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New York, New York....January 21, 2000........Amerada Hess Corporation reported income excluding special items of $176,000,000 for the fourth quarter of 1999 compared with a loss of $99,300,000 for the fourth quarter of 1998. For the full year, income excluding special items was $306,500,000 compared with a loss of $196,100,000 in 1998. Including special items, net income amounted to $131,100,000 in the fourth quarter of 1999 and $437,600,000 for the year 1999.
The after-tax results by major operating activity in 1999 and 1998 were as follows (in thousands):
| Three months ended December 31 |
Year ended December 31 |
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| 1999 (*) | 1998 (*) | 1999 (*) | 1998 | |
| Exploration and production | $174,200 | $(25,300) | $323,300 | $(17,700) |
| Refining, marketing and shipping | 39,000 | (36,700) | 133,100 | (18,600) |
| Corporate | (4,900) | (4,100) | (30,800) | (36,800) |
| Interest expense | (32,300) | (33,200) | (119,100) | (123,000) |
| Income (loss) excluding special items | 176,000 | (99,300) | 306,500 | (196,100) |
| Special items | (44,900) | (319,000) | 131,100 | (262,800) |
| Net income(loss) | $131,100 | $(418,300) | $437,600 | $(458,900) |
| Net income (loss) per share (diluted) |
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| Excluding special items | $1.94 | $(1.11) | $3.40 | $(2.19) |
| Including special items | $1.45 | $(4.70) | $4.85 | $(5.12) |
| (*) Unaudited. | ||||
The Corporation's average worldwide crude oil selling price in the fourth quarter of 1999 was approximately $23.00 per barrel, an increase of $11.50 from the fourth quarter of 1998. The average crude oil selling price for the full year of 1999 was approximately $17.50 per barrel, an increase of $4.50 per barrel over 1998. The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 390,000 barrels per day in the fourth quarter of 1999, an increase of 23% over the fourth quarter of 1998. Full year 1999 production averaged 339,000 barrels per day, an increase of 12% over 1998.
Refining, marketing and shipping results in 1999 included higher earnings from retail operations and improved refining results, including interest income, in spite of continued low refining margins. Earnings from trading activities were also higher in 1999. The Corporation changed to the LIFO inventory method of accounting at the beginning of 1999.
After-tax special items in 1999 and 1998 are summarized below (in thousands):
| Three months ended December 31 |
Year ended December 31 |
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| 1999 | 1998 | 1999 | 1998 | |
| Gain (loss) on asset sales | $ - - | $(106,000) | $176,000 | $(49,800) |
| Income tax benefits | 54,600 | - - | 54,600 | - - |
| Impairment of assets and operating leases |
(99,500) | (198,000) | (99,500) | (198,000) |
| Severance and related costs | - - | (15,000) | - - | (15,000) |
| $(44,900) | $(319,000) | $131,100 | $(262,800) | |
The gain from asset sales in 1999 reflects the sale of the Corporation's Gulf Coast and southeast pipeline terminals, natural gas properties in California and certain retail sites. Special income tax benefits represent the United States tax impact of certain prior year foreign exploration activities and the recognition of capital losses. Impairment of assets and operating leases in 1999 includes reductions in the value of the Corporation's interest in the Trans Alaska pipeline system, a crude oil storage terminal in St. Lucia and a fixed price drilling service contract.
Sales and other operating revenues in the fourth quarter of 1999 amounted to $2,268,800,000 compared with $1,617,200,000 in the fourth quarter of 1998. Sales and other operating revenues were $7,039,100,000 for the year 1999 compared with $6,579,900,000 in 1998.
Capital expenditures for the year 1999 were $796,700,000 compared with $1,438,700,000 in 1998. Exploration and production expenditures were $727,100,000 in 1999 and $1,306,400,000 in 1998. Lower 1999 capital expenditures are due to reduced exploration spending and the completion of a number of major developments.
| Three months ended December 31 |
Year ended December 31 |
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| 1999 (*) | 1998 (*) | 1999 (*) | 1998 | |
| Sales and other operating revenues | $2,268,800,000 | $1,617,200,000 | $7,039,100,000 | $6,579,900,000 |
| Income (loss) exluding special items |
$176,000,000 | $(99,300,000) | $306,500,000 | $(196,100,000) |
| Special items | (44,900,000) | (319,000,000) | 131,100,000 | (262,800,000) |
| Net income (loss) | $131,100,000 | $(418,300,000) | $437,600,000 | $(458,900,000) |
| Net income (loss) per share (diluted) |
$1.45 | $(4.70) | $4.85 | $(5.12) |
| Weighted average number of shares |
90,700,000 | 89,100,000 | 90,300,000 | 89,600,000 |
| (*) Unaudited. | ||||
Contact: Amerada Hess Corporation- C.T. Tursi (212) 536-8593