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): July 29, 2003 AMERADA HESS CORPORATION - -------------------------------------------------------------------------------- (Exact name of Registrant as Specified in 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) 1
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits 99 News release dated July 29, 2003 reporting results for the second quarter of 2003. ITEM 9. REGULATION FD DISCLOSURE. The following information is furnished pursuant to Item 9, "Regulation FD Disclosure" and Item 12, "Results of Operations and Financial Condition." On July 29, 2003, Amerada Hess Corporation issued a news release reporting its results for the second quarter of 2003. A copy of this news release is attached hereto as Exhibit 99 and is hereby incorporated by reference. 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: July 29, 2003 AMERADA HESS CORPORATION By: /s/John Y. Schreyer ---------------------------- Name: John Y. Schreyer Title: Executive Vice President and Chief Financial Officer 3
EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99 News release dated July 29, 2003 reporting results for the second quarter of 2003. 4
EXHIBIT 99 NEWS RELEASE AMERADA HESS CORPORATION 1185 AVENUE OF THE AMERICAS, N.Y., N.Y. 10036 FOR IMMEDIATE RELEASE AMERADA HESS REPORTS RESULTS FOR THE SECOND QUARTER OF 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 Six months ended June 30 (unaudited) 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) Three months ended June 30 Six months ended June 30 -------------------------- ------------------------ 2003 2002 2003 2002 -------- -------- -------- -------- (In millions, except per share amounts) 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 ======== ======== ======== ======== 2
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) Second Second First Quarter Quarter Quarter Line 2003 2002 (*) 2003 (*) No. ------- ------- ------- - ---- (A) (B) (C) Income Statement 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. 3
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) First Half ------------------- Line 2003 2002 (*) No. ------- ------- - ---- (A) (B) Income Statement 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 Cost 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 ======= ======= June 30 December 31 2003 2002 -------- ----------- Balance Sheet Information 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. 4
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES) Second Second First Quarter Quarter Quarter Line 2003 2002 2003 No. ------- ------- ------- - ---- (A) (B) (C) Operating Data 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. 5
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES) First Half ------------------- Line 2003 2002 No. ------ ------ - ---- (A) (B) Operating Data 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 6