Amerada Hess Reports Results For The Second Quarter 2002

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07/24/2002

New York, New York....July 24, 2002....Amerada Hess Corporation (NYSE:AHC) reported operating earnings, excluding special items, of $171 million for the second quarter of 2002 compared with earnings of $357 million for the second quarter of 2001. In the first half of 2002, operating earnings were $283 million compared with earnings of $694 million in the first half of 2001. Including special items, net income amounted to $149 million and $289 million in the second quarter and first half of 2002, respectively.

The after-tax results by major operating activity for the three and six month periods ended June 30, 2002 and 2001 were as follows (in millions, except per share amounts):

	Three months ended June 30 (unaudited)		Six months ended June 30 (unaudited)
	2002	2001	2002	2001
Exploration and production	$198	$304	$397	$579
Refining, marketing and shipping	39	101	16	206
Corporate	(18)	(19)	(33)	(32)
Interest expense	(48)	(29)	(97)	(59)
Operating earnings	171	357	283	694
Special items	(22)	--	6	--
Net income	$149	$357	$289	$694
Net income per share (diluted)	$1.66	$3.98	$3.25	$7.77

The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 469,000 barrels per day in the second quarter of 2002, an increase of 10% over the second quarter of 2001. In the second quarter of 2002, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was approximately $24.70 per barrel, a decrease of $2.40 per barrel from the second quarter of 2001. The Corporation's average United States natural gas selling price, including the effect of hedging, was $3.52 per Mcf in the second quarter of 2002, a decrease of approximately $1.10 per Mcf from the second quarter of 2001.

Refining and marketing results were lower in the second quarter of 2002 compared with the second quarter of 2001, principally reflecting decreased refining margins.

After-tax special items in the second quarter and first half of 2002 were as follows (in millions):

	Three months ended June 30		Six months ended June 30
	2002	2001	2002	2001
Reduction in carrying value of intangible assets	$(14)	$--	$(14)	$--
Severance accrual	(8)	--	(8)	--
Net gain from asset sales	--	--	28	--
	$(22)	$--	$6	$--

The second quarter charge for reductions in asset values relates to intangible assets in the energy marketing business. The severance accrual results from cost reduction initiatives in refining and marketing.

Sales and other operating revenues in the second quarter of 2002 amounted to $2,796 million compared with $3,461 million in the second quarter of 2001. Capital expenditures in the second quarter of 2002 amounted to $425 million, of which $358 million related to exploration and production activities. Capital expenditures in the second quarter of 2001 amounted to $1,136 million, including $1,048 million for exploration and production.

Consolidated Financial Information
(unaudited)

	Three months ended June 30		Six months ended June 30
	2002	2001	2002	2001
	(In millions, except per share amounts)
Sales and other operating revenues	$2,796	$3,461	$5,818	$7,644
Operating earnings	$171	$357	$283	$694
Special items	(22)	--	6	--
Net income	$149	$357	$289	$694
Net income per share (diluted)	$1.66	$3.98	$3.25	$7.77
Weighted average number of shares	89.5	89.6	89.1	89.3

Amerada Hess Corporation and Consolidated Subsidiaries
Supplemental Financial Data
(unaudited - in millions)

Line	INCOME STATEMENT					Second Quarter 2002 (A)		Second Quarter 2001 (B)	First Quarter 2002 (C)
No.	REVENUES
1		Sales and other operating revenues				$2,796		$3,461	$3,021
		Non-operating income
2			Equity in income (loss) of HOVENSA L.L.C.			(18)		51	(26)
3			Other			16		53	62
4				Total revenues		2,794		3,565	3,057

	COSTS AND EXPENSES
5		Cost of products sold				1,563		2,236	1,925
6		Production expenses				184		173	182
7		Marketing expenses				197		152	160
8		Exploration expenses, including dry holes and lease impairment				50		73	54
9		Other operating expenses				46		54	50
10		General and administrative expenses				60		58	63
11		Interest expense				70		41	70
12		Depreciation, depletion and amortization				368		229	302
13				Total costs and expenses		2,538		3,016	2,806

14		Income before income taxes				256		549	251
15		Provision for income taxes				107		192	110
16	NET INCOME		$149		$357		$141

	SEGMENT ANALYSIS
17		Exploration and production				$198		$304	$199
18		Refining, marketing and shipping				39		101	(22)
19		Corporate				(18)		(19)	(15)
20		Interest expense				(48)		(29)	(49)
21		Operating earnings				171		357	113
22		Special items				(22)		--	28
23				Net income		$149		$357	$141

24	*CASH FLOW FROM OPERATIONS ()**					$561		$611	$453

	CAPITAL EXPENDITURES
25		Exploration and production				$358		$1,048	$434
26		Refining, marketing and shipping				67		88	18
27				Total capital expenditures		$425		$1,136	$452

	AT END OF PERIOD
28		Total debt				$5,302		$2,280	$5,555

29		Stockholders' equity				$4,949		$4,621	$4,802

	(*) Net income adjusted for depreciation and amortization, exploratory dry holes, deferred income taxes, undistributed earnings of affiliates and net gain on asset sales.

Amerada Hess Corporation and Consolidated Subsidiaries
Supplemental Financial Data
(unaudited - in millions)

					First Half
Line	INCOME STATEMENT				2002 (A)	2001 (B)
No.	REVENUES
1		Sales and other operating revenues			$5,818	$7,644
		Non-operating income
2			Equity in income (loss) of HOVENSA L.L.C.		(44)	66
3			Other		77	84
4				Total revenues	5,851	7,794

	COSTS AND EXPENSES
5		Cost of products sold			3,486	5,168
6		Production expenses			367	326
7		Marketing expenses			357	305
8		Exploration expenses, including dry holes and lease impairment			104	157
9		Other operating expenses			97	110
10		General and administrative expenses			123	123
11		Interest expense			140	81
12		Depreciation, depletion and amortization			670	410
13				Total costs and expenses	5,344	6,680

14		Income before income taxes			507	1,114
15		Provision for income taxes			218	420
16	NET INCOME				$ 289	$ 694

17	CASH FLOW FROM OPERATIONS				$1,014	$1,201

	CAPITAL EXPENDITURES
18		Exploration and production			$792	$1,365
19		Refining, marketing and shipping			85	102
20				Total capital expenditures	$ 877	$1,467

					June 30 2002	December 31 2001
	BALANCE SHEET INFORMATION
21		Current assets			$2,403	$3,946
22		Investments			1,582	1,636
23		Property, plant and equipment - net			8,315	8,165
24		Other assets			1,592	1,622
25				Total assets	$13,892	$15,369

26		Current portion of long-term debt			$ 17	$382
27		Other current liabilities			2,231	3,336
28		Long-term debt			5,285	5,283
29		Deferred liabilities and credits			1,410	1,461
30		Stockholders' equity excluding other comprehensive income			5,066	4,799
31		Accumulated other comprehensive income			(117)	108
32				Total liabilities and stockholders' equity	$13,892	$15,369

Amerada Hess Corporation and Consolidated Subsidiaries
Supplemental Operating Data
(in thousands, except for average selling prices)

Line	OPERATING DATA				Second Quarter 2002 (A)	Second Quarter 2001 (B)	First Quarter 2002 (C)
No.	NET PRODUCTION PER DAY
		Crude oil - barrels
1			United States		57	69	59
2			United Kingdom		115	117	112
3			Equatorial Guinea		48	--	30
4			Norway		24	25	23
5			Colombia		21	--	24
6			Denmark		21	17	23
7			Algeria		14	13	12
8			Gabon		9	9	9
9			Indonesia		3	6	6
10			Azerbaijan		4	4	4
11				Total	316	260	302

		Natural gas liquids - barrels
12			United States		13	15	13
13			United Kingdom		5	5	6
14			Norway		1	2	1
15			Indonesia and Thailand		2	1	2
16				Total	21	23	22

		Natural gas - mcf
17			United States		422	474	394
18			United Kingdom		272	289	326
19			Denmark		36	38	42
20			Norway		24	25	23
21			Indonesia, Thailand and other		36	34	28
22				Total	790	860	813

23		Barrels of oil equivalent			469	426	460

	AVERAGE SELLING PRICE (including hedging)
		Crude oil - per barrel
24			United States		$25.46	$24.82	$21.51
25			Foreign		24.50	27.87	23.82

		Natural gas liquids - per barrel
26			United States		$15.34	$20.25	$12.90
27			Foreign		17.67	20.28	16.36

		Natural gas - per mcf
28			United States		$3.52	$4.64	$3.43
29			Foreign		1.94	2.48	2.37

	MARKETING AND REFINING - BARRELS PER DAY
30		Refined products sold			366	389	407
31		Refinery runs (net)			158	202	196

Amerada Hess Corporation and Consolidated Subsidiaries
Supplemental Operating Data
(in thousands, except for average selling prices)

					First Half
Line	OPERATING DATA				2002 (A)	2001 (B)
No.	NET PRODUCTION PER DAY
		Crude oil - barrels
1			United States		58	63
2			United Kingdom		113	119
3			Equatorial Guinea		39	--
4			Norway		23	25
5			Colombia		23	--
6			Denmark		22	20
7			Algeria		13	13
8			Gabon		9	8
9			Indonesia		5	6
10			Azerbaijan		4	4
11				Total	309	258

		Natural gas liquids - barrels
12			United States		13	13
13			United Kingdom		6	7
14			Norway		1	1
15			Indonesia and Thailand		2	1
16				Total	22	22

		Natural gas - mcf
17			United States		408	399
18			United Kingdom		299	316
19			Denmark		39	44
20			Norway		24	25
21			Indonesia, Thailand and other		32	32
22				Total	802	816

23		Barrels of oil equivalent			464	416

	AVERAGE SELLING PRICE (including hedging)
		Crude oil - per barrel
24			United States		$23.46	$24.55
25			Foreign		24.17	26.76

		Natural gas liquids - per barrel
26			United States		$14.12	$22.98
27			Foreign		16.99	21.41

		Natural gas - per mcf
28			United States		$3.47	$4.96
29			Foreign		2.16	2.73

	MARKETING AND REFINING - BARRELS PER DAY
30		Refined products sold			387	426
31		Refinery runs (net)			176	204

Contact: Amerada Hess Corporation - C.T. Tursi (212) 536-8593

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