Hess Nets $385MM for Fourth Quarter 2009



Hess Corporation reported net income of $358 million for the fourth quarter of 2009 compared with a net loss of $74 million for the fourth quarter of 2008.

Exploration and Production earnings were $494 million in the fourth quarter of 2009 compared with a loss of $125 million in the fourth quarter of 2008. The Corporation’s oil and gas production was 415,000 barrels of oil equivalent per day in the fourth quarter of 2009, an increase of 9.5% from the fourth quarter of 2008. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $63.74 per barrel in the fourth quarter of 2009 compared with $45.00 per barrel in the fourth quarter of 2008. The Corporation’s average worldwide natural gas selling price was $5.19 per Mcf in the fourth quarter of 2009 compared with $6.26 per Mcf in the fourth quarter of 2008.

Oil and gas proved reserves were 1,437 million barrels of oil equivalent at the end of 2009, compared to 1,432 million barrels at the end of 2008. During 2009, the Corporation added 157 million barrels of oil equivalent to proved reserves. These additions, which are subject to final review, replaced approximately 103 percent of the Corporation’s 2009 production, resulting in a reserve life of 9.5 years.

Marketing and Refining earnings were $17 million in the fourth quarter of 2009 compared with $152 million in the fourth quarter of 2008. Refining operations generated a loss of $40 million in the fourth quarter of 2009 compared with income of $27 million in the fourth quarter of 2008, as a result of lower refining margins. Marketing earnings were $45 million in the fourth quarter of 2009 compared with $138 million in the fourth quarter of 2008, primarily due to lower margins. Trading activities produced income of $12 million in the fourth quarter of 2009 and a loss of $13 million in the fourth quarter of 2008.

In the fourth quarter of 2009, the Corporation recorded after-tax charges of $34 million related to the repurchase of $546 million of bonds that were scheduled to mature in 2011 and $10 million for pension plan settlements related to employee retirements.

Net cash provided by operating activities was $1,271 million in the fourth quarter of 2009 compared with $493 million in the fourth quarter of 2008. Capital and exploratory expenditures were $992 million in the fourth quarter of 2009, of which $957 million related to Exploration and Production operations. Capital and exploratory expenditures for the fourth quarter of 2008 amounted to $1,250 million, of which $1,160 million related to Exploration and Production operations.

At December 31, 2009, cash and cash equivalents totaled $1,362 million compared with $908 million at December 31, 2008. Total debt was $4,467 million at December 31, 2009 and $3,955 million at December 31, 2008. The Corporation’s debt to capitalization ratio at December 31, 2009 was 24.8 percent compared with 24.2 percent at the end of 2008.

 

 


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