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NEW YORK--(BUSINESS WIRE)--Fourth Quarter Highlights:
- A net loss of $74 million was reported for fourth quarter 2008 compared with net income of $510 million in fourth quarter 2007
- Debt to capitalization ratio decreased to 24.3 percent at December 31, 2008, from 28.9 percent at December 31, 2007
- Oil and gas production was 379,000 barrels per day; lost production from hurricanes totaled 19,000 barrels per day
- Reserve replacement was 171 percent in 2008; reserve life increased to 10 years
Hess Corporation (NYSE: HES - News) reported a net loss of $74 million for the fourth quarter of 2008 compared with net income of $510 million for the fourth quarter of 2007. The after-tax results by major operating activity were as follows:
| Three Months Ended | Year Ended | |||||||||||||||
December 31, (unaudited) |
December 31, (unaudited) | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (In millions, except per share amounts) | ||||||||||||||||
| Exploration and Production | $ | (125 | ) | $ | 583 | $ | 2,423 | $ | 1,842 | |||||||
| Marketing and Refining | 152 | 31 | 277 | 300 | ||||||||||||
| Corporate | (59 | ) | (59 | ) | (173 | ) | (150 | ) | ||||||||
| Interest expense | (42 | ) | (45 | ) | (167 | ) | (160 | ) | ||||||||
|
Net income (loss) |
$ | (74 | ) | $ | 510 | $ | 2,360 | $ | 1,832 | |||||||
|
Net income (loss) per share (diluted) |
$ | (.23 | ) | $ | 1.59 | $ | 7.24 | $ | 5.74 | |||||||
|
|
||||||||||||||||
| Weighted average number of shares (diluted) | 322.9 | 321.6 | 325.8 | 319.3 | ||||||||||||
Note: See the following page for a table of items affecting the comparability of earnings between periods.
Exploration and Production generated a loss of $125 million in the fourth quarter of 2008 compared with income of $583 million in the fourth quarter of 2007. Fourth quarter 2008 results included after-tax dry hole costs of $86 million, foreign exchange losses of $84 million and net income tax charges of $20 million. The Corporation’s oil and gas production, on a barrel-of-oil equivalent basis, was 379,000 barrels per day in the fourth quarter of 2008 compared with 390,000 barrels per day in the fourth quarter of the prior year. Production in the fourth quarter of 2008 was reduced by 19,000 barrels per day due to hurricane impacts. In the fourth quarter of 2008, the Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $45.00 per barrel compared with $76.11 per barrel in the fourth quarter of 2007. The Corporation’s average worldwide natural gas selling price, including the effect of hedging, was $6.26 per Mcf in the fourth quarter of 2008 compared with $6.93 per Mcf in the fourth quarter of the prior year.
Oil and gas proved reserves increased to 1,432 million barrels of oil equivalent at the end of 2008 from 1,330 million barrels at the end of 2007. During 2008, the Corporation added 244 million barrels of oil equivalent to proved reserves. These additions, which are subject to final review, replaced approximately 171 percent of the Corporation's 2008 production and increased its reserve life to 10.0 years.
Marketing and Refining earnings were $152 million in the fourth quarter of 2008 compared with $31 million in the fourth quarter of 2007. Refining earnings were $27 million in the fourth quarter of 2008 as they were in the same quarter a year earlier as improved margins offset lower volumes. Marketing earnings were $138 million in the fourth quarter of 2008 up from $19 million in the fourth quarter of 2007, reflecting higher margins. Trading operations generated losses of $13 million in the fourth quarter of 2008 and $15 million in the same quarter of 2007.
The following table reflects the total after-tax impact by operating activity of items affecting comparability of earnings between periods (in millions):
| Three Months Ended | Year Ended | |||||||||||||||
December 31, |
December 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Exploration and Production | $ | (26 | ) | $ | (56 | ) | $ | (26 | ) | $ | (74 | ) | ||||
| Marketing and Refining | - | 24 | - | 24 | ||||||||||||
| Corporate | - | (25 | ) | - | (25 | ) | ||||||||||
| $ | (26 | ) | $ | (57 | ) | $ | (26 | ) | $ | (75 | ) | |||||
In the fourth quarter of 2008, the Corporation recorded after-tax charges of $17 million related to asset impairments at fields located in the United States and U.K. North Sea. Also during the fourth quarter of 2008, the Corporation recorded after-tax charges of $9 million associated with Hurricanes Gustav and Ike in the Gulf of Mexico.
Net cash provided by operating activities was $4,567 million for the year 2008 compared with $3,507 million for the year 2007. Capital and exploratory expenditures for 2008 amounted to $4,828 million, of which $4,641 million related to Exploration and Production operations. Capital and exploratory expenditures for 2007 amounted to $3,926 million.
At December 31, 2008, cash and cash equivalents totaled $908 million compared with $607 million at December 31, 2007. Total debt was $3,955 million at December 31, 2008 and $3,980 million at December 31, 2007. The Corporation’s debt to capitalization ratio at December 31, 2008 was 24.3 percent compared with 28.9 percent at the end of 2007.
Hess Corporation will review fourth 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 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.
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS OF DOLLARS) |
|||||||||||
| Fourth | Fourth | Third | |||||||||
| Quarter | Quarter | Quarter | |||||||||
| 2008 | 2007 | 2008 | |||||||||
|
Income Statement |
|||||||||||
| Revenues and Non-operating Income | |||||||||||
| Sales (excluding excise taxes) and other operating revenues | $ | 7,383 | $ | 9,456 | $ | 11,398 | |||||
| Equity in income of HOVENSA L.L.C. | 21 | 20 | 52 | ||||||||
| Other, net | (153 | ) | 24 | (62 | ) | ||||||
| Total revenues and non-operating income | 7,251 | 9,500 | 11,388 | ||||||||
| Costs and Expenses | |||||||||||
| Cost of products sold (excluding items shown separately below) | 5,358 | 6,651 | 8,165 | ||||||||
| Production expenses | 451 | 463 | 503 | ||||||||
| Marketing expenses | 259 | 243 | 266 | ||||||||
|
Exploration expenses, including dry holes and lease impairment |
258 | 201 | 157 | ||||||||
| Other operating expenses | 55 | 46 | 62 | ||||||||
| General and administrative expenses | 194 | 208 | 170 | ||||||||
| Interest expense | 67 | 71 | 68 | ||||||||
| Depreciation, depletion and amortization | 598 | 530 | 497 | ||||||||
| Total costs and expenses | 7,240 | 8,413 | 9,888 | ||||||||
| Income before income taxes | 11 | 1,087 | 1,500 | ||||||||
| Provision for income taxes | 85 | 577 | 725 | ||||||||
|
Net income (loss) |
$ | (74 | ) | $ | 510 | $ | 775 | ||||
|
Supplemental Income Statement Information |
|||||||||||
| Foreign currency gains (losses), after-tax | $ | (84 | ) | $ | 1 | $ | (10 | ) | |||
| Capitalized interest | 3 | 1 | 2 | ||||||||
|
Cash Flow Information |
|||||||||||
| Net cash provided by operating activities (*) | $ | 495 | $ | 806 | $ | 1,205 | |||||
|
Capital and Exploratory Expenditures |
|||||||||||
| Exploration and Production | |||||||||||
| United States | $ | 519 | $ | 291 | $ | 509 | |||||
| International | 641 | 577 | 829 | ||||||||
| Total Exploration and Production | 1,160 | 868 | 1,338 | ||||||||
| Marketing, Refining and Corporate | 90 | 46 | 30 | ||||||||
| Total Capital and Exploratory Expenditures | $ | 1,250 | $ | 914 | $ | 1,368 | |||||
| Exploration expenses charged to income included above | |||||||||||
| United States | $ | 49 | $ | 43 | $ | 56 | |||||
| International | 45 | 66 | 35 | ||||||||
| $ | 94 | $ | 109 | $ | 91 | ||||||
| (*) Includes changes in working capital | |||||||||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS OF DOLLARS) |
||||||||
| Year Ended December 31, | ||||||||
| 2008 | 2007 | |||||||
|
Income Statement |
||||||||
| Revenues and Non-operating Income | ||||||||
| Sales (excluding excise taxes) and other operating revenues | $ | 41,165 | $ | 31,647 | ||||
| Equity in income of HOVENSA L.L.C. | 44 | 176 | ||||||
| Gain on asset sales | - | 21 | ||||||
| Other, net | (115 | ) | 80 | |||||
| Total revenues and non-operating income | 41,094 | 31,924 | ||||||
| Costs and Expenses | ||||||||
| Cost of products sold (excluding items shown separately below) | 29,595 | 22,573 | ||||||
| Production expenses | 1,872 | 1,581 | ||||||
| Marketing expenses | 1,025 | 944 | ||||||
|
Exploration expenses, including dry holes and lease impairment |
725 | 515 | ||||||
| Other operating expenses | 209 | 161 | ||||||
| General and administrative expenses | 672 | 614 | ||||||
| Interest expense | 267 | 256 | ||||||
| Depreciation, depletion and amortization | 2,029 | 1,576 | ||||||
| Total costs and expenses | 36,394 | 28,220 | ||||||
| Income before income taxes | 4,700 | 3,704 | ||||||
| Provision for income taxes | 2,340 | 1,872 | ||||||
| Net income | $ | 2,360 | $ | 1,832 | ||||
|
Supplemental Income Statement Information |
||||||||
| Foreign currency gains (losses), after-tax | $ | (82 | ) | $ | (9 | ) | ||
| Capitalized interest | 7 | 50 | ||||||
|
Cash Flow Information |
||||||||
| Net cash provided by operating activities (*) | $ | 4,567 | $ | 3,507 | ||||
|
Capital and Exploratory Expenditures |
||||||||
| Exploration and Production | ||||||||
| United States | $ | 2,164 | $ | 1,603 | ||||
| International | 2,477 | 2,183 | ||||||
| Total Exploration and Production | 4,641 | 3,786 | ||||||
| Marketing, Refining and Corporate | 187 | 140 | ||||||
| Total Capital and Exploratory Expenditures | $ | 4,828 | $ | 3,926 | ||||
| Exploration expenses charged to income included above | ||||||||
| United States | $ | 211 | $ | 192 | ||||
| International | 179 | 156 | ||||||
| $ | 390 | $ | 348 | |||||
| (*) Includes changes in working capital | ||||||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS OF DOLLARS) |
||||||||
|
December 31 |
||||||||
| 2008 | 2007 | |||||||
|
Balance Sheet Information |
||||||||
| Cash and cash equivalents | $ | 908 | $ | 607 | ||||
| Other current assets | 6,743 | 6,319 | ||||||
| Investments | 1,127 | 1,117 | ||||||
| Property, plant and equipment – net | 16,271 | 14,634 | ||||||
| Other long-term assets | 3,859 | 3,454 | ||||||
|
Total assets |
$ | 28,908 | $ | 26,131 | ||||
| Current maturities of long-term debt | $ | 143 | $ | 62 | ||||
| Other current liabilities | 7,906 | 7,962 | ||||||
| Long-term debt | 3,812 | 3,918 | ||||||
| Other long-term liabilities | 4,740 | 4,415 | ||||||
| Stockholders' equity excluding other comprehensive income (loss) | 14,315 | 11,615 | ||||||
| Accumulated other comprehensive income (loss) | (2,008 | ) | (1,841 | ) | ||||
| Total liabilities and stockholders' equity | $ | 28,908 | $ | 26,131 | ||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) (IN MILLIONS OF DOLLARS) |
||||||||||||
| Fourth Quarter 2008 | ||||||||||||
| United | ||||||||||||
| States | International | Total | ||||||||||
| Sales and other operating revenues | $ | 199 | $ | 1,264 | $ | 1,463 | ||||||
| Non-operating income (expenses) | - | (165 | ) | (165 | ) | |||||||
| Total revenues and non-operating income | 199 | 1,099 | 1,298 | |||||||||
| Costs and expenses | ||||||||||||
| Production expenses, including related taxes | 106 | 345 | 451 | |||||||||
| Exploration expenses, including dry holes | ||||||||||||
| and lease impairment | 78 | 180 | 258 | |||||||||
| General, administrative and other expenses | 50 | 32 | 82 | |||||||||
| Depreciation, depletion and amortization | 63 | 514 | 577 | |||||||||
| Total costs and expenses | 297 | 1,071 | 1,368 | |||||||||
| Results of operations before income taxes | (98 | ) | 28 | (70 | ) | |||||||
| Provision (benefit) for income taxes | (37 | ) | 92 | 55 | ||||||||
| Results of operations | $ | (61 | ) | $ | (64 | ) | $ | (125 | ) | |||
| Fourth Quarter 2007 | ||||||||||||
| United | ||||||||||||
| States | International | Total | ||||||||||
| Sales and other operating revenues | $ | 401 | $ | 2,037 | $ | 2,438 | ||||||
| Non-operating income (expenses) | (1 | ) | 14 | 13 | ||||||||
| Total revenues and non-operating income | 400 | 2,051 | 2,451 | |||||||||
| Costs and expenses | ||||||||||||
| Production expenses, including related taxes | 71 | 392 | 463 | |||||||||
|
Exploration expenses, including dry holes and lease impairment |
122 | 79 | 201 | |||||||||
| General, administrative and other expenses | 36 | 38 | 74 | |||||||||
| Depreciation, depletion and amortization | 58 | 454 | 512 | |||||||||
| Total costs and expenses | 287 | 963 | 1,250 | |||||||||
| Results of operations before income taxes | 113 | 1,088 | 1,201 | |||||||||
| Provision for income taxes | 44 | 574 | 618 | |||||||||
| Results of operations | $ | 69 | $ | 514 | $ | 583 | ||||||
| Third Quarter 2008 | ||||||||||||
| United | ||||||||||||
| States | International | Total | ||||||||||
| Sales and other operating revenues | $ | 460 | $ | 2,201 | $ | 2,661 | ||||||
| Non-operating income (expenses) | (1 | ) | (70 | ) | (71 | ) | ||||||
| Total revenues and non-operating income | 459 | 2,131 | 2,590 | |||||||||
| Costs and expenses | ||||||||||||
| Production expenses, including related taxes | 96 | 407 | 503 | |||||||||
|
Exploration expenses, including dry holes and lease impairment |
82 | 75 | 157 | |||||||||
| General, administrative and other expenses | 41 | 43 | 84 | |||||||||
| Depreciation, depletion and amortization | 59 | 420 | 479 | |||||||||
| Total costs and expenses | 278 | 945 | 1,223 | |||||||||
| Results of operations before income taxes | 181 | 1,186 | 1,367 | |||||||||
| Provision for income taxes | 71 | 597 | 668 | |||||||||
| Results of operations | $ | 110 | $ | 589 | $ | 699 | ||||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) (IN MILLIONS OF DOLLARS) |
|||||||||||||
| Year Ended December 31, 2008 | |||||||||||||
| United | |||||||||||||
| States | International | Total | |||||||||||
| Sales and other operating revenues | $ | 1,652 | $ | 8,154 | $ | 9,806 | |||||||
| Non-operating income (expenses) | 9 | (176 | ) | (167 | ) | ||||||||
| Total revenues and non-operating income | 1,661 | 7,978 | 9,639 | ||||||||||
| Costs and expenses | |||||||||||||
| Production expenses, including related taxes | 373 | 1,499 | 1,872 | ||||||||||
|
Exploration expenses, including dry holes and lease impairment |
305 | 420 | 725 | ||||||||||
| General, administrative and other expenses | 159 | 143 | 302 | ||||||||||
| Depreciation, depletion and amortization | 238 | 1,714 | 1,952 | ||||||||||
| Total costs and expenses | 1,075 | 3,776 | 4,851 | ||||||||||
| Results of operations before income taxes | 586 | 4,202 | 4,788 | ||||||||||
| Provision for income taxes | 226 | 2,139 | 2,365 | ||||||||||
| Results of operations | $ | 360 | $ | 2,063 | $ | 2,423 | |||||||
| Year Ended December 31, 2007 | |||||||||||||
| United | |||||||||||||
| States | International | Total | |||||||||||
| Sales and other operating revenues | $ | 1,211 | $ | 6,287 | $ | 7,498 | |||||||
| Non-operating income (expenses) | 8 | 57 | 65 | ||||||||||
| Total revenues and non-operating income | 1,219 | 6,344 | 7,563 | ||||||||||
| Costs and expenses | |||||||||||||
| Production expenses, including related taxes | 280 | 1,301 | 1,581 | ||||||||||
|
Exploration expenses, including dry holes and lease impairment |
302 | 213 | 515 | ||||||||||
| General, administrative and other expenses | 130 | 127 | 257 | ||||||||||
| Depreciation, depletion and amortization | 187 | 1,316 | 1,503 | ||||||||||
| Total costs and expenses | 899 | 2,957 | 3,856 | ||||||||||
| Results of operations before income taxes | 320 | 3,387 | 3,707 | ||||||||||
| Provision for income taxes | 125 | 1,740 | 1,865 | ||||||||||
| Results of operations | $ | 195 | $ | 1,647 | $ | 1,842 | |||||||
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED) |
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|
|
Fourth | Fourth | Third | ||||||
| Quarter | Quarter | Quarter | |||||||
| 2008 | 2007 | 2008 | |||||||
|
Net Production Per Day (in thousands) |
|||||||||
| Crude oil - barrels | |||||||||
| United States | 27 | 34 | 31 | ||||||
| Europe | 84 | 83 | 80 | ||||||
| Africa | 129 | 121 | 121 | ||||||
| Asia and other | 11 | 22 | 12 | ||||||
|
Total |
251 | 260 | 244 | ||||||
| Natural gas liquids - barrels | |||||||||
| United States | 8 | 11 | 9 | ||||||
| Europe | 5 | 5 | 4 | ||||||
| Total | 13 | 16 | 13 | ||||||
| Natural gas - mcf | |||||||||
| United States | 61 | 91 | 76 | ||||||
| Europe | 241 | 290 | 216 | ||||||
| Asia and other | 386 | 300 | 333 | ||||||
| Total | 688 | 681 | 625 | ||||||
| Barrels of oil equivalent | 379 | 390 | 361 | ||||||
|
Average Selling Price |
|||||||||
| Crude oil - per barrel (including hedging)* | |||||||||
| United States | $ | 48.90 | $ | 86.22 | $ | 116.14 | |||
| Europe | 46.77 | 74.00 | 83.23 | ||||||
| Africa | 42.93 | 72.85 | 91.72 | ||||||
| Asia and other | 40.39 | 86.30 | 105.58 | ||||||
| Worldwide | 45.00 | 76.11 | 93.36 | ||||||
| Crude oil - per barrel (excluding hedging) | |||||||||
| United States | $ | 48.90 | $ | 86.22 | $ | 116.14 | |||
| Europe | 46.77 | 74.00 | 83.23 | ||||||
| Africa | 49.90 | 84.84 | 108.49 | ||||||
| Asia and other | 40.39 | 86.30 | 105.58 | ||||||
|
Worldwide |
48.31 | 81.87 | 102.80 | ||||||
| Natural gas liquids - per barrel | |||||||||
| United States | $ | 36.83 | $ | 63.51 | $ | 77.50 | |||
| Europe | 44.05 | 70.86 | 81.84 | ||||||
| Worldwide | 39.00 | 66.13 | 78.50 | ||||||
| Natural gas - per mcf (including hedging)* | |||||||||
| United States | $ | 5.56 | $ | 6.47 | $ | 8.57 | |||
| Europe | 8.46 | 8.92 | 10.12 | ||||||
| Asia and other | 4.99 | 5.13 | 5.77 | ||||||
| Worldwide | 6.26 | 6.93 | 7.60 | ||||||
| Natural gas - per mcf (excluding hedging) | |||||||||
| United States | $ | 5.56 | $ | 6.47 | $ | 8.57 | |||
| Europe | 8.62 | 8.92 | 10.84 | ||||||
| Asia and other | 4.99 | 5.13 | 5.77 | ||||||
| Worldwide | 6.32 | 6.93 | 7.85 | ||||||
* The after-tax losses from crude oil and natural gas hedges were $46 million in the fourth quarter of 2008, $89 million in the fourth quarter of 2007 and $138 million in the third quarter of 2008.
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED) |
||||||
|
|
Year Ended December 31, | |||||
| 2008 | 2007 | |||||
|
Net Production Per Day (in thousands) |
||||||
| Crude oil - barrels | ||||||
| United States | 32 | 31 | ||||
| Europe | 83 | 93 | ||||
| Africa | 124 | 115 | ||||
| Asia and other | 13 | 21 | ||||
| Total | 252 | 260 | ||||
| Natural gas liquids - barrels | ||||||
| United States | 10 | 10 | ||||
| Europe | 4 | 5 | ||||
| Total | 14 | 15 | ||||
| Natural gas - mcf | ||||||
| United States | 78 | 88 | ||||
| Europe | 255 | 259 | ||||
| Asia and other | 356 | 266 | ||||
|
Total |
689 | 613 | ||||
| Barrels of oil equivalent | 381 | 377 | ||||
|
Average Selling Price |
||||||
| Crude oil - per barrel (including hedging)* | ||||||
| United States | $ | 96.82 | $ | 69.23 | ||
| Europe | 78.75 | 60.99 | ||||
| Africa | 78.72 | 62.04 | ||||
| Asia and other | 97.07 | 72.17 | ||||
| Worldwide | 82.04 | 63.44 | ||||
| Crude oil - per barrel (excluding hedging) | ||||||
| United States | $ | 96.82 | $ | 69.23 | ||
| Europe | 78.75 | 60.99 | ||||
| Africa | 93.57 | 71.71 | ||||
| Asia and other | 97.07 | 72.17 | ||||
| Worldwide | 89.23 | 67.79 | ||||
| Natural gas liquids - per barrel | ||||||
| United States | $ | 64.98 | $ | 51.89 | ||
| Europe | 74.63 | 57.20 | ||||
| Worldwide | 67.61 | 53.72 | ||||
| Natural gas - per mcf (including hedging)* | ||||||
| United States | $ | 8.61 | $ | 6.67 | ||
| Europe | 9.44 | 6.13 | ||||
| Asia and other | 5.24 | 4.71 | ||||
| Worldwide | 7.17 | 5.60 | ||||
| Natural gas - per mcf (excluding hedging) | ||||||
| United States | $ | 8.61 | $ | 6.67 | ||
| Europe | 9.79 | 6.13 | ||||
| Asia and other | 5.24 | 4.71 | ||||
| Worldwide | 7.30 | 5.60 | ||||
* The after-tax losses from crude oil and natural gas hedges were $423 million for the year ended 2008 and $244 million for the year ended 2007.
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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED) |
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| Fourth | Fourth | Third | |||||||||||||
| Quarter | Quarter | Quarter | |||||||||||||
| 2008 | 2007 | 2008 | |||||||||||||
|
Financial Information (in millions of dollars) |
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Marketing and Refining Results |
|||||||||||||||
| Income before income taxes | $ | 241 | $ | 51 | $ | 262 | |||||||||
| Provision for income taxes | 89 | 20 | 101 | ||||||||||||
| Marketing and Refining Earnings | $ | 152 | $ | 31 | $ | 161 | |||||||||
|
Summary of Marketing and Refining Results |
|||||||||||||||
| Refining | $ | 27 | $ | 27 | $ | 46 | |||||||||
| Marketing | 138 | 19 | 110 | ||||||||||||
| Trading | (13 | ) | (15 | ) | 5 | ||||||||||
| Total Marketing and Refining Earnings (Loss) | $ | 152 | $ | 31 | $ | 161 | |||||||||
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Operating Data (barrels and gallons in thousands) |
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|
Refined Product Sales (barrels per day) |
|||||||||||||||
| Gasoline | 225 | 205 | 249 | ||||||||||||
| Distillates | 154 | 163 | 122 | ||||||||||||
| Residuals | 62 | 57 | 46 | ||||||||||||
| Other | 36 | 37 | 43 | ||||||||||||
| Total | 477 | 462 | 460 | ||||||||||||
|
Refinery Throughput (barrels per day) |
|||||||||||||||
| HOVENSA - Crude runs | 392 | 488 | 457 | ||||||||||||
| HOVENSA - Hess 50% share | 196 | 244 | 228 | ||||||||||||
| Port Reading | 64 | 63 | 65 | ||||||||||||
|
Refinery Utilization |
Refinery Capacity |
||||||||||||||
| HOVENSA | (barrels per day) | ||||||||||||||
| Crude |
500 |
78.4 | % | 97.6 | % | 91.3 | % | ||||||||
| FCC |
150 |
70.5 | % | 84.9 | % | 72.8 | % | ||||||||
| Coker |
58 |
73.5 | % | 99.3 | % | 105.4 | % | ||||||||
| Port Reading |
70 (c) |
92.0 | % | 96.3 | % | 92.4 | % | ||||||||
|
Retail Marketing |
|||||||||||||||
| Number of retail stations (a) | 1,366 | 1,371 | 1,357 | ||||||||||||
| Convenience store revenue (in millions of dollars) (b) | $ | 258 | $ | 255 | $ | 279 | |||||||||
| Average gasoline volume per station (gallons per month) (b) | 200 | 209 | 215 | ||||||||||||
|
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| (a) Includes company operated, Wilco-Hess, dealer and branded retailer. | |||||||||||||||
| (b) Company operated only. | |||||||||||||||
| (c) Refinery utilization in 2007 is based on capacity of 65 thousand barrels per day. | |||||||||||||||
|
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED) |
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| Year Ended December 31, | ||||||||||||
| 2008 | 2007 | |||||||||||
|
Financial Information (in millions of dollars) |
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|
Marketing and Refining Results |
||||||||||||
| Income before income taxes | $ | 439 | $ | 481 | ||||||||
| Provision for income taxes | 162 | 181 | ||||||||||
| Marketing and Refining Earnings | $ | 277 | $ | 300 | ||||||||
|
Summary of Marketing and Refining Results |
||||||||||||
| Refining | $ | 73 | $ | 193 | ||||||||
| Marketing | 240 | 83 | ||||||||||
| Trading | (36 | ) | 24 | |||||||||
| Total Marketing and Refining Earnings (Loss) | $ | 277 | $ | 300 | ||||||||
|
Operating Data (barrels and gallons in thousands) |
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|
Refined Product Sales (barrels per day) |
||||||||||||
| Gasoline | 234 | 210 | ||||||||||
| Distillates | 143 | 147 | ||||||||||
| Residuals | 56 | 62 | ||||||||||
| Other | 39 | 32 | ||||||||||
| Total | 472 | 451 | ||||||||||
|
Refinery Throughput (barrels per day) |
||||||||||||
| HOVENSA - Crude runs | 441 | 454 | ||||||||||
| HOVENSA - Hess 50% share | 221 | 227 | ||||||||||
| Port Reading | 64 | 61 | ||||||||||
|
Refinery Utilization |
Refinery Capacity |
|||||||||||
| HOVENSA | (barrels per day) | |||||||||||
| Crude |
500 |
88.2 | % | 90.8 | % | |||||||
| FCC |
150 |
72.7 | % | 87.1 | % | |||||||
| Coker |
58 |
92.4 | % | 83.4 | % | |||||||
| Port Reading |
70 (c) |
90.7 | % | 93.2 | % | |||||||
|
Retail Marketing |
||||||||||||
| Number of retail stations (a) | 1,366 | 1,371 | ||||||||||
| Convenience store revenue (in millions of dollars) (b) | $ | 1,051 | $ | 1,051 | ||||||||
| Average gasoline volume per station (gallons per month) (b) | 207 | 215 | ||||||||||
|
|
||||||||||||
| (a) Includes company operated, Wilco-Hess, dealer and branded retailer. | ||||||||||||
| (b) Company operated only. | ||||||||||||
| (c) Refinery utilization in 2007 is based on capacity of 65 thousand barrels per day. | ||||||||||||
Contact:
Hess Corporation
Investors:
Jay Wilson, 212-536-8940
or
Media:
Jon Pepper, 212-536-8550
Source: