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Hess Reports Estimated Results For The First Quarter Of 2012

Stocks in this article: HES

Net cash provided by operating activities was $988 million in the first quarter of 2012, compared with $1,135 million in the same quarter of 2011. Capital and exploratory expenditures were $1,986 million, of which $1,963 million related to Exploration and Production operations. Capital and exploratory expenditures for the first quarter of 2011 were $1,186 million, of which $1,173 million related to Exploration and Production operations.

At March 31, 2012, cash and cash equivalents totaled $396 million compared with $351 million at December 31, 2011. Total debt was $6,978 million at March 31, 2012 and $6,057 million at December 31, 2011. The Corporation’s debt to capitalization ratio at March 31, 2012 was 26.7 percent compared with 24.6 percent at the end of 2011.

Hess Corporation will review first quarter financial and operating results and other matters on a webcast at 10 a.m. today. For details about the event, refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation, with headquarters in New York, is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. 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.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS OF DOLLARS)

             

First  Quarter  2012

First  Quarter  2011

Fourth  Quarter  2011

Income Statement

 

Revenues and Non-operating Income
Sales (excluding excise taxes) and other operating revenues

$

    9,682

$

   10,215

$

    9,733

Income (loss) from equity investment in HOVENSA L.L.C. - (48) (940)
Other, net   65   348   31
 
Total revenues and non-operating income   9,747   10,515   8,824
 
Costs and Expenses
Cost of products sold (excluding items shown separately below) 6,679 7,040 6,712
Production expenses 673 531 613
Marketing expenses 251 283 273
Exploration expenses, including dry holes and lease impairment 253 313 426
Other operating expenses 41 42 44
General and administrative expenses 167 164 187
Interest expense 104 99 93
Depreciation, depletion and amortization   681   558   674
 
Total costs and expenses   8,849   9,030   9,022
 
Income (loss) before income taxes 898 1,485 (198)
Provision (benefit) for income taxes   338   511   (64)
 
Net income (loss) 560 974 (134)
Less: Net income (loss) attributable to noncontrolling interests   15   45   (3)
Net income (loss) attributable to Hess Corporation

$

      545

$

      929

$

    (131)

 

Supplemental Income Statement Information

Foreign currency gains (losses), after-tax

$

        9

$

      (3)

$

      (8)

Capitalized interest 5 2 5
 

Cash Flow Information

Net cash provided by operating activities (a)

$

      988

(b)

$

    1,135

$

    1,138

 

Capital and Exploratory Expenditures

Exploration and Production
United States

$

    1,241

$

      540

$

    1,372

International   722   633   813
 
Total Exploration and Production 1,963 1,173 2,185
Marketing, Refining and Corporate   23   13   51
 
Total Capital and Exploratory Expenditures

$

    1,986

$

    1,186

$

    2,236

 
Exploration expenses charged to income included above
United States

$

       37

$

       42

$

       51

International   71   62   70
 

$

      108

$

      104

$

      121

(a)

 

Includes changes in working capital.

(b)

Net of payments to HOVENSA L.L.C. totaling $487 million to fully fund our share of previously accrued refining shutdown

costs.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS OF DOLLARS)

                                 

     March 31,     2012

December 31,2011

Balance Sheet Information

 
Cash and cash equivalents

$

        396

$

        351

Other current assets 7,816 7,988
Investments 415 384
Property, plant and equipment – net 26,052 24,712
Other long-term assets   5,968   5,701
Total assets

$

     40,647

$

     39,136

 
Short-term debt and current maturities of long-term debt

$

         38

$

         52

Other current liabilities 8,153 8,048
Long-term debt 6,940 6,005
Other long-term liabilities 6,359 6,439
Total equity excluding other comprehensive income (loss) 20,214 19,659
Accumulated other comprehensive income (loss)   (1,057)   (1,067)
Total liabilities and equity

$

     40,647

$

     39,136

 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS OF DOLLARS)

     

First Quarter 2012

United    States    

  International  

    Total    

 
Sales and other operating revenues

$

          923

$

1,697

$

2,620

Other, net   -   63   63
 
Total revenues and non-operating income   923   1,760   2,683
Costs and expenses
Production expenses, including related taxes 231 442 673
Exploration expenses, including dry holes and lease impairment 78 175 253
General, administrative and other expenses 38 27 65
Depreciation, depletion and amortization   279   380   659
 
Total costs and expenses   626   1,024   1,650
 
Results of operations before income taxes 297 736 1,033
Provision (benefit) for income taxes   110   288   398
 
Results of operations attributable to Hess Corporation

$

          187

(a)

$

448

(b)

$

        635

 
First Quarter 2011
UnitedStates International Total
 
Sales and other operating revenues

$

          746

$

1,867

$

      2,613

Other, net   (1)   345   344
 
Total revenues and non-operating income   745   2,212   2,957
Costs and expenses
Production expenses, including related taxes 137 394 531
Exploration expenses, including dry holes and lease impairment 109 204 313
General, administrative and other expenses 48 36 84
Depreciation, depletion and amortization   152   385   537
 
Total costs and expenses   446   1,019   1,465
 
Results of operations before income taxes 299 1,193 1,492
Provision (benefit) for income taxes   112   401   513
 
Results of operations attributable to Hess Corporation

$

          187

$

792

(b)

$

        979

 
Fourth Quarter 2011
UnitedStates International Total
 
Sales and other operating revenues

$

          937

$

 1,662

$

      2,599

Other, net   3   25   28
 
Total revenues and non-operating income   940   1,687   2,627
Costs and expenses
Production expenses, including related taxes 170 443 613
Exploration expenses, including dry holes and lease impairment 118 308 426
General, administrative and other expenses 49 33 82
Depreciation, depletion and amortization   273   378   651
 
Total costs and expenses   610   1,162   1,772
 
Results of operations before income taxes 330 525 855
Provision (benefit) for income taxes   130   198   328
 
Results of operations attributable to Hess Corporation

$

          200

$

         327

(b)

$

        527

(a)

 

The after-tax losses from crude oil hedging activities were $26 million.

(b)

The after-tax losses from crude oil hedging activities were $125 million in the first quarter of 2012, $81 million in the first quarter of 2011 and $83 million in the fourth quarter of 2011.

 
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)

             

First  Quarter  2012

First  Quarter  2011

Fourth  Quarter  2011

Operating Data

Net Production Per Day (in thousands)

Crude oil - barrels
United States 95 77 89
Europe 94 99 95
Africa (a) 71 84 54
Asia   16   14   13
Total   276   274   251
 
Natural gas liquids - barrels
United States 14 13 13
Europe 3 4 4
Asia   2   1   1
Total   19   18   18
 
Natural gas - mcf
United States 100 106 90
Europe 61 107 92
Asia and other   449   430   408
Total   610   643   590
Barrels of oil equivalent   397   399   367
 

Average Selling Price

Crude oil - per barrel (including hedging)
United States $ 95.92 $ 91.56 $ 100.76
Europe 80.18 84.17 77.18
Africa 88.75 82.32 85.49
Asia 117.13 110.80 111.08
Worldwide 89.92 87.22 89.70
 
Crude oil - per barrel (excluding hedging)
United States $ 100.87 $ 91.56 $ 100.76
Europe 82.77 84.17 77.18
Africa 120.59 102.58 109.28
Asia 123.72 110.80 111.08
Worldwide 100.50 92.35 95.16
 
Natural gas liquids - per barrel
United States $ 49.26 $ 57.31 $ 57.86
Europe 90.43 80.29 66.47
Asia 86.50 73.35 66.18
Worldwide 59.53 63.45 59.81
 
Natural gas - per mcf
United States $ 1.75 $ 3.82 $ 2.50
Europe 9.44 8.25 8.88
Asia and other 6.77 5.75 6.57
Worldwide 6.23 5.84 6.32
 
(a) Includes Libyan production of 18 thousand barrels of oil per day (bopd) in the first quarter of 2012, 14 thousand bopd in the first quarter of 2011 and 2 thousand bopd in the fourth quarter of 2011.
 

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED)

             

First  Quarter  2012

First  Quarter  2011

Fourth  Quarter  2011

Financial Information (in millions of dollars)

 

Marketing and Refining Results

Income (loss) before income taxes $ 20 $ 96 $ (885)
Provision (benefit) for income taxes   9   57   (324)
Results of operations attributable to Hess Corporation $ 11 $ 39 $ (561)
 

Summary of Marketing and Refining Results

Marketing $ 22 $ 68 $ 48
Refining (6) (48) (598)
Trading   (5)   19   (11)
Results of operations attributable to Hess Corporation $ 11 $ 39 $ (561)
                                 
 

Operating Data

 

Sales Volumes

Refined petroleum products (thousands of barrels per day)
Gasoline 210 226 214
Distillates 115 134 143
Residuals 61 87 65
Other   18   20   19
Total   404   467   441
 
Natural gas (thousands of mcf per day)   2,560 2,875 2,170
 
Electricity (megawatts round the clock)   4,350 4,345 4,110
 

Retail Marketing

Number of retail stations (a) 1,361 1,350 1,360
Convenience store revenue (in millions of dollars) (b) $ 272 $ 278 $ 290
Average gasoline volume per station (thousands of gallons per month) (b) 185 185 195

 

Port Reading

Refinery throughput (thousands of barrels per day) 47 66 58
Refinery utilization (capacity - 70,000 barrels per day) 67.4 % 94.0 % 82.9 %
(a) Includes company operated, Wilco-Hess, dealer and branded retailer.
(b) Company operated only.




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