Hess Reports Estimated Results For The Second Quarter Of 2013

Hess Corporation (NYSE: HES) today reported net income of $1,431 million for the quarter ended June 30, 2013. Adjusted earnings, which excludes the gain on sale of our Russian subsidiary and other items affecting comparability, were $520 million or $1.51 per common share. Net cash provided by operating activities was $1,247 million in the second quarter.

After-tax income (loss) by major operating activity was as follows:
         
Three Months Ended Six Months Ended
June 30, (unaudited) June 30, (unaudited)
2013     2012 2013     2012

(In millions, except per share amounts)
Exploration and Production $ 1,533 $ 644 $ 2,819 $ 1,279
Corporate and Other   (113)   (107)   (223)   (209)
Net income from continuing operations 1,420 537 2,596 1,070
Discontinued operations - Downstream businesses   11   12   111   24
Net income attributable to Hess Corporation $ 1,431 $ 549 $ 2,707 $ 1,094
 
Net income per share (diluted):
Continuing operations $ 4.13 $ 1.58 $ 7.56 $ 3.14
Discontinued operations   0.03   0.03   0.32   0.07
Net income per share $ 4.16 $ 1.61 $ 7.88 $ 3.21
 
Weighted average number of shares (diluted)   344.0   340.4   343.4   340.4
 
Note: See page 5 for a table of items affecting comparability of earnings between periods.

E&P Performance On Track:Exploration and Production earnings were $1,533 million in the second quarter of 2013, compared with $644 million in the second quarter of 2012. Second quarter 2013 results included $933 million of income and second quarter 2012 results included an after-tax charge of $36 million from items affecting comparability of earnings. Oil and gas production of 341,000 barrels of oil equivalent per day in the quarter was down from 429,000 barrels of oil equivalent per day in the second quarter a year ago. The decrease in production primarily reflects the impact of asset sales in Russia, the United Kingdom North Sea and Azerbaijan, partially offset by an increase in Bakken production. The Corporation’s full year guidance remains 340,000 to 355,000 barrels of oil equivalent per day. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $97.89 per barrel, up from $86.86 per barrel in the same quarter a year ago. The average worldwide natural gas selling price was $6.44 per mcf in the second quarter of 2013, up from $5.94 per mcf in the second quarter of 2012.

Operational Highlights:

   Bakken: Net production from the Bakken oil shale play averaged 64,000 barrels of oil equivalent per day in the second quarter of 2013, an increase of 16 percent from the same period last year. Full year Bakken production guidance remains 64,000 to 70,000 barrels of oil equivalent per day. During the quarter, Hess brought 42 operated wells on production, bringing the year-to-date total to 72 wells. Drilling and completion costs per operated well averaged $8.4 million in the second quarter of 2013, an improvement of 28 percent versus last year’s second quarter.
 

   Utica: Ten wells were drilled, three wells were completed and three wells were flow tested during the quarter. Two of the wells tested were operated by Hess; one on the Corporation’s 100 percent-owned acreage and one on our CONSOL joint venture acreage. On our 100 percent-owned acreage, the Richland B 1H-34 well, in Belmont County, tested at a rate of 2,985 barrels of oil equivalent per day including 29 percent liquids. On our CONSOL joint venture acreage, the Cadiz 1H-23 well, in Harrison County, tested at a rate of 2,250 barrels of oil equivalent per day including 57 percent liquids.
 

   Tubular Bells: During the second quarter of 2013, the Corporation completed drilling the second production well, spud the third production well and continued facilities construction. First oil from this development in the deepwater Gulf of Mexico is anticipated in mid-2014.
 

   Valhall: Net production averaged 13,000 barrels of oil equivalent per day in the second quarter of 2013, compared with 23,000 barrels of oil equivalent per day in the same period last year. After completing a planned maintenance shutdown in June, the Valhall field restarted on July 1 and production is expected to ramp up in the third quarter of 2013 as new wells are brought online. Full year 2013 net production guidance for Valhall is expected to be at the lower end of the range of 24,000 to 28,000 barrels of oil equivalent per day.
 

   North Malay Basin: Development activities on the early production system are progressing and the project is on track to achieve first production in the fourth quarter of 2013. During the second quarter, the jacket and topsides were installed and the Floating, Production, Storage and Offloading vessel arrived on-location. The five well development drilling program commenced in June 2013 and is expected to be completed by the end of the year.
 

   Ghana: In the second quarter, Hess submitted appraisal plans to the government for the Deepwater Tano Cape Three Points Block. The government is currently reviewing the plans and Hess is awaiting final approval.
 

Capital and Exploratory Expenditures:Capital and exploratory expenditures in the second quarter of 2013 were $1,613 million, of which $1,571 million related to Exploration and Production operations including $546 million invested in the Bakken. Capital and exploratory expenditures for the second quarter of 2012 were $2,078 million, of which $2,036 million related to Exploration and Production operations including $826 million for the Bakken. Full year 2013 capital and exploratory expenditures guidance remains $6.8 billion, which is down approximately 18 percent from 2012 levels.

Asset Sales Program:In 2013, the Corporation completed the sale of its subsidiary in Russia and its interests in the Beryl area fields in the United Kingdom North Sea, the Azeri-Chirag-Guneshli fields offshore Azerbaijan and the Eagle Ford assets in Texas. Total proceeds from these sales were $3.5 billion. In addition, the Corporation announced this week the sale of its Energy Marketing business to Direct Energy for $1.025 billion. The remaining divestiture processes for our upstream assets in Indonesia and Thailand, as well as our downstream terminals, retail, and trading businesses are well underway.

Enhancing Liquidity:Net cash provided by operating activities was $1,247 million in the second quarter of 2013, compared with $1,240 million in the same quarter of 2012. At June 30, 2013, cash and cash equivalents totaled $725 million, compared with $642 million at December 31, 2012. Total debt of $5,800 million at June 30, 2013 is down 28 percent from $8,111 million at December 31, 2012. The Corporation’s debt to capitalization ratio at June 30, 2013 was 19.5 percent, compared with 27.7 percent at the end of 2012.

Returning Capital to Shareholders:As previously announced, the Corporation plans to increase its returns to shareholders through a 150 percent increase in the annual dividend to $1 per common share commencing in the third quarter of 2013 and a share repurchase plan of up to $4 billion. The announcement this week that the Corporation will sell its Energy Marketing business for $1.025 billion now puts the company in a position to commence the share repurchase program. The Corporation also plans to monetize its Bakken infrastructure assets by 2015 and return additional cash to shareholders.

Discontinued Operations – Downstream Businesses:The downstream businesses, comprised of retail, energy marketing, refining and energy trading, reported income of $11 million in the second quarter of 2013, compared with $12 million in the same period in 2012. Second quarter 2013 results included additional employee severance charges and Port Reading refinery shutdown costs. Excluding these expenses, downstream income increased primarily reflecting improved trading results and higher earnings in energy marketing.

Items Affecting Comparability of Earnings Between Periods:The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:
             
Three Months Ended Six Months Ended
June 30, (unaudited) June 30, (unaudited)
2013     2012

2013
    2012

(In millions)
Exploration and Production $ 933 $ (36) $ 1,521 $         -
Corporate and Other  

(1)
  -   (12)           -
Total items affecting comparability of earnings
from continuing operations 932 (36) 1,509 -
Discontinued operations - Downstream businesses   (21)   -   9           -
Total items affecting comparability of earnings
between periods $ 911 $ (36) $ 1,518 $         -
 

Second quarter 2013 Exploration and Production earnings included a nontaxable gain of $951 million related to the sale of the Corporation’s 90 percent interest in its Russian subsidiary, Samara-Nafta. In addition, second quarter income from continuing operations included after-tax charges totaling $19 million for employee severance and exit costs.

Second quarter 2013 results for the downstream businesses included after-tax charges totaling $21 million for employee severance related to the Corporation’s planned exit from its downstream businesses and costs to idle refinery equipment at the Port Reading refining facility.

Reconciliation of Reported Net Income to Adjusted Earnings:The following table reconciles reported Net income attributable to Hess Corporation (U.S. GAAP) and adjusted earnings:
           
Three Months Ended Six Months Ended
June 30, (unaudited) June 30, (unaudited)
2013     2012 2013     2012
(In millions)
Net income attributable to Hess Corporation $ 1,431 $ 549 $ 2,707 $ 1,094
Less: Total items affecting comparability of earnings
between periods   911   (36)   1,518   -
Adjusted earnings $ 520 $ 585 $ 1,189 $ 1,094
 

Hess Corporation will review second 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 is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. 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)
 
Second Second First
Quarter Quarter Quarter
2013 2012 2013

Income Statement
Revenues and Non-operating Income
Sales and other operating revenues $ 3,011 $ 3,324 $ 3,466

Gains on asset sales
1,111 - 688
Other, net   (17)   (3)   (37)
 
Total revenues and non-operating income   4,105   3,321   4,117
 
Costs and Expenses
Cost of products sold (excluding items shown separately below) 421 332 596
Operating costs and expenses 510 550 585
Production and severance taxes 97 127 130
Exploration expenses, including dry holes and lease impairment 200 196 219
General and administrative expenses 167 144 149
Interest expense 99 105 106
Depreciation, depletion and amortization 613 746 679
Asset impairments   -   59   -
 
Total costs and expenses   2,107   2,259   2,464
 
Income from continuing operations before income taxes 1,998 1,062 1,653
Provision for income taxes   409   522   470
 
Income from continuing operations 1,589 540 1,183
Income (loss) from discontinued operations   27   (5)   90
 
Net income 1,616 535 1,273
Less: Net income (loss) attributable to noncontrolling interests   185   (14)   (3)
Net income attributable to Hess Corporation $ 1,431 $ 549 $ 1,276
 

Cash Flow Information
Cash provided by operating activities from continuing operations $ 1,211 $ 1,210 $ 786
Cash provided by operating activities from discontinued operations   36   30   33
Net cash provided by operating activities (a) $ 1,247 $ 1,240 $ 819
 

Cash provided by (used in) investing activities from continuing operations
$ 962 $ (1,953) $ (249)

Cash provided by (used in) investing activities from discontinued operations
  (26)   (40)   (12)
Net cash provided by (used in) investing activities $ 936 $ (1,993) $ (261)
 
Cash provided by (used in) financing activities from continuing operations $ (1,893) $ 769 $ (756)
Cash provided by (used in) financing activities from discontinued operations   (9)   (3)   -
Net cash provided by (used in) financing activities $ (1,902) $ 766 $ (756)
 
Net increase (decrease) in cash and cash equivalents $ 281 $ 13 $ (198)
 
(a)   Includes changes in working capital.
       

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)
 
First Half
2013 2012

Income Statement
Revenues and Non-operating Income
Sales and other operating revenues $ 6,477 $ 6,220
Gains on asset sales 1,799 36
Other, net   (54)   26
 
Total revenues and non-operating income   8,222   6,282
 
Costs and Expenses

Cost of products sold (excluding items shown separately below)
1,017 602
Operating costs and expenses 1,095 1,085
Production and severance taxes 227 265
Exploration expenses, including dry holes and lease impairment 419 449
General and administrative expenses 316 276
Interest expense 205 209
Depreciation, depletion and amortization 1,292 1,408
Asset impairments   -   59
 
Total costs and expenses   4,571   4,353
 
Income from continuing operations before income taxes 3,651 1,929
Provision for income taxes   879   850
 
Income from continuing operations 2,772 1,079
Income (loss) from discontinued operations   117   16
 
Net income 2,889 1,095
Less: Net income (loss) attributable to noncontrolling interests   182   1
Net income attributable to Hess Corporation $ 2,707 $ 1,094
 

Cash Flow Information
Cash provided by operating activities from continuing operations $ 1,997 $ 2,177
Cash provided by operating activities from discontinued operations   69   51
Net cash provided by operating activities (a) $ 2,066 $ 2,228
 

Cash provided by (used in) investing activities from continuing operations
$ 713 $ (3,703)

Cash provided by (used in) investing activities from discontinued operations
  (38)   (62)
Net cash provided by (used in) investing activities $ 675 $ (3,765)
 
Cash provided by (used in) financing activities from continuing operations $ (2,649) $ 1,598
Cash provided by (used in) financing activities from discontinued operations   (9)   (3)
Net cash provided by (used in) financing activities $ (2,658) $ 1,595
 
Net increase in cash and cash equivalents $ 83 $ 58
 
(a)   Includes changes in working capital.
         

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)
 

    June 30,    
December 31,
2013 2012

Balance Sheet Information
 
Cash and cash equivalents $ 725 $ 642
Assets held for sale 5,880 1,092
Other current assets 3,387 6,653
Investments 380 443
Property, plant and equipment – net 26,170 28,807
Other long-term assets   4,886   5,804
Total assets $ 41,428 $ 43,441
 
Short-term debt and current maturities of long-term debt $ 354 $ 787
Liabilities associated with assets held for sale 2,664 539
Other current liabilities 3,715 7,056
Long-term debt 5,446 7,324
Other long-term liabilities 5,276 6,532
Total equity excluding other comprehensive income (loss) 24,392 21,696
Accumulated other comprehensive income (loss)   (419)   (493)
Total liabilities and equity $ 41,428 $ 43,441
 
           
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
 
Second Second First
Quarter Quarter Quarter
2013 2012 2013

Capital and Exploratory Expenditures
Exploration and Production
United States
Bakken $ 546 $ 826 $ 535
Other Onshore   195   208   176
Total Onshore 741 1,034 711
Offshore   217   209   228
Total United States   958   1,243   939
Europe 172 307 219
Africa 163 162 229
Asia and other   278   324   226
Total Exploration and Production 1,571 2,036 1,613
Other   42   42   18

Total Capital and Exploratory Expenditures
$ 1,613 $ 2,078 $ 1,631
 
Total exploration expenses charged to income included above $ 113 $ 100 $ 110
 

First Half

2013

2012

Capital and Exploratory Expenditures
Exploration and Production
United States
Bakken

$

1,081

$

1,678
Other Onshore

 

371

 

425
Total Onshore

 

1,452

 

2,103
Offshore

 

445

 

381
Total United States

 

1,897

 

2,484
Europe

 

391

 

605
Africa

 

392

 

315
Asia and other

 

504

 

595
Total Exploration and Production

 

3,184

 

3,999
Other

 

60

 

65
Total Capital and Exploratory Expenditures

$

3,244

$

4,064
 
Total exploration expenses charged to income included above

$

223

$

208
 
   
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 
Second Quarter 2013
United States     International     Total
 
Sales and other operating revenues $ 1,517 $ 1,494 $ 3,011
Gains (losses) on asset sales (17) 1,128 1,111
Other, net   (4)   (14)   (18)
 
Total revenues and non-operating income   1,496   2,608   4,104
 
Costs and Expenses
Cost of products sold (excluding items shown separately below) 371 50 421
Operating costs and expenses 200 310 510
Production and severance taxes 55 42 97
Exploration expenses, including dry holes and lease impairment 63 137 200
General and administrative expenses 47 40 87
Depreciation, depletion and amortization   335   274   609
 
Total costs and expenses   1,071   853   1,924
 
Results of operations before income taxes 425 1,755 2,180
Provision for income taxes   171   307   478
 
Net income 254 1,448 1,702
Less: Net income attributable to noncontrolling interests   -   169   169
 
Net income attributable to Hess Corporation $ 254 (a) $ 1,279 (b) $ 1,533
 
Second Quarter 2012
United States International Total
 
Sales and other operating revenues $ 1,335 $ 1,989 $ 3,324
Other, net   1   -   1
 
Total revenues and non-operating income   1,336   1,989   3,325
 
Costs and Expenses
Cost of products sold (excluding items shown separately below) 292 40 332
Operating costs and expenses 206 344 550
Production and severance taxes 47 80 127
Exploration expenses, including dry holes and lease impairment 75 121 196
General and administrative expenses 50 29 79
Depreciation, depletion and amortization 335 408 743
Asset impairments   59   -   59
 
Total costs and expenses   1,064   1,022   2,086
 
Results of operations before income taxes 272 967 1,239
Provision for income taxes   112   480   592
 
Net income 160 487 647
Less: Net income attributable to noncontrolling interests   -   3   3
 
Net income attributable to Hess Corporation $ 160 (a) $ 484 (b) $ 644
 
(a)   The after-tax realized gains from crude oil hedging activities were $13 million in the second quarter of 2013 and losses of $3 million in the second quarter of 2012.
 
(b) The after-tax realized gains from crude oil hedging activities were $20 million in the second quarter of 2013 and losses of $86 million in the second quarter of 2012.
   

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)
 
First Quarter 2013
United States     International     Total
 
Sales and other operating revenues $ 1,691 $ 1,775 $ 3,466
Gains (losses) on asset sales - 688 688
Other, net   (6)   (29)   (35)
 
Total revenues and non-operating income   1,685   2,434   4,119
 
Costs and Expenses
Cost of products sold (excluding items shown separately below) 577 19 596
Operating costs and expenses 191 394 585
Production and severance taxes 57 73 130
Exploration expenses, including dry holes and lease impairment 108 111 219
General and administrative expenses 41 44 85
Depreciation, depletion and amortization   365   311   676
 
Total costs and expenses   1,339   952   2,291
 
Results of operations before income taxes 346 1,482 1,828
Provision for income taxes   145   390   535
 
Net income 201 1,092 1,293
Less: Net income attributable to noncontrolling interests   -   7   7
 
Net income attributable to Hess Corporation $ 201 (a) $ 1,085 (b) $ 1,286
 
(a)   The after-tax realized losses from crude oil hedging activities were $4 million in the first quarter of 2013.
 
(b) The after-tax realized losses from crude oil hedging activities were $7 million in the first quarter of 2013.
   
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 
First Half 2013
United States     International     Total
 
Sales and other operating revenues $ 3,208 $ 3,269 $ 6,477
Gains (losses) on asset sales (17) 1,816 1,799
Other, net   (10)   (43)   (53)
 
Total revenues and non-operating income   3,181   5,042   8,223
 
Costs and Expenses
Cost of products sold (excluding items shown separately below) 948 69 1,017
Operating costs and expenses 391 704 1,095
Production and severance taxes 112 115 227
Exploration expenses, including dry holes and lease impairment 171 248 419
General and administrative expenses 88 84 172
Depreciation, depletion and amortization   700   585   1,285
 
Total costs and expenses   2,410   1,805   4,215
 
Results of operations before income taxes 771 3,237 4,008
Provision for income taxes   316   697   1,013
 
Net income 455 2,540 2,995
Less: Net income attributable to noncontrolling interests   -   176   176
 
Net income attributable to Hess Corporation $ 455 (a) $ 2,364 (b) $ 2,819
 
First Half 2012
United States International Total
 
Sales and other operating revenues $ 2,542 $ 3,678 $ 6,220
Gains (losses) on asset sales - 36 36
Other, net   1   27   28
 
Total revenues and non-operating income   2,543   3,741   6,284
 
Costs and Expenses
Cost of products sold (excluding items shown separately below) 576 26 602
Operating costs and expenses 394 691 1,085
Production and severance taxes 90 175 265
Exploration expenses, including dry holes and lease impairment 153 296 449
General and administrative expenses 88 56 144
Depreciation, depletion and amortization 614 788 1,402
Asset impairments   59   -   59
 
Total costs and expenses   1,974   2,032   4,006
 
Results of operations before income taxes 569 1,709 2,278
Provision for income taxes   222   768   990
 
Net income 347 941 1,288
Less: Net income attributable to noncontrolling interests   -   9   9
 
Net income attributable to Hess Corporation $ 347 (a) $ 932 (b) $ 1,279
 
(a)   The after-tax realized gains from crude oil hedging activities were $9 million in the first half of 2013 and losses of $29 million in the first half of 2012.
 
(b) The after-tax realized gains from crude oil hedging activities were $13 million in the first half of 2013 and losses of $211 million in the first half of 2012.
           
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
Second Second First
Quarter Quarter Quarter
2013 2012 2013

Operating Data

Net Production Per Day (in thousands)
Crude oil - barrels

United States
Bakken 52 47 53
Other Onshore 11 13 13
Total Onshore 63 60 66
Offshore 48 49 47
Total United States 111 109 113
 
Europe 33 98 65
Africa 73 79 78
Asia 9 18 16
Total 226 304 272
 
Natural gas liquids - barrels
United States
Bakken 6 4 6
Other Onshore 4 5 4
Total Onshore 10 9 10
Offshore 6 6 7
Total United States 16 15 17
 
Europe 1 3 -
Asia 1 1 1
Total 18 19 18
 
Natural gas - mcf
United States
Bakken 39 23 34
Other Onshore 27 26 27
Total Onshore 66 49 61
Offshore 75 72 72
Total United States 141 121 133
 
Europe 15 53 13
Asia and other 427 465 447
Total 583 639 593
 
Barrels of oil equivalent 341 429 389
 
   
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
First Half
2013     2012

Operating Data

Net Production Per Day (in thousands)
Crude oil - barrels
United States
Bakken 52 42
Other Onshore 12 13
Total Onshore 64 55
Offshore 48 47
Total United States 112 102
 
Europe 49 96
Africa 75 75
Asia 13 17
Total 249 290
 
Natural gas liquids - barrels
United States
Bakken 6 3
Other Onshore 4 6
Total Onshore 10 9
Offshore 7 6
Total United States 17 15
 
Europe - 3
Asia 1 1
Total 18 19
 
Natural gas - mcf
United States
Bakken 37 20
Other Onshore 27 25
Total Onshore 64 45
Offshore 73 65
Total United States 137 110
 
Europe 14 57
Asia and other 437 458
Total 588 625
 
Barrels of oil equivalent 365 413
 
           
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
Second Second First
Quarter Quarter Quarter
2013 2012 2013
 

Sales Volumes Per Day (in thousands)
Crude oil - barrels 233 312 275
Natural gas liquids - barrels 18 18 18
Natural gas - mcf 582 641 596
Barrels of oil equivalent 347 437 393
 

Sales Volumes (in thousands)
Crude oil - barrels 21,180 28,373 24,767
Natural gas liquids - barrels 1,593 1,639 1,647
Natural gas - mcf 52,969 58,315 53,662
Barrels of oil equivalent 31,601 39,732 35,358
 
First Half
2013 2012
 

Sales Volumes Per Day (in thousands)
Crude oil - barrels 254 282
Natural gas liquids - barrels 18 19
Natural gas - mcf 589 625
Barrels of oil equivalent 370 405
 

Sales Volumes (in thousands)
Crude oil - barrels 45,947 51,425
Natural gas liquids - barrels 3,240 3,394
Natural gas - mcf 106,631 113,757
Barrels of oil equivalent 66,959 73,779
 
           

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
Second Second First
Quarter Quarter Quarter
2013 2012 2013

Operating Data

Average Selling Prices
Crude oil - per barrel (including hedging)
United States
Onshore $ 89.97 $ 83.09 $ 89.46
Offshore 106.71 102.83 107.52
Total United States 97.20 91.97 97.03
 
Europe 77.14 76.20 63.51
Africa 106.15 89.01 109.81
Asia 105.27 105.89 110.70
Worldwide 97.89 86.86 94.50
 
Crude oil - per barrel (excluding hedging)
United States
Onshore $ 88.91 $ 83.28 $ 89.82
Offshore 103.43 103.72 108.70
Total United States 95.18 92.48 97.74
 
Europe 75.22 76.58 63.69
Africa 102.78 105.72 111.18
Asia 105.27 106.17 110.70
Worldwide 95.45 91.83 95.24
 
Natural gas liquids - per barrel
United States
Onshore $ 38.84 $ 43.80 $ 43.47
Offshore 27.81 36.43 27.79
Total United States 34.57 40.75 37.29
 
Europe 53.16 66.15 45.77
Asia 66.90 75.16 79.44
Worldwide 36.28 45.56 38.67
 
Natural gas - per mcf
United States
Onshore $ 3.19 $ 1.50 $ 2.86
Offshore 3.17 1.59 2.54
Total United States 3.18 1.55 2.69
 
Europe 9.99 9.98 7.98
Asia and other 7.39 6.61 7.75
Worldwide 6.44 5.94 6.62
 
   
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
First Half
2013     2012

Operating Data

Average Selling Prices
Crude oil - per barrel (including hedging)
United States
Onshore $ 89.71 $ 85.59
Offshore 107.11 103.26
Total United States 97.12 93.81
 
Europe 68.37 78.05
Africa 107.94 88.91
Asia 109.30 110.70
Worldwide 96.08 88.23
 
Crude oil - per barrel (excluding hedging)
United States
Onshore $ 89.37 $ 86.99
Offshore 106.03 107.20
Total United States 96.46 96.39
 
Europe 67.80 79.45
Africa 106.88 111.78
Asia 109.30 113.67
Worldwide 95.34 95.72
 
Natural gas liquids - per barrel
United States
Onshore $ 41.21 $ 48.06
Offshore 27.80 40.16
Total United States 35.97 44.92
 
Europe 52.58 81.20
Asia 72.68 82.02
Worldwide 37.49 52.78
 
Natural gas - per mcf
United States
Onshore $ 3.03 $ 1.66
Offshore 2.86 1.63
Total United States 2.94 1.64
 
Europe 9.08 9.69
Asia and other 7.57 6.69
Worldwide 6.53 6.08
 
           
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
DISCONTINUED OPERATIONS SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
 
Second Second First
Quarter Quarter Quarter
2013 2012 2013

Discontinued Operations - Financial Information
 

Downstream Businesses Results
Income (loss) before income taxes $ 15 $ 11 $ 154
Provision (benefit) for income taxes   4   (1)   54
Results of operations attributable to Hess Corporation $ 11 $ 12 $ 100
 

Summary of Downstream Businesses Results
Marketing $ 11 $ 22 $ 42
Refining (10) 8 65
Trading   10   (18)   (7)
Results of operations attributable to Hess Corporation $ 11 $ 12 $ 100
 

Items Affecting Comparability of Earnings Between Periods
Gain on LIFO inventory liquidations $ - $ - $ 137
Port Reading refinery shutdown costs (8) - (64)
Employee severance   (13)   -   (43)
Total items affecting comparability of earnings $ (21) $ - $ 30
 
First Half
2013 2012

Discontinued Operations - Financial Information
 

Downstream Businesses Results
Income (loss) before income taxes $ 169 $ 32
Provision (benefit) for income taxes   58   8
Results of operations attributable to Hess Corporation $ 111 $ 24
 

Summary of Downstream Businesses Results
Marketing $ 53 $ 45
Refining 55 2
Trading   3   (23)
Results of operations attributable to Hess Corporation $ 111 $ 24
 

Items Affecting Comparability of Earnings Between Periods
Gain on LIFO inventory liquidations $ 137 $ -
Port Reading refinery shutdown costs (72) -
Employee severance   (56)   -

Total items affecting comparability of earnings
$ 9 $ -
 

Copyright Business Wire 2010

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