Amerada Hess Reports Results For The Second Quarter of 2003

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07/29/2003

New York, New York.…July 29, 2003...Amerada Hess Corporation (NYSE: AHC) reported net income of $252 million, including gains on asset sales, for the second quarter of 2003 compared with income of $149 million for the second quarter of 2002. Net income was $428 million in the first half of 2003 compared with $289 million in the corresponding period of 2002. Income from continuing operations was $63 million and $252 million in the second quarter and first half of 2003, respectively. The after-tax results by major operating activity for the three and six month periods ended June 30, 2003 and 2002 were as follows (in millions, except per share amounts):

	Three months ended June 30 (unaudited)				Six months ended June 30 (unaudited)
	2003		2002	(a)	2003		2002	(a)
Exploration and production	$ 88	(b)	$ 175		$ 207	(b,d)	$ 389	(d)
Refining and marketing	46	(c)	17		183	(c)	(5)
Corporate	(27)		(18)		(47)		(33)
Interest expense	(44)		(45)		(91)		(91)
Income from continuing operations	63		129		252		260
Discontinued operations
Net gains from asset sales	175		-		116		-
Income from operations	14		20		53		29
Income from cumulative effect of accounting change	-		-		7		-
Net income	$ 252		$ 149		$ 428		$ 289
Income per share from continuing operations (diluted)	$ .71		$ 1.44		$ 2.84		$ 2.92
Net income per share (diluted)	$ 2.83		$ 1.66		$ 4.81		$ 3.25
(a) Reclassified to conform with current period presentation. (b) Includes an after-tax charge of $23 million for accrued severance and a reduction in London leased office space. (c) Includes a net loss of $20 million from the sale of the Corporation's interest in a shipping joint venture. (d) Includes net gains from asset sales of $31 million in 2003 and $42 million in 2002.

In the second quarter of 2003, the Corporation sold Gulf of Mexico Shelf properties, the Jabung Field in Indonesia and several small United Kingdom fields for approximately $445 million. Discontinued operations includes net gains from these asset sales and income from operations prior to the sales. Exploration and production earnings in the second quarter of 2003 include a previously announced after-tax charge of $23 million for accrued severance and a reduction in London leased office space.

The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 376,000 barrels per day in the second quarter of 2003 compared to 469,000 barrels per day in the second quarter of 2002. In the second quarter of 2003, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $24.10 per barrel, a decrease of $.26 per barrel from the second quarter of 2002. The Corporation's average United States natural gas selling price, including the effect of hedging, was $4.09 per Mcf in the second quarter of 2003, an increase of $.53 per Mcf from the second quarter of 2002.

Refining and marketing earnings were higher in the second quarter of 2003 compared with the second quarter of 2002. In the second quarter of 2003, the Corporation sold its interest in a shipping joint venture for approximately $55 million and recorded a $20 million loss which is included in refining and marketing earnings. Refining and marketing earnings in the second quarter of 2002 included after-tax charges totaling $22 million for accrued severance and the reduction in carrying value of intangible assets. Refining margins at HOVENSA were higher in the second quarter of 2003 than in the second quarter of 2002 and earnings from retail gasoline station operations increased in the second quarter of 2003 compared with the corresponding period of 2002.

Corporate expenses include $8 million and $11 million of after-tax charges resulting from early repayment of debt in the second quarter and first half of 2003, respectively.

Sales and other operating revenues in the second quarter of 2003 amounted to $3,199 million compared with $2,694 million in the second quarter of 2002. Capital expenditures in the second quarter of 2003 amounted to $367 million of which $339 million related to exploration and production activities. Capital expenditures in the second quarter of 2002 amounted to $418 million, including $351 million for exploration and production.

Consolidated Financial Information (unaudited - In millions, except per share amounts)
	Three months ended June 30		Six months ended June 30
	2003	2002	2003	2002
Sales and other operating revenues	$ 3,199	$ 2,694	$ 7,453	$ 5,620

Income from continuing operations	$ 63	$ 129	$ 252	$ 260
Discontinued operations
Net gains from asset sales	175	-	116	-
Income from operations	14	20	53	29
Cumulative effect of accounting change	-	-	7	-
Net income	$ 252	$ 149	$ 428	$ 289
Income per share from continuing operations (diluted)	$ .71	$ 1.44	$ 2.84	$ 2.92
Net income per share (diluted)	$ 2.83	$ 1.66	$ 4.81	$ 3.25
Weighted average number of shares	89.0	89.5	89.1	89.1

AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (unaudited - in millions)
Line No.		Second Quarter 2003	Second Quarter 2002(*)	First Quarter 2003(*)
	Income Statement	(A)	(B)	(C)
	Revenues and Non-operating Income
1	Sales and other operating revenues	$ 3,199	$ 2,694	$ 4,254
	Non-operating income
2	Gain (loss) on asset sales	(9)	--	47
3	Equity in income (loss) of HOVENSA L.L.C.	15	(18)	50
4	Other	8	36	12
5	Total revenues and non-operating income	3,213	2,712	4,363
	Costs and Expenses
6	Cost of products sold	2,140	1,586	3,088
7	Production expenses	191	166	192
8	Marketing expenses	167	197	170
9	Exploration expenses, including dry holes and lease impairment	88	49	106
10	Other operating expenses	49	41	51
11	General and administrative expenses	106	60	77
12	Interest expense	77	67	74
13	Depreciation, depletion and amortization	270	319	276
14	Total costs and expenses	3,088	2,485	4,034
15	Income from continuing operations before income taxes	125	227	329
16	Provision for income taxes	62	98	139
17	Income from continuing operations	63	129	190
	Discontinued operations
18	Net gain (loss) from asset sales	175	--	(59)
19	Income from operations	14	20	38
20	Cumulative effect of change in accounting principle, net	--	--	7
21	Net Income	$ 252	$ 149	$ 176
	Segment Analysis
22	Exploration and production	$ 88	$ 175	$ 120
23	Refining and marketing	46	17	136
24	Corporate	(27)	(18)	(20)
25	Interest expense	(44)	(45)	(46)
26	Income from continuing operations	63	129	190
	Discontinued operations
27	Net gain (loss) from asset sales	175	--	(59)
28	Income from operations	14	20	38
29	Cumulative effect of change in accounting principle, net	--	--	7
30	Net income	$ 252	$ 149	$ 176
31	Net Cash Provided by Operating Activities	$ 571	$ 583	$ 488
	Capital Expenditures
32	Exploration and production	$ 339	$ 351	$ 321
33	Refining and marketing	28	67	20
34	Total capital expenditures	$ 367	$ 418	$ 341
	At End of Period
35	Total debt	$ 4,642	$ 5,302	$ 4,849
36	Stockholders' equity	$ 4,573	$ 4,949	$ 4,386
(*) Reclassified to conform with current period presentation.

AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (unaudited - in millions)
		First Half
Line No.		2003	2002(*)
	Income Statement	(A)	(B)
	Revenues and Non-operating Income
1	Sales and other operating revenues	$ 7,453	$ 5,620
	Non-operating income
2	Gain on asset sales	39	62
3	Equity in income (loss) of HOVENSA L.L.C.	65	(44)
4	Other	19	51
5	Total revenues and non-operating income	7,576	5,689
	Costs and Expenses
6	Costs of products sold	5,228	3,523
7	Production expenses	382	325
8	Marketing expenses	337	357
9	Exploration expenses, including dry holes and lease impairment	194	103
10	Other operating expenses	100	83
11	General and administrative expenses	183	122
12	Interest expense	151	133
13	Depreciation, depletion and amortization	546	580
14	Total costs and expenses	7,121	5,226
15	Income from continuing operations before income taxes	455	463
16	Provision for income taxes	203	203
17	Income from continuing operations	252	260
	Discontinued operations
18	Net gain from asset sales	116	--
19	Income from operations	53	29
20	Cumulative effect of change in accounting principle, net	7	--
21	Net income	$ 428	$ 289
22	Net Cash Provided by Operating Activities	$ 1,059	$ 994
	Capital Expenditures
23	Exploration and production	$ 660	$ 778
24	Refining and marketing	49	85
25	Total capital expenditures	$ 709	$ 863

	Balance Sheet Information	June 30 2003	December 31 2002
26	Current assets	$ 2,947	$ 2,756
27	Investments	1,135	1,622
28	Property, plant and equipment - net	7,655	7,032
29	Other assets	1,863	1,852
30	Total assets	$ 13,600	$ 13,262

31	Current portion of long-term debt	$ 15	$ 16
32	Other current liabilities	2,528	2,537
33	Long-term debt	4,627	4,976
34	Deferred liabilities and credits	1,857	1,484
35	Stockholders' equity excluding other comprehensive loss	4,880	4,503
36	Accumulated other comprehensive loss	(307)	(254)
37	Total liabilities and stockholders' equity	$ 13,600	$ 13,262
(*) Reclassified to conform with current period presentation.

AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (in thousands, except for average selling prices)
Line No.		Second Quarter 2003	Second Quarter 2002	First Quarter 2003
	Operating Data	(A)	(B)	(C)
	Net Production Per Day
	Crude oil - barrels
1	United States	45	57	50
2	United Kingdom	96	115	102
3	Equatorial Guinea	24	48	25
4	Norway	24	24	24
5	Denmark	23	21	25
6	Algeria	15	14	20
7	Gabon	10	9	11
8	Indonesia	1	3	4
9	Azerbaijan	2	4	2
10	Colombia	--	21	12
11	Total	240	316	275
	Natural gas liquids - barrels
12	United States	9	13	11
13	United Kingdom	8	5	6
14	Norway	1	1	1
15	Indonesia and Thailand	2	2	2
16	Total	20	21	20
	Natural gas - mcf
17	United States	264	422	317
18	United Kingdom	327	272	321
19	Denmark	28	36	34
20	Norway	28	24	26
21	Indonesia and Thailand	48	36	56
22	Total	695	790	754
23	Barrels of oil equivalent (*)	376	469	421
	Average Selling Price (including hedging)
	Crude oil - per barrel
24	United States	$ 23.12	$ 25.51	$ 24.41
25	Foreign	24.31	24.10	25.40
	Natural gas liquids - per barrel
26	United States	$ 21.84	$ 15.22	$ 26.88
27	Foreign	19.44	17.83	27.04
	Natural gas - per mcf
28	United States	$ 4.09	$ 3.56	$ 4.43
29	Foreign	2.58	1.94	3.04
	Marketing and Refining - Barrels Per Day
30	Refined products sold	399	366	463
31	Refinery runs (net)	215	158	198
(*) Includes production from properties classified as discontinued operations of 14, 56, and 37 thousand barrels of oil equivalent per day in the second quarters of 2003 and 2002 and the first quarter of 2003, respectively.

AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (in thousands, except for average selling prices)
		First Half
Line No.		2003	2002
	Operating Data	(A)	(B)
	Net Production Per Day
	Crude oil - barrels
1	United States	47	58
2	United Kingdom	99	113
3	Equatorial Guinea	25	39
4	Norway	24	23
5	Denmark	24	22
>6	Algeria	18	13
7	Gabon	10	9
8	Indonesia	2	5
9	Azerbaijan	2	4
10	Colombia	6	23
11	Total	257	309
	Natural gas liquids - barrels
12	United States	10	13
13	United Kingdom	7	6
14	Norway	1	1
15	Indonesia and Thailand	2	2
16	Total	20	22
	Natural gas - mcf
17	United States	291	408
18	United Kingdom	324	299
19	Denmark	31	39
20	Norway	27	24
21	Indonesia and Thailand	52	32
22	Total	725	802
23	Barrels of oil equivalent(*)	398	464
	Average Selling Price (including hedging)
	Crude oil - per barrel
24	United States	$ 23.79	$ 23.58
25	Foreign	24.82	23.84
	Natural gas liquids - per barrel
26	United States	$ 24.60	$ 14.06
27	Foreign	22.81	17.16
	Natural gas - per mcf
28	United States	$ 4.27	$ 3.58
29	Foreign	2.81	2.17
	Marketing and Refining - Barrels Per Day
30	Refined products sold	431	387
31	Refinery runs (net)	207	176
(*) Includes production from properties classified as discontinued operations of 26 and 54 thousand barrels of oil equivalent per day in the first half of 2003 and 2002, respectively.

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

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