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NEW YORK, Apr 28, 2004 /PRNewswire-FirstCall via COMTEX/ -- Amerada Hess Corporation (NYSE: AHC) reported net income of $281 million for the first quarter of 2004 compared with income of $176 million for the first quarter of 2003. First quarter 2004 income includes a net gain of $19 million from the sale of an asset and an income tax benefit of $13 million resulting from the completion of a prior year United States income tax audit. First quarter 2003 income included a net gain of $31 million from the sale of an asset. The after-tax results by major operating activity in 2004 and 2003 are as follows:
Three months ended
March 31 (unaudited)
2004 2003(*)
(In millions, except
per share amounts)
Exploration and production $207 $120
Refining and marketing 112 136
Corporate (2) (20)
Interest expense (36) (46)
Income from continuing operations 281 190
Discontinued operations - (21)
Income from cumulative effect of
accounting change - 7
Net income $281 $176
Income per share from continuing
operations (diluted) $2.77 $2.13
Net income per share (diluted) $2.77 $1.98
(*) Reclassified to conform with current period presentation.
Exploration and production earnings were $207 million in the first quarter of 2004 compared with $120 million in the first quarter of 2003. The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 346,000 barrels per day in the first quarter of 2004, a decrease of 18% from the first quarter of 2003. Approximately 60% of the decline in production resulted from asset sales and exchanges in 2003. In the first quarter of 2004, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $26.83 per barrel, an increase of $1.64 per barrel from the first quarter of 2003. The Corporation's average United States natural gas selling price, including the effect of hedging, was $5.20 per Mcf in the first quarter of 2004, an increase of $.77 per Mcf from the first quarter of 2003. Exploration and production earnings include after-tax gains from asset sales of $19 million and $31 million ($19 million and $47 million before income taxes) in the first quarters of 2004 and 2003, respectively. The gain in the first quarter of 2004 reflects the sale of an office building in Aberdeen, Scotland.
Refining and marketing earnings were $112 million in the first quarter of 2004 compared with $136 million in the first quarter of 2003. The decrease reflects lower earnings from retail gasoline station operations and energy marketing activities, partially offset by increased earnings from refining operations.
Capital expenditures in the first quarter of 2004 amounted to $364 million of which $352 million related to exploration and production activities. Capital expenditures in the first quarter of 2003 amounted to $341 million, including $321 million for exploration and production.
Consolidated Financial Information (unaudited)
Three months ended March 31
2004 2003
(In millions, except
per share amounts)
Income Statement Information
Sales and other operating
revenues $4,488 $4,254
Income from continuing operations $281 $190
Discontinued operations - (21)
Cumulative effect of accounting
change - 7
Net income $281 $176
Income per share from continuing
operations (diluted) $2.77 $2.13
Net income per share (diluted) $2.77 $1.98
Weighted average number of
shares (diluted) 101.4 89.1
March 31 December 31
2004 2003
Balance Sheet Information
Current assets $3,196 $3,186
Investments 1,132 1,095
Property, plant and equipment -
net 8,036 7,978
Other assets 1,752 1,724
Total assets $14,116 $13,983
Current portion of long-term
debt $73 $73
Other current liabilities 2,661 2,596
Long-term debt 3,855 3,868
Deferred liabilities and credits 2,038 2,106
Stockholders' equity, excluding
other comprehensive loss 5,942 5,690
Accumulated other comprehensive
loss (453) (350)
Total liabilities and
stockholders' equity $14,116 $13,983
Amerada Hess Corporation and Consolidated Subsidiaries
Supplemental Financial Data (Unaudited)
(In Millions)
First First Fourth
Quarter Quarter Quarter
Line 2004 2003(*) 2003
No. (A) (B) (C)
Income Statement
Revenues and Non-operating Income
1 Sales and other operating
revenues $4,488 $4,254 $3,628
Non-operating income (expense)
2 Gain on asset sales 19 47 --
3 Equity in income of
HOVENSA L.L.C. 51 50 10
4 Other 4 12 (30)
5 Total revenues and
non-operating income 4,562 4,363 3,608
Costs and Expenses
6 Cost of products sold 3,288 3,088 2,523
7 Production expenses 187 192 207
8 Marketing expenses 177 170 201
9 Exploration expenses,
including dry holes and
lease impairment 78 106 116
10 Other operating expenses 48 51 49
11 General and administrative
expenses 76 77 87
12 Interest expense 57 74 69
13 Depreciation, depletion
and amortization 226 276 254
14 Total costs and expenses 4,137 4,034 3,506
15 Income from continuing
operations before income taxes 425 329 102
16 Provision for income taxes 144 139 34
17 Income from continuing
operations 281 190 68
18 Discontinued operations -- (21) --
19 Cumulative effect of change in
accounting principle, net -- 7 --
20 Net income $281 $176 $68
21 Preferred stock dividends 12 -- 5
22 Net income applicable to
common stockholders $269 $176 $63
Segment Earnings Analysis
23 Exploration and production $207 $120 $83
24 Refining and marketing 112 136 55
25 Corporate (2) (20) (29)
26 Interest expense (36) (46) (41)
27 Income from continuing
operations 281 190 68
28 Discontinued operations -- (21) --
29 Cumulative effect of change
in accounting principle, net -- 7 --
30 Net income $281 $176 $68
31 Net Cash Provided by Operating
Activities (**) $394 $488 $423
Capital Expenditures
32 Exploration and production $352 $321 $328
33 Refining and marketing 12 20 14
34 Total capital expenditures $364 $341 $342
At End of Period
35 Total debt $3,928 $4,849 $3,941
36 Stockholders' equity $5,489 $4,387 $5,340
(*) Reclassified to conform with current period presentation.
(**) Includes changes in working capital.
Amerada Hess Corporation And Consolidated Subsidiaries
Supplemental Operating Data
(In Thousands, Except For Average Selling Prices)
First First Fourth
Quarter Quarter Quarter
2004 2003 2003
Line (A) (B) (C)
No. Operating Data
Net Production Per Day
Crude oil - barrels
1 United States 40 50 40
2 United Kingdom 78 102 79
3 Norway 27 24 27
4 Denmark 22 25 23
5 Equatorial Guinea 22 25 18
6 Algeria 20 20 19
7 Gabon 13 11 12
8 Azerbaijan 2 2 2
9 Indonesia 1 4 1
10 Colombia -- 12 --
11 Total 225 275 221
Natural gas liquids - barrels
12 United States 12 11 10
13 United Kingdom 6 6 7
14 Norway 1 1 1
15 Indonesia and Thailand 2 2 2
16 Total 21 20 20
Natural gas - mcf
17 United States 183 317 213
18 United Kingdom 282 321 339
19 Norway 28 26 28
20 Denmark 23 34 23
21 Indonesia and Thailand 86 56 88
22 Total 602 754 691
23 Barrels of oil equivalent (*) 346 421 356
Average Selling Price
(including hedging)
Crude oil - per barrel
24 United States $25.49 $24.41 $25.06
25 Foreign 27.10 25.40 25.40
Natural gas liquids
- per barrel
26 United States $25.78 $26.88 $24.01
27 Foreign 23.44 27.04 24.71
Natural gas - per mcf
28 United States $5.20 $4.43 $3.96
29 Foreign 4.22 3.04 3.74
Marketing and Refining -
Barrels Per Day
30 Refined products sold 483 463 423
31 Refinery runs (net) 247 198 225
(*) Includes production from properties classified as discontinued
operations of 37 thousand barrels of oil equivalent per day in the
first quarter of 2003.
CONTACT: Jay Wilson
Amerada Hess Corporation
212-536-8940
SOURCE Amerada Hess Corporation