Hess Reports Estimated Q1 2009 Results, Sees Net Loss of $59MM

Hess Corporation reported a net loss of $59 million for the first quarter of 2009 compared with net income of $759 million for the first quarter of 2008.

Exploration and Production generated a loss of $64 million in the first quarter of 2009 compared with income of $824 million in the first quarter of 2008. The Corporation’s oil and gas production, on a barrel-of-oil equivalent basis, was 390,000 barrels per day in the first quarter of 2009, compared with 391,000 barrels per day in the first quarter of 2008. In the first quarter of 2009, the Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $34.42 per barrel, compared with $83.28 per barrel in the first quarter of 2008. The Corporation’s average worldwide natural gas selling price was $5.08 per Mcf in the first quarter of 2009 compared with $7.06 per Mcf in the first quarter of 2008.

Marketing and Refining earnings were $102 million in the first quarter of 2009, an increase of $86 million from the first quarter of 2008, primarily reflecting higher energy marketing margins and improved trading results. Refining operations generated a loss of $18 million in the first quarter of 2009 compared with a loss of $3 million in the first quarter of 2008, reflecting lower refining margins. Marketing earnings were $101 million in the first quarter of 2009, an increase of $69 million from the first quarter of 2008.

Trading activities produced a gain of $19 million in the first quarter of 2009, an increase of $32 million from the first quarter of 2008.
In the first quarter of 2009 the Corporation recorded an after-tax charge of $13 million related to the impairment of two short-lived fields in the U.K. North Sea. The Corporation also recorded an after-tax charge of $16 million for retirement benefits and employee severance costs.

Net cash provided by operating activities was $625 million in the first quarter of 2009 compared with $1,183 million in the first quarter of 2008. Capital and exploratory expenditures for the first quarter of 2009 amounted to $805 million, of which $759 million related to Exploration and Production operations. Capital and exploratory expenditures for the first quarter of 2008 were $970 million, of which $938 million related to Exploration and Production operations.

At March 31, 2009, cash and cash equivalents totaled $1,157 million compared with $908 million at December 31, 2008. Total debt was $4,328 million at March 31, 2009 and $3,955 million at December 31, 2008. In February of 2009, the Corporation completed a $1.25 billion debt offering. The Corporation’s debt to capitalization ratio at March 31, 2009 was 26.3 percent compared with 24.2 percent at the end of 2008.

 

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