|
New York, New York....July 25, 2000....Amerada Hess Corporation
reported operating earnings of $202 million for the second quarter
of 2000 compared with earnings of $37 million for the second quarter
of 1999. Operating earnings in the first half of 2000 were $426
million compared with earnings of $78 million in the first half
of 1999.
The after-tax results by major operating activity for the three and six month periods ended June 30, 2000 and 1999 were as follows (in millions, except per share amounts):
|
Three
Months Ended
|
Six Months
Ended
|
|
June
30 (Unaudited)
|
June
30 (Unaudited)
|
| |
2000
|
|
1999
|
2000
|
|
1999
|
|
Exploration
and Production
|
$178
|
|
$ 51
|
$396 |
|
$ 78
|
|
Refining, Marketing and Shipping
|
64 |
|
19
|
112 |
|
72
|
|
Corporate
|
(10) |
|
(5)
|
(22) |
|
(15)
|
|
Interest Expense
|
(30) |
|
(28)
|
(60) |
|
(57)
|
|
Operating Earnings
|
202 |
|
37
|
426 |
|
78
|
|
Gain on Asset Sales
|
- |
|
40
|
- |
|
70
|
|
Net Income
|
$202 |
|
$
77
|
$426 |
|
$ 148
|
|
Net Income Per Share
|
$2.24 |
|
$
.86
|
$4.71 |
|
$1.65
|
The Corporation's average worldwide crude
oil selling price in the second quarter of 2000 was approximately
$24.25 per barrel, an increase of $9.25 from the second quarter
of 1999. The Corporation's oil and gas production, on a barrel-of-oil
equivalent basis, was 362,000 barrels per day in the second quarter
of 2000, an increase of 19% over the second quarter of 1999.
Increased refining, marketing and shipping
results in the second quarter of 2000, compared with the second
quarter of 1999, reflect improved refining margins.
The net gain from asset sales in the second
quarter of 1999 represents the sale of Southeast pipeline storage
terminals and certain retail sites in South Carolina.
Sales and other operating revenues amounted
to $2,644 million in the second quarter of 2000 compared with
$1,430 million in the second quarter of 1999. The increase principally
reflects significantly higher crude oil and refined product selling
prices.
Capital expenditures in the second quarter
of 2000 were $243 million of which $194 million related to exploration
and production activities. Capital expenditures in the second
quarter of 1999 amounted to $219 million including $198 million
for exploration and production.
Consolidated
Financial Information (Unaudited)
(in millions, except per share amounts)
|
Three
Months Ended
June 30
|
Six
Months Ended
June 30
|
|
2000 |
1999 |
2000 |
1999 |
| Sales
and other operating revenues |
$2,644 |
$1,430 |
$5,475 |
$2,969 |
| Net
income |
$202 |
$77(a) |
$426 |
$148(a) |
| Net
income per share (diluted) |
$2.24 |
$.86(a) |
$4.71 |
$1.65(a) |
| Weighted
average number of shares |
90.5 |
90.1 |
90.5 |
90.0 |
(a)Includes gains on asset
sales of $40 million ($.45 per share) and $70 million ($.78 per
share) in the second quarter and first half of 1999, respectively.
Amerada Hess Corporation and
Consolidated Subsidiaries
Supplemental Financial Data
(unaudited
- in millions)
|
INCOME
STATEMENT
|
|
Second
Quarter
2000
|
|
|
Second
Quarter
1999
|
|
|
First
Quarter
2000
|
|
REVENUES
|
|
|
|
Sales
and other operating revenues
|
|
|
|
|
|
$2,644
|
|
|
$1,430
|
|
|
$2,831
|
|
|
|
Non-operating
income
|
|
|
|
|
Gain
on asset sales
|
|
|
|
|
|
-
|
|
|
62
|
|
|
-
|
|
|
|
|
Equity
in income of
HOVENSA L.L.C.
|
|
|
|
|
|
41
|
|
|
1
|
|
|
11
|
|
|
|
|
Other
|
|
|
|
|
|
|
29
|
|
|
41
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
|
|
|
|
2,714
|
|
|
1,534
|
|
|
2,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS
AND EXPENSES
|
|
|
|
Cost
of products sold
|
|
|
|
|
|
1,717
|
|
|
865
|
|
|
1,875
|
|
|
|
Production
expenses
|
|
|
|
|
|
129
|
|
|
98
|
|
|
133
|
|
|
|
Marketing
expenses
|
|
|
|
|
|
122
|
|
|
86
|
|
|
106
|
|
|
|
Other
operating expenses
|
|
|
|
|
|
51
|
|
|
59
|
|
|
57
|
|
|
|
Exploration
expenses, including dry holes and lease impairment
|
|
|
|
|
|
90
|
|
|
78
|
|
|
62
|
|
|
|
General
and administrative expenses
|
|
|
|
|
|
51
|
|
|
64
|
|
|
51
|
|
|
|
Interest
expense
|
|
|
|
|
|
39
|
|
|
38
|
|
|
38
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
|
|
|
167
|
|
|
136
|
|
|
174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
costs and expenses
|
|
|
|
|
|
2,366
|
|
|
1,424
|
|
|
2,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
|
|
|
348
|
|
|
110
|
|
|
374
|
|
|
|
Provision
for income taxes
|
|
|
|
|
|
146
|
|
|
33
|
|
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
|
|
|
|
$202
|
|
|
$77
|
|
|
$224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOW FROM OPERATIONS (*)
|
|
|
|
|
|
$437
|
|
|
$178
|
|
|
$455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
EXPENDITURES
|
|
|
|
Exploration
and production
|
|
|
|
|
|
$194
|
|
|
$198
|
|
|
$127
|
|
|
|
Refining,
marketing and shipping
|
|
|
|
|
|
49
|
|
|
21
|
|
|
35
|
|
|
|
|
|
Total
capital expenditures
|
|
|
|
|
|
$243
|
|
|
$219
|
|
|
$162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AT
END OF PERIOD
|
|
|
|
Total
debt
|
|
|
|
|
|
$2,114
|
|
|
$2,696
|
|
|
$2,041
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working
capital
|
|
|
|
|
|
$294
|
|
|
$206
|
|
|
$251
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
$3,408
|
|
|
$2,768
|
|
|
$3,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
Net income adjusted for depreciation and amortization, exploratory
dry holes, deferred income taxes, undistributed earnings
in affiliates and gain on asset sales.
|
Amerada Hess Corporation and
Consolidated Subsidiaries
Supplemental Financial Data
(unaudited
- in millions)
|
|
|
|
|
|
|
|
|
|
|
|
First
Half
2000
|
|
|
First
Half
1999
|
|
|
INCOME
STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
Sales
and other operating revenues
|
|
|
|
|
$
|
5,475
|
|
$
|
2,969
|
|
|
|
|
Non-operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain
on asset sales
|
|
|
|
|
|
- -
|
|
|
108
|
|
|
|
|
|
Equity
in income of HOVENSA L.L.C.
|
|
|
|
|
|
52
|
|
|
17
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
57
|
|
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
|
|
|
|
5,584
|
|
|
3,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS
AND EXPENSES
|
|
|
|
|
Cost
of products sold
|
|
|
|
|
|
3,592
|
|
|
1,863
|
|
|
|
|
Production
expenses
|
|
|
|
|
|
262
|
|
|
216
|
|
|
|
|
Marketing
expenses
|
|
|
|
|
|
228
|
|
|
180
|
|
|
|
|
Other
operating expenses
|
|
|
|
|
|
108
|
|
|
116
|
|
|
|
|
Exploration
expenses, including dry holes and
lease impairment
|
|
|
|
|
|
152
|
|
|
141
|
|
|
|
|
General
and administrative expenses
|
|
|
|
|
|
102
|
|
|
114
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
77
|
|
|
77
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
|
|
|
341
|
|
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
costs and expenses
|
|
|
|
|
|
4,862
|
|
|
2,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
|
|
|
722
|
|
|
204
|
|
|
|
|
Provision
for income taxes
|
|
|
|
|
|
296
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
|
|
|
$
|
426
|
|
$
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH
FLOW FROM OPERATIONS (*)
|
|
|
|
|
$
|
892
|
|
$
|
318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
EXPENDITURES
|
|
|
|
|
Exploration
and production
|
|
|
|
|
$
|
321
|
|
$
|
383
|
|
|
|
|
Refining,
marketing and shipping
|
|
|
|
|
|
84
|
|
|
37
|
|
|
|
|
|
|
Total
capital expenditures
|
|
|
|
|
$
|
405
|
|
$
|
420
|
|
(*)
Net income adjusted for depreciation and amortization, exploratory
dry holes, deferred income taxes, undistributed earnings
in affiliates and gain on asset sales.
|
Amerada Hess Corporation and Consolidated
Subsidiaries
Supplemental Operating Data
(in thousands,
except for average selling prices)
|
OPERATING
DATA
|
Second
Quarter
2000
|
|
Second
Quarter
1999
|
|
First
Quarter
2000
|
|
NET
PRODUCTION PER DAY
|
|
|
|
Crude
oil - barrels
|
|
|
|
|
United
States
|
|
|
55
|
|
55
|
|
52
|
|
|
|
|
United
Kingdom
|
|
|
112
|
|
90
|
|
112
|
|
|
|
|
Norway
|
|
|
27
|
|
25
|
|
23
|
|
|
|
|
Denmark
|
|
|
19
|
|
- -
|
|
30
|
|
|
|
|
Gabon
|
|
|
7
|
|
11
|
|
9
|
|
|
|
|
Indonesia
and Azerbaijan
|
|
|
7
|
|
4
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
227
|
|
185
|
|
232
|
| |
|
|
|
|
|
Natural
gas liquids - barrels
|
|
|
|
|
United
States
|
|
|
12
|
|
8
|
|
13
|
|
|
|
|
United
Kingdom
|
|
|
7
|
|
7
|
|
6
|
|
|
|
|
Norway
|
|
|
2
|
|
1
|
|
2
|
|
|
|
|
Thailand
|
|
|
1
|
|
- -
|
|
2
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
22
|
|
16
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
gas - mcf
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
|
298
|
|
329
|
|
294
|
|
|
|
|
United
Kingdom
|
|
|
299
|
|
245
|
|
345
|
|
|
|
|
Norway
|
|
|
24
|
|
32
|
|
26
|
|
|
|
|
Denmark
|
|
|
25
|
|
- -
|
|
35
|
|
|
|
|
Indonesia
and Thailand
|
|
|
33
|
|
3
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
679
|
|
609
|
|
736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels
of oil equivalent
|
|
|
362
|
|
303
|
|
378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
SELLING PRICE
|
|
|
|
Crude
oil - per barrel
|
|
|
|
|
United
States
|
|
|
$24.46
|
|
$14.78
|
|
$22.58
|
|
|
|
|
Foreign
|
|
|
24.09
|
|
15.08
|
|
25.65
|
|
|
|
Natural
gas liquids- per barrel
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
|
$18.69
|
|
$10.31
|
|
$20.87
|
|
|
|
|
Foreign
|
|
|
20.64
|
|
10.90
|
|
22.61
|
|
|
|
Natural
gas - per mcf
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
|
$3.37
|
|
$2.06
|
|
$2.40
|
|
|
|
|
Foreign
|
|
|
2.10
|
|
1.72
|
|
2.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKETING
AND REFINING
|
|
|
|
BARRELS
PER DAY
|
|
|
|
|
|
|
|
|
|
|
Refined
products sold
|
|
|
352
|
|
315
|
|
402
|
|
|
|
Refinery
runs (net)
|
|
|
223
|
|
222
|
|
200
|
Amerada Hess Corporation and Consolidated
Subsidiaries
Supplemental Operating Data
(in thousands,
except for average selling prices)
|
OPERATING
DATA
|
First
Half
2000
|
|
First
Half
1999
|
|
NET
PRODUCTION PER DAY
|
|
|
|
Crude
oil - barrels
|
|
|
|
|
United
States
|
|
|
53
|
|
51
|
|
|
|
|
United
Kingdom
|
|
|
112
|
|
106
|
|
|
|
|
Norway
|
|
|
25
|
|
25
|
|
|
|
|
Denmark
|
|
|
25
|
|
--
|
|
|
|
|
Gabon
|
|
|
8
|
|
11
|
|
|
|
|
Indonesia
and Azerbaijan
|
|
|
7
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
230
|
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
gas liquids - barrels
|
|
|
|
|
United
States
|
|
|
13
|
|
7
|
|
|
|
|
United
Kingdom
|
|
|
6
|
|
7
|
|
|
|
|
Norway
|
|
|
2
|
|
1
|
|
|
|
|
Thailand
|
|
|
1
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
22
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
gas - mcf
|
|
|
|
|
United
States
|
|
|
296
|
|
334
|
|
|
|
|
United
Kingdom
|
|
|
322
|
|
253
|
|
|
|
|
Norway
|
|
|
25
|
|
31
|
|
|
|
|
Denmark
|
|
|
29
|
|
--
|
|
|
|
|
Indonesia
and Thailand
|
|
|
35
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
707
|
|
621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels
of oil equivalent
|
|
|
370
|
|
316
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
SELLING PRICE
|
|
|
|
Crude
oil - per barrel
|
|
|
|
|
United
States
|
|
|
$23.55
|
|
$ 12.90
|
|
|
|
|
Foreign
|
|
|
24.89
|
|
13.00
|
|
|
|
Natural
gas liquids - per barrel
|
|
|
|
|
|
|
|
|
|
United
States
|
|
|
$ 19.84
|
|
$ 9.51
|
|
|
|
|
Foreign
|
|
|
21.60
|
|
10.13
|
|
|
|
Natural
gas - per mcf
|
|
|
|
|
|
|
|
|
|
United
States
|
|
|
$ 2.90
|
|
$ 1.91
|
|
|
|
|
Foreign
|
|
|
2.09
|
|
1.87
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKETING
AND REFINING
|
|
|
|
BARRELS
PER DAY
|
|
|
|
|
|
|
|
|
Refined
products sold
|
|
|
377
|
|
356
|
|
|
|
Refinery
runs (net)
|
|
|
212
|
|
222
|
Contact: Amerada
Hess Corporation- C.T. Tursi (212) 536-8593
|
2013