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AMERADA HESS CORPORATION
Table of Contents

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 28, 2004

AMERADA HESS CORPORATION

(Exact Name of Registrant as Specified in Charter)
         
DELAWARE   No. 1-1204   No. 13-4921002
(State or Other
Jurisdiction of
Incorporation) 		  (Commission
File Number) 		  (IRS Employer
Identification No.)

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)

 

TABLE OF CONTENTS

Item 7. Financial Statements and Exhibits.
Item 12. Results of Operations and Financial Condition.
SIGNATURE
EXHIBIT INDEX
PRESS RELEASE

Table of Contents

Item 7. Financial Statements and Exhibits.

(c)   Exhibits
     
99(1)
  News release dated April 28, 2004 reporting results for the first quarter of 2004.

Item 12. Results of Operations and Financial Condition.

     On April 28, 2004, Amerada Hess Corporation issued a news release reporting its results for the first quarter of 2004. A copy of this news release is attached hereto as Exhibit 99(1) and is hereby incorporated by reference.

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Table of Contents

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 28, 2004
        
 
        
    AMERADA HESS CORPORATION
 
        
  By:   /s/John P. Rielly
     
 
  Name:   John P. Rielly
  Title:   Senior Vice President and Chief Financial Officer

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Table of Contents

EXHIBIT INDEX

     
Exhibit No.
   Description
99(1)
  News release dated April 28, 2004 reporting results for the first quarter of 2004.

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PRESS RELEASE
 

EXHIBIT 99(1)

news release

AMERADA HESS CORPORATION   1185 Avenue of the Americas, N.Y., N.Y. 10036

FOR IMMEDIATE RELEASE

AMERADA HESS REPORTS RESULTS FOR THE FIRST QUARTER OF 2004

     New York, New York....April 28, 2004...Amerada Hess Corporation (NYSE:AHC) reported net income of $281 million for the first quarter of 2004 compared with income of $176 million for the first quarter of 2003. First quarter 2004 income includes a net gain of $19 million from the sale of an asset and an income tax benefit of $13 million resulting from the completion of a prior year United States income tax audit. First quarter 2003 income included a net gain of $31 million from the sale of an asset. The after-tax results by major operating activity in 2004 and 2003 are as follows:

                 
    Three months ended
    March 31 (unaudited)
    2004
   2003(*)
    (In millions, except per share amounts)
Exploration and production
   $ 207     $ 120  
Refining and marketing
     112       136  
Corporate
     (2 )     (20 )
Interest expense
     (36 )     (46 )
 
    
 		      
 		  
Income from continuing operations
     281       190  
Discontinued operations
     —       (21 )
Income from cumulative effect of accounting change
     —       7  
 
    
 		      
 		  
Net income
   $ 281     $ 176  
 
    
 		      
 		  
Income per share from continuing operations (diluted)
   $ 2.77     $ 2.13  
 
    
 		      
 		  
Net income per share (diluted)
   $ 2.77     $ 1.98  
 
    
 		      
 		  

(*)   Reclassified to conform with current period presentation.

     Exploration and production earnings were $207 million in the first quarter of 2004 compared with $120 million in the first quarter of 2003. The Corporation’s oil and gas production, on a barrel-of-oil equivalent basis, was 346,000 barrels per day in the first quarter of 2004, a decrease of 18% from the first quarter of 2003. Approximately 60% of the decline in production resulted from asset sales and exchanges in 2003. In the first quarter of 2004, the Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $26.83 per barrel, an increase of $1.64 per barrel from the first quarter of 2003. The Corporation’s average United States natural gas selling price, including the effect of hedging, was $5.20 per Mcf in the first quarter of 2004, an increase of $.77 per Mcf from the first quarter

 

 

of 2003. Exploration and production earnings include after-tax gains from asset sales of $19 million and $31 million ($19 million and $47 million before income taxes) in the first quarters of 2004 and 2003, respectively. The gain in the first quarter of 2004 reflects the sale of an office building in Aberdeen, Scotland.

     Refining and marketing earnings were $112 million in the first quarter of 2004 compared with $136 million in the first quarter of 2003. The decrease reflects lower earnings from retail gasoline station operations and energy marketing activities, partially offset by increased earnings from refining operations.

     Capital expenditures in the first quarter of 2004 amounted to $364 million of which $352 million related to exploration and production activities. Capital expenditures in the first quarter of 2003 amounted to $341 million, including $321 million for exploration and production.

Consolidated Financial Information (unaudited)

                 
    Three months ended March 31
    2004
   2003
    (In millions, except per share amounts)
Income Statement Information
                
Sales and other operating revenues
   $ 4,488     $ 4,254  
 
    
 		      
 		  
Income from continuing operations
   $ 281     $ 190  
Discontinued operations
     —       (21 )
Cumulative effect of accounting change
     —       7  
 
    
 		      
 		  
Net income
   $ 281     $ 176  
 
    
 		      
 		  
Income per share from continuing operations (diluted)
   $ 2.77     $ 2.13  
 
    
 		      
 		  
Net income per share (diluted)
   $ 2.77     $ 1.98  
 
    
 		      
 		  
Weighted average number of shares (diluted)
     101.4       89.1  
 
    
 		      
 		  
                 
    March 31   December 31
    2004
   2003
Balance Sheet Information
                
Current assets
   $ 3,196     $ 3,186  
Investments
     1,132       1,095  
Property, plant and equipment — net
     8,036       7,978  
Other assets
     1,752       1,724  
 
    
 		      
 		  
Total assets
   $ 14,116     $ 13,983  
 
    
 		      
 		  
Current portion of long-term debt
   $ 73     $ 73  
Other current liabilities
     2,661       2,596  
Long-term debt
     3,855       3,868  
Deferred liabilities and credits
     2,038       2,106  
Stockholders’ equity, excluding other comprehensive loss
     5,942       5,690  
Accumulated other comprehensive loss
     (453 )     (350 )
 
    
 		      
 		  
Total liabilities and stockholders’ equity
   $ 14,116     $ 13,983  
 
    
 		      
 		  

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AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

                                 
            First   First   Fourth
Line       Quarter   Quarter   Quarter
No.
       2004
   2003 (*)
   2003
            (A)   (B)   (C)
       
Income Statement
                        
       
Revenues and Non-operating Income
                        
  1    
Sales and other operating revenues
   $ 4,488     $ 4,254     $ 3,628  
       
Non-operating income (expense)
                        
  2    
Gain on asset sales
     19       47       —  
  3    
Equity in income of HOVENSA L.L.C.
     51       50       10  
  4    
Other
     4       12       (30 )
       
 
    
 		      
 		      
 		  
  5    
Total revenues and non-operating income
     4,562       4,363       3,608  
       
 
    
 		      
 		      
 		  
       
Costs and Expenses
                        
  6    
Cost of products sold
     3,288       3,088       2,523  
  7    
Production expenses
     187       192       207  
  8    
Marketing expenses
     177       170       201  
  9    
Exploration expenses, including dry holes and lease impairment
     78       106       116  
  10    
Other operating expenses
     48       51       49  
  11    
General and administrative expenses
     76       77       87  
  12    
Interest expense
     57       74       69  
  13    
Depreciation, depletion and amortization
     226       276       254  
       
 
    
 		      
 		      
 		  
  14    
Total costs and expenses
     4,137       4,034       3,506  
       
 
    
 		      
 		      
 		  
  15    
Income from continuing operations before income taxes
     425       329       102  
  16    
Provision for income taxes
     144       139       34  
       
 
    
 		      
 		      
 		  
  17    
Income from continuing operations
     281       190       68  
  18    
Discontinued operations
     —       (21 )     —  
  19    
Cumulative effect of change in accounting principle, net
     —       7       —  
       
 
    
 		      
 		      
 		  
  20    
Net income
   $ 281     $ 176     $ 68  
       
 
    
 		      
 		      
 		  
  21    
Preferred stock dividends
     12       —       5  
       
 
    
 		      
 		      
 		  
  22    
Net income applicable to common stockholders
   $ 269     $ 176     $ 63  
       
 
    
 		      
 		      
 		  
       
Segment Earnings Analysis
                        
  23    
Exploration and production
   $ 207     $ 120     $ 83  
  24    
Refining and marketing
     112       136       55  
  25    
Corporate
     (2 )     (20 )     (29 )
  26    
Interest expense
     (36 )     (46 )     (41 )
       
 
    
 		      
 		      
 		  
  27    
Income from continuing operations
     281       190       68  
  28    
Discontinued operations
     —       (21 )     —  
  29    
Cumulative effect of change in accounting principle, net
     —       7       —  
       
 
    
 		      
 		      
 		  
  30    
Net income
   $ 281     $ 176     $ 68  
       
 
    
 		      
 		      
 		  
  31    
Net Cash Provided by Operating Activities (**)
   $ 394     $ 488     $ 423  
       
 
    
 		      
 		      
 		  
       
Capital Expenditures
                        
  32    
Exploration and production
   $ 352     $ 321     $ 328  
  33    
Refining and marketing
     12       20       14  
       
 
    
 		      
 		      
 		  
  34    
Total capital expenditures
   $ 364     $ 341     $ 342  
       
 
    
 		      
 		      
 		  
       
At End of Period
                        
  35    
Total debt
   $ 3,928     $ 4,849     $ 3,941  
       
 
    
 		      
 		      
 		  
  36    
Stockholders’ equity
   $ 5,489     $ 4,387     $ 5,340  
       
 
    
 		      
 		      
 		  

(*)   Reclassified to conform with current period presentation.
 
(**)   Includes changes in working capital.

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AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)

                                 
            First   First   Fourth
Line       Quarter   Quarter   Quarter
No.
       2004
   2003
   2003
            (A)   (B)   (C)
       
Operating Data
                        
       
Net Production Per Day
                        
       
Crude oil — barrels
                        
  1    
United States
     40       50       40  
  2    
United Kingdom
     78       102       79  
  3    
Norway
     27       24       27  
  4    
Denmark
     22       25       23  
  5    
Equatorial Guinea
     22       25       18  
  6    
Algeria
     20       20       19  
  7    
Gabon
     13       11       12  
  8    
Azerbaijan
     2       2       2  
  9    
Indonesia
     1       4       1  
  10    
Colombia
     —       12       —  
       
 
    
 		      
 		      
 		  
  11    
Total
     225       275       221  
       
 
    
 		      
 		      
 		  
       
Natural gas liquids — barrels
                        
  12    
United States
     12       11       10  
  13    
United Kingdom
     6       6       7  
  14    
Norway
     1       1       1  
  15    
Indonesia and Thailand
     2       2       2  
       
 
    
 		      
 		      
 		  
  16    
Total
     21       20       20  
       
 
    
 		      
 		      
 		  
       
Natural gas — mcf
                        
  17    
United States
     183       317       213  
  18    
United Kingdom
     282       321       339  
  19    
Norway
     28       26       28  
  20    
Denmark
     23       34       23  
  21    
Indonesia and Thailand
     86       56       88  
       
 
    
 		      
 		      
 		  
  22    
Total
     602       754       691  
       
 
    
 		      
 		      
 		  
  23    
Barrels of oil equivalent (*)
     346       421       356  
       
 
    
 		      
 		      
 		  
       
Average Selling Price (including hedging)
                        
       
Crude oil — per barrel
                        
  24    
United States
   $ 25.49     $ 24.41     $ 25.06  
  25    
Foreign
     27.10       25.40       25.40  
       
Natural gas liquids — per barrel
                        
  26    
United States
   $ 25.78     $ 26.88     $ 24.01  
  27    
Foreign
     23.44       27.04       24.71  
       
Natural gas — per mcf
                        
  28    
United States
   $ 5.20     $ 4.43     $ 3.96  
  29    
Foreign
     4.22       3.04       3.74  
       
Marketing and Refining - Barrels Per Day
                        
  30    
Refined products sold
     483       463       423  
       
 
    
 		      
 		      
 		  
  31    
Refinery runs (net)
     247       198       225  
       
 
    
 		      
 		      
 		  

(*)   Includes production from properties classified as discontinued operations of 37 thousand barrels of oil equivalent per day in the first quarter of 2003.

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