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): October 27, 2010
HESS CORPORATION
(Exact
Name of Registrant as Specified in Its Charter)
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DELAWARE |
No. 1-1204 |
No. 13-4921002 |
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(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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1185 Avenue of the Americas |
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New York, New York 10036 |
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(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))
Item 2.02 Results of Operations and Financial Condition.
On October 27, 2010, Hess Corporation issued a news release reporting estimated results for the third quarter of 2010. 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 October 27, 2010 reporting estimated results for the third quarter of 2010. |
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.
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Date: |
October 27, 2010 |
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HESS CORPORATION |
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By: |
/s/ John P. Rielly |
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Name: |
John P. Rielly |
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Title: |
Senior Vice President and Chief Financial Officer |
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EXHIBIT INDEX
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Exhibit No. |
Description |
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99(1) |
News release dated October 27, 2010 reporting estimated results for the third quarter of 2010. |
4
Exhibit 99(1)
Hess Reports Estimated Results for the Third Quarter of 2010
Third Quarter Highlights:
- Net Income was $1,154 million, including after-tax income of $725 million from items affecting comparability, compared with $341 million in the third quarter 2009
- Items affecting comparability consist of an after-tax gain of $1,072 million relating to an asset exchange and an after-tax charge of $347 million relating to an asset impairment
- Oil and gas production was 413,000 barrels per day, compared with 420,000 in the third quarter 2009
- Net cash provided by operating activities was $1,246 million, compared with $534 million in the third quarter 2009
- The Corporation completed the sale of $1.25 billion of 5.60% notes due February 2041
NEW YORK--(BUSINESS WIRE)--October 27, 2010--Hess Corporation (NYSE: HES) reported net income of $1,154 million for the third quarter of 2010 compared with net income of $341 million for the third quarter of 2009. The after-tax income (loss) by major operating activity was as follows:
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Three Months Ended |
Nine Months Ended |
||||||||||||||||
| September 30, (unaudited) | September 30, (unaudited) | ||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||
| Exploration and Production | $ | 1,277 | $ | 397 | $ | 2,316 | $ | 548 | |||||||||
| Marketing and Refining | (38 | ) | 38 | 30 | 110 | ||||||||||||
| Corporate | (26 | ) | (33 | ) | (116 | ) | (108 | ) | |||||||||
| Interest expense | (59 | ) | (61 | ) | (163 | ) | (168 | ) | |||||||||
| Net income attributable to Hess Corporation | $ | 1,154 | $ | 341 | $ | 2,067 | $ | 382 | |||||||||
| Net income per share (diluted) | $ | 3.52 | $ | 1.05 | $ | 6.31 | $ | 1.17 | |||||||||
| Weighted average number of shares (diluted) | 327.6 | 326.0 | 327.3 | 325.8 | |||||||||||||
Note: See the following page for a table of items affecting the comparability of earnings between periods.
Exploration and Production earnings were $1,277 million in the third quarter of 2010 up from $397 million in the third quarter of 2009. Third quarter oil and gas production was 413,000 barrels of oil equivalent per day, compared with 420,000 barrels of oil equivalent per day in the third quarter a year ago. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $64.81 per barrel compared with $56.07 per barrel in the third quarter of 2009. The average worldwide natural gas selling price was $5.73 per Mcf in the third quarter of 2010 compared with $4.60 per Mcf in the same quarter a year ago.
Marketing and Refining generated a loss of $38 million in the third quarter of 2010 compared with income of $38 million in the same period of 2009. Refining operations incurred losses of $50 million compared with $3 million in the third quarter a year ago as a result of lower refining margins. Marketing earnings were $40 million, an increase of $5 million from the third quarter of 2009. Trading activities generated a loss of $28 million, compared with income of $6 million in the third quarter of last year.
The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods (in millions):
| Three Months Ended | Nine Months Ended | ||||||||||||||||
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September 30, |
September 30, |
||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||
| Exploration and Production | $ | 725 | $ | 89 | $ | 783 | $ | 45 | |||||||||
| Marketing and Refining | - | 12 | - | 12 | |||||||||||||
| Corporate | - | - | (7 | ) | (16 | ) | |||||||||||
| $ | 725 | $ | 101 | $ | 776 | $ | 41 | ||||||||||
Third quarter 2010 results included an after-tax gain of $1,072 million related to the exchange of the Corporation’s interests in Gabon and the Clair Field in the United Kingdom for a 28.1 percent interest in the Valhall Field and a 25.0 percent interest in the Hod Field, both in Norway. The results also included an after-tax charge of $347 million to fully impair the carrying value of the Corporation’s interests in the West Med Block 1 Concession, located offshore Egypt.
Net cash provided by operating activities was $1,246 million in the third quarter of 2010, compared with $534 million in the same quarter of 2009. Capital and exploratory expenditures were $1,567 million, of which $1,548 million related to Exploration and Production operations. In September 2010, the Corporation acquired, for cash of $507 million, a 7.9 percent interest in the Valhall Field and a 12.5 percent in the Hod Field. Capital and exploratory expenditures for the third quarter of 2009 were $668 million, of which $646 million related to Exploration and Production operations.
At September 30, 2010, cash and cash equivalents totaled $2,353 million compared with $1,362 million at December 31, 2009. Total debt was $5,584 million at September 30, 2010 and $4,467 million at December 31, 2009. In August 2010, the Corporation issued $1.25 billion of 30 year unsecured notes with a coupon of 5.60 percent. The Corporation’s debt to capitalization ratio at September 30, 2010 was 26.1 percent compared with 24.8 percent at the end of 2009.
Hess Corporation will review third quarter financial and operating results and other matters on a webcast at 10 a.m. today. For details on the event, refer to the Investor Relations section of our website at www.hess.com.
Hess Corporation, with headquarters in New York, is a leading global independent energy company engaged in the exploration for and production of crude oil and natural gas, as well as in refining and in marketing refined petroleum products, natural gas and electricity. More information on Hess Corporation is available at www.hess.com.
Forward Looking Statements
Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data.
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES |
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SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) |
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(IN MILLIONS OF DOLLARS) |
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| Third | Third | Second | ||||||||||||
| Quarter | Quarter | Quarter | ||||||||||||
| 2010 | 2009 | 2010 | ||||||||||||
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Income Statement |
||||||||||||||
| Revenues and Non-operating Income | ||||||||||||||
| Sales (excluding excise taxes) and other operating revenues | $ | 7,864 | $ | 7,270 | $ | 7,732 | ||||||||
| Equity in income (loss) of HOVENSA L.L.C. | (83 | ) | (49 | ) | (6 | ) | ||||||||
| Other, net | 1,172 | 163 | 24 | |||||||||||
| Total revenues and non-operating income | 8,953 | 7,384 | 7,750 | |||||||||||
| Costs and Expenses | ||||||||||||||
| Cost of products sold (excluding items shown separately below) | 5,330 | 5,069 | 5,316 | |||||||||||
| Production expenses | 475 | 460 | 440 | |||||||||||
| Marketing expenses | 232 | 240 | 245 | |||||||||||
| Exploration expenses, including dry holes | ||||||||||||||
| and lease impairment | 225 | 167 | 172 | |||||||||||
| Other operating expenses | 39 | 43 | 80 | |||||||||||
| General and administrative expenses | 151 | 148 | 159 | |||||||||||
| Interest expense | 94 | 97 | 83 | |||||||||||
| Depreciation, depletion and amortization | 584 | 626 | 558 | |||||||||||
| Asset impairments | 532 | - | - | |||||||||||
| Total costs and expenses | 7,662 | 6,850 | 7,053 | |||||||||||
| Income before income taxes | 1,291 | 534 | 697 | |||||||||||
| Provision for income taxes | 200 | 182 | 301 | |||||||||||
| Net income | 1,091 | 352 | 396 | |||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | (63 | ) | 11 | 21 | ||||||||||
| Net income attributable to Hess Corporation | $ | 1,154 | $ | 341 | $ | 375 | ||||||||
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Supplemental Income Statement Information |
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| Foreign currency gains (losses), after-tax | $ | (5 | ) | $ | 3 | $ | (4 | ) | ||||||
| Capitalized interest | 1 | 1 | 1 | |||||||||||
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Cash Flow Information |
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| Net cash provided by operating activities (*) | $ | 1,246 | $ | 534 | $ | 981 | ||||||||
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Capital and Exploratory Expenditures |
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| Exploration and Production | ||||||||||||||
| United States | $ | 379 | $ | 198 | $ | 399 | ||||||||
| International | 1,169 | 448 | 531 | |||||||||||
| Total Exploration and Production | 1,548 | 646 | 930 | |||||||||||
| Marketing, Refining and Corporate | 19 | 22 | 33 | |||||||||||
| Total Capital and Exploratory Expenditures | $ | 1,567 | $ | 668 | $ | 963 | ||||||||
| Exploration expenses charged to income included above | ||||||||||||||
| United States | $ | 46 | $ | 22 | $ | 21 | ||||||||
| International | 59 | 42 | 41 | |||||||||||
| $ | 105 | $ | 64 | $ | 62 | |||||||||
(*) Includes changes in working capital
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES |
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SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) |
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(IN MILLIONS OF DOLLARS) |
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| Nine Months | ||||||||||||
| 2010 | 2009 | |||||||||||
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Income Statement |
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| Revenues and Non-operating Income | ||||||||||||
| Sales (excluding excise taxes) and other operating revenues | $ | 24,855 | $ | 20,936 | ||||||||
| Equity in income (loss) of HOVENSA L.L.C. | (174 | ) | (165 | ) | ||||||||
| Other, net | 1,242 | 240 | ||||||||||
| Total revenues and non-operating income | 25,923 | 21,011 | ||||||||||
| Costs and Expenses | ||||||||||||
| Cost of products sold (excluding items shown separately below) | 17,186 | 14,956 | ||||||||||
| Production expenses | 1,392 | 1,313 | ||||||||||
| Marketing expenses | 730 | 742 | ||||||||||
| Exploration expenses, including dry holes | ||||||||||||
| and lease impairment | 548 | 672 | ||||||||||
| Other operating expenses | 171 | 134 | ||||||||||
| General and administrative expenses | 465 | 444 | ||||||||||
| Interest expense | 261 | 269 | ||||||||||
| Depreciation, depletion and amortization | 1,684 | 1,616 | ||||||||||
| Asset impairments | 532 | 54 | ||||||||||
| Total costs and expenses | 22,969 | 20,200 | ||||||||||
| Income before income taxes | 2,954 | 811 | ||||||||||
| Provision for income taxes | 899 | 374 | ||||||||||
| Net income | 2,055 | 437 | ||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | (12 | ) | 55 | |||||||||
| Net income attributable to Hess Corporation | $ | 2,067 | $ | 382 | ||||||||
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Supplemental Income Statement Information |
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| Foreign currency gains (losses), after-tax | $ | (10 | ) | $ | (1 | ) | ||||||
| Capitalized interest | 3 | 4 | ||||||||||
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Cash Flow Information |
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| Net cash provided by operating activities (*) | $ | 3,052 | $ | 1,775 | ||||||||
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Capital and Exploratory Expenditures |
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| Exploration and Production | ||||||||||||
| United States | $ | 1,115 | $ | 813 | ||||||||
| International | 2,204 | 1,362 | ||||||||||
| Total Exploration and Production | 3,319 |
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2,175 | |||||||||
| Marketing, Refining and Corporate | 72 | 83 | ||||||||||
| Total Capital and Exploratory Expenditures | $ | 3,391 | $ | 2,258 | ||||||||
| Exploration expenses charged to income included above | ||||||||||||
| United States | $ | 108 | $ | 127 | ||||||||
| International | 132 | 138 | ||||||||||
| $ | 240 | $ | 265 | |||||||||
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(*) Includes changes in working capital
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES |
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SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) |
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(IN MILLIONS OF DOLLARS) |
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September 30, |
December 31, |
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| 2010 | 2009 | ||||||||
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Balance Sheet Information |
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| Cash and cash equivalents | $ | 2,353 | $ | 1,362 | |||||
| Other current assets | 6,486 | 6,625 | |||||||
| Investments | 775 | 913 | |||||||
| Property, plant and equipment – net | 19,084 | 16,627 | |||||||
| Other long-term assets | 4,787 | 3,938 | |||||||
| Total assets | $ | 33,485 | $ | 29,465 | |||||
| Current maturities of long-term debt | $ | 43 | $ | 148 | |||||
| Other current liabilities | 6,524 | 6,702 | |||||||
| Long-term debt | 5,541 | 4,319 | |||||||
| Other long-term liabilities | 5,549 | 4,768 | |||||||
| Total equity excluding other comprehensive income (loss) | 17,205 | 15,203 | |||||||
| Accumulated other comprehensive income (loss) | (1,377 | ) | (1,675 | ) | |||||
| Total liabilities and equity | $ | 33,485 | $ | 29,465 | |||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES |
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EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) |
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(IN MILLIONS OF DOLLARS) |
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| Third Quarter 2010 | ||||||||||||
| United | ||||||||||||
| States | International | Total | ||||||||||
| Sales and other operating revenues | $ | 622 | $ | 1,657 | $ | 2,279 | ||||||
| Other, net | (2 |
) |
1,159 | 1,157 | ||||||||
| Total revenues and non-operating income | 620 | 2,816 | 3,436 | |||||||||
| Costs and expenses | ||||||||||||
| Production expenses, including related taxes | 117 | 357 | 474 | |||||||||
| Exploration expenses, including dry holes | ||||||||||||
| and lease impairment | 105 | 120 | 225 | |||||||||
| General, administrative and other expenses | 37 | 33 | 70 | |||||||||
| Depreciation, depletion and amortization | 172 | 388 | 560 | |||||||||
| Asset impairments | - | 532 | 532 | |||||||||
| Total costs and expenses | 431 | 1,430 | 1,861 | |||||||||
| Results of operations before income taxes | 189 | 1,386 | 1,575 | |||||||||
| Provision for income taxes | 71 | 227 | 298 | |||||||||
| Results of operations attributable to Hess Corporation | $ | 118 | $ | 1,159 | $ | 1,277 | ||||||
| Third Quarter 2009 | ||||||||||||
| United | ||||||||||||
| States | International | Total | ||||||||||
| Sales and other operating revenues | $ | 499 | $ | 1,293 | $ | 1,792 | ||||||
| Other, net | 137 | 8 | 145 | |||||||||
| Total revenues and non-operating income | 636 | 1,301 | 1,937 | |||||||||
| Costs and expenses | ||||||||||||
| Production expenses, including related taxes | 106 | 354 | 460 | |||||||||
| Exploration expenses, including dry holes | ||||||||||||
| and lease impairment | 56 | 111 | 167 | |||||||||
| General, administrative and other expenses | 37 | 28 | 65 | |||||||||
| Depreciation, depletion and amortization | 176 | 426 | 602 | |||||||||
| Asset impairments | - | - | - | |||||||||
| Total costs and expenses | 375 | 919 | 1,294 | |||||||||
| Results of operations before income taxes | 261 | 382 | 643 | |||||||||
| Provision for income taxes | 99 | 147 | 246 | |||||||||
| Results of operations attributable to Hess Corporation | $ | 162 | $ | 235 | $ | 397 | ||||||
| Second Quarter 2010 | ||||||||||||
| United | ||||||||||||
| States | International | Total | ||||||||||
| Sales and other operating revenues | $ | 570 | $ | 1,489 | $ | 2,059 | ||||||
| Other, net | 5 | 9 | 14 | |||||||||
| Total revenues and non-operating income | 575 | 1,498 | 2,073 | |||||||||
| Costs and expenses | ||||||||||||
| Production expenses, including related taxes | 113 | 328 | 441 | |||||||||
| Exploration expenses, including dry holes | ||||||||||||
| and lease impairment | 60 | 112 | 172 | |||||||||
| General, administrative and other expenses | 32 | 32 | 64 | |||||||||
| Depreciation, depletion and amortization | 157 | 377 | 534 | |||||||||
| Asset impairments | - | - | - | |||||||||
| Total costs and expenses | 362 | 849 | 1,211 | |||||||||
| Results of operations before income taxes | 213 | 649 | 862 | |||||||||
| Provision for income taxes | 84 | 290 | 374 | |||||||||
| Results of operations attributable to Hess Corporation | $ | 129 | $ | 359 | $ | 488 | ||||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES |
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EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) |
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(IN MILLIONS OF DOLLARS) |
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| Nine Months 2010 | |||||||||||
| United | |||||||||||
| States | International | Total | |||||||||
| Sales and other operating revenues | $ | 1,774 | $ | 4,678 | $ | 6,452 | |||||
| Other, net | 2 | 1,223 | 1,225 | ||||||||
| Total revenues and non-operating income | 1,776 | 5,901 | 7,677 | ||||||||
| Costs and expenses | |||||||||||
| Production expenses, including related taxes | 346 | 1,046 | 1,392 | ||||||||
| Exploration expenses, including dry holes | |||||||||||
| and lease impairment | 243 | 305 | 548 | ||||||||
| General, administrative and other expenses | 105 | 96 | 201 | ||||||||
| Depreciation, depletion and amortization | 465 | 1,148 | 1,613 | ||||||||
| Asset impairments | - | 532 | 532 | ||||||||
| Total costs and expenses | 1,159 | 3,127 | 4,286 | ||||||||
| Results of operations before income taxes | 617 | 2,774 | 3,391 | ||||||||
| Provision for income taxes | 232 | 843 | 1,075 | ||||||||
| Results of operations attributable to Hess Corporation | $ | 385 | $ | 1,931 | $ | 2,316 | |||||
| Nine Months 2009 | |||||||||||
| United | |||||||||||
| States | International | Total | |||||||||
| Sales and other operating revenues | $ | 1,024 | $ | 3,598 | $ | 4,622 | |||||
| Other, net | 132 | 78 | 210 | ||||||||
| Total revenues and non-operating income | 1,156 | 3,676 | 4,832 | ||||||||
| Costs and expenses | |||||||||||
| Production expenses, including related taxes | 327 | 986 | 1,313 | ||||||||
| Exploration expenses, including dry holes | |||||||||||
| and lease impairment | 306 | 366 | 672 | ||||||||
| General, administrative and other expenses | 97 | 85 | 182 | ||||||||
| Depreciation, depletion and amortization | 338 | 1,213 | 1,551 | ||||||||
| Asset impairments | - | 54 | 54 | ||||||||
| Total costs and expenses | 1,068 | 2,704 | 3,772 | ||||||||
| Results of operations before income taxes | 88 | 972 | 1,060 | ||||||||
| Provision for income taxes | 35 | 477 | 512 | ||||||||
| Results of operations attributable to Hess Corporation | $ | 53 | $ | 495 | $ | 548 | |||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES |
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EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED) |
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Third | Third | Second | ||||||||
| Quarter | Quarter | Quarter | |||||||||
| 2010 | 2009 | 2010 | |||||||||
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Operating Data |
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Net Production Per Day (in thousands) |
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| Crude oil - barrels | |||||||||||
| United States | 78 | 73 | 73 | ||||||||
| Europe | 82 | 83 | 81 | ||||||||
| Africa | 117 | 124 | 118 | ||||||||
| Asia and other | 13 | 17 | 14 | ||||||||
| Total | 290 | 297 | 286 | ||||||||
| Natural gas liquids - barrels | |||||||||||
| United States | 15 | 12 | 12 | ||||||||
| Europe | 3 | 2 | 3 | ||||||||
| Asia and other | - | - | 1 | ||||||||
| Total | 18 | 14 | 16 | ||||||||
| Natural gas - mcf | |||||||||||
| United States | 120 | 105 | 102 | ||||||||
| Europe | 104 | 120 | 140 | ||||||||
| Asia and other | 406 | 429 | 437 | ||||||||
| Total | 630 | 654 | 679 | ||||||||
| Barrels of oil equivalent | 413 | 420 | 415 | ||||||||
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Average Selling Price |
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| Crude oil - per barrel (including hedging)* | |||||||||||
| United States | $ | 71.92 | $ | 63.79 | $ | 72.99 | |||||
| Europe | 57.28 | 47.34 | 56.21 | ||||||||
| Africa | 64.78 | 54.97 | 63.54 | ||||||||
| Asia and other | 75.95 | 67.49 | 78.01 | ||||||||
| Worldwide | 64.81 | 56.07 | 64.81 | ||||||||
| Crude oil - per barrel (excluding hedging) | |||||||||||
| United States | $ | 71.92 | $ | 63.79 | $ | 72.99 | |||||
| Europe | 57.28 | 47.34 | 56.21 | ||||||||
| Africa | 75.70 | 67.27 | 77.03 | ||||||||
| Asia and other | 75.95 | 67.49 | 78.01 | ||||||||
| Worldwide | 69.47 | 61.42 | 70.15 | ||||||||
| Natural gas liquids - per barrel | |||||||||||
| United States | $ | 43.20 | $ | 36.05 | $ | 45.84 | |||||
| Europe | 57.69 | 43.53 | 54.61 | ||||||||
| Asia and other | 53.60 | 44.74 | 60.89 | ||||||||
| Worldwide | 46.10 | 37.27 | 48.10 | ||||||||
| Natural gas - per mcf | |||||||||||
| United States | $ | 3.56 | $ | 2.65 | $ | 3.65 | |||||
| Europe | 6.50 | 4.38 | 5.35 | ||||||||
| Asia and other | 6.18 | 5.12 | 6.09 | ||||||||
| Worldwide | 5.73 | 4.60 | 5.57 | ||||||||
* The after-tax losses from crude oil hedging activities were $85 million in the third quarter of 2010, $84 million in the third quarter of 2009 and second quarter of 2010.
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES |
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EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED) |
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|
Nine Months | |||||||||||
| 2010 | 2009 | |||||||||||
|
Operating Data |
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Net Production Per Day (in thousands) |
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| Crude oil - barrels | ||||||||||||
| United States | 74 | 54 | ||||||||||
| Europe | 83 | 82 | ||||||||||
| Africa | 117 | 125 | ||||||||||
| Asia and other | 14 | 16 | ||||||||||
| Total | 288 | 277 | ||||||||||
| Natural gas liquids - barrels | ||||||||||||
| United States | 13 | 10 | ||||||||||
| Europe | 3 | 3 | ||||||||||
| Asia and other | 1 | 1 | ||||||||||
| Total | 17 | 14 | ||||||||||
| Natural gas - mcf | ||||||||||||
| United States | 107 | 92 | ||||||||||
| Europe | 133 | 153 | ||||||||||
| Asia and other | 432 | 442 | ||||||||||
| Total | 672 | 687 | ||||||||||
| Barrels of oil equivalent | 417 | 406 | ||||||||||
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Average Selling Price |
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| Crude oil - per barrel (including hedging)* | ||||||||||||
| United States | $ | 73.05 | $ | 56.02 | ||||||||
| Europe | 56.29 | 42.80 | ||||||||||
| Africa | 63.67 | 44.98 | ||||||||||
| Asia and other | 75.97 | 56.63 | ||||||||||
| Worldwide | 64.44 | 47.09 | ||||||||||
| Crude oil - per barrel (excluding hedging) | ||||||||||||
| United States | $ | 73.05 | $ | 56.02 | ||||||||
| Europe | 56.29 | 42.80 | ||||||||||
| Africa | 76.19 | 56.59 | ||||||||||
| Asia and other | 75.97 | 56.63 | ||||||||||
| Worldwide | 69.56 | 52.35 | ||||||||||
| Natural gas liquids - per barrel | ||||||||||||
| United States | $ | 46.49 | $ | 32.38 | ||||||||
| Europe | 57.28 | 37.86 | ||||||||||
| Asia and other | 60.15 | 38.49 | ||||||||||
| Worldwide | 48.84 | 33.90 | ||||||||||
| Natural gas - per mcf | ||||||||||||
| United States | $ | 3.91 | $ | 3.19 | ||||||||
| Europe | 5.67 | 5.25 | ||||||||||
| Asia and other | 6.21 | 4.88 | ||||||||||
| Worldwide | 5.74 | 4.74 | ||||||||||
* The after-tax losses from hedging activities were $252 million for the nine months ended September 30, 2010 and $249 million for the nine months ended September 30, 2009.
|
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES |
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MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED) |
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| Third | Third | Second | |||||||||||||||
| Quarter | Quarter | Quarter | |||||||||||||||
| 2010 | 2009 | 2010 | |||||||||||||||
|
Financial Information (in millions of dollars) |
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|
Marketing and Refining Results |
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| Income (loss) before income taxes | $ | (78 | ) | $ | 29 | $ | (37 | ) | |||||||||
| Provision (benefit) for income taxes | (40 | ) | (9 | ) | (18 | ) | |||||||||||
| Results of operations attributable to Hess Corporation | $ | (38 | ) | $ | 38 | $ | (19 | ) | |||||||||
|
Summary of Marketing and Refining Results |
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| Refining | $ | (50 | ) | $ | (3 | ) | $ | (31 | ) | ||||||||
| Marketing | 40 | 35 | 17 | ||||||||||||||
| Trading | (28 | ) | 6 | (5 | ) | ||||||||||||
| Results of operations attributable to Hess Corporation | $ | (38 | ) | $ | 38 | $ | (19 | ) | |||||||||
|
|
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Operating Data (barrels and gallons in thousands) |
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|
Refined Product Sales (barrels per day) |
|||||||||||||||||
| Gasoline | 253 | 253 | 238 | ||||||||||||||
| Distillates | 96 | 113 | 112 | ||||||||||||||
| Residuals | 56 | 51 | 57 | ||||||||||||||
| Other | 41 | 26 | 28 | ||||||||||||||
| Total | 446 | 443 | 435 | ||||||||||||||
|
Refinery Throughput (barrels per day) |
|||||||||||||||||
| HOVENSA - Crude runs | 408 | 384 | 392 | ||||||||||||||
| HOVENSA - Hess 50% share | 204 | 192 | 196 | ||||||||||||||
| Port Reading | 61 | 65 | 35 | ||||||||||||||
|
Refinery Utilization |
Refinery Capacity | ||||||||||||||||
| HOVENSA | (barrels per day) | ||||||||||||||||
| Crude | 500 | 81.6 | % | 76.9 | % | 78.5 | % | ||||||||||
| FCC | 150 | 76.1 | % | 82.9 | % | 91.0 | % | ||||||||||
| Coker | 58 | 73.0 | % | 78.9 | % | 81.9 | % | ||||||||||
| Port Reading | 70 | 87.7 | % | 92.2 | % | 49.7 | % | ||||||||||
|
Retail Marketing |
|||||||||||||||||
| Number of retail stations (a) | 1,360 | 1,353 | 1,358 | ||||||||||||||
| Convenience store revenue (in millions of dollars) (b) | $ | 322 | $ | 313 | $ | 317 | |||||||||||
| Average gasoline volume per station (gallons per month) (b) | 204 | 202 | 203 | ||||||||||||||
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|
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(a) Includes company operated, Wilco-Hess, dealer and branded retailer.
(b) Company operated only.
|
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES |
||||||||||||
|
MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED) |
||||||||||||
| Nine Months | ||||||||||||
| 2010 | 2009 | |||||||||||
|
Financial Information (in millions of dollars) |
||||||||||||
|
Marketing and Refining Results |
||||||||||||
| Income (loss) before income taxes | $ | 24 | $ | 135 | ||||||||
| Provision (benefit) for income taxes | (6 | ) | 25 | |||||||||
|
Results of operations attributable to Hess Corporation |
$ | 30 | $ | 110 | ||||||||
|
Summary of Marketing and Refining Results |
||||||||||||
| Refining | $ | (137 | ) | $ | (47 | ) | ||||||
| Marketing | 178 | 123 | ||||||||||
| Trading | (11 | ) | 34 | |||||||||
|
Results of operations attributable to Hess Corporation |
$ | 30 | $ | 110 | ||||||||
|
Operating Data (barrels and gallons in thousands) |
||||||||||||
|
Refined Product Sales (barrels per day) |
||||||||||||
| Gasoline | 247 | 234 | ||||||||||
| Distillates | 112 | 129 | ||||||||||
| Residuals | 66 | 67 | ||||||||||
| Other | 40 | 36 | ||||||||||
| Total | 465 | 466 | ||||||||||
|
Refinery Throughput (barrels per day) |
||||||||||||
| HOVENSA - Crude runs | 392 | 412 | ||||||||||
| HOVENSA - Hess 50% share | 196 | 206 | ||||||||||
| Port Reading | 53 | 64 | ||||||||||
|
Refinery Utilization |
Refinery Capacity | |||||||||||
| HOVENSA | (barrels per day) | |||||||||||
| Crude | 500 | 78.4 | % | 82.4 | % | |||||||
| FCC | 150 | 69.5 | % | 75.2 | % | |||||||
| Coker | 58 | 80.0 | % | 83.6 | % | |||||||
| Port Reading | 70 | 75.4 | % | 91.1 | % | |||||||
|
Retail Marketing |
||||||||||||
| Number of retail stations (a) | 1,360 | 1,353 | ||||||||||
| Convenience store revenue (in millions of dollars) (b) | $ | 915 | $ | 868 | ||||||||
| Average gasoline volume per station (gallons per month) (b) | 198 | 203 | ||||||||||
|
|
||||||||||||
(a) Includes company operated, Wilco-Hess, dealer and branded retailer.
(b) Company operated only.
CONTACT:
Hess Corporation
Investors:
Jay
Wilson, 212-536-8940
or
Media:
Jon
Pepper, 212-536-8550