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Hess Reports Estimated Results for the Second Quarter of 2012

25.07.2012  |  Business Wire

Second Quarter Highlights:

  • Net income was $549 million, compared with $607 million in the
    second quarter of 2011
  • Oil and gas production increased to 429,000 barrels of oil
    equivalent
    per day, up from 372,000 in the second
    quarter of 2011
  • Oil and gas production from the Bakken increased to 55,000
    barrels of oil equivalent per day, up from 25,000 in the second
    quarter of 2011
  • Net cash provided by operating activities was $1,240 million,
    compared with $1,689 million in the second quarter of 2011


Hess Corporation (NYSE: HES) reported net income of $549 ?million for the
second quarter of 2012, compared with $607 million for the second
quarter of 2011. The after-tax income (loss) by major operating activity
was as follows:


 ?

 ?

 ?

 ?

 ?

Three Months Ended

Six Months Ended

June 30, (unaudited)

June 30, (unaudited)

2012

 ?

2011

2012

 ?

2011

(In millions, except per share amounts)

Exploration and Production

$

 ?

644

$

 ?

747

$

 ?

1,279

$

 ?

1,726

Marketing and Refining

8

(39)

19

-

Corporate

(39)

(42)

(77)

(70)

Interest expense

 ?

 ?

(64)

 ?

 ?

(59)

 ?

 ?

(127)

 ?

 ?

(120)

Net income attributable to Hess Corporation

$

 ?

549

$

 ?

607

$

 ?

1,094

$

 ?

1,536

 ?

Net income per share (diluted)

$

 ?

1.61

$

 ?

1.78

$

 ?

3.21

$

 ?

4.52

 ?

Weighted average number of shares (diluted)

 ?

 ?

340.4

 ?

 ?

340.4

 ?

 ?

340.4

 ?

 ?

339.7

 ?


 ?


Note: See the following page for a table of items affecting
comparability of earnings between periods.


Exploration and Production earnings were $644 million in the second
quarter of 2012, compared with $747 million in the second quarter of
2011. The Corporation′s average worldwide crude oil selling price,
including the effect of hedging, was $86.86 per barrel, down from $97.20
per barrel in the same quarter a year ago. The average worldwide natural
gas selling price of $5.94 per mcf in the second quarter of 2012 was
comparable with the same quarter a year ago. Second quarter oil and gas
production was 429,000 barrels of oil equivalent per day, up from
372,000 barrels of oil equivalent per day in the second quarter of 2011,
primarily reflecting an increase in production from the Bakken oil shale
play and the resumption of operations in Libya.


Marketing and Refining generated earnings of $8 million in the second
quarter of 2012, compared with a loss of $39 million in the same period
in 2011. Marketing earnings were $18 million in the second quarter of
2012 and $28 million in the second quarter of 2011. Refining operations
generated income of $8 million in the second quarter of 2012, compared
with a loss of $44 million in the second quarter a year ago. Trading
activities generated a loss of $18 million in the second quarter of 2012
and a loss of $23 million in the second quarter of last year.


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)

2012

 ?

2011

2012

 ?

2011

(In millions of dollars)

Exploration and Production

$

 ?

(36)

$

 ?

 ?

 ?

-


$


 ?

 ?

 ?

-

$

 ?

310

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?


Results for the second quarter of 2012 included an after-tax charge of
$36 million for certain exploration properties in the Eagle Ford shale
in the United States that are expected to be divested in an asset
exchange with a joint venture partner.


Net cash provided by operating activities was $1,240 million in the
second quarter of 2012, compared with $1,689 million in the same quarter
of 2011. Capital and exploratory expenditures were $2,078 million, of
which $2,036 million related to Exploration and Production operations.
Capital and exploratory expenditures for the second quarter of 2011 were
$1,490 million, of which $1,469 million related to Exploration and
Production operations.


At June 30, 2012, cash and cash equivalents totaled $409 million,
compared with $351 ?million at December 31, 2011. Total debt was $7,845
million at June 30, 2012 and $6,057 million at December 31, 2011. The
Corporation′s debt to capitalization ratio at June 30, 2012 was 28.2
percent, compared with 24.6 percent at the end of 2011.


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, 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)


 ?

Second

Second

First

Quarter

Quarter

Quarter

2012

2011

2012

Income Statement


 ?

 ?

 ?

Revenues and Non-operating Income

Sales (excluding excise taxes) and other operating revenues

$

9,304

$

9,853

$

9,682

Income (loss) from equity investment in HOVENSA L.L.C.

-

(49)

-

Gains on asset sales

-

-

36

Other, net

 ?

 ?

5

 ?

 ?

2

 ?

 ?

29

 ?

Total revenues and non-operating income

 ?

 ?

9,309

 ?

 ?

9,806

 ?

 ?

9,747

 ?

Costs and Expenses

Cost of products sold (excluding items shown separately below)

5,969

6,841

6,679

Production expenses

677

599

673

Marketing expenses

265

247

251

Exploration expenses, including dry holes and lease impairment

196

257

253

Other operating expenses

41

42

41

General and administrative expenses

172

174

167

Interest expense

105

97

104

Depreciation, depletion and amortization

769

588

681

Asset impairments

 ?

 ?

59

 ?

 ?

-

 ?

 ?

-

 ?

Total costs and expenses

 ?

 ?

8,253

 ?

 ?

8,845

 ?

 ?

8,849

 ?

Income (loss) before income taxes

1,056

961

898

Provision (benefit) for income taxes

 ?

 ?

521

 ?

 ?

392

 ?

 ?

338

 ?

Net income (loss)

535

569

560

Less: Net income (loss) attributable to noncontrolling interests

 ?

 ?

(14)

 ?

 ?

(38)

 ?

 ?

15

Net income (loss) attributable to Hess Corporation

$

 ?

549

$

 ?

607

$

 ?

545

 ?

Supplemental Income Statement Information


Foreign currency gains (losses), after-tax

$

(5)

$

(2)

$

9

Capitalized interest

5

2

5

 ?

Cash Flow Information


Net cash provided by operating activities (a)

$

1,240

$

1,689

$

988

(b)

 ?

Capital and Exploratory Expenditures


Exploration and Production

United States

$

1,243

$

793

$

1,241

International

 ?

 ?

793

 ?

 ?

676

 ?

 ?

722

 ?

Total Exploration and Production

2,036

1,469

1,963

Marketing, Refining and Corporate

 ?

 ?

42

 ?

 ?

21

 ?

 ?

23

 ?

Total Capital and Exploratory Expenditures

$

 ?

2,078

$

 ?

1,490

$

 ?

1,986

 ?

Exploration expenses charged to income included above

United States

$

33

$

56

$

37

International

 ?

 ?

67

 ?

 ?

59

 ?

 ?

71

 ?

$

 ?

100

$

 ?

115

$

 ?

108

 ?

(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)


 ?

First Half

2012

2011

Income Statement


 ?

 ?

Revenues and Non-operating Income

Sales (excluding excise taxes) and other operating revenues

$

18,986

$

20,068

Income (loss) from equity investment in HOVENSA L.L.C.

-

(97)

Gains on asset sales

36

343

Other, net

 ?

 ?

34

 ?

 ?

7

 ?

Total revenues and non-operating income

 ?

 ?

19,056

 ?

 ?

20,321

 ?

Costs and Expenses

Cost of products sold (excluding items shown separately below)

12,648

13,881

Production expenses

1,350

1,130

Marketing expenses

516

530

Exploration expenses, including dry holes and lease impairment

449

570

Other operating expenses

82

84

General and administrative expenses

339

338

Interest expense

209

196

Depreciation, depletion and amortization

1,450

1,146

Asset impairments

 ?

 ?

59

 ?

 ?

-

 ?

Total costs and expenses

 ?

 ?

17,102

 ?

 ?

17,875

 ?

Income (loss) before income taxes

1,954

2,446

Provision (benefit) for income taxes

 ?

 ?

859

 ?

 ?

903

 ?

Net income (loss)

1,095

1,543

Less: Net income (loss) attributable to noncontrolling interests

 ?

 ?

1

 ?

 ?

7

Net income (loss) attributable to Hess Corporation

$

 ?

1,094

$

 ?

1,536

 ?

Supplemental Income Statement Information


Foreign currency gains (losses), after-tax

$

4

$

(5)

Capitalized interest

10

4

 ?

Cash Flow Information


Net cash provided by operating activities (a)

$

2,228

(b)

$

2,824

 ?

Capital and Exploratory Expenditures


Exploration and Production

United States

$

2,484

$

1,333

International

 ?

 ?

1,515

 ?

 ?

1,309

 ?

Total Exploration and Production

3,999

2,642

Marketing, Refining and Corporate

 ?

 ?

65

 ?

 ?

34

 ?

Total Capital and Exploratory Expenditures

$

 ?

4,064

$

 ?

2,676

 ?

Exploration expenses charged to income included above

United States

$

70

$

98

International

 ?

 ?

138

 ?

 ?

121

 ?

$

 ?

208

$

 ?

219

 ?

(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)

 ?

June 30,

December 31,

2012

2011

Balance Sheet Information


 ?

 ?

 ?

Cash and cash equivalents

$

409

$

351

Other current assets

7,516

7,988

Investments

450

384

Property, plant and equipment ? net

26,556

24,712

Other long-term assets

 ?

 ?

5,683

 ?

 ?

5,701

Total assets

$

 ?

40,614

$

 ?

39,136

 ?

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

$

299

$

52

Other current liabilities

6,785

8,048

Long-term debt

7,546

6,005

Other long-term liabilities

6,025

6,439

Total equity excluding other comprehensive income (loss)

20,738

19,659

Accumulated other comprehensive income (loss)

 ?

 ?

(779)

 ?

 ?

(1,067)

Total liabilities and equity

$

 ?

40,614

$

 ?

39,136

 ?


 ?


 ?

 ?

 ?

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS OF DOLLARS)


 ?

Second Quarter 2012

United States

 ?

 ?

International

 ?

 ?

Total

Sales and other operating revenues

$

 ?

1,043

$

 ?

1,946

$

 ?

2,989

Gains on asset sales

-

-

-

Other, net

 ?

 ?

1

 ?

 ?

-

 ?

 ?

1

 ?

Total revenues and non-operating income

 ?

 ?

1,044

 ?

 ?

1,946

 ?

 ?

2,990

Costs and expenses

Production expenses, including related taxes

253

424

677

Exploration expenses, including dry holes and lease impairment

75

121

196

General, administrative and other expenses

50

29

79

Depreciation, depletion and amortization

335

408

743

Asset impairments

 ?

 ?

59

 ?

 ?

-

 ?

 ?

59

 ?

Total costs and expenses

 ?

 ?

772

 ?

 ?

982

 ?

 ?

1,754

 ?

Results of operations before income taxes

272

964

1,236

Provision (benefit) for income taxes

 ?

 ?

112

 ?

 ?

480

 ?

 ?

592

 ?

Results of operations attributable to Hess Corporation

$

 ?

160

(a)

$

 ?

484

(b)

$

 ?

644

 ?

Second Quarter 2011

United States

International

Total

Sales and other operating revenues

$

858

$

1,840

$

2,698

Gains on asset sales

-

-

-

Other, net

 ?

 ?

(13)

 ?

 ?

8

 ?

 ?

(5)

 ?

Total revenues and non-operating income

 ?

 ?

845

 ?

 ?

1,848

 ?

 ?

2,693

Costs and expenses

Production expenses, including related taxes

179

420

599

Exploration expenses, including dry holes and lease impairment

128

129

257

General, administrative and other expenses

49

27

76

Depreciation, depletion and amortization

166

387

553

Asset impairments

 ?

 ?

-

 ?

 ?

-

 ?

 ?

-

 ?

Total costs and expenses

 ?

 ?

522

 ?

 ?

963

 ?

 ?

1,485

 ?

Results of operations before income taxes

323

885

1,208

Provision (benefit) for income taxes

 ?

 ?

120

 ?

 ?

341

 ?

 ?

461

 ?

Results of operations attributable to Hess Corporation

$

 ?

203

$

 ?

544

(b)

$

 ?

747

 ?

First Quarter 2012

United States

International

Total

Sales and other operating revenues

$

923

$

1,697

$

2,620

Gains on asset sales

-

36

36

Other, net

 ?

 ?

-

 ?

 ?

27

 ?

 ?

27

 ?

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

Asset impairments

 ?

 ?

-

 ?

 ?

-

 ?

 ?

-

 ?

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

 ?


(a)


 ?


The after-tax losses from crude oil hedging activities were $3
million in the second quarter of 2012 and $26 million in the first
quarter of 2012.


(b)


The after-tax losses from crude oil hedging activities were $86
million in the second quarter of 2012, $81 million in the second
quarter of 2011 and $125 million in the first quarter of 2012.


 ?

 ?

 ?
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS OF DOLLARS)

 ?

First Half 2012

United States

 ?

 ?

International

 ?

 ?

Total

Sales and other operating revenues

$

 ?

1,966

$

 ?

3,643

$

 ?

5,609

Gains on asset sales

-

36

36

Other, net

 ?

 ?

1

 ?

 ?

27

 ?

 ?

28

 ?

Total revenues and non-operating income

 ?

 ?

1,967

 ?

 ?

3,706

 ?

 ?

5,673

Costs and expenses

Production expenses, including related taxes

484

866

1,350

Exploration expenses, including dry holes and lease impairment

153

296

449

General, administrative and other expenses

88

56

144

Depreciation, depletion and amortization

614

788

1,402

Asset impairments

 ?

 ?

59

 ?

 ?

-

 ?

 ?

59

 ?

Total costs and expenses

 ?

 ?

1,398

 ?

 ?

2,006

 ?

 ?

3,404

 ?

Results of operations before income taxes

569

1,700

2,269

Provision (benefit) for income taxes

 ?

 ?

222

 ?

 ?

768

 ?

 ?

990

 ?

Results of operations attributable to Hess Corporation

$

 ?

347

(a)

$

 ?

932

(b)

$

 ?

1,279

 ?

First Half 2011

United States

International

Total

Sales and other operating revenues

$

1,604

$

3,707

$

5,311

Gains on asset sales

-

343

343

Other, net

 ?

 ?

(14)

 ?

 ?

10

 ?

 ?

(4)

 ?

Total revenues and non-operating income

 ?

 ?

1,590

 ?

 ?

4,060

 ?

 ?

5,650

Costs and expenses

Production expenses, including related taxes

316

814

1,130

Exploration expenses, including dry holes and lease impairment

237

333

570

General, administrative and other expenses

97

63

160

Depreciation, depletion and amortization

318

772

1,090

Asset impairments

 ?

 ?

-

 ?

 ?

-

 ?

 ?

-

 ?

Total costs and expenses

 ?

 ?

968

 ?

 ?

1,982

 ?

 ?

2,950

 ?

Results of operations before income taxes

622

2,078

2,700

Provision (benefit) for income taxes

 ?

 ?

232

 ?

 ?

742

 ?

 ?

974

 ?

Results of operations attributable to Hess Corporation

$

 ?

390

$

 ?

1,336

(b)

$

 ?

1,726

 ?

(a)

 ?

The after-tax losses from crude oil hedging activities were $29
million in the first half of 2012.

(b)

The after-tax losses from crude oil hedging activities were $211
million in the first half of 2012 and $162 million in the first half
of 2011.

 ?

 ?

 ?

 ?

 ?
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)

 ?

Second

Second

First

Quarter

Quarter

Quarter

2012

2011

2012

Operating Data


 ?

 ?

Net Production Per Day (in thousands)


Crude oil - barrels

United States

109

77

95

Europe

98

93

94

Africa

79

66

71

Asia

 ?

 ?

18

 ?

 ?

12

 ?

16

Total

 ?

 ?

304

 ?

 ?

248

 ?

276

 ?

Natural gas liquids - barrels

United States

15

13

14

Europe

3

3

3

Asia

 ?

 ?

1

 ?

 ?

1

 ?

2

Total

 ?

 ?

19

 ?

 ?

17

 ?

19

 ?

Natural gas - mcf

United States

121

100

100

Europe

53

72

61

Asia and other

 ?

 ?

465

 ?

 ?

471

 ?

449

Total

 ?

 ?

639

 ?

 ?

643

 ?

610

Barrels of oil equivalent

 ?

 ?

429

 ?

 ?

372

 ?

397

 ?

Average Selling Price


Crude oil - per barrel (including hedging)

United States

$

91.97

$

106.62

$

95.92

Europe

76.20

87.75

80.18

Africa

89.01

97.74

88.75

Asia

105.89

113.44

117.13

Worldwide

86.86

97.20

89.92

 ?

Crude oil - per barrel (excluding hedging)

United States

$

92.48

$

106.62

$

100.87

Europe

76.58

87.75

82.77

Africa

105.72

118.19

120.59

Asia

106.17

113.44

123.72

Worldwide

91.83

102.73

100.50

 ?

Natural gas liquids - per barrel

United States

$

40.75

$

61.57

$

49.26

Europe

66.15

69.99

90.43

Asia

75.16

79.63

86.50

Worldwide

45.56

64.05

59.53

 ?

Natural gas - per mcf

United States

$

1.55

$

3.71

$

1.75

Europe

9.98

8.97

9.44

Asia and other

6.61

5.94

6.77

Worldwide

5.94

5.93

6.23

 ?

 ?

 ?

 ?
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)

 ?

First Half

2012

 ?

2011

Operating Data


 ?

 ?

Net Production Per Day (in thousands)


Crude oil - barrels

United States

102

77

Europe

96

96

Africa

75

75

Asia

 ?

 ?

17

 ?

 ?

13

Total

 ?

 ?

290

 ?

 ?

261

 ?

Natural gas liquids - barrels

United States

15

13

Europe

3

3

Asia

 ?

 ?

1

 ?

 ?

1

Total

 ?

 ?

19

 ?

 ?

17

 ?

Natural gas - mcf

United States

110

103

Europe

57

89

Asia and other

 ?

 ?

458

 ?

 ?

451

Total

 ?

 ?

625

 ?

 ?

643

Barrels of oil equivalent

 ?

 ?

413

 ?

 ?

385

 ?

Average Selling Price


Crude oil - per barrel (including hedging)

United States

$

93.81

$

99.12

Europe

78.05

85.84

Africa

88.91

90.04

Asia

110.70

111.91

Worldwide

88.23

92.05

 ?

Crude oil - per barrel (excluding hedging)

United States

$

96.39

$

99.12

Europe

79.45

85.84

Africa

111.78

110.39

Asia

113.67

111.91

Worldwide

95.72

97.37

 ?

Natural gas liquids - per barrel

United States

$

44.92

$

59.43

Europe

81.20

76.01

Asia

82.02

76.23

Worldwide

52.78

63.74

 ?

Natural gas - per mcf

United States

$

1.64

$

3.77

Europe

9.69

8.55

Asia and other

6.69

5.85

Worldwide

6.08

5.89

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA
(UNAUDITED)

 ?

Second

Second

First

Quarter

Quarter

Quarter

2012

2011

2012

Financial Information (in millions of
dollars)


 ?

Marketing and Refining Results


Income (loss) before income taxes

$

7

$

(45)

$

20

Provision (benefit) for income taxes

 ?

 ?

(1)

 ?

 ?

(6)

 ?

 ?

9

Results of operations attributable to Hess Corporation

$

 ?

8

$

 ?

(39)

$

 ?

11

 ?

Summary of Marketing and Refining Results


Marketing

$

18

$

28

$

22

Refining

8

(44)

(6)

Trading

 ?

 ?

(18)

 ?

 ?

(23)

 ?

 ?

(5)

Results of operations attributable to Hess Corporation

$

 ?

8

$

 ?

(39)

$

 ?

11

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

Operating Data


 ?

Sales Volumes


Refined petroleum products (thousands of barrels per day)

Gasoline

212

228

210

Distillates

108

114

115

Residuals

54

56

61

Other

 ?

 ?

17

 ?

 ?

28

 ?

 ?

18

Total

 ?

 ?

391

 ?

 ?

426

 ?

 ?

404

 ?

Natural gas (thousands of mcf per day)

 ?

 ?

1,860

 ?

 ?

1,900

 ?

 ?

2,560

 ?

Electricity (megawatts round the clock)

 ?

 ?

4,405

 ?

 ?

4,100

 ?

 ?

4,350

 ?

Retail Marketing


Number of retail stations (a)

1,361

1,356

1,361

Convenience store revenue (in millions of dollars) (b)

$

288

$

305

$

272

Average gasoline volume per station (thousands of gallons per month)
(b)

194

199

185

 ?

Port Reading


Refinery throughput (thousands of barrels per day)

69

66

47

Refinery utilization (capacity - 70,000 barrels per day)

98.0%

93.6%

67.4%

 ?

(a)

 ?

Includes company operated, Wilco-Hess, dealer and branded retailer.

(b)

Company operated only.

 ?

 ?

 ?

 ?

 ?

 ?
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA
(UNAUDITED)

 ?

First Half

2012

2011

Financial Information (in millions of
dollars)


 ?

Marketing and Refining Results


Income (loss) before income taxes

$

27

$

51

Provision (benefit) for income taxes

 ?

 ?

8

 ?

 ?

51

Results of operations attributable to Hess Corporation

$

 ?

19

$

 ?

-

 ?

Summary of Marketing and Refining Results


Marketing

$

40

$

96

Refining

2

(92)

Trading

 ?

 ?

(23)

 ?

 ?

(4)

Results of operations attributable to Hess Corporation

$

 ?

19

$

 ?

-

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

 ?

Operating Data


 ?

Sales Volumes


Refined petroleum products (thousands of barrels per day)

Gasoline

210

227

Distillates

112

124

Residuals

58

71

Other

 ?

 ?

18

 ?

 ?

24

Total

 ?

 ?

398

 ?

 ?

446

 ?

Natural gas (thousands of mcf per day)

 ?

 ?

2,205

 ?

 ?

2,400

 ?

Electricity (megawatts round the clock)

 ?

 ?

4,390

 ?

 ?

4,200

 ?

Retail Marketing


Number of retail stations (a)

1,361

1,356

Convenience store revenue (in millions of dollars) (b)

$

560

$

583

Average gasoline volume per station (thousands of gallons per month)
(b)

190

192

 ?

Port Reading


Refinery throughput (thousands of barrels per day)

58

66

Refinery utilization (capacity - 70,000 barrels per day)

82.7%

93.8%

 ?

(a)

 ?

Includes company operated, Wilco-Hess, dealer and branded retailer.

(b)

Company operated only.

Hess Corporation

Investor:

Jay
Wilson, 212-536-8940


or

Media:

Jon
Pepper, 212-536-8550



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