

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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

Hess Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	31.00%	40.30%	0.40%	21.00%	21.00%
Interest Paid, Net of Tax
Interest paid, before tax	486)	459)	460)	380)	394)
Less: Interest paid, tax²	151)	185)	2)	80)	83)
Interest paid, net of tax	335)	274)	458)	300)	311)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	10)	—)	—)	38)	20)
Less: Capitalized interest, tax³	3)	—)	—)	8)	4)
Capitalized interest, net of tax	7)	—)	—)	30)	16)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ See details »

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

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

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	52,021)
Free cash flow to the firm (FCFF)	1,465)
Valuation Ratio
EV/FCFF	35.50
Benchmarks
EV/FCFF, Competitors¹
Chevron Corp.	15.52
ConocoPhillips	16.65
Exxon Mobil Corp.	14.14
Marathon Petroleum Corp.	6.53
Occidental Petroleum Corp.	12.00
Valero Energy Corp.	7.27
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	7.59
EV/FCFF, Industry
Energy	8.01

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

¹ Click competitor name to see calculations.

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

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

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	49,180)	38,098)	27,881)	26,579)	22,717)
Free cash flow to the firm (FCFF)²	1,465)	1,283)	(140)	(1,020)	86)
Valuation Ratio
EV/FCFF³	33.56	29.69	—	—	263.97
Benchmarks
EV/FCFF, Competitors⁴
Chevron Corp.	8.27	13.33	106.63	16.67	—
ConocoPhillips	7.43	10.72	92.48	13.21	—
Exxon Mobil Corp.	7.84	10.06	—	44.38	—
Marathon Petroleum Corp.	5.22	7.80	—	13.14	—
Occidental Petroleum Corp.	5.95	8.39	25.58	45.65	—
Valero Energy Corp.	5.39	10.62	—	9.96	—
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	7.32	10.61	399.27	21.17	—
EV/FCFF, Industry
Energy	7.80	10.93	210.37	21.44	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ See details »

² See details »

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

⁴ Click competitor name to see calculations.

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Hess Corp. (NYSE:HES)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical