Hess Reports Estimated Results for the Third Quarter of 2010
Third Quarter Highlights:
- Net Income was $1,154 million, including after-tax income of
$725 million from items affecting comparability, compared with $341
million in the third quarter 2009 - Items affecting comparability consist of an after-tax gain of
$1,072 million relating to an asset exchange and an after-tax charge
of $347 million relating to an asset impairment - Oil and gas production was 413,000 barrels per day, compared
with 420,000 in the third quarter 2009 - Net cash provided by operating activities was $1,246 million,
compared with $534 million in the third quarter 2009 - The Corporation completed the sale of $1.25 billion of 5.60%
notes due February 2041
Hess Corporation (NYSE: HES) reported net income of $1,154 million for
the third quarter of 2010 compared with net income of $341 million for
the third quarter of 2009. The after-tax income (loss) by major
operating activity was as follows:
|
| ||||||||||||||||
| September 30, (unaudited) | September 30, (unaudited) | ||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||
(In millions, except per share amounts) | |||||||||||||||||
Exploration and Production | $ | 1,277 | $ | 397 | $ | 2,316 | $ | 548 | |||||||||
Marketing and Refining | (38 | ) | 38 | 30 | 110 | ||||||||||||
Corporate | (26 | ) | (33 | ) | (116 | ) | (108 | ) | |||||||||
Interest expense | (59 | ) | (61 | ) | (163 | ) | (168 | ) | |||||||||
Net income attributable to Hess Corporation | $ | 1,154 | $ | 341 | $ | 2,067 | $ | 382 | |||||||||
Net income per share (diluted) | $ | 3.52 | $ | 1.05 | $ | 6.31 | $ | 1.17 | |||||||||
Weighted average number of shares (diluted) | 327.6 | 326.0 | 327.3 | 325.8 | |||||||||||||
Note: See the following page for a table of items affecting the
comparability of earnings between periods.
Exploration and Production earnings were $1,277 million in the third
quarter of 2010 up from $397 million in the third quarter of 2009. Third
quarter oil and gas production was 413,000 barrels of oil equivalent per
day, compared with 420,000 barrels of oil equivalent per day in the
third quarter a year ago. The Corporation′s average worldwide crude oil
selling price, including the effect of hedging, was $64.81 per barrel
compared with $56.07 per barrel in the third quarter of 2009. The
average worldwide natural gas selling price was $5.73 per Mcf in the
third quarter of 2010 compared with $4.60 per Mcf in the same quarter a
year ago.
Marketing and Refining generated a loss of $38 million in the third
quarter of 2010 compared with income of $38 million in the same period
of 2009. Refining operations incurred losses of $50 million compared
with $3 million in the third quarter a year ago as a result of lower
refining margins. Marketing earnings were $40 million, an increase of $5
million from the third quarter of 2009. Trading activities generated a
loss of $28 million, compared with income of $6 million in the third
quarter of last year.
The following table reflects the total after-tax income (expense) of
items affecting comparability of earnings between periods (in millions):
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||
Exploration and Production | $ | 725 | $ | 89 | $ | 783 | $ | 45 | |||||||||
Marketing and Refining | - | 12 | - | 12 | |||||||||||||
Corporate | - | - | (7 | ) | (16 | ) | |||||||||||
| $ | 725 | $ | 101 | $ | 776 | $ | 41 | ||||||||||
Third quarter 2010 results included an after-tax gain of $1,072 million
related to the exchange of the Corporation′s interests in Gabon and the
Clair Field in the United Kingdom for a 28.1 percent interest in the
Valhall Field and a 25.0 percent interest in the Hod Field, both in
Norway. The results also included an after-tax charge of $347 million to
fully impair the carrying value of the Corporation′s interests in the
West Med Block 1 Concession, located offshore Egypt.
Net cash provided by operating activities was $1,246 million in the
third quarter of 2010, compared with $534 million in the same quarter of
2009. Capital and exploratory expenditures were $1,567 million, of which
$1,548 million related to Exploration and Production operations. In
September 2010, the Corporation acquired, for cash of $507 million, a
7.9 percent interest in the Valhall Field and a 12.5 percent in the Hod
Field. Capital and exploratory expenditures for the third quarter of
2009 were $668 million, of which $646 million related to Exploration and
Production operations.
At September 30, 2010, cash and cash equivalents totaled $2,353 million
compared with $1,362 million at December 31, 2009. Total debt was $5,584
million at September 30, 2010 and $4,467 million at December 31, 2009.
In August 2010, the Corporation issued $1.25 billion of 30 year
unsecured notes with a coupon of 5.60 percent. The Corporation′s debt to
capitalization ratio at September 30, 2010 was 26.1 percent compared
with 24.8 percent at the end of 2009.
Hess Corporation will review third quarter financial and operating
results and other matters on a webcast at 10 a.m. today. For details on
the event, refer to the Investor Relations section of our website at www.hess.com.
Hess Corporation, with headquarters in New York, is a leading global
independent energy company engaged in the exploration for and production
of crude oil and natural gas, as well as in refining and in marketing
refined petroleum products, natural gas and electricity. 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) | ||||||||||||||
Third | Third | Second | ||||||||||||
Quarter | Quarter | Quarter | ||||||||||||
| 2010 | 2009 | 2010 | ||||||||||||
Income Statement | ||||||||||||||
Revenues and Non-operating Income | ||||||||||||||
Sales (excluding excise taxes) and other operating revenues | $ | 7,864 | $ | 7,270 | $ | 7,732 | ||||||||
Equity in income (loss) of HOVENSA L.L.C. | (83 | ) | (49 | ) | (6 | ) | ||||||||
Other, net | 1,172 | 163 | 24 | |||||||||||
Total revenues and non-operating income | 8,953 | 7,384 | 7,750 | |||||||||||
Costs and Expenses | ||||||||||||||
Cost of products sold (excluding items shown separately below) | 5,330 | 5,069 | 5,316 | |||||||||||
Production expenses | 475 | 460 | 440 | |||||||||||
Marketing expenses | 232 | 240 | 245 | |||||||||||
Exploration expenses, including dry holes | ||||||||||||||
and lease impairment | 225 | 167 | 172 | |||||||||||
Other operating expenses | 39 | 43 | 80 | |||||||||||
General and administrative expenses | 151 | 148 | 159 | |||||||||||
Interest expense | 94 | 97 | 83 | |||||||||||
Depreciation, depletion and amortization | 584 | 626 | 558 | |||||||||||
Asset impairments | 532 | - | - | |||||||||||
Total costs and expenses | 7,662 | 6,850 | 7,053 | |||||||||||
Income before income taxes | 1,291 | 534 | 697 | |||||||||||
Provision for income taxes | 200 | 182 | 301 | |||||||||||
Net income | 1,091 | 352 | 396 | |||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (63 | ) | 11 | 21 | ||||||||||
Net income attributable to Hess Corporation | $ | 1,154 | $ | 341 | $ | 375 | ||||||||
Supplemental Income Statement Information | ||||||||||||||
Foreign currency gains (losses), after-tax | $ | (5 | ) | $ | 3 | $ | (4 | ) | ||||||
Capitalized interest | 1 | 1 | 1 | |||||||||||
Cash Flow Information | ||||||||||||||
Net cash provided by operating activities (*) | $ | 1,246 | $ | 534 | $ | 981 | ||||||||
Capital and Exploratory Expenditures | ||||||||||||||
Exploration and Production | ||||||||||||||
United States | $ | 379 | $ | 198 | $ | 399 | ||||||||
International | 1,169 | 448 | 531 | |||||||||||
Total Exploration and Production | 1,548 | 646 | 930 | |||||||||||
Marketing, Refining and Corporate | 19 | 22 | 33 | |||||||||||
Total Capital and Exploratory Expenditures | $ | 1,567 | $ | 668 | $ | 963 | ||||||||
Exploration expenses charged to income included above | ||||||||||||||
United States | $ | 46 | $ | 22 | $ | 21 | ||||||||
International | 59 | 42 | 41 | |||||||||||
| $ | 105 | $ | 64 | $ | 62 | |||||||||
(*) Includes changes in working capital
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES | ||||||||||||
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) | ||||||||||||
(IN MILLIONS OF DOLLARS) | ||||||||||||
| Nine Months | ||||||||||||
| 2010 | 2009 | |||||||||||
Income Statement | ||||||||||||
Revenues and Non-operating Income | ||||||||||||
Sales (excluding excise taxes) and other operating revenues | $ | 24,855 | $ | 20,936 | ||||||||
Equity in income (loss) of HOVENSA L.L.C. | (174 | ) | (165 | ) | ||||||||
Other, net | 1,242 | 240 | ||||||||||
Total revenues and non-operating income | 25,923 | 21,011 | ||||||||||
Costs and Expenses | ||||||||||||
Cost of products sold (excluding items shown separately below) | 17,186 | 14,956 | ||||||||||
Production expenses | 1,392 | 1,313 | ||||||||||
Marketing expenses | 730 | 742 | ||||||||||
Exploration expenses, including dry holes | ||||||||||||
and lease impairment | 548 | 672 | ||||||||||
Other operating expenses | 171 | 134 | ||||||||||
General and administrative expenses | 465 | 444 | ||||||||||
Interest expense | 261 | 269 | ||||||||||
Depreciation, depletion and amortization | 1,684 | 1,616 | ||||||||||
Asset impairments | 532 | 54 | ||||||||||
Total costs and expenses | 22,969 | 20,200 | ||||||||||
Income before income taxes | 2,954 | 811 | ||||||||||
Provision for income taxes | 899 | 374 | ||||||||||
Net income | 2,055 | 437 | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (12 | ) | 55 | |||||||||
Net income attributable to Hess Corporation | $ | 2,067 | $ | 382 | ||||||||
Supplemental Income Statement Information | ||||||||||||
Foreign currency gains (losses), after-tax | $ | (10 | ) | $ | (1 | ) | ||||||
Capitalized interest | 3 | 4 | ||||||||||
Cash Flow Information | ||||||||||||
Net cash provided by operating activities (*) | $ | 3,052 | $ | 1,775 | ||||||||
Capital and Exploratory Expenditures | ||||||||||||
Exploration and Production | ||||||||||||
United States | $ | 1,115 | $ | 813 | ||||||||
International | 2,204 | 1,362 | ||||||||||
Total Exploration and Production | 3,319 |
| 2,175 | |||||||||
Marketing, Refining and Corporate | 72 | 83 | ||||||||||
Total Capital and Exploratory Expenditures | $ | 3,391 | $ | 2,258 | ||||||||
Exploration expenses charged to income included above | ||||||||||||
United States | $ | 108 | $ | 127 | ||||||||
International | 132 | 138 | ||||||||||
| $ | 240 | $ | 265 | |||||||||
| ||||||||||||
(*) Includes changes in working capital
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES | |||||||||
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) | |||||||||
(IN MILLIONS OF DOLLARS) | |||||||||
|
| ||||||||
| 2010 | 2009 | ||||||||
Balance Sheet Information | |||||||||
Cash and cash equivalents | $ | 2,353 | $ | 1,362 | |||||
Other current assets | 6,486 | 6,625 | |||||||
Investments | 775 | 913 | |||||||
Property, plant and equipment ? net | 19,084 | 16,627 | |||||||
Other long-term assets | 4,787 | 3,938 | |||||||
Total assets | $ | 33,485 | $ | 29,465 | |||||
Current maturities of long-term debt | $ | 43 | $ | 148 | |||||
Other current liabilities | 6,524 | 6,702 | |||||||
Long-term debt | 5,541 | 4,319 | |||||||
Other long-term liabilities | 5,549 | 4,768 | |||||||
Total equity excluding other comprehensive income (loss) | 17,205 | 15,203 | |||||||
Accumulated other comprehensive income (loss) | (1,377 | ) | (1,675 | ) | |||||
Total liabilities and equity | $ | 33,485 | $ | 29,465 | |||||
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES | ||||||||||||
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) | ||||||||||||
(IN MILLIONS OF DOLLARS) | ||||||||||||
| Third Quarter 2010 | ||||||||||||
United | ||||||||||||
| States | International | Total | ||||||||||
Sales and other operating revenues | $ | 622 | $ | 1,657 | $ | 2,279 | ||||||
Other, net | (2 |
| 1,159 | 1,157 | ||||||||
Total revenues and non-operating income | 620 | 2,816 | 3,436 | |||||||||
Costs and expenses | ||||||||||||
Production expenses, including related taxes | 117 | 357 | 474 | |||||||||
Exploration expenses, including dry holes | ||||||||||||
and lease impairment | 105 | 120 | 225 | |||||||||
General, administrative and other expenses | 37 | 33 | 70 | |||||||||
Depreciation, depletion and amortization | 172 | 388 | 560 | |||||||||
Asset impairments | - | 532 | 532 | |||||||||
Total costs and expenses | 431 | 1,430 | 1,861 | |||||||||
Results of operations before income taxes | 189 | 1,386 | 1,575 | |||||||||
Provision for income taxes | 71 | 227 | 298 | |||||||||
Results of operations attributable to Hess Corporation | $ | 118 | $ | 1,159 | $ | 1,277 | ||||||
| Third Quarter 2009 | ||||||||||||
United | ||||||||||||
| States | International | Total | ||||||||||
Sales and other operating revenues | $ | 499 | $ | 1,293 | $ | 1,792 | ||||||
Other, net | 137 | 8 | 145 | |||||||||
Total revenues and non-operating income | 636 | 1,301 | 1,937 | |||||||||
Costs and expenses | ||||||||||||
Production expenses, including related taxes | 106 | 354 | 460 | |||||||||
Exploration expenses, including dry holes | ||||||||||||
and lease impairment | 56 | 111 | 167 | |||||||||
General, administrative and other expenses | 37 | 28 | 65 | |||||||||
Depreciation, depletion and amortization | 176 | 426 | 602 | |||||||||
Asset impairments | - | - | - | |||||||||
Total costs and expenses | 375 | 919 | 1,294 | |||||||||
Results of operations before income taxes | 261 | 382 | 643 | |||||||||
Provision for income taxes | 99 | 147 | 246 | |||||||||
Results of operations attributable to Hess Corporation | $ | 162 | $ | 235 | $ | 397 | ||||||
| Second Quarter 2010 | ||||||||||||
United | ||||||||||||
| States | International | Total | ||||||||||
Sales and other operating revenues | $ | 570 | $ | 1,489 | $ | 2,059 | ||||||
Other, net | 5 | 9 | 14 | |||||||||
Total revenues and non-operating income | 575 | 1,498 | 2,073 | |||||||||
Costs and expenses | ||||||||||||
Production expenses, including related taxes | 113 | 328 | 441 | |||||||||
Exploration expenses, including dry holes | ||||||||||||
and lease impairment | 60 | 112 | 172 | |||||||||
General, administrative and other expenses | 32 | 32 | 64 | |||||||||
Depreciation, depletion and amortization | 157 | 377 | 534 | |||||||||
Asset impairments | - | - | - | |||||||||
Total costs and expenses | 362 | 849 | 1,211 | |||||||||
Results of operations before income taxes | 213 | 649 | 862 | |||||||||
Provision for income taxes | 84 | 290 | 374 | |||||||||
Results of operations attributable to Hess Corporation | $ | 129 | $ | 359 | $ | 488 | ||||||
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES | |||||||||||
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) | |||||||||||
(IN MILLIONS OF DOLLARS) | |||||||||||
| Nine Months 2010 | |||||||||||
United | |||||||||||
| States | International | Total | |||||||||
Sales and other operating revenues | $ | 1,774 | $ | 4,678 | $ | 6,452 | |||||
Other, net | 2 | 1,223 | 1,225 | ||||||||
Total revenues and non-operating income | 1,776 | 5,901 | 7,677 | ||||||||
Costs and expenses | |||||||||||
Production expenses, including related taxes | 346 | 1,046 | 1,392 | ||||||||
Exploration expenses, including dry holes | |||||||||||
and lease impairment | 243 | 305 | 548 | ||||||||
General, administrative and other expenses | 105 | 96 | 201 | ||||||||
Depreciation, depletion and amortization | 465 | 1,148 | 1,613 | ||||||||
Asset impairments | - | 532 | 532 | ||||||||
Total costs and expenses | 1,159 | 3,127 | 4,286 | ||||||||
Results of operations before income taxes | 617 | 2,774 | 3,391 | ||||||||
Provision for income taxes | 232 | 843 | 1,075 | ||||||||
Results of operations attributable to Hess Corporation | $ | 385 | $ | 1,931 | $ | 2,316 | |||||
| Nine Months 2009 | |||||||||||
United | |||||||||||
| States | International | Total | |||||||||
Sales and other operating revenues | $ | 1,024 | $ | 3,598 | $ | 4,622 | |||||
Other, net | 132 | 78 | 210 | ||||||||
Total revenues and non-operating income | 1,156 | 3,676 | 4,832 | ||||||||
Costs and expenses | |||||||||||
Production expenses, including related taxes | 327 | 986 | 1,313 | ||||||||
Exploration expenses, including dry holes | |||||||||||
and lease impairment | 306 | 366 | 672 | ||||||||
General, administrative and other expenses | 97 | 85 | 182 | ||||||||
Depreciation, depletion and amortization | 338 | 1,213 | 1,551 | ||||||||
Asset impairments | - | 54 | 54 | ||||||||
Total costs and expenses | 1,068 | 2,704 | 3,772 | ||||||||
Results of operations before income taxes | 88 | 972 | 1,060 | ||||||||
Provision for income taxes | 35 | 477 | 512 | ||||||||
Results of operations attributable to Hess Corporation | $ | 53 | $ | 495 | $ | 548 | |||||
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES | |||||||||||
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA | |||||||||||
| Third | Third | Second | ||||||||
Quarter | Quarter | Quarter | |||||||||
| 2010 | 2009 | 2010 | |||||||||
Operating Data | |||||||||||
Net Production Per Day (in thousands) | |||||||||||
Crude oil - barrels | |||||||||||
United States | 78 | 73 | 73 | ||||||||
Europe | 82 | 83 | 81 | ||||||||
Africa | 117 | 124 | 118 | ||||||||
Asia and other | 13 | 17 | 14 | ||||||||
Total | 290 | 297 | 286 | ||||||||
Natural gas liquids - barrels | |||||||||||
United States | 15 | 12 | 12 | ||||||||
Europe | 3 | 2 | 3 | ||||||||
Asia and other | - | - | 1 | ||||||||
Total | 18 | 14 | 16 | ||||||||
Natural gas - mcf | |||||||||||
United States | 120 | 105 | 102 | ||||||||
Europe | 104 | 120 | 140 | ||||||||
Asia and other | 406 | 429 | 437 | ||||||||
Total | 630 | 654 | 679 | ||||||||
Barrels of oil equivalent | 413 | 420 | 415 | ||||||||
Average Selling Price | |||||||||||
Crude oil - per barrel (including hedging)* | |||||||||||
United States | $ | 71.92 | $ | 63.79 | $ | 72.99 | |||||
Europe | 57.28 | 47.34 | 56.21 | ||||||||
Africa | 64.78 | 54.97 | 63.54 | ||||||||
Asia and other | 75.95 | 67.49 | 78.01 | ||||||||
Worldwide | 64.81 | 56.07 | 64.81 | ||||||||
Crude oil - per barrel (excluding hedging) | |||||||||||
United States | $ | 71.92 | $ | 63.79 | $ | 72.99 | |||||
Europe | 57.28 | 47.34 | 56.21 | ||||||||
Africa | 75.70 | 67.27 | 77.03 | ||||||||
Asia and other | 75.95 | 67.49 | 78.01 | ||||||||
Worldwide | 69.47 | 61.42 | 70.15 | ||||||||
Natural gas liquids - per barrel | |||||||||||
United States | $ | 43.20 | $ | 36.05 | $ | 45.84 | |||||
Europe | 57.69 | 43.53 | 54.61 | ||||||||
Asia and other | 53.60 | 44.74 | 60.89 | ||||||||
Worldwide | 46.10 | 37.27 | 48.10 | ||||||||
Natural gas - per mcf | |||||||||||
United States | $ | 3.56 | $ | 2.65 | $ | 3.65 | |||||
Europe | 6.50 | 4.38 | 5.35 | ||||||||
Asia and other | 6.18 | 5.12 | 6.09 | ||||||||
Worldwide | 5.73 | 4.60 | 5.57 | ||||||||
* The after-tax losses from crude oil hedging activities were $85
million in the third quarter of 2010, $84 million in the third quarter
of 2009 and second quarter of 2010.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES | ||||||||||||
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA | ||||||||||||
| Nine Months | |||||||||||
| 2010 | 2009 | |||||||||||
Operating Data | ||||||||||||
Net Production Per Day (in thousands) | ||||||||||||
Crude oil - barrels | ||||||||||||
United States | 74 | 54 | ||||||||||
Europe | 83 | 82 | ||||||||||
Africa | 117 | 125 | ||||||||||
Asia and other | 14 | 16 | ||||||||||
Total | 288 | 277 | ||||||||||
Natural gas liquids - barrels | ||||||||||||
United States | 13 | 10 | ||||||||||
Europe | 3 | 3 | ||||||||||
Asia and other | 1 | 1 | ||||||||||
Total | 17 | 14 | ||||||||||
Natural gas - mcf | ||||||||||||
United States | 107 | 92 | ||||||||||
Europe | 133 | 153 | ||||||||||
Asia and other | 432 | 442 | ||||||||||
Total | 672 | 687 | ||||||||||
Barrels of oil equivalent | 417 | 406 | ||||||||||
Average Selling Price | ||||||||||||
Crude oil - per barrel (including hedging)* | ||||||||||||
United States | $ | 73.05 | $ | 56.02 | ||||||||
Europe | 56.29 | 42.80 | ||||||||||
Africa | 63.67 | 44.98 | ||||||||||
Asia and other | 75.97 | 56.63 | ||||||||||
Worldwide | 64.44 | 47.09 | ||||||||||
Crude oil - per barrel (excluding hedging) | ||||||||||||
United States | $ | 73.05 | $ | 56.02 | ||||||||
Europe | 56.29 | 42.80 | ||||||||||
Africa | 76.19 | 56.59 | ||||||||||
Asia and other | 75.97 | 56.63 | ||||||||||
Worldwide | 69.56 | 52.35 | ||||||||||
Natural gas liquids - per barrel | ||||||||||||
United States | $ | 46.49 | $ | 32.38 | ||||||||
Europe | 57.28 | 37.86 | ||||||||||
Asia and other | 60.15 | 38.49 | ||||||||||
Worldwide | 48.84 | 33.90 | ||||||||||
Natural gas - per mcf | ||||||||||||
United States | $ | 3.91 | $ | 3.19 | ||||||||
Europe | 5.67 | 5.25 | ||||||||||
Asia and other | 6.21 | 4.88 | ||||||||||
Worldwide | 5.74 | 4.74 | ||||||||||
* The after-tax losses from hedging activities were $252 million for the
nine months ended September 30, 2010 and $249 million for the nine
months ended September 30, 2009.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES | |||||||||||||||||
MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING | |||||||||||||||||
Third | Third | Second | |||||||||||||||
Quarter | Quarter | Quarter | |||||||||||||||
| 2010 | 2009 | 2010 | |||||||||||||||
Financial Information (in millions of | |||||||||||||||||
Marketing and Refining Results | |||||||||||||||||
Income (loss) before income taxes | $ | (78 | ) | $ | 29 | $ | (37 | ) | |||||||||
Provision (benefit) for income taxes | (40 | ) | (9 | ) | (18 | ) | |||||||||||
Results of operations attributable to Hess Corporation | $ | (38 | ) | $ | 38 | $ | (19 | ) | |||||||||
Summary of Marketing and Refining Results | |||||||||||||||||
Refining | $ | (50 | ) | $ | (3 | ) | $ | (31 | ) | ||||||||
Marketing | 40 | 35 | 17 | ||||||||||||||
Trading | (28 | ) | 6 | (5 | ) | ||||||||||||
Results of operations attributable to Hess Corporation | $ | (38 | ) | $ | 38 | $ | (19 | ) | |||||||||
| |||||||||||||||||
Operating Data (barrels and gallons in | |||||||||||||||||
Refined Product Sales (barrels per day) | |||||||||||||||||
Gasoline | 253 | 253 | 238 | ||||||||||||||
Distillates | 96 | 113 | 112 | ||||||||||||||
Residuals | 56 | 51 | 57 | ||||||||||||||
Other | 41 | 26 | 28 | ||||||||||||||
Total | 446 | 443 | 435 | ||||||||||||||
Refinery Throughput (barrels per day) | |||||||||||||||||
HOVENSA - Crude runs | 408 | 384 | 392 | ||||||||||||||
HOVENSA - Hess 50% share | 204 | 192 | 196 | ||||||||||||||
Port Reading | 61 | 65 | 35 | ||||||||||||||
Refinery Utilization | Refinery Capacity | ||||||||||||||||
HOVENSA | (barrels per day) | ||||||||||||||||
Crude | 500 | 81.6 | % | 76.9 | % | 78.5 | % | ||||||||||
FCC | 150 | 76.1 | % | 82.9 | % | 91.0 | % | ||||||||||
Coker | 58 | 73.0 | % | 78.9 | % | 81.9 | % | ||||||||||
Port Reading | 70 | 87.7 | % | 92.2 | % | 49.7 | % | ||||||||||
Retail Marketing | |||||||||||||||||
Number of retail stations (a) | 1,360 | 1,353 | 1,358 | ||||||||||||||
Convenience store revenue (in millions of dollars) (b) | $ | 322 | $ | 313 | $ | 317 | |||||||||||
Average gasoline volume per station (gallons per month) (b) | 204 | 202 | 203 | ||||||||||||||
| |||||||||||||||||
(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 | ||||||||||||
| Nine Months | ||||||||||||
| 2010 | 2009 | |||||||||||
Financial Information (in millions of | ||||||||||||
Marketing and Refining Results | ||||||||||||
Income (loss) before income taxes | $ | 24 | $ | 135 | ||||||||
Provision (benefit) for income taxes | (6 | ) | 25 | |||||||||
| $ | 30 | $ | 110 | ||||||||
Summary of Marketing and Refining Results | ||||||||||||
Refining | $ | (137 | ) | $ | (47 | ) | ||||||
Marketing | 178 | 123 | ||||||||||
Trading | (11 | ) | 34 | |||||||||
| $ | 30 | $ | 110 | ||||||||
Operating Data (barrels and gallons in | ||||||||||||
Refined Product Sales (barrels per day) | ||||||||||||
Gasoline | 247 | 234 | ||||||||||
Distillates | 112 | 129 | ||||||||||
Residuals | 66 | 67 | ||||||||||
Other | 40 | 36 | ||||||||||
Total | 465 | 466 | ||||||||||
Refinery Throughput (barrels per day) | ||||||||||||
HOVENSA - Crude runs | 392 | 412 | ||||||||||
HOVENSA - Hess 50% share | 196 | 206 | ||||||||||
Port Reading | 53 | 64 | ||||||||||
Refinery Utilization | Refinery Capacity | |||||||||||
HOVENSA | (barrels per day) | |||||||||||
Crude | 500 | 78.4 | % | 82.4 | % | |||||||
FCC | 150 | 69.5 | % | 75.2 | % | |||||||
Coker | 58 | 80.0 | % | 83.6 | % | |||||||
Port Reading | 70 | 75.4 | % | 91.1 | % | |||||||
Retail Marketing | ||||||||||||
Number of retail stations (a) | 1,360 | 1,353 | ||||||||||
Convenience store revenue (in millions of dollars) (b) | $ | 915 | $ | 868 | ||||||||
Average gasoline volume per station (gallons per month) (b) | 198 | 203 | ||||||||||
| ||||||||||||
(a) Includes company operated, Wilco-Hess, dealer and branded retailer.
(b) Company operated only.
Hess Corporation
Investors:
Jay
Wilson, 212-536-8940
or
Media:
Jon
Pepper, 212-536-8550
