Hess Reports Estimated Results for the Fourth Quarter of 2006

Hess Corporation reported net income of $359 million for the fourth quarter of 2006 compared with net income of $452 million for the fourth quarter of 2005. For the full year, net income was $1,916 million compared with $1,242 million in 2005. See the following page for a table and description of items affecting the comparability of earnings between periods.

Exploration and Production earnings were $350 million in the fourth quarter of 2006 compared with $298 million in the fourth quarter of 2005. The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 366,000 barrels per day in the fourth quarter of 2006 compared with 316,000 barrels per day in the fourth quarter of 2005.

In the fourth quarter of 2006, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $50.76 per barrel, an increase of $16.67 per barrel from the fourth quarter of 2005. The increase primarily reflects reduced hedge positions in 2006. The Corporation's average worldwide natural gas selling price was $5.25 per Mcf in the fourth quarter of 2006, compared to $7.14 per Mcf in the fourth quarter of 2005.

Marketing and Refining earnings were $67 million in the fourth quarter of 2006 compared with $229 million in the fourth quarter of 2005. Refining earnings were $45 million in the fourth quarter of 2006 compared with $83 million in the fourth quarter of 2005 principally reflecting lower refined product margins. Marketing earnings were $17 million in the fourth quarter of 2006 compared with $131 million in the same period of 2005, primarily reflecting lower margins. Earnings from trading operations were $5 million in the fourth quarter of 2006 compared to $15 million in the fourth quarter of 2005.

The following items, on an after-tax basis, are included in net income (in millions):

                                    Three months ended   Year ended
                                       December 31       December 31
                                    ------------------ ---------------
                                      2006     2005     2006    2005
                                    --------- -------- ------- -------
Exploration and Production
-----------------------------------
  Gains from asset sales               $   -    $  30  $  236   $  41
  Income tax adjustments                   -        -     (45)     11
  Accrued office closing costs             -        -     (18)      -
  Hurricane related costs                  -      (12)      -     (26)
  Legal settlement                         -        -       -      11
Marketing and Refining
-----------------------------------
  LIFO inventory liquidation               -       25       -      32
  Charge related to customer
   bankruptcy                              -       (8)      -      (8)
Corporate
-----------------------------------
  Tax on repatriated earnings              -        -       -     (72)
  Premiums on bond repurchases             -      (19)      -     (26)
                                    --------- -------- ------- -------

                                       $   -    $  16  $  173   $ (37)
                                    ========= ======== ======= =======

The gains from asset sales for the year 2006 relate to the sale of certain United States producing properties. During 2006 the United Kingdom increased the supplementary tax on petroleum operations from 10% to 20%. As a result, the Corporation recorded a $45 million adjustment to its United Kingdom deferred tax liability. The year 2006 results also include a charge for vacated leased office space.

Net cash provided by operating activities was $3,491 million in 2006 compared with $1,840 million in 2005. Proceeds from asset sales in 2006 totaled $444 million. Capital and exploratory expenditures for the year 2006 amounted to $4,056 million of which $3,887 million related to Exploration and Production activities. Capital and exploratory expenditures for the year 2005 amounted to $2,490 million, including $2,384 million for Exploration and Production.

At December 31, 2006, cash and cash equivalents totaled $383 million compared with $315 million at December 31, 2005. Total debt was $3,772 million at December 31, 2006 and $3,785 million at December 31, 2005. The Corporation's debt to capitalization ratio at December 31, 2006 was 31.7% compared with 37.6% at the end of 2005.

Hess Corporation, with headquarters in New York, is a global integrated energy company engaged in the exploration for and the development, production, purchase, transportation and sale of crude oil and natural gas. The Corporation also manufactures, purchases, trades and markets refined petroleum and other energy products.

                                Three months ended      Year ended
                                   December 31          December 31
                              ---------------------- -----------------
                                  2006*       2005*   2006*     2005
                              -------------- ------- -------- --------
                              (In millions, except per share amounts)

Exploration and Production          $   350  $  298  $ 1,763  $ 1,058
Marketing and Refining                   67     229      390      515
Corporate                               (27)    (41)    (110)    (191)
Interest expense                        (31)    (34)    (127)    (140)
                              -------------- ------- -------- --------

Net income                          $   359  $  452  $ 1,916  $ 1,242
                              ============== ======= ======== ========

Net income per share
 (diluted)**                        $  1.13  $ 1.44  $  6.07  $  3.98
                              ============== ======= ======== ========

Weighted average number of
 shares (diluted)**                   316.4   314.5    315.7    312.1
                              ============== ======= ======== ========

*   Unaudited
** Weighted average number of shares and per-share amounts in all
 periods reflect the impact of the 3-for-1 stock split on May 31,
 2006.
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