Hess Corporation (NYSE: HES) reported net income of $566 million for the fourth quarter of 2012, compared with a net loss of $131 million for the fourth quarter of 2011.
The after-tax income (loss) by major operating activity was as follows:
|Three Months Ended||Years Ended|
|December 31, (unaudited)||December 31, (unaudited)|
|(In millions, except per share amounts)|
|Exploration and Production||$||517||$||527||$||2,404||$||2,675|
|Marketing and Refining||159||(561)||231||(584)|
|Net income (loss) attributable to Hess Corporation||$||566||$||(131)||$||2,217||$||1,703|
|Net income (loss) per share (diluted)||$||1.66||$||(.39)||$||6.52||$||5.01|
|Weighted average number of shares (diluted)||340.5||337.5||340.3||339.9|
Note: See page 3 for a table of items affecting comparability of earnings between periods.
Exploration and Production earnings were $517 million in the fourth quarter of 2012, compared with $527 million in the fourth quarter of 2011. Fourth quarter oil and gas production was 396,000 barrels of oil equivalent per day, up from 367,000 barrels of oil equivalent per day in the fourth quarter a year ago, primarily reflecting an increase in production from the Bakken oil shale play and the resumption of operations in Libya, partly offset by the shut-in of the Valhall Field in Norway for the quarter due to the redevelopment project. Net production from the Bakken oil shale play averaged 64,000 barrels of oil equivalent per day in the fourth quarter of 2012, an increase of 68% from 38,000 barrels of oil equivalent per day in the same period last year. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $84.46 per barrel, down from $89.70 per barrel in the same quarter a year ago. The average worldwide natural gas selling price was $6.60 per mcf in the fourth quarter of 2012, up from $6.32 per mcf in the fourth quarter of 2011. Fourth quarter 2012 exploration expenses included total dry hole expenses of $167 million ($102 million after-tax), primarily associated with two exploration wells, Ness Deep in the Gulf of Mexico and Ajek-1 offshore, Indonesia.