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Amerada Hess Reports Results for the Third Quarter of 2004
10/27/2004
NEW YORK--(BUSINESS WIRE)--Oct. 27, 2004--Amerada Hess Corporation (NYSE:AHC) reported net income of $178 million for the third quarter of 2004 compared with income of $146 million for the third quarter of 2003. The after-tax results by major operating activity in 2004 and 2003 are as follows:
Three months Nine months
ended ended
September 30 September 30
(unaudited) (unaudited)
-------------- --------------
2004 2003 2004 2003
----- ----- ----- -----
(In millions, except per share
amounts)
Exploration and production $ 155 $ 124 $ 544 $ 331
Refining and marketing 85 89 358 272
Corporate (23) (25) (49) (73)
Interest expense (39) (42) (112) (132)
----- ----- ----- -----
Income from continuing operations 178 146 741 398
Discontinued operations
Net gains from asset sales - - - 116
Income from operations - - 7 53
Income from cumulative effect of
accounting change - - - 7
----- ----- ----- -----
Net income $ 178 $ 146 $ 748 $ 574
===== ===== ===== =====
Income per share from continuing
operations (diluted) $1.74 $1.64 $7.27 $4.47
===== ===== ===== =====
Net income per share (diluted) $1.74 $1.64 $7.34 $6.45
===== ===== ===== =====
Exploration and production earnings were $155 million in the third quarter of 2004 compared with $124 million in the third quarter of 2003. The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 323,000 barrels per day in the third quarter of 2004, a decrease of 5% from the third quarter of 2003. In the third quarter of 2004, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $26.59 per barrel, an increase of $1.94 per barrel from the third quarter of 2003. The Corporation's average United States natural gas selling price, including the effect of hedging, was $4.40 per Mcf in the third quarter of 2004, an increase of $.87 per Mcf from the third quarter of 2003. In the third quarter of 2003, exploration and production earnings included an income tax benefit of $30 million relating to foreign exploration activities.
Refining and marketing earnings were $85 million in the third quarter of 2004 compared with $89 million in the third quarter of 2003. The decrease is primarily due to lower earnings from energy marketing activities and retail gasoline station operations.
Capital expenditures in the third quarter of 2004 amounted to $356 million of which $338 million related to exploration and production activities. Capital expenditures in the third quarter of 2003 amounted to $307 million, including $298 million for exploration and production.
Consolidated Financial Information (unaudited)
Three months Nine months
ended ended
---------------- ------------------
September 30 September 30
---------------- ------------------
2004 2003 2004 2003
------ ------ ------- -------
Income Statement Information (In millions, except per share
---------------------------- amounts)
Sales and other operating
revenues $3,830 $3,230 $12,120 $10,683
====== ====== ======= =======
Income from continuing operations $ 178 $ 146 $ 741 $ 398
Discontinued operations
Net gains from asset sales - - - 116
Income from operations - - 7 53
Cumulative effect of accounting
change - - - 7
------ ------ ------- -------
Net income $ 178 $ 146 $ 748 $ 574
====== ====== ======= =======
Income per share from continuing
operations (diluted) $ 1.74 $ 1.64 $ 7.27 $ 4.47
====== ====== ======= =======
Net income per share (diluted) $ 1.74 $ 1.64 $ 7.34 $ 6.45
====== ====== ======= =======
Weighted average number of shares
(diluted) 102.4 89.1 101.8 89.1
====== ====== ======= =======
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Third Third Second
Quarter Quarter Quarter
2004 2003 2004
Line -------- -------- --------
No. (A) (B) (C)
----
Income Statement
----------------
Revenues and Non-operating Income
1 Sales and other operating revenues $ 3,830 $ 3,230 $ 3,803
Non-operating income
2 Gain on asset sales -- -- 3
3 Equity in income of HOVENSA L.L.C. 75 43 97
4 Other 25 23 33
-------- -------- --------
5 Total revenues and non-operating
income 3,930 3,296 3,936
-------- -------- --------
Costs and Expenses
6 Cost of products sold 2,742 2,194 2,618
7 Production expenses 202 207 197
8 Marketing expenses 186 171 174
Exploration expenses, including dry
9 holes and lease impairment 64 59 63
10 Other operating expenses 52 44 47
11 General and administrative expenses 81 70 96
12 Interest expense 62 73 60
13 Depreciation, depletion and
amortization 230 253 239
-------- -------- --------
14 Total costs and expenses 3,619 3,071 3,494
-------- -------- --------
15 Income from continuing operations
before income taxes 311 225 442
16 Provision for income taxes 133 79 161
-------- -------- --------
17 Income from continuing operations 178 146 281
18 Discontinued operations -- -- 7
-------- -------- --------
19 Net income $ 178 $ 146 $ 288
======== ======== ========
20 Preferred stock dividends 12 -- 12
-------- -------- --------
21 Net income applicable to common
stockholders $ 166 $ 146 $ 276
======== ======== ========
Segment Earnings Analysis
-------------------------
22 Exploration and production $ 155 $ 124 $ 182
23 Refining and marketing 85 89 160
24 Corporate (23) (25) (24)
25 Interest expense (39) (42) (37)
-------- -------- --------
26 Income from continuing operations 178 146 281
27 Discontinued operations -- -- 7
-------- -------- --------
28 Net income $ 178 $ 146 $ 288
======== ======== ========
29 Net Cash Provided by Operating
Activities (*) $ 817 $ 99 $ 438
------------------------------ ======== ======== ========
Capital Expenditures
--------------------
30 Exploration and production $ 338 $ 298 $ 357
31 Refining and marketing 18 9 15
-------- -------- --------
32 Total capital expenditures $ 356 $ 307 $ 372
======== ======== ========
At End of Period
----------------
33 Total debt $ 3,836 $ 4,490 $ 3,889
======== ======== ========
34 Stockholders' equity $ 5,261 $ 4,714 $ 5,567
======== ======== ========
(*) Includes changes in working capital.
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Nine Months
---------------------
Line 2004 2003
---------- ----------
No. Income Statement (A) (B)
---- ----------------
Revenues and Non-operating Income
1 Sales and other operating revenues $ 12,120 $ 10,683
Non-operating income
2 Gain on asset sales 23 39
3 Equity in income of HOVENSA L.L.C. 223 108
4 Other 63 42
---------- ----------
5 Total revenues and non-
operating income 12,429 10,872
---------- ----------
Costs and Expenses
6 Cost of products sold 8,650 7,423
7 Production expenses 586 589
8 Marketing expenses 537 508
9 Exploration expenses, including dry
holes and lease impairment 204 253
10 Other operating expenses 147 144
11 General and administrative expenses 253 252
12 Interest expense 179 224
13 Depreciation, depletion and
amortization 695 799
---------- ----------
14 Total costs and expenses 11,251 10,192
---------- ----------
15 Income from continuing operations
before income taxes 1,178 680
16 Provision for income taxes 437 282
---------- ----------
17 Income from continuing operations 741 398
18 Discontinued operations 7 169
19 Cumulative effect of change in
accounting principle, net -- 7
---------- ----------
20 Net income $ 748 $ 574
========== ==========
21 Preferred stock dividends 36 --
---------- ----------
22 Net income applicable to common
stockholders $ 712 $ 574
========== ==========
23 Net Cash Provided by Operating
Activities (*) $ 1,649 $ 1,159
------------------------------ ========== ==========
Capital Expenditures
--------------------
24 Exploration and production $ 1,047 $ 958
25 Refining and marketing 45 57
---------- ----------
26 Total capital expenditures $ 1,092 $ 1,015
========== ==========
September December
30 31
2004 2003
---------- ----------
Balance Sheet Information
-------------------------
27 Current assets $ 4,007 $ 3,186
28 Investments 1,230 1,095
29 Property, plant and equipment - net 8,274 7,978
30 Other assets 2,224 1,724
---------- ----------
31 Total assets $ 15,735 $ 13,983
========== ==========
32 Current portion of long-term debt $ 50 $ 73
33 Other current liabilities 4,512 2,596
34 Long-term debt 3,786 3,868
35 Deferred liabilities and credits 2,126 2,106
36 Stockholders' equity excluding other
comprehensive income (loss) 6,423 5,690
37 Accumulated other comprehensive
income (loss) (1,162) (350)
---------- ----------
38 Total liabilities and
stockholders' equity $ 15,735 $ 13,983
========== ==========
(*) Includes changes in working capital.
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)
Third Third Second
Quarter Quarter Quarter
2004 2003 2004
------ ------ ------
Line (A) (B) (C)
No. Operating Data
---- --------------
Net Production Per Day
----------------------
Crude oil - barrels
1 United States 44 41 41
2 United Kingdom 66 78 77
3 Equatorial Guinea 28 21 27
4 Norway 23 22 27
5 Algeria 22 23 24
6 Denmark 20 24 23
7 Gabon 12 11 11
8 Azerbaijan 2 2 2
9 Indonesia -- -- 1
------ ------ ------
10 Total 217 222 233
====== ====== ======
Natural gas liquids - barrels
11 United States 12 12 12
12 United Kingdom 5 4 4
13 Norway 1 1 1
14 Indonesia and Thailand 2 2 1
------ ------ ------
15 Total 20 19 18
====== ====== ======
Natural gas - mcf
16 United States 164 216 160
17 United Kingdom 224 262 306
18 Norway 25 24 27
19 Denmark 21 30 25
20 Indonesia and Thailand 82 59 83
------ ------ ------
21 Total 516 591 601
====== ====== ======
22 Barrels of oil equivalent 323 339 351
====== ====== ======
Average Selling Price (including
hedging)
--------------------------------
Crude oil - per barrel
23 United States $28.26 $24.33 $25.27
24 Foreign 26.16 24.72 25.87
Natural gas liquids - per barrel
25 United States $31.73 $22.00 $26.33
26 Foreign 29.04 23.33 29.21
Natural gas - per mcf
27 United States $ 4.40 $ 3.53 $ 5.23
28 Foreign 3.65 2.54 3.54
Marketing and Refining -
------------------------
Barrels Per Day
---------------
29 Refined products sold 394 390 404
====== ====== ======
30 Refinery runs (net) 240 241 244
====== ====== ======
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)
Nine Months
---------------
2004 2003
------ ------
Line (A) (B)
No. Operating Data
---- --------------
Net Production Per Day
----------------------
Crude oil - barrels
1 United States 41 45
2 United Kingdom 74 92
3 Equatorial Guinea 26 24
4 Norway 26 23
5 Algeria 22 19
6 Denmark 22 24
7 Gabon 12 10
8 Azerbaijan 2 2
9 Indonesia -- 2
10 Colombia -- 4
------ ------
11 Total 225 245
====== ======
Natural gas liquids - barrels
12 United States 12 11
13 United Kingdom 5 6
14 Norway 1 1
15 Indonesia and Thailand 2 2
------ ------
16 Total 20 20
====== ======
Natural gas - mcf
17 United States 169 266
18 United Kingdom 271 303
19 Norway 27 26
20 Denmark 23 31
21 Indonesia and Thailand 85 54
------ ------
22 Total 575 680
====== ======
23 Barrels of oil equivalent (*) 340 378
====== ======
Average Selling Price (including hedging)
-----------------------------------------
Crude oil - per barrel
24 United States $26.41 $23.97
25 Foreign 26.41 24.79
Natural gas liquids - per barrel
26 United States $28.03 $23.64
27 Foreign 26.98 22.95
Natural gas - per mcf
28 United States $ 4.95 $ 4.03
29 Foreign 3.80 2.73
Marketing and Refining -
------------------------
Barrels Per Day
---------------
30 Refined products sold 427 417
====== ======
31 Refinery runs (net) 244 218
====== ======
(*) Includes production from properties classified as
discontinued operations of 17 thousand barrels of oil
equivalent per day in the first nine months of 2003.
CONTACT: Amerada Hess Corporation
J.R. Wilson, 212-536-8940
SOURCE: Amerada Hess Corporation