Hess Reports Estimated Q2 Results

Hess Corp. reported net income of $565 million for the second quarter of 2006 compared with net income of $299 million for the second quarter of 2005.

Exploration and Production earnings were $501 million in the second quarter of 2006 compared with $263 million in the second quarter of 2005. The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 354,000 barrels per day in the second quarter of 2006 compared with 355,000 barrels per day in the second quarter of 2005. In the second quarter of 2006, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $59.00 per barrel, an increase of $26.53 per barrel from the second quarter of 2005. The increase reflects higher crude oil prices and reduced hedge positions in 2006. The Corporation's average United States natural gas selling price was $6.23 per Mcf in the second quarter of 2006, compared to $6.47 per Mcf in the second quarter of 2005.

Marketing and Refining earnings were $121 million in the second quarter of 2006 compared with $98 million in the second quarter of 2005. Refining earnings were $107 million in the second quarter of 2006 compared with $77 million in the second quarter of 2005. The increased Refining earnings principally reflect higher refined product margins. Marketing operations generated earnings of $15 million in the second quarter of 2006, compared with $14 million in the same period of 2005.

Second-quarter 2006 results included a gain related to the sale of onshore Gulf Coast oil and gas producing assets and a charge for vacated leased office space. First-half 2006 results also included a gain of $186 million related to the sale of certain producing properties located in the Permian Basin in Texas and New Mexico.

Capital and exploratory expenditures for the second quarter of 2006 amounted to $808 million of which $766 million related to Exploration and Production activities. Capital and exploratory expenditures for the second quarter of 2005 amounted to $527 million, including $507 million for Exploration and Production.

At June 30, 2006, cash and cash equivalents totaled $486 million compared with $315 million at December 31, 2005. The Corporation's debt-to-capitalization ratio at June 30, 2006, was 34.5% compared with 37.6% at the end of 2005. Total debt was $3,774 million at June 30, 2006, and $3,785 million at December 31, 2005.

Hess Corp., 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.