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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):
January 26, 2005
AMERADA HESS CORPORATION
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
DELAWARE No. 1-1204 No. 13-4921002
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) 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)
1
Item 2.02. Results of Operations and Financial Condition.
On January 26, 2005, Amerada Hess Corporation issued a news release
reporting its results for the fourth quarter and year of 2004. A copy of this
news release is attached hereto as Exhibit 99(1) and is hereby incorporated by
reference.
Item 7.01. Regulation FD Disclosure.
Furnished hereunder are the prepared remarks of John B. Hess, Chairman of
the Board of Directors and Chief Executive Officer of Amerada Hess Corporation,
at a public conference call held on January 26, 2005. A copy of these remarks is
attached as Exhibit 99(2) and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99(1) News release dated January 26, 2005 reporting results for the
fourth quarter and year of 2004.
99(2) Prepared remarks of John B. Hess, Chairman of the Board of
Directors and Chief Executive Officer.
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: January 26, 2005
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 January 26, 2005 reporting results for the
fourth quarter and year of 2004.
99(2) Prepared remarks of John B. Hess, Chairman of the Board of
Directors and Chief Executive Officer.
4
EXHIBIT 99.1
Amerada Hess Reports Estimated Results for the Fourth Quarter of 2004
NEW YORK--(BUSINESS WIRE)--Jan. 26, 2005--Amerada Hess Corporation
(NYSE:AHC) reported net income of $229 million for the fourth quarter
of 2004 compared with income of $68 million for the fourth quarter of
2003. For the full year, net income was $977 million compared with
income of $643 million in 2003. See the following page for a table of
items affecting the comparability of earnings between periods. The
after-tax results by major operating activity in 2004 and 2003 are as
follows:
Three months ended Year ended
December 31 December 31
------------------- ---------------
2004* 2003* 2004* 2003
--------- -------- -------- ------
(In millions, except per share amounts)
Exploration and production $211 $83 $755 $414
Refining and marketing 93 55 451 327
Corporate (36) (29) (85) (101)
Interest expense (39) (41) (151) (173)
--------- -------- -------- ------
Income from continuing operations 229 68 970 467
Discontinued operations
Net gains from asset sales - - - 116
Income from operations - - 7 53
Income from cumulative effect of
accounting change - - - 7
--------- -------- -------- ------
Net income $229 $68 $977 $643
========= ======== ======== ======
Income per share from continuing
operations (diluted) $2.22 $.71 $9.50 $5.17
========= ======== ======== ======
Net income per share (diluted) $2.22 $.71 $9.57 $7.11
========= ======== ======== ======
* Unaudited
Exploration and production earnings were $211 million in the
fourth quarter of 2004 compared with $83 million in the fourth 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 fourth quarter of
2004, a decrease of 3% from the fourth quarter of 2003. In the fourth
quarter of 2004, the Corporation's average worldwide crude oil selling
price, including the effect of hedging, was $27.15 per barrel, an
increase of $1.81 per barrel from the fourth quarter of 2003. The
Corporation's average United States natural gas selling price was
$5.83 per Mcf in the fourth quarter of 2004, an increase of $1.87 per
Mcf from the fourth quarter of 2003.
The Corporation has two exploration wells currently drilling in
the Gulf of Mexico that have been capitalized on its balance sheet at
December 31, 2004. The accounting treatment for these costs will be
determined when drilling is completed, which is currently anticipated
prior to the filing of the Corporation's Form 10-K in March. If either
or both of these wells are unsuccessful, the applicable well costs
through December 31, 2004 will be expensed, reducing exploration and
production earnings up to $35 million, after-tax.
Refining and marketing earnings were $93 million in the fourth
quarter of 2004 compared with $55 million in the fourth quarter of
2003. The increase is primarily due to higher refining margins and
increased earnings from retail marketing operations.
The following items, on an after-tax basis, are included in net
income in the fourth quarter and full year of 2004 and 2003 (in
millions):
Three months ended Year ended
December 31 December 31
------------------ -------------
2004 2003 2004 2003
---------- ------- ------- -----
Gains (losses) from asset sales:
Exploration and production $21 $- $54 $31
Refining and marketing - - - (20)
Income tax adjustments 19 - 32 30
LIFO inventory liquidation 12 - 12 -
Corporate insurance accrual (13) - (13) -
Accrued severance and office costs - (9) (9) (32)
Premiums on bond repurchases - (19) - (34)
---------- ------- ------- -----
$39 $(28) $76 $(25)
========== ======= ======= =====
The fourth quarter 2004 asset sale reflects the disposal of two
mature Gulf of Mexico properties. Exploration and production earnings
also include foreign income tax benefits in the fourth quarter of 2004
resulting from a change in tax law and a tax settlement. Refining and
marketing results include income in the fourth quarter as a result of
a partial liquidation of prior year LIFO inventories.
Capital expenditures for the year 2004 amounted to $1,521 million
of which $1,434 million related to exploration and production
activities. Capital expenditures for the year 2003 amounted to $1,358
million, including $1,286 million for exploration and production.
Consolidated Financial Information (unaudited)
Three months ended Year ended
December 31 December 31
-------------------- -------------------
2004* 2003* 2004* 2003
---------- --------- ---------- --------
Income Statement Information (In millions, except per share amounts)
- ------------------------------
Sales and other operating
revenues $4,612 $3,628 $16,733 $14,311
========== ========= ========== ========
Income from continuing
operations $229 $68 $970 $467
Discontinued operations
Net gains from asset
sales - - - 116
Income from operations - - 7 53
Cumulative effect of
accounting change - - - 7
---------- --------- ---------- --------
Net income $229 $68 $977 $643
========== ========= ========== ========
Income per share from
continuing operations
(diluted) $2.22 $.71 $9.50 $5.17
========== ========= ========== ========
Net income per share
(diluted) $2.22 $.71 $9.57 $7.11
========== ========= ========== ========
Weighted average number
of shares (diluted) 103.0 89.2 102.1 90.3
========== ========= ========== ========
* Unaudited
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Fourth Fourth Third
Quarter Quarter Quarter
2004 2003 2004
Line ----------- ---------- --------
No. (A) (B) (C)
---
Income Statement
---------------------------
Revenues and Non-operating
Income
1 Sales and other operating
revenues $ 4,612 $ 3,628 $ 3,830
Non-operating income
2 Gain on asset sales 32 -- --
3 Equity in income of
HOVENSA L.L.C. 21 10 75
4 Other 32 (30) 25
----------- ---------- --------
5 Total revenues and non-
operating income 4,697 3,608 3,930
----------- ---------- --------
Costs and Expenses
6 Cost of products sold 3,321 2,523 2,742
7 Production expenses 239 207 202
8 Marketing expenses 200 201 186
9 Exploration expenses,
including dry holes
and lease impairment 83 116 64
10 Other operating expenses 48 49 52
11 General and administrative
expenses 90 87 81
12 Interest expense 62 69 62
13 Depreciation, depletion
and amortization 275 254 230
----------- ---------- --------
14 Total costs and
expenses 4,318 3,506 3,619
----------- ---------- --------
15 Income before income
taxes 379 102 311
16 Provision for income
taxes 150 34 133
----------- ---------- --------
17 Net income $ 229 $ 68 $ 178
=========== ========== ========
18 Preferred stock dividends 12 5 12
----------- ---------- --------
19 Net income applicable to
common stockholders $ 217 $ 63 $ 166
=========== ========== ========
Segment Earnings Analysis
---------------------------
20 Exploration and
production $ 211 $ 83 $ 155
21 Refining and marketing 93 55 85
22 Corporate (36) (29) (23)
23 Interest expense (39) (41) (39)
----------- ---------- --------
24 Net income $ 229 $ 68 $ 178
=========== ========== ========
25 Net Cash Provided by
Operating Activities (*) $ 254 $ 423 $ 817
--------------------------- =========== ========== ========
Capital Expenditures
---------------------------
26 Exploration and
production $ 387 $ 328 $ 338
27 Refining and marketing 42 14 18
----------- ---------- --------
28 Total capital
expenditures $ 429 $ 342 $ 356
=========== ========== ========
At End of Period
---------------------------
29 Total debt $ 3,835 $ 3,941 $ 3,836
=========== ========== ========
30 Stockholders' equity $ 5,597 $ 5,340 $ 5,261
=========== ========== ========
(*) Includes changes in working capital.
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
Year
--------------------
2004 2003
Line -------- ----------
No. Income Statement (A) (B)
--- ---------------------------------------
Revenues and Non-operating Income
1 Sales and other operating revenues $16,733 $ 14,311
Non-operating income
2 Gain on asset sales 55 39
3 Equity in income of HOVENSA L.L.C. 244 117
4 Other 94 13
-------- ----------
5 Total revenues and non-operating
income 17,126 14,480
-------- ----------
Costs and Expenses
6 Cost of products sold 11,971 9,947
7 Production expenses 825 796
8 Marketing expenses 737 709
9 Exploration expenses, including dry
holes and lease impairment 287 369
10 Other operating expenses 195 192
11 General and administrative expenses 342 340
12 Interest expense 241 293
13 Depreciation, depletion and
amortization 970 1,053
-------- ----------
14 Total costs and expenses 15,568 13,699
-------- ----------
15 Income from continuing operations
before income taxes 1,558 781
16 Provision for income taxes 588 314
-------- ----------
17 Income from continuing operations 970 467
18 Discontinued operations 7 169
19 Cumulative effect of change in
accounting principle, net -- 7
-------- ----------
20 Net income $ 977 $ 643
======== ==========
21 Preferred stock dividends 48 5
-------- ----------
22 Net income applicable to common
stockholders $ 929 $ 638
======== ==========
23 Net Cash Provided by Operating
Activities (*) $ 1,903 $ 1,581
--------------------------------------- ======== ==========
Capital Expenditures
---------------------------------------
24 Exploration and production $ 1,434 $ 1,286
25 Refining and marketing 87 72
-------- ----------
26 Total capital expenditures $ 1,521 $ 1,358
======== ==========
December December
31 31
2004 2003
-------- ----------
Balance Sheet Information
---------------------------------------
27 Current assets $ 4,411 $ 3,186
28 Investments 1,254 1,095
29 Property, plant and equipment - net 8,505 7,978
30 Other assets 2,217 1,724
-------- ----------
31 Total assets $16,387 $ 13,983
======== ==========
32 Current portion of long-term debt $ 50 $ 73
33 Other current liabilities 4,723 2,596
34 Long-term debt 3,785 3,868
35 Deferred liabilities and credits 2,232 2,106
36 Stockholders' equity excluding other
comprehensive income (loss) 6,621 5,690
37 Accumulated other comprehensive
income (loss) (1,024) (350)
-------- ----------
38 Total liabilities and stockholders'
equity $16,387 $ 13,983
======== ==========
(*) Includes changes in working capital.
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)
Fourth Fourth Third
Quarter Quarter Quarter
2004 2003 2004
------- ------- -------
Line (A) (B) (C)
No. Operating Data
--- -------------------------------------
Net Production Per Day
------------------------------------
Crude oil - barrels
1 United States 50 40 44
2 United Kingdom 61 79 66
3 Norway 29 27 23
4 Equatorial Guinea 26 18 28
5 Algeria 25 19 22
6 Denmark 24 23 20
7 Gabon 11 12 12
8 Azerbaijan 2 2 2
9 Indonesia -- 1 --
------- ------- -------
10 Total 228 221 217
======= ======= =======
Natural gas liquids - barrels
11 United States 14 10 12
12 United Kingdom 5 7 5
13 Norway 1 1 1
14 Indonesia and Thailand 2 2 2
------- ------- -------
15 Total 22 20 20
======= ======= =======
Natural gas - mcf
16 United States 178 213 164
17 United Kingdom 262 339 224
18 Norway 28 28 25
19 Denmark 26 23 21
20 Indonesia and Thailand 82 88 82
------- ------- -------
21 Total 576 691 516
======= ======= =======
22 Barrels of oil equivalent 346 356 323
======= ======= =======
Average Selling Price (including
hedging)
------------------------------------
Crude oil - per barrel
23 United States $29.92 $25.06 $28.26
24 Foreign 26.38 25.40 26.16
Natural gas liquids - per barrel
25 United States $33.31 $24.01 $31.73
26 Foreign 38.53 24.71 29.04
Natural gas - per mcf
27 United States $5.83 $3.96 $4.40
28 Foreign 4.37 3.74 3.65
Marketing and Refining -
------------------------
Barrels Per Day
---------------
29 Refined products sold 430 423 394
======= ======= =======
30 Refinery runs (net) 236 225 240
======= ======= =======
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)
Year
----------------
2004 2003
------- -------
Line (A) (B)
No. Operating Data
--- --------------------------------------------
Net Production Per Day
------------------------------------------
Crude oil - barrels
1 United States 44 44
2 United Kingdom 70 89
3 Norway 27 24
4 Equatorial Guinea 26 22
5 Algeria 23 19
6 Denmark 22 24
7 Gabon 12 11
8 Azerbaijan 2 2
9 Indonesia -- 1
10 Colombia -- 3
------- -------
11 Total 226 239
======= =======
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 171 253
18 United Kingdom 268 312
19 Norway 27 26
20 Denmark 24 29
21 Indonesia and Thailand 85 63
------- -------
22 Total 575 683
======= =======
23 Barrels of oil equivalent (*) 342 373
======= =======
Average Selling Price (including hedging)
-----------------------------------------
Crude oil - per barrel
24 United States $27.42 $24.23
25 Foreign 26.40 24.93
Natural gas liquids - per barrel
26 United States $29.50 $23.74
27 Foreign 30.02 24.09
Natural gas - per mcf
28 United States $5.18 $4.02
29 Foreign 3.94 3.01
Marketing and Refining -
------------------------
Barrels Per Day
---------------
30 Refined products sold 428 419
======= =======
31 Refinery runs (net) 242 220
======= =======
(*) Includes production from properties classified as discontinued
operations of 13 thousand barrels of oil equivalent per day in the
year of 2003.
Amerada Hess Corporation
Table of Pre-Tax Items
In the table on page 2, the financial effects of certain
transactions are disclosed on an after-tax basis. Management reviews
segment earnings on an after-tax basis and uses after-tax amounts in
its review of variances in segment earnings. Management believes that
after-tax amounts are a preferable method of explaining variances in
earnings, since they show the entire effect of a transaction rather
than only the pre-tax amount. After-tax amounts are determined by
applying the appropriate income tax rate in each tax jurisdiction to
pre-tax amounts.
The following table contains the pre-tax amounts of the applicable
items included in net income which are shown on an after-tax basis on
page 2 (in millions):
Three months ended Year ended
December 31 December 31
------------------- -------------
2004 2003 2004 2003
------------ ------ ------- -----
Gains (losses) from asset sales:
Exploration and production $32 $- $55 $47
Refining and marketing - - - (9)
LIFO inventory liquidation 20 - 20 -
Corporate insurance accrual (20) - (20) -
Accrued severance and office costs - (15) (15) (53)
Premiums on bond repurchases - (31) - (58)
------------ ------ ------- -----
$32 $(46) $40 $(73)
============ ====== ======= =====
CONTACT: Amerada Hess Corporation
J.R. Wilson, 212/536-8940
EXHIBIT 99.2
2004 FOURTH QUARTER EARNINGS CONFERENCE CALL
--------------------------------------------
THANK YOU JAY, AND WELCOME TO OUR FOURTH QUARTER CONFERENCE CALL. I WOULD
LIKE TO MAKE A FEW BRIEF COMMENTS ON SOME KEY ACHIEVEMENTS OF 2004 AND PROVIDE
SOME GUIDANCE FOR 2005 AND THEN JOHN RIELLY WILL REVIEW THE FOURTH QUARTER
FINANCIALS BEFORE WE TAKE QUESTIONS.
IN 2004, WE HAD A SOLID YEAR OF OPERATING AND FINANCIAL PERFORMANCE AND WE
CONTINUED TO MAKE PROGRESS IN OUR DEVELOPMENT PROJECTS, EXPLORATION PROGRAM,
GROWING OUR RESERVES AND STRENGTHENING OUR FINANCIAL POSITION.
IN TERMS OF OUR OPERATING AND FINANCIAL PERFORMANCE, CORPORATE NET INCOME
FOR 2004 WAS $977 MILLION. EXPLORATION AND PRODUCTION HAD A STRONG YEAR:
EARNINGS WERE $755 MILLION AND PRODUCTION AVERAGED 342 THOUSAND BARRELS OF OIL
EQUIVALENT PER DAY COMPARED TO OUR ORIGINAL FORECAST OF 325,000 BARRELS OF OIL
EQUIVALENT PER DAY. IN 2005, WE FORECAST WORLDWIDE CRUDE OIL AND NATURAL GAS
PRODUCTION TO AVERAGE 350 THOUSAND BARRELS OF OIL EQUIVALENT PER DAY.
REFINING AND MARKETING ALSO HAD A VERY STRONG YEAR EARNING $451 MILLION.
THE HOVENSA AND PORT READING REFINERIES WERE ABLE TO OPERATE AT MAXIMUM CAPACITY
FOR THE MAJORITY OF THE YEAR ENABLING THEM TO BENEFIT FROM THE STRONG MARGIN
ENVIRONMENT. OUR RETAIL AND ENERGY MARKETING BUSINESSES ALSO PERFORMED WELL.
IN TERMS OF OUR FIELD DEVELOPMENTS, SIGNIFICANT PROGRESS WAS MADE IN 2004.
o IN APRIL, THE LLANO FIELD COMMENCED PRODUCTION AND OUR 50 PERCENT
INTEREST IS CURRENTLY AVERAGING ABOUT 20 THOUSAND BARRELS OF OIL
EQUIVALENT PER DAY. THIS LEVEL OF PRODUCTION IS HIGHER THAN OUR
ORIGINAL ESTIMATE.
o IN AUGUST, THE DEVELOPMENT PLAN FOR OUR NORTHERN BLOCK G FIELDS, WHICH
WILL NOW BE CALLED THE OKUME COMPLEX, WAS APPROVED BY THE GOVERNMENT
OF EQUATORIAL GUINEA. MOST OF THE MAJOR CONTRACTS FOR CONSTRUCTION
HAVE BEEN AUTHORIZED. THE DEVELOPMENT IS ON SCHEDULE AND ON BUDGET.
o IN AUGUST, THE SCOPE OF THE PROJECT TO REDEVELOP THE GASSI EL AGREB
FIELDS IN ALGERIA WAS EXPANDED FROM AN ORIGINAL INVESTMENT COMMITMENT
OF $570 MILLION TO $950 MILLION. THIS CHANGE IN SCOPE REFLECTS OUR
SUCCESS IN THE AREA. SINCE 2000, WE HAVE GROWN GROSS PRODUCTION FROM
20,000 BOEPD TO 55,000 BOEPD AND WE SEE ADDITIONAL OPPORTUNITIES TO
INCREASE RESERVES AND PRODUCTION.
o IN DECEMBER, WE NEGOTIATED ADDITIONAL GAS SALES FROM BLOCK A-18 IN THE
MALAYSIA-THAILAND JOINT DEVELOPMENT AREA. THE AGREEMENT WILL ALLOW US
TO DOUBLE OUR PROVED RESERVES IN THE JDA OVER THE NEXT SEVERAL YEARS
AND CONTRIBUTE SIGNIFICANT FUTURE PRODUCTION GROWTH. FIRST SALES OF
NATURAL GAS FROM THE JDA ARE EXPECTED TO BEGIN BY THE END OF THE FIRST
QUARTER.
o IN DECEMBER, WE SANCTIONED THE UJUNG PANGKAH DEVELOPMENT IN INDONESIA.
GAS SALES FROM PANGKAH SHOULD COMMENCE BY EARLY 2007.
IN TERMS OF EXPLORATION, SUCCESSFUL DRILLING RESULTS AT OUR SHENZI PROSPECT
IN THE DEEPWATER GULF OF MEXICO, AND THE PHU HORM AND BELUD PROSPECTS IN
SOUTHEAST ASIA WILL PROVIDE OPPORTUNITIES FOR FUTURE RESERVE AND PRODUCTION
GROWTH. IN ADDITION, OUR PROSPECT INVENTORY IS ROBUST AND WE WILL DRILL SEVERAL
HIGH IMPACT WELLS IN 2005.
WITH REGARD TO OUR YEAR-END PROVED RESERVES, WE ARE PLEASED TO REPORT THAT
IN 2004, WE REPLACED 110 PERCENT OF PRODUCTION, AT A FINDING AND DEVELOPMENT
COST OF ABOUT $11 PER BARREL. THIS RESULT COMES DESPITE THE IMPACT OF NEGATIVE
PSC REVISIONS OF 31 MILLION BARRELS OF OIL EQUIVALENT RELATING TO HIGH YEAR-END
COMMODITY PRICES. PROVED RESERVES, AT YEAR-END, WERE 1.046 BILLION BARRELS OF
OIL EQUIVALENT AND OUR RESERVE TO PRODUCTION RATIO IMPROVED TO 8.2 YEARS
COMPARED TO 7.5 YEARS LAST YEAR.
IN TERMS OF OUR FINANCIAL POSITION, OUR CAPITAL EXPENDITURES FOR 2004
AMOUNTED TO $1.5 BILLION OF WHICH $1.4 BILLION RELATED TO EXPLORATION AND
PRODUCTION ACTIVITIES. AS A RESULT OF THE SOLID OPERATING PERFORMANCE OF OUR
ASSETS AND THE STRONG PRICING ENVIRONMENT IN 2004, WE IMPROVED OUR DEBT TO
CAPITALIZATION RATIO BY 2 PERCENT TO 40.7 PERCENT AT THE END OF THE YEAR.
FOR 2005, OUR TOTAL CAPITAL EXPENDITURES ARE FORECAST TO BE $2.1 BILLION,
WITH $2.0 BILLION DEDICATED TO EXPLORATION AND PRODUCTION. THIS HIGHER LEVEL OF
SPENDING REFLECTS THE COMPANY'S STRONG PORTFOLIO OF ORGANIC GROWTH PROJECTS AND
ATTRACTIVE INVESTMENT OPPORTUNITIES. WE ESTIMATE THAT OUR CAPITAL EXPENDITURES
AND CASH FLOW WILL BE ROUGHLY BALANCED IN 2005 ASSUMING A WTI PRICE OF ABOUT $35
PER BARREL AND OUR DEBT TO CAPITALIZATION RATIO SHOULD CONTINUE TO IMPROVE
THROUGH THE YEAR.
WITH AN IMPROVING BALANCE SHEET, APPROXIMATELY $900 MILLION OF CASH, AND A
NEW $2.5 BILLION REVOLVING CREDIT FACILITY, OUR COMPANY HAS THE FINANCIAL
STRENGTH AND FLEXIBILITY TO CONTINUE TO FUND OUR DEVELOPMENTS AND DRILLING
PROGRAMS.
IN SUMMARY, WE ARE VERY PLEASED WITH THE PERFORMANCE OF OUR ASSETS AND OUR
ORGANIZATION IN 2004 AND ARE OPTIMISTIC THAT THE INVESTMENTS WE ARE MAKING FOR
THE FUTURE WILL GROW OUR RESERVES AND PRODUCTION PROFITABLY AND CREATE LONG-TERM
VALUE FOR OUR SHAREHOLDERS.
I WILL NOW TURN THE CALL OVER TO JOHN RIELLY, WHO WILL PROVIDE MORE DETAIL
ON OUR FINANCIAL RESULTS.