Amerada Hess Reports Results For The Third Quarter 2002

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10/24/2002

New York, New York....October 24, 2002....Amerada Hess Corporation (NYSE:AHC) reported operating earnings, excluding special items, of $121 million ($1.36 per share) for the third quarter of 2002 compared with earnings of $167 million ($1.86 per share) for the third quarter of 2001. There was a net loss of $136 million ($1.54 per share) in the third quarter of 2002, including a charge for asset impairment and other special items. Net income was $153 million ($1.72 per share) in the first nine months of 2002.

The after-tax results by major operating activity for the three and nine month periods ended September 30, 2002 and 2001 were as follows (in millions, except per share amounts):

	Three months ended September 30 (unaudited)		Nine months ended September 30 (unaudited)
	2002	2001	2002	2001
Exploration and production	$ 181	$ 228	$ 578	$ 808
Refining, marketing and shipping	3	5	20	210
Corporate	(23)	(32)	(56)	(65)
Interest expense	(40)	(34)	(137)	(93)
Operating earnings	121	167	405	860
Special items	(257)	--	(252)	--
Net income (loss)	$ (136)	$ 167	$ 153	$ 860
Net income (loss) per share	$ (1.54)	$ 1.86	$ 1.72	$ 9.63

The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 441,000 barrels per day in the third quarter of 2002, an increase of 2% over the third quarter of 2001. In the third quarter of 2002, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was approximately $26.24 per barrel, an increase of $1.93 per barrel from the third quarter of 2001. The Corporation's average United States natural gas selling price, including the effect of hedging, was $3.40 per Mcf in the third quarter of 2002, approximately the same as in the third quarter of 2001.

Refining and marketing results were lower in the first nine months of 2002 compared with 2001, principally reflecting decreased refining margins and lower earnings from retail operations.

After-tax special items in the third quarter and first nine months of 2002 were as follows (in millions):

	Three months ended September 30		Nine months ended September 30
	2002	2001	2002	2001
Asset Impairment	$ (256)	$ --	$ (256)	$ --
Net gain from asset sales	42	--	69	--
Charge for increase in United Kingdom income tax rate	(43)	--	(43)	--
Reduction in carrying value of intangible assets	--	--	(14)	--
Severance accrual	--	--	(8)	--
	$ (257)	$ --	$ (252)	$ --

In the third quarter of 2002, the Corporation recorded an impairment charge of $256 million to reduce the carrying value of certain producing fields in the Gulf of Mexico. The non-cash charge principally reflects reduced oil and gas reserve estimates. In addition, the Corporation recorded a net gain from sales of six United States flag tankers for a gain of $67 million, partially offset by a loss on the sale of several small United States oil and gas producing properties. A United Kingdom income tax charge was also recorded for the effect on deferred tax liabilities of the 10% supplementary tax on oil and gas profits enacted in the third quarter.

Sales and other operating revenues in the third quarter of 2002 amounted to $2,818 million compared with $2,888 million in the third quarter of 2001. Capital expenditures in the third quarter of 2002 amounted to $345 million, of which $323 million related to exploration and production activities. Capital expenditures in the third quarter of 2001 amounted to $3,233 million, including $2,720 million for the acquisition of Triton Energy Limited.

Consolidated Financial Information
(unaudited)

	Three months ended September 30		Nine months ended September 30
	2002	2001	2002	2001
	(In millions, except per share amounts)
Sales and other operating revenues	$ 2,818	$ 2,888	$ 8,635	$ 10,531
Operating earnings	$ 121	$ 167	$ 405	$ 860
Special items	(257)	--	(252)	--
Net income (loss)	$ (136)	$ 167	$ 153	$ 860
Operating earnings per share (diluted)	$ 1.36	$ 1.86	$ 4.54	$ 9.63
Net income (loss) per share	$ (1.54)	$ 1.86	$ 1.72	$ 9.63
Weighted average number of shares	*88.3()**	89.4	89.3	89.3
(*) Represents basic shares

Amerada Hess Corporation and Consolidated Subsidiaries
Supplemental Financial Data
(unaudited - in millions)

Line	INCOME STATEMENT					Third Quarter 2002 (A)		Third Quarter 2001 (B)	Second Quarter 2002 (C)
No.	REVENUES
1		Sales and other operating revenues				$ 2,818		$ 2,888	$ 2,796
		Non-operating income
2			Equity in income (loss) of HOVENSA L.L.C.			(6)		11	(18)
3			Other			83		35	16
4				Total revenues		2,895		2,934	2,794

	COSTS AND EXPENSES
5		Cost of products sold				1,629		1,848	1,563
6		Production expenses				222		196	184
7		Marketing expenses				144		161	197
8		Exploration expenses, including dry holes and lease impairment				105		75	50
9		Other operating expenses				49		54	46
10		General and administrative expenses				72		71	60
11		Interest expense				64		51	70
12		Depreciation, depletion and amortization				342		254	368
13		Asset impairment				394		--	--
14				Total costs and expenses		3,021		2,710	2,538

15		Income (loss) before income taxes				(126)		224	256
16		Provision for income taxes				10		57	107
17	NET INCOME (LOSS)		$ (136)		$ 167		$ 149

	SEGMENT ANALYSIS
18		Exploration and production				$ 181		$ 228	$ 198
19		Refining, marketing and shipping				3		5	39
20		Corporate				(23)		(32)	(18)
21		Interest expense				(40)		(34)	(48)
22		Operating earnings				121		167	171
23		Special items				(257)		--	(22)
24				Net income (loss)		$ (136)		$ 167	$ 149

25	*CASH FLOW FROM OPERATIONS ()**					$ 555		$ 500	$ 561

	CAPITAL EXPENDITURES
26		Exploration and production				$ 323		$ 3,208	$ 351
27		Refining, marketing and shipping				22		25	67
28				Total capital expenditures		$ 345		$ 3,233	$ 418

	AT END OF PERIOD
29		Total debt				$ 5,083		$ 5,496	$ 5,302

30		Stockholders' equity				$ 4,683		$ 4,820	$ 4,949

	(*) Net income (loss) adjusted for depreciation and amortization, asset impairment, exploratory dry holes, deferred income taxes, undistributed earnings of affiliates and net gain on asset sales.

Amerada Hess Corporation and Consolidated Subsidiaries
Supplemental Financial Data
(unaudited - in millions)

					Nine Months
Line	INCOME STATEMENT				2002 (A)	2001 (B)
No.	REVENUES
1		Sales and other operating revenues			$ 8,635	$ 10,531
		Non-operating income
2			Equity in income (loss) of HOVENSA L.L.C.		(50)	77
3			Other		162	120
4				Total revenues	8,747	10,728

	COSTS AND EXPENSES
5		Cost of products sold			5,118	7,016
6		Production expenses			589	522
7		Marketing expenses			500	466
8		Exploration expenses, including dry holes and lease impairment			209	232
9		Other operating expenses			145	163
10		General and administrative expenses			195	195
11		Interest expense			204	132
12		Depreciation, depletion and amortization			1,012	664
13		Asset impairment			394	--
14				Total costs and expenses	8,366	9,390

15		Income before income taxes			381	1,338
16		Provision for income taxes			228	478
17	NET INCOME				$ 153	$ 860

18	CASH FLOW FROM OPERATIONS				$ 1,570	$ 1,701

	CAPITAL EXPENDITURES
19		Exploration and production			$ 1,101	$ 4,573
20		Refining, marketing and shipping			106	128
21				Total capital expenditures	$ 1,207	$ 4,701

					September 30 2002	December 31 2001
	BALANCE SHEET INFORMATION
22		Current assets			$ 2,503	$ 3,946
23		Investments			1,608	1,636
24		Property, plant and equipment - net			7,741	8,165
25		Other assets			1,775	1,622
26				Total assets	$ 13,627	$ 15,369

27		Current portion of long-term debt			$ 18	$ 382
28		Other current liabilities			2,406	3,336
29		Long-term debt			5,065	5,283
30		Deferred liabilities and credits			1,455	1,461
31		Stockholders' equity excluding other comprehensive income			4,901	4,799
32		Accumulated other comprehensive income (loss)			(218)	108
33				Total liabilities and stockholders' equity	$ 13,627	$ 15,369

Amerada Hess Corporation and Consolidated Subsidiaries
Supplemental Operating Data
(in thousands, except for average selling prices)

Line	OPERATING DATA				Third Quarter 2002 (A)	Third Quarter 2001 (B)	Second Quarter 2002 (C)
No.	NET PRODUCTION PER DAY
		Crude oil - barrels
1			United States		53	66	57
2			United Kingdom		112	114	115
3			Equatorial Guinea		39	9	48
4			Norway		26	23	24
5			Colombia		21	14	21
6			Denmark		20	18	21
7			Algeria		15	13	14
8			Gabon		8	9	9
9			Indonesia		4	6	3
10			Azerbaijan		4	4	4
11				Total	302	276	316

		Natural gas liquids - barrels
12			United States		12	16	13
13			United Kingdom		5	6	5
14			Norway		1	1	1
15			Indonesia and Thailand		3	1	2
16				Total	21	24	21

		Natural gas - mcf
17			United States		355	464	422
18			United Kingdom		227	240	272
19			Denmark		30	39	36
20			Norway		28	24	24
21			Indonesia, Thailand and other		63	30	36
22				Total	703	797	790

23		Barrels of oil equivalent			441	433	469

	AVERAGE SELLING PRICE (including hedging)
		Crude oil - per barrel
24			United States		$ 26.19	$ 23.38	$ 25.46
25			Foreign		26.25	24.62	24.50

		Natural gas liquids - per barrel
26			United States		$ 16.31	$ 17.73	$ 15.34
27			Foreign		19.52	17.86	17.67

		Natural gas - per mcf
28			United States		$ 3.40	$ 3.42	$ 3.52
29			Foreign		2.17	1.96	1.94

	MARKETING AND REFINING - BARRELS PER DAY
30		Refined products sold			355	343	366
31		Refinery runs (net)			174	205	158

Amerada Hess Corporation and Consolidated Subsidiaries
Supplemental Operating Data
(in thousands, except for average selling prices)

					Nine Months
Line	OPERATING DATA				2002 (A)	2001 (B)
No.	NET PRODUCTION PER DAY
		Crude oil - barrels
1			United States		56	64
2			United Kingdom		113	117
3			Equatorial Guinea		39	3
4			Norway		24	24
5			Colombia		22	5
6			Denmark		21	20
7			Algeria		14	13
8			Gabon		9	8
9			Indonesia		5	6
10			Azerbaijan		4	4
11				Total	307	264

		Natural gas liquids - barrels
12			United States		13	14
13			United Kingdom		5	6
14			Norway		1	1
15			Indonesia and Thailand		3	2
16				Total	22	23

		Natural gas - mcf
17			United States		390	421
18			United Kingdom		275	291
19			Denmark		36	42
20			Norway		25	25
21			Indonesia, Thailand and other		42	31
22				Total	768	810

23		Barrels of oil equivalent			456	422

	AVERAGE SELLING PRICE (including hedging)
		Crude oil - per barrel
24			United States		$ 24.33	$ 24.15
25			Foreign		24.91	26.02

		Natural gas liquids - per barrel
26			United States		$ 14.84	$ 20.94
27			Foreign		17.86	20.29

		Natural gas - per mcf
28			United States		$ 3.45	$ 4.39
29			Foreign		2.17	2.51

	MARKETING AND REFINING - BARRELS PER DAY
30		Refined products sold			376	398
31		Refinery runs (net)			175	204

Contact: Amerada Hess Corporation - C.T. Tursi (212) 536-8593

These financial data are available here as a Microsoft® Excel® .XLS spreadsheet.

For FULL online versions of Amerada Hess financial reports filed with the Security and Exchange Commission, you may search the SEC Edgar Database.

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