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New York, New York....April 29, 2003...Amerada Hess Corporation (NYSE: AHC) reported net income of $176 million for the first quarter of 2003 compared with income of $141 million for the first quarter of 2002. The after-tax results by major operating activity in 2003 and 2002 were as follows (in millions, except per share amounts):
Three Months Ended March 31 (unaudited) | |||
2003 | 2002(*) | ||
Exploration and production | $146 | $210 | |
Refining and marketing | 136 | (22) | |
Corporate | (20) | (15) | |
Interest expense | (46) | (45) | |
Income from continuing operations | 216 | 128 | |
Discontinued operations | (47) | 13 | |
Income from cumulative effect of accounting change |
7 | - | |
Net income | $176 | $141 | |
Income per share from continuing operations (diluted) |
$2.43 | $1.44 | |
Net income per share (diluted) | $1.98 | $1.58 | |
(*) Restated to conform with current period presentation |
The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 421,000
barrels per day in the first quarter of 2003, a decrease of 8% from the first quarter of
2002. In the first quarter of 2003, the Corporation's average worldwide crude oil selling
price, including the effect of hedging, was $25.55 per barrel, an increase of $2.60 per
barrel from the first quarter of 2002. The Corporation's average United States natural gas
selling price, including the effect of hedging, was $4.89 per Mcf in the first quarter of
2003, an increase of $1.46 per Mcf from the first quarter of 2002.
Exploration and production earnings include after-tax gains from asset sales of $31 million
and $28 million in the first quarters of 2003 and 2002, respectively. The gain in the first
quarter of 2003 reflects the sale of the Corporation's 1.5% interest in the Trans Alaska
Pipeline System. Results in the first quarter of 2003 included higher exploration expense
than the first quarter of 2002.
On February 26, 2003, the Corporation exchanged its crude oil producing properties in
Colombia, plus $10 million in cash, for an additional 25% interest in natural gas reserves
in the joint development area of Malaysia and Thailand. This transaction resulted in a net
loss from discontinued operations of $47 million, including $13 million of operating income
from January 1 through the date of disposition. Effective January 1, 2003, the Corporation
adopted the provisions of FAS No. 143, Accounting for Asset Retirement Obligations, and
recorded a net benefit of $7 million from the cumulative effect of the accounting change.
Refining and marketing results improved in the first quarter of 2003 compared with the first
quarter of 2002, principally reflecting higher refining margins and increased energy
marketing earnings due to a colder winter.
Sales and other operating revenues in the first quarter of 2003 amounted to $4,297 million
compared with $2,958 million in the first quarter of 2002. Capital expenditures in the first
quarter of 2003 amounted to $341 million of which $321 million related to exploration and
production activities. Capital expenditures in the first quarter of 2002 amounted to $445
million, including $427 million for exploration and production.
Consolidated Financial Information (unaudited)
(In millions, except per share amounts)
Three Months Ended March 31 | ||||
2003 | 2002 | |||
Income Statement Information | ||||
Sales and other operating revenues | $4,297 | $2,958 | ||
Income from continuing operations | $216* | $128* | ||
Discontinued operations | (47) | 13 | ||
Cumulative effect of accounting change | 7 | - | ||
Net income | $176 | $141 | ||
Income per share from continuing operations (diluted) |
$2.43 | $1.44 | ||
Net income per share (diluted) | $1.98 | $1.58 | ||
Weighted average number of shares | 89.1 | 88.8 | ||
* Includes net gains from asset sales of $31 million and $28 million in the first quarters of 2003 and 2002, respectively. |
March 31 | December 31 | |||
2003 | 2002 | |||
Balance Sheet Information | ||||
Current assets | $2,968 | $2,756 | ||
Investments | 1,185 | 1,622 | ||
Property, plant and equipment - net | 7,933 | 7,032 | ||
Other assets | 1,911 | 1,852 | ||
Total assets | $13,997 | $13,262 | ||
Current portion of long-term debt | $ 15 | $ 16 | ||
Other current liabilities | 2,771 | 2,537 | ||
Long-term debt | 4,834 | 4,976 | ||
Deferred liabilities and credits | 1,957 | 1,484 | ||
Stockholders' equity, excluding other comprehensive loss | 4,686 | 4,503 | ||
Accumulated other comprehensive loss | (266) | (254) | ||
Total liabilities and stockholders' equity | $13,997 | $13,262 |
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Line | INCOME STATEMENT |
First Quarter 2003 (A) |
First Quarter 2002(*) (B) |
Fourth Quarter 2002(*) (C) | ||||||
No. | Revenues and Non-operating Income | |||||||||
1 | Sales and other operating revenues | $4,297 | $2,958 | $3,245 | ||||||
Non-operating income | ||||||||||
2 | Gain on asset sales | 47 | 41 | 14 | ||||||
3 | Equity in income (loss) of HOVENSA L.L.C. | 50 | (26) | 4 | ||||||
4 | Other | 13 | 21 | 28 | ||||||
5 | Total revenues and non-operating income | 4,407 | 2,994 | 3,291 | ||||||
Costs and Expenses | ||||||||||
6 | Cost of products sold | 3,055 | 1,923 | 2,033 | ||||||
7 | Production expenses | 205 | 173 | 229 | ||||||
8 | Marketing expenses | 170 | 160 | 202 | ||||||
9 | Exploration expenses, including dry holes and lease impairment | 108 | 54 | 110 | ||||||
10 | Other operating expenses | 51 | 42 | 43 | ||||||
11 | General and administrative expenses | 78 | 63 | 61 | ||||||
12 | Interest expense | 74 | 66 | 62 | ||||||
13 | Depreciation, depletion and amortization | 295 | 283 | 291 | ||||||
14 | Asset impairment | -- | -- | 706 | ||||||
15 | Total costs and expenses | 4,036 | 2,764 | 3,737 | ||||||
16 | Income (loss) from continuing operations before income taxes | 371 | 230 | (446) | ||||||
17 | Provision (benefit) for income taxes | 155 | 102 | (58) | ||||||
18 | Income (loss) from continuing operations | 216 | 128 | (388) | ||||||
19 | Income (loss) from discontinued operations, net | (47) | 13 | 17 | ||||||
20 | Cumulative effect of change in accounting principle, net | 7 | -- | -- | ||||||
21 | Net Income (Loss) | $176 | $141 | $(371) | ||||||
Segment Analysis | ||||||||||
22 | Exploration and production | $146 | $210 | $(362) | ||||||
23 | Refining and marketing | 136 | (22) | 20 | ||||||
24 | Corporate | (20) | (15) | (8) | ||||||
25 | Interest expense | (46) | (45) | (38) | ||||||
26 | Income (loss) from continuing operations | 216 | 128 | (388) | ||||||
27 | Income (loss) from discontinued operations, net | (47) | 13 | 17 | ||||||
28 | Cumulative effect of change in accounting principle, net | 7 | -- | -- | ||||||
29 | Net Income (Loss) | $176 | $141 | $(371) | ||||||
30 | Net Cash Provided by Operating Activities | $488 | $411 | $538 | ||||||
Capital Expenditures | ||||||||||
31 | Exploration and production | $321 | $427 | $303 | ||||||
32 | Refining and marketing | 20 | 18 | 23 | ||||||
33 | Total capital expenditures | $341 | $445 | $326 | ||||||
At End of Period | ||||||||||
34 | Total debt | $4,849 | $5,555 | $4,992 | ||||||
35 | Stockholders' equity | $4,420 | $4,802 | $4,249 | ||||||
(*) Restated to conform with current period presentation. |
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)
Line | Operating Data |
First Quarter 2003 (A) |
First Quarter 2002 (B) |
Fourth Quarter 2002 (C) | ||||||
No. | Net Production Per Day | |||||||||
Crude oil - barrels | ||||||||||
1 | United States | 50 | 59 | 48 | ||||||
2 | United Kingdom | 102 | 112 | 110 | ||||||
3 | Equatorial Guinea | 25 | 30 | 30 | ||||||
4 | Denmark | 25 | 23 | 28 | ||||||
5 | Norway | 24 | 23 | 25 | ||||||
6 | Algeria | 20 | 12 | 18 | ||||||
7 | Gabon | 11 | 9 | 9 | ||||||
8 | Indonesia | 4 | 6 | 3 | ||||||
9 | Azerbaijan | 2 | 4 | 4 | ||||||
10 | Colombia(*) | 12 | 24 | 20 | ||||||
11 | Total | 275 | 302 | 295 | ||||||
Natural gas liquids- barrels | ||||||||||
12 | United States | 11 | 13 | 11 | ||||||
13 | United Kingdom | 6 | 6 | 6 | ||||||
14 | Norway | 1 | 1 | 1 | ||||||
15 | Indonesia and Thailand | 2 | 2 | 2 | ||||||
16 | Total | 20 | 22 | 20 | ||||||
Natural gas - mcf | ||||||||||
17 | United States | 317 | 394 | 320 | ||||||
18 | United Kingdom | 321 | 326 | 284 | ||||||
19 | Denmark | 34 | 42 | 39 | ||||||
20 | Norway | 26 | 23 | 25 | ||||||
21 | Indonesia and Thailand | 56 | 28 | 45 | ||||||
22 | Total | 754 | 813 | 713 | ||||||
23 | Barrels of oil equivalent | 421 | 460 | 434 | ||||||
Average Selling Price (including hedging) | ||||||||||
Crude oil - per barrel | ||||||||||
24 | United States | $25.28 | $21.51 | $23.11 | ||||||
25 | Foreign | 25.63 | 23.35 | 24.88 | ||||||
Natural gas liquids - per barrel | ||||||||||
26 | United States | $26.81 | $12.90 | $20.68 | ||||||
27 | Foreign | 27.12 | 16.36 | 21.94 | ||||||
Natural gas - per mcf | ||||||||||
28 | United States | $4.89 | $3.43 | $4.36 | ||||||
29 | Foreign | 3.04 | 2.37 | 2.52 | ||||||
Marketing and Refining - Barrels Per Day | ||||||||||
30 | Refined products sold | 463 | 407 | 402 | ||||||
31 | Refinery runs (net) | 198 | 196 | 196 | ||||||
(*) Reflected as a discontinued operation in the financial statements. |