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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):
April 27, 2005
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 2.02. Results of Operations and Financial Condition.
On April 27, 2005, Amerada Hess Corporation issued a news release reporting
its results for the first quarter of 2005. 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 27, 2005 reporting results for the
first quarter of 2005.
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, 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 April 27, 2005 reporting results for the
first quarter of 2005.
4
Exhibit 99(1)
Amerada Hess Reports Estimated Results for the First Quarter of 2005
NEW YORK--(BUSINESS WIRE)--April 27, 2005--Amerada Hess
Corporation (NYSE:AHC) reported net income of $219 million for the
first quarter of 2005 compared with income of $281 million for the
first quarter of 2004. 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 the first quarter of 2005 and
2004 are as follows:
Three months ended
March 31 (unaudited)
---------------------------
2005 2004
------------- ------------
(In millions, except per
share amounts)
Exploration and production $263 $207
Refining and marketing 63 112
Corporate (69) (2)
Interest expense (38) (36)
------------- ------------
Net income $219 $281
============= ============
Net income per share (diluted) $2.12 $2.77
============= ============
Weighted average number of shares (diluted) 103.2 101.4
============= ============
Exploration and production earnings were $263 million in the first
quarter of 2005 compared with $207 million in the first quarter of
2004. Pre-tax exploration expenses increased by $55 million to $133
million in the first quarter of 2005, including $93 million of dry
hole costs associated with the Wembley and Diamondback deepwater Gulf
of Mexico wells. The Corporation's oil and gas production, on a
barrel-of-oil equivalent basis, was 358,000 barrels per day in the
first quarter of 2005, an increase of 3% from the first quarter of
2004. In the first quarter of 2005, the Corporation's average
worldwide crude oil selling price, including the effect of hedging,
was $31.31 per barrel, an increase of $4.48 per barrel from the first
quarter of 2004. The Corporation's average United States natural gas
selling price was $6.15 per Mcf in the first quarter of 2005, an
increase of $.95 per Mcf from the first quarter of 2004.
Refining and marketing earnings were $63 million in the first
quarter of 2005 compared with $112 million in the first quarter of
2004. The fluid catalytic cracking units at HOVENSA and Port Reading,
New Jersey were each shutdown for approximately 30 days for scheduled
maintenance in the first quarter of 2005. Refining earnings decreased
by $32 million, primarily as a result of these maintenance activities
and increased HOVENSA taxes. Lower gasoline margins reduced results
from retail gasoline operations and income from trading activities was
lower by $7 million.
The following items, on an after-tax basis, are included in net
income in the first quarter of 2005 and 2004 (in millions):
Three months ended
March 31
--------------------------
2005 2004
---------- ----------
Exploration and production
- ----------------------------
Gains from asset sales $11 $19
Legal settlement 11 -
Corporate
- ---------
Income tax adjustments (41) 13
---------- ----------
$(19) $32
========== ==========
First quarter results include a gain related to the exchange of a
mature North Sea oil field for an increased interest in the Pangkah
natural gas development in Indonesia. The legal settlement reflects
the favorable resolution of contingencies on a prior year asset sale.
The corporate tax charge represents the income tax provision related
to the repatriation of $1.3 billion of foreign earnings under the
American Jobs Creation Act of 2004.
Capital and exploratory expenditures in the first quarter of 2005
amounted to $483 million compared with $393 million in the first
quarter of 2004. Of these amounts, $454 million and $381 million in
the first quarter of 2005 and 2004, respectively, related to
exploration and production activities.
March 31 December 31
2005 2004
---------- -----------
(unaudited)
Balance Sheet Information
- -------------------------
Cash and short-term investments $844 $877
Other current assets 3,568 3,458
Investments 1,191 1,254
Property, plant and equipment - net 8,578 8,505
Other assets 2,735 2,218
---------- -----------
Total assets $16,916 $16,312
========== ===========
Current portion of long-term debt $50 $50
Other current liabilities 5,760 4,647
Long-term debt 3,776 3,785
Deferred liabilities and credits 2,304 2,233
Stockholders' equity, excluding other
comprehensive loss 6,825 6,621
Accumulated other comprehensive income
(loss) (1,799) (1,024)
---------- -----------
Total liabilities and stockholders'
equity $16,916 $16,312
========== ===========
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
First First Fourth
Quarter Quarter Quarter
2005 2004 2004
--------- --------- --------
Income Statement
- ----------------
Revenues and Non-operating Income
Sales and other operating revenues $ 4,957 $ 4,488 $ 4,612
Non-operating income
Gain on asset sales 18 19 32
Equity in income of HOVENSA L.L.C. 50 51 21
Other 45 4 32
--------- --------- --------
Total revenues and non-operating
income 5,070 4,562 4,697
--------- --------- --------
Costs and Expenses
Cost of products sold 3,628 3,288 3,321
Production expenses 225 187 239
Marketing expenses 197 177 200
Exploration expenses, including dry holes
and lease impairment 133 78 83
Other operating expenses 31 48 48
General and administrative expenses 85 76 90
Interest expense 61 57 62
Depreciation, depletion and amortization 254 226 275
--------- --------- --------
Total costs and expenses 4,614 4,137 4,318
--------- --------- --------
Income before income taxes 456 425 379
Provision for income taxes 237 144 150
--------- --------- --------
Net income $ 219 $ 281 $ 229
========= ========= ========
Preferred stock dividends 12 12 12
--------- --------- --------
Net income applicable to common
stockholders $ 207 $ 269 $ 217
========= ========= ========
Supplemental Income Statement Information
- ------------------------------------------
Foreign currency gains (losses),
after-tax $ 6 $ (8)$ (1)
Capitalized interest 14 16 13
Cash Flow Information
- ---------------------
Net cash provided by operating
activities (a) $ 461 $ 394 $ 254
Capital and Exploratory Expenditures
- ------------------------------------
Exploration and Production
United States $ 91 $ 139 $ 124
International 363 242 312
--------- --------- --------
Total Exploration and Production 454 381 436
Refining and Marketing 29 12 42
--------- --------- --------
Total Capital and Exploratory
Expenditures $ 483 $ 393 $ 478
========= ========= ========
Exploration expenses charged to income
included above
United States $ 8 $ 13 $ 32
International 8 16 17
--------- --------- --------
$ 16 $ 29 $ 49
========= ========= ========
(a) Includes changes in working capital
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS
(UNAUDITED)
(IN MILLIONS)
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
========== =========== ==========
First Quarter 2004
---------------------------------
United
States International Total
---------- ----------- ----------
Sales and other operating revenues $210 $658 $868
Non-operating income 3 9 12
---------- ----------- ----------
Total revenues 213 667 880
---------- ----------- ----------
Costs and expenses
Production expenses, including
related taxes 40 147 187
Exploration expenses, including dry
holes and lease impairment 38 40 78
General, administrative and other
expenses 17 19 36
Depreciation, depletion and
amortization 29 184 213
---------- ----------- ---------
Total costs and expenses 124 390 514
---------- ----------- ----------
Results of operations before income
taxes 89 277 366
Provision for income taxes 32 127 159
---------- ----------- ----------
Results of operations $57 $150 $207
========== =========== ==========
Fourth Quarter 2004
---------------------------------
United
States International Total
---------- ----------- ----------
Sales and other operating revenues $278 $651 $929
Non-operating income 28 19 47
---------- ----------- ----------
Total revenues 306 670 976
---------- ----------- ----------
Costs and expenses
Production expenses, including
related taxes 55 184 239
Exploration expenses, including dry
holes and lease impairment 35 48 83
General, administrative and other
expenses 8 28 36
Depreciation, depletion and
amortization 52 210 262
---------- ----------- ----------
Total costs and expenses 150 470 620
---------- ----------- ----------
Results of operations before income
taxes 156 200 356
Provision for income taxes 50 95 145
---------- ----------- ----------
Results of operations $106 $105 $211
========== =========== ==========
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)
First First Fourth
Quarter Quarter Quarter
2005 2004 2004
-------- -------- --------
Operating Data
- --------------
Net Production Per Day
- ----------------------
Crude Oil - barrels
United States 49 40 50
Europe 120 127 114
Africa, Asia and other 69 60 66
-------- -------- --------
Total 238 227 230
======== ======== ========
Natural gas liquids - barrels
United States 13 12 14
Europe 7 7 6
-------- -------- --------
Total 20 19 20
======== ======== ========
Natural gas - mcf
United States 165 183 178
Europe 336 333 316
Africa, Asia and other 103 86 82
-------- -------- --------
Total 604 602 576
======== ======== ========
Barrels of oil equivalent 358 346 346
======== ======== ========
Average Selling Price (including hedging)
- -----------------------------------------
Crude Oil - per barrel
United States $32.18 $25.49 $29.92
Europe 31.21 27.19 25.98
Africa, Asia and other 30.92 27.04 27.65
Natural gas liquids - per barrel
United States $32.83 $25.78 $33.31
Europe 31.69 21.22 37.15
Natural gas - per mcf
United States $6.15 $5.20 $5.83
Europe 5.41 4.34 4.42
Africa, Asia and other 3.93 3.72 4.19
Average Selling Price (excluding hedging)
- -----------------------------------------
Crude Oil - per barrel
United States $45.18 $33.55 $43.20
Europe 46.82 32.19 42.55
Africa, Asia and other 44.87 31.64 41.33
Natural gas liquids - per barrel
United States $32.83 $25.78 $33.31
Europe 31.69 21.22 37.15
Natural gas - per mcf
United States $6.15 $5.19 $6.08
Europe 5.41 4.34 4.42
Africa, Asia and other 3.93 3.72 4.19
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
HEDGED PRICES AND VOLUMES
WTI Brent
----------------- -----------------
Thousands Thousands
Average of Average of
Selling barrels Selling barrels
Maturity Price per day Price per day
- ----------------------------------- ----------------------------------
2005
2nd Quarter $33.28 28 $31.37 118
3rd Quarter 32.65 28 30.82 118
4th Quarter 32.16 28 30.37 118
2006 - - 28.10 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: In addition to the income statement effects of the open
hedge positions indicated above, the Corporation has after-tax
deferred realized losses of $144 million as of March 31 included in
other comprehensive income. These after-tax losses will reduce 2005
income as follows: second quarter - $51 million, third quarter - $48
million and fourth quarter - $45 million. There were no natural gas
hedges outstanding at March 31.
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
REFINING AND MARKETING SUPPLEMENTAL FINANCIAL AND OPERATING DATA
First First Fourth
Quarter Quarter Quarter
2005 2004 2004
-------- -------- --------
Financial Information (in millions)
- -----------------------------------
Refining and Marketing Earnings
- -------------------------------
Income before income taxes $ 102 $ 137 $ 139
Provision for income taxes 39 25 46
-------- -------- --------
Refining and Marketing Earnings $ 63 $ 112 $ 93
======== ======== ========
Summary of Refining and Marketing Earnings
- ------------------------------------------
Refining $ 42 $ 74 $ 36
Marketing 13 23 64
Trading 8 15 (7)
-------- -------- --------
Total Refining and Marketing Earnings $ 63 $ 112 $ 93
======== ======== ========
- ----------------------------------------------------------------------
Operating Data (in thousands unless noted)
- ------------------------------------------
Refined Product Sales (barrels per day)
- --------------------------------------
Gasoline 181 188 181
Distillates 166 178 152
Residuals 74 82 56
Other 41 35 41
-------- -------- --------
Total 462 483 430
======== ======== ========
Refinery Throughput (barrels per day)
- ------------------------------------
HOVENSA - Crude runs 449 495 472
HOVENSA - AHC 50% share 225 248 236
Port Reading 35 57 55
Refinery Utilization Refinery
Capacity
(barrels
HOVENSA per day)
Crude 500 89.8% 99.0% 94.4%
FCC 150 57.2%(a) 96.4% 86.2%
Coker 58 92.9% 99.8% 84.1%
Port Reading 62 56.5%(a) 91.9% 88.7%
Retail Marketing
- ----------------
Number of retail stations (b) 1,250 1,246 1,254
Convenience store revenue (in millions) (c) $ 218 $ 213 $ 228
Average gasoline volume per station
(gallons per month) (c) 195 183 194
(a) The fluid catalytic cracking units at HOVENSA and Port Reading
were each shutdown for approximately 30 days for scheduled
maintenance in the first quarter of 2005.
(b) Includes company operated, branded/dealer and Wilco-Hess.
(c) Company operated only.
CONTACT: Amerada Hess Corporation
J.R. Wilson, 212-536-8940