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NEW YORK--(BUSINESS WIRE)--July 28, 2004--Amerada Hess Corporation (NYSE:AHC) reported net income of $288 million for the second quarter of 2004 compared with income of $252 million for the second quarter of 2003. Net income in the second quarter of 2004 and 2003 includes income of $7 million and $189 million, respectively, from discontinued operations. The after-tax results by major operating activity in 2004 and 2003 are as follows:
Three months ended Six months ended June 30 (unaudited) June 30 (unaudited) ------------------- ------------------- 2004 2003 2004 2003 --------- --------- --------- --------- (In millions, except per share amounts) Exploration and production $ 182 $ 88 $389 $ 207 Refining and marketing 160 46 272 183 Corporate (24) (27) (26) (47) Interest Expense (37) (44) (73) (91) --------- --------- --------- --------- Income from continuing operations 281 63 562 252 Discontinued operations Net gains from asset sales - 175 - 116 Income from operations 7 14 7 53 Income from cumulative effect of accounting change - - - 7 --------- --------- --------- --------- Net income $ 288 $ 252 $ 569 $ 428 ========= ========= ========== ========= Income per share from continuing operations (diluted) $2.77 $ .71 $5.54 $2.84 ========= ========= ========== ========= Net income per share (diluted) $2.84 $2.83 $5.61 $4.81 ========= ========= ========== =========
Exploration and production earnings from continuing operations were $182 million in the second quarter of 2004 compared with $88 million in the second quarter of 2003. The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 351,000 barrels per day in the second quarter of 2004, a decrease of 7% from the second quarter of 2003. The decline in production was primarily due to asset sales and exchanges in 2003. In the second quarter of 2004, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $25.76 per barrel, an increase of $1.66 per barrel from the second quarter of 2003. The Corporation's average United States natural gas selling price, including the effect of hedging, was $5.23 per Mcf in the second quarter of 2004, an increase of $1.14 per Mcf from the second quarter of 2003. Exploration and production earnings include an after-tax gain of $15 million in the second quarter of 2004 from the sale of a non-producing asset and after-tax charges of $6 million and $23 million in the second quarter of 2004 and 2003, respectively, for accrued severance and a reduction in leased office space in London.
Refining and marketing earnings were $160 million in the second quarter of 2004 compared with $46 million in the second quarter of 2003. The increase principally reflects higher refining margins and increased utilization rates. Refining and marketing earnings in the second quarter of 2003 included a net loss of $20 million from the sale of the Corporation's interest in a shipping joint venture.
Capital expenditures in the second quarter of 2004 amounted to $372 million of which $357 million related to exploration and production activities. Capital expenditures in the second quarter of 2003 amounted to $367 million, including $339 million for exploration and production.
Consolidated Financial Information (unaudited) Three months ended Six months ended June 30 June 30 ------------------- ------------------- 2004 2003 2004 2003 --------- --------- --------- --------- (In millions, except per share amounts) Income Statement Information ---------------------------- Sales and other operating revenues $3,803 $3,199 $8,291 $7,453 ========= ========= ========== ========= Income from continuing operations $ 281 $ 63 $ 562 $ 252 Discontinued operations Net gains from asset sales - 175 - 116 Income from operations 7 14 7 53 Cumulative effect of accounting change - - - 7 --------- --------- --------- --------- Net income $ 288 $ 252 $ 569 $ 428 ========= ========= ========== ========= Income per share from continuing operations (diluted) $ 2.77 $ .71 $ 5.54 $ 2.84 ========= ========= ========== ========= Net income per share (diluted) $ 2.84 $ 2.83 $ 5.61 $ 4.81 ========= ========= ========== ========= Weighted average number of shares (diluted) 101.4 89.0 101.5 89.1 ========= ========= ========== ========= AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) Second Second First Quarter Quarter Quarter 2004 2003 2004 -------- -------- -------- (A) (B) (C) Line No. ---- Income Statement ---------------- Revenues and Non-operating Income 1 Sales and other operating revenues $ 3,803 $ 3,199 $ 4,488 Non-operating income (expense) 2 Gain (loss) on asset sales 3 (9) 19 3 Equity in income of HOVENSA L.L.C. 97 15 51 4 Other 33 8 4 -------- -------- -------- 5 Total revenues and non-operating income 3,936 3,213 4,562 -------- -------- -------- Costs and Expenses 6 Cost of products sold 2,618 2,140 3,288 7 Production expenses 197 191 187 8 Marketing expenses 174 167 177 9 Exploration expenses, including dry holes and lease impairment 63 88 78 10 Other operating expenses 47 49 48 11 General and administrative expenses 96 106 76 12 Interest expense 60 77 57 13 Depreciation, depletion and amortization 239 270 226 -------- -------- -------- 14 Total costs and expenses 3,494 3,088 4,137 -------- -------- -------- 15 Income from continuing operations before income taxes 442 125 425 16 Provision for income taxes 161 62 144 -------- -------- -------- 17 Income from continuing operations 281 63 281 18 Discontinued operations 7 189 -- -------- -------- -------- 19 Net income $ 288 $ 252 $ 281 ======== ======== ======== 20 Preferred stock dividends 12 -- 12 -------- -------- -------- 21 Net income applicable to common stockholders $ 276 $ 252 $ 269 ======== ======== ======== Segment Earnings Analysis ------------------------- 22 Exploration and production $ 182 $ 88 $ 207 23 Refining and marketing 160 46 112 24 Corporate (24) (27) (2) 25 Interest Expense (37) (44) (36) -------- -------- -------- 26 Income from continuing operations 281 63 281 27 Discontinued operations 7 189 -- -------- -------- -------- 28 Net income $ 288 $ 252 $ 281 ======== ======== ======== 29 Net Cash Provided by Operating Activities (*) $ 438 $ 571 $ 394 ------------------------------ ======== ======== ======== Capital Expenditures -------------------- 30 Exploration and production $ 357 $ 339 $ 352 31 Refining and marketing 15 28 12 -------- -------- -------- 32 Total capital expenditures $ 372 $ 367 $ 364 ======== ======== ======== At End of Period ---------------- 33 Total debt $3,889 $4,642 $3,928 ======== ======== ======== 34 Stockholders' equity $5,567 $4,573 $5,489 ======== ======== ======== (*) Includes changes in working capital AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) First Half --------------------- 2004 2003 ---------- ---------- (A) (B) Line No. ---- Income Statement ---------------- Revenues and Non-operating Income 1 Sales and other operating revenues $ 8,291 $ 7,453 Non-operating income 2 Gain on asset sales 22 39 3 Equity in income of HOVENSA L.L.C. 148 65 4 Other 37 19 ---------- ---------- 5 Total revenues and non-operating income 8,498 7,576 ---------- ---------- Costs and Expenses 6 Cost of products sold 5,906 5,228 7 Production expenses 384 382 8 Marketing expenses 351 337 9 Exploration expenses, including dry holes and lease impairment 141 194 10 Other operating expenses 95 100 11 General and administrative expenses 172 183 12 Interest expense 117 151 13 Depreciation, depletion and amortization 465 546 ---------- ---------- 14 Total costs and expenses 7,631 7,121 ---------- ---------- 15 Income from continuing operations before income taxes 867 455 16 Provision for income taxes 305 203 ---------- ---------- 17 Income from continuing operations 562 252 18 Discontinued operations 7 169 19 Cumulative effect of change in accounting principle, net -- 7 ---------- ---------- 20 Net income $ 569 $ 428 ========== ========== 21 Preferred stock dividends 24 -- ---------- ---------- 22 Net income applicable to common stockholders $ 545 $ 428 ========== ========== 23 Net Cash Provided by Operating Activities $ 832 $ 1,059 ---------------------------------------- ========== ========== Capital Expenditures -------------------- 24 Exploration and production $ 709 $ 660 25 Refining and marketing 27 49 ---------- ---------- 26 Total capital expenditures $ 736 $ 709 ========== ========== June 30 Dec. 31 2004 2003 ---------- ---------- Balance Sheet Information ------------------------- 27 Current assets $ 3,296 $ 3,186 28 Investments 1,243 1,095 29 Property, plant and equipment - net 8,144 7,978 30 Other assets 1,863 1,724 ---------- ---------- 31 Total assets $ 14,546 $ 13,983 ========== ========== 32 Current portion of long-term debt $ 104 $ 73 33 Other current liabilities 3,066 2,596 34 Long-term debt 3,785 3,868 35 Deferred liabilities and credits 2,024 2,106 36 Stockholders' equity excluding other comprehensive income (loss) 6,243 5,690 37 Accumulated other comprehensive income (loss) (676) (350) ---------- ---------- 38 Total liabilities and stockholders' equity $ 14,546 $ 13,983 ========== ========== AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES) Second Second First Quarter Quarter Quarter 2004 2003 2004 -------- -------- -------- (A) (B) (C) Line No. Operating Data ---- -------------- Net Production Per Day ---------------------- Crude oil - barrels 1 United States 41 45 40 2 United Kingdom 77 96 78 3 Norway 27 24 27 4 Equatorial Guinea 27 24 22 5 Algeria 24 15 20 6 Denmark 23 23 22 7 Gabon 11 10 13 8 Azerbaijan 2 2 2 9 Indonesia 1 1 1 -------- -------- -------- 10 Total 233 240 225 ======== ======== ======== Natural gas liquids - barrels 11 United States 12 9 12 12 United Kingdom 4 8 6 13 Norway 1 1 1 14 Indonesia and Thailand 1 2 2 -------- -------- -------- 15 Total 18 20 21 ======== ======== ======== Natural gas - mcf 16 United States 160 264 183 17 United Kingdom 306 327 282 18 Norway 27 28 28 19 Denmark 25 28 23 20 Indonesia and Thailand 83 48 86 -------- -------- -------- 21 Total 601 695 602 ======== ======== ======== 22 Barrels of oil equivalent (*) 351 376 346 ======== ======== ======== Average Selling Price (including hedging) -------------------------------- Crude oil - per barrel 23 United States $ 25.27 $ 23.12 $ 25.49 24 Foreign 25.87 24.31 27.10 Natural gas liquids - per barrel 25 United States $ 26.33 $ 21.84 $ 25.78 26 Foreign 29.21 19.44 23.44 Natural gas - per mcf 27 United States $ 5.23 $ 4.09 $ 5.20 28 Foreign 3.54 2.58 4.22 Marketing and Refining - Barrels Per Day ------------------------ 29 Refined products sold 404 399 483 ======== ======== ======== 30 Refinery runs (net) 244 215 247 ======== ======== ======== (*) Includes production from properties classified as discontinued operations of 14 thousand barrels of oil equivalent per day in the second quarter of 2003. AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES) First Half --------------------- 2004 2003 ---------- ---------- (A) (B) Line No. Operating Data ---- -------------- Net Production Per Day ---------------------- Crude oil - barrels 1 United States 40 47 2 United Kingdom 77 99 3 Norway 27 24 4 Equatorial Guinea 25 25 5 Algeria 22 18 6 Denmark 23 24 7 Gabon 12 10 8 Azerbaijan 2 2 9 Indonesia 1 2 10 Colombia -- 6 ---------- ---------- 11 Total 229 257 ========== ========== Natural gas liquids - barrels 12 United States 12 10 13 United Kingdom 5 7 14 Norway 1 1 15 Indonesia and Thailand 2 2 ---------- ---------- 16 Total 20 20 ========== ========== Natural gas - mcf 17 United States 171 291 18 United Kingdom 294 324 19 Norway 28 27 20 Denmark 24 31 21 Indonesia and Thailand 85 52 ---------- ---------- 22 Total 602 725 ========== ========== 23 Barrels of oil equivalent (*) 349 398 ========== ========== Average Selling Price (including hedging) ---------------------------------------- Crude oil - per barrel 24 United States $ 25.38 $ 23.79 25 Foreign 26.52 24.82 Natural gas liquids - per barrel 26 United States $ 26.06 $ 24.60 27 Foreign 26.08 22.81 Natural gas - per mcf 28 United States $ 5.22 $ 4.27 29 Foreign 3.87 2.81 Marketing and Refining - Barrels Per Day ------------------------ 30 Refined products sold 444 431 ========== ========== 31 Refinery runs (net) 246 207 ========== ========== (*) Includes production from properties classified as discontinued operations of 26 thousand barrels of oil equivalent per day in the first half of 2003.
CONTACT: Amerada Hess Corporation
J.R. Wilson, 212-536-8940
SOURCE: Amerada Hess Corporation