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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): April 26, 2006
AMERADA HESS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE No. 1-1204 No. 13-4921002
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
1185 Avenue of the Americas
New York, New York 10036
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (212) 997-8500
--------------
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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1
Item 2.02. Results of Operations and Financial Condition.
On April 26, 2006, Amerada Hess Corporation issued a news release reporting
its results for the first quarter of 2006. A copy of this news release is
attached hereto as Exhibit 99(1) and is hereby incorporated by reference.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99(1) News release dated April 26, 2006 reporting results for the
first quarter of 2006.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: April 26, 2006
AMERADA HESS CORPORATION
By: /s/John P. Rielly
------------------------------
Name: John P. Rielly
Title: Senior Vice President and
Chief Financial Officer
3
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99(1) News release dated April 26, 2006 reporting results for the
first quarter of 2006.
4
Exhibit 99(1)
Amerada Hess Reports Estimated Results for the First Quarter of 2006
NEW YORK--(BUSINESS WIRE)--April 26, 2006--Amerada Hess
Corporation (NYSE: AHC) reported net income of $695 million for the
first quarter of 2006 compared with net income of $219 million for the
first quarter of 2005. See the following page for a table of items
affecting the comparability of earnings between periods. The after-tax
results by major operating activity are as follows:
Three months ended
March 31 (unaudited)
---------------------------
2006 2005
------------ ------------
(In millions, except per
share amounts)
Exploration and Production $ 706 $ 263
Marketing and Refining 49 63
Corporate (23) (69)
Interest expense (37) (38)
------------ ------------
Net income $ 695 $ 219
============ ============
Net income per share (diluted) $ 6.62 $ 2.12
============ ============
Weighted average number of shares
(diluted) 104.9 103.2
============ ============
Exploration and Production earnings were $706 million in the first
quarter of 2006 compared with $263 million in the first quarter of
2005. First quarter 2006 results included an after-tax gain of $186
million related to the sale of certain producing properties located in
the Permian Basin in Texas and New Mexico. The Corporation's oil and
gas production, on a barrel-of-oil equivalent basis, was 361,000
barrels per day in the first quarter of 2006 compared with 358,000
barrels per day in the first quarter of 2005. In the first quarter of
2006, the Corporation's average worldwide crude oil selling price,
including the effect of hedging, was $53.30 per barrel, an increase of
$21.99 per barrel from the first quarter of 2005. The increase
reflects higher crude oil prices and reduced hedge positions in 2006.
The Corporation's average United States natural gas selling price was
$7.73 per Mcf in the first quarter of 2006, an increase of $1.58 per
Mcf from the first quarter of 2005.
Marketing and Refining earnings were $49 million in the first
quarter of 2006 compared with $63 million in the first quarter of
2005. Refining earnings were $21 million in the first quarter of 2006
compared with $42 million in the first quarter of 2005. In the first
quarter of 2006, earnings from HOVENSA were adversely impacted by the
unscheduled shutdown and maintenance of the fluid catalytic cracking
unit which lasted for approximately 20 days. Marketing operations
generated earnings of $12 million in the first quarter of 2006,
compared with $13 million in the same period of 2005.
The following items, on an after-tax basis, are included in net
income (in millions):
Three months ended
March 31
-----------------------
2006 2005
---------- ----------
Exploration and Production
- --------------------------
Gains from asset sales $ 186 $ 11
Legal settlement - 11
Corporate
- ---------
Tax on repatriated earnings - (41)
---------- ----------
$ 186 $ (19)
========== ==========
Net cash provided by operating activities was $1,198 million in
the first quarter of 2006 compared with $461 million in 2005. Capital
and exploratory expenditures for the first quarter of 2006 amounted to
$1,387 million of which $1,354 million related to exploration and
production activities. These expenditures include $673 million for the
acquisition of a 55% working interest in the deepwater section of the
West Mediterranean Block 1 Concession in Egypt and the initial payment
for the Corporation's re-entry into Libya. Capital and exploratory
expenditures for the first quarter of 2005 amounted to $483 million,
including $454 million for exploration and production.
At March 31, 2006, cash and cash equivalents totaled $504 million
compared with $315 million at December 31, 2005. The Corporation's
debt to capitalization ratio at March 31, 2006 was 35.8% compared with
37.6% at the end of 2005. Total debt was $3,775 million at March 31,
2006 and $3,785 million at December 31, 2005.
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS OF DOLLARS)
First First Fourth
Quarter Quarter Quarter
2006 2005 2005
----------- ----------- -----------
Income Statement
- ----------------
Revenues and Non-operating
Income
Sales (excluding excise
taxes) and other operating
revenues $ 7,159 $ 4,957 $ 7,059
Non-operating income
Equity in income (loss) of
HOVENSA L.L.C. (2) 50 67
Gain on asset sales 289 18 30
Other, net 15 45 (10)
----------- ----------- -----------
Total revenues and non-
operating income 7,461 5,070 7,146
----------- ----------- -----------
Costs and Expenses
Cost of products sold
(excluding items shown
separately below) 5,229 3,628 5,367
Production expenses 265 225 284
Marketing expenses 231 197 238
Exploration expenses,
including dry holes
and lease impairment 112 133 86
Other operating expenses 31 31 37
General and administrative
expenses 106 85 103
Interest expense 57 61 55
Depreciation, depletion and
amortization 266 254 258
----------- ----------- -----------
Total costs and expenses 6,297 4,614 6,428
----------- ----------- -----------
Income before income taxes 1,164 456 718
Provision for income taxes 469 237 266
----------- ----------- -----------
Net income $ 695 $ 219 $ 452
=========== =========== ===========
Preferred stock dividends 12 12 12
----------- ----------- -----------
Net income applicable to
common stockholders $ 683 $ 207 $ 440
=========== =========== ===========
Supplemental Income Statement
Information
- -----------------------------
Foreign currency gains
(losses), after-tax $ 7 $ 6 $ 2
Capitalized interest 24 14 23
Cash Flow Information
- ---------------------
Net cash provided by
operating activities (*) $ 1,198 $ 461 $ 289
Capital and Exploratory
Expenditures
- -----------------------
Exploration and Production
United States $ 160 $ 91 $ 95
International 1,194 363 654
----------- ----------- -----------
Total Exploration and
Production 1,354 454 749
Marketing and Refining 33 29 32
----------- ----------- -----------
Total Capital and
Exploratory Expenditures $ 1,387 $ 483 $ 781
=========== =========== ===========
Exploration expenses charged
to income included above
United States $ 24 $ 8 $ 28
International 27 8 29
----------- ----------- -----------
$ 51 $ 16 $ 57
=========== =========== ===========
(*) Includes changes in working capital
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS OF DOLLARS)
March 31 December 31
2006 2005
------------ ------------
Balance Sheet Information
- -------------------------
Cash and cash equivalents $ 504 $ 315
Other current assets 4,075 4,975
Investments 1,189 1,389
Property, plant and equipment - net 10,970 9,512
Other assets 3,147 2,924
------------ ------------
Total assets $ 19,885 $ 19,115
============ ============
Short-term debt and current maturities of
long-term debt $ 107 $ 26
Other current liabilities 6,061 6,421
Long-term debt 3,668 3,759
Deferred liabilities and credits 3,290 2,623
Stockholders' equity excluding other
comprehensive income (loss) 8,487 7,812
Accumulated other comprehensive income
(loss) (1,728) (1,526)
------------ ------------
Total liabilities and
stockholders' equity $ 19,885 $ 19,115
============ ============
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS OF DOLLARS)
First Quarter 2006
-----------------------------------
United
States International Total
---------- ------------- ----------
Sales and other operating revenues $ 344 $ 1,207 $ 1,551
Non-operating income 288 13 301
---------- ------------- ----------
Total revenues 632 1,220 1,852
---------- ------------- ----------
Costs and expenses
Production expenses, including
related taxes 52 213 265
Exploration expenses, including
dry holes and lease impairment 62 50 112
General, administrative and
other expenses 20 25 45
Depreciation, depletion and
amortization 29 222 251
---------- ------------- ----------
Total costs and expenses 163 510 673
---------- ------------- ----------
Results of operations before
income taxes 469 710 1,179
Provision for income taxes 167 306 473
---------- ------------- ----------
Results of operations $ 302 $ 404 $ 706
========== ============= ==========
First Quarter 2005
-----------------------------------
United
States International Total
---------- ------------- ----------
Sales and other operating revenues $ 279 $ 751 $ 1,030
Non-operating income (expenses) (2) 49 47
---------- ------------- ----------
Total revenues 277 800 1,077
---------- ------------- ----------
Costs and expenses
Production expenses, including
related taxes 49 176 225
Exploration expenses, including
dry holes and lease impairment 109 24 133
General, administrative and
other expenses 19 10 29
Depreciation, depletion and
amortization 44 197 241
---------- ------------- ----------
Total costs and expenses 221 407 628
---------- ------------- ----------
Results of operations before
income taxes 56 393 449
Provision for income taxes 22 164 186
---------- ------------- ----------
Results of operations $ 34 $ 229 $ 263
========== ============= ==========
Fourth Quarter 2005
-----------------------------------
United
States International Total
---------- ------------- ----------
Sales and other operating revenues $ 274 $ 826 $ 1,100
Non-operating income 3 28 31
---------- ------------- ----------
Total revenues 277 854 1,131
---------- ------------- ----------
Costs and expenses
Production expenses, including
related taxes 70 214 284
Exploration expenses, including
dry holes and lease impairment 34 52 86
General, administrative and
other expenses 21 22 43
Depreciation, depletion and
amortization 24 216 240
---------- ------------- ----------
Total costs and expenses 149 504 653
---------- ------------- ----------
Results of operations before
income taxes 128 350 478
Provision for income taxes 43 137 180
---------- ------------- ----------
Results of operations $ 85 $ 213 $ 298
========== ============= ==========
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA (UNAUDITED)
(IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)
First First Fourth
Quarter Quarter Quarter
2006 2005 2005
----------- ----------- -----------
Operating Data
- --------------
Net Production Per Day
----------------------
Crude oil - barrels
United States 41 49 37
Europe 113 120 105
Africa 82 64 66
Asia and other 10 5 10
----------- ----------- -----------
Total 246 238 218
=========== =========== ===========
Natural gas liquids - barrels
United States 9 13 9
Europe 4 7 4
----------- ----------- -----------
Total 13 20 13
=========== =========== ===========
Natural gas - mcf
United States 123 165 112
Europe 280 336 254
Asia and other 207 103 147
----------- ----------- -----------
Total 610 604 513
=========== =========== ===========
Barrels of oil equivalent 361 358 316
=========== =========== ===========
Average Selling Price
(including hedging)
---------------------
Crude oil - per barrel
United States $ 57.39 $ 32.18 $ 30.95
Europe 54.98 31.21 33.50
Africa 45.67 30.06 34.08
Asia and other 59.04 45.32 55.30
Natural gas liquids - per
barrel
United States $ 44.21 $ 32.83 $ 48.67
Europe 47.16 31.69 44.60
Natural gas - per mcf
United States $ 7.73 $ 6.15 $ 11.75
Europe 8.39 5.41 6.91
Asia and other 3.89 3.93 4.04
Average Selling Price
(excluding hedging)
---------------------
Crude oil - per barrel
United States $ 57.39 $ 45.18 $ 54.85
Europe 56.89 46.82 53.10
Africa 61.61 44.84 54.72
Asia and other 59.04 45.32 55.30
Natural gas liquids - per
barrel
United States $ 44.21 $ 32.83 $ 48.67
Europe 47.16 31.69 44.60
Natural gas - per mcf
United States $ 7.73 $ 6.15 $ 11.75
Europe 8.39 5.41 6.91
Asia and other 3.89 3.93 4.04
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
HEDGED PRICES AND VOLUMES (UNAUDITED)
Brent Crude Oil
---------------------------------
Average Selling Thousands of
Maturity Price barrels per day
------------------------- --------------- ---------------
2006
2nd Quarter $ 28.21 30
3rd Quarter 27.96 30
4th Quarter 27.75 30
2007 25.85 24
2008 25.56 24
2009 25.54 24
2010 25.78 24
2011 26.37 24
2012 26.90 24
Note: There were no WTI crude oil or natural gas hedges outstanding
at March 31, 2006.
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA
(UNAUDITED)
First First Fourth
Quarter Quarter Quarter
2006 2005 2005
--------- --------- ----------
Financial Information
(in millions of
dollars)
- ---------------------
Marketing and Refining
Earnings
----------------------
Income before income
taxes $ 76 $ 102 $ 358
Provision for income
taxes 27 39 129
--------- --------- ----------
Marketing and
Refining
Earnings $ 49 $ 63 $ 229
========= ========= ==========
Summary of Marketing and Refining
Earnings
----------------------------------
Refining $ 21 $ 42 $ 83
Marketing 12 13 131
Trading 16 8 15
--------- --------- ----------
Total Marketing and
Refining Earnings $ 49 $ 63 $ 229
========= ========= ==========
- ----------------------------------------------------------------------
Operating Data
(in thousands unless noted)
- ---------------------------
Refined Product Sales
(barrels per day)
----------------------
Gasoline 226 181 218
Distillates 166 166 170
Residuals 85 74 78
Other 43 41 53
--------- --------- ----------
Total 520 462 519
========= ========= ==========
Refinery Throughput
(barrels per day)
----------------------
HOVENSA - Crude
runs 420 449 482
HOVENSA - AHC 50%
share 210 225 241
Port Reading 64 35 64
Refinery
Refinery Utilization Capacity
-------------------- ------------
HOVENSA (barrels per
day)
Crude 500 84.0%** 89.8% 96.3%
FCC 150 66.4%* 57.2%** 87.1%
Coker 58 85.7%* 92.9% 85.3%*
Port Reading 65 98.6% 56.5%** 98.5%
* Utilization for these units was impacted by unscheduled refinery
maintenance.
** Reflects reduced utilization primarily
resulting from scheduled maintenance.
Retail Marketing
----------------
Number of retail
stations (a) 1,343 1,250 1,354
Convenience store revenue (in
millions of dollars) (b) $ 233 $ 218 $ 241
Average gasoline volume per
station (gallons per month)(b) 195 195 199
(a) Includes company operated, Wilco-Hess, dealer and branded
retailer.
(b) Company operated only.
CONTACT: Amerada Hess Corporation
J.R. Wilson, 212-536-8940