-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EKj/df28/W+5OCxunbpCYWt8MRuWSzWw9/Q6UQXbHa4Rc9Dlo6W72YStUKJqork6 fQxAlJeVJWejyNATGhaF7w== 0001157523-05-003860.txt : 20050427 0001157523-05-003860.hdr.sgml : 20050427 20050427080030 ACCESSION NUMBER: 0001157523-05-003860 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050427 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050427 DATE AS OF CHANGE: 20050427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERADA HESS CORP CENTRAL INDEX KEY: 0000004447 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 134921002 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01204 FILM NUMBER: 05774602 BUSINESS ADDRESS: STREET 1: 1185 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 2129978500 MAIL ADDRESS: STREET 1: 1185 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: AMERADA PETROLEUM CORP DATE OF NAME CHANGE: 19690727 8-K 1 a4873730.txt AMERADA HESS 8-K ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): April 27, 2005 AMERADA HESS CORPORATION - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) DELAWARE No. 1-1204 No. 13-4921002 (State or Other (Commission (IRS Employer Jurisdiction of File Number) Identification No.) Incorporation) 1185 Avenue of the Americas New York, New York 10036 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (212) 997-8500 ------------- N/A (Former Name or Former Address, if Changed Since Last Report) 1 Item 2.02. Results of Operations and Financial Condition. On April 27, 2005, Amerada Hess Corporation issued a news release reporting its results for the first quarter of 2005. A copy of this news release is attached hereto as Exhibit 99(1) and is hereby incorporated by reference. Item 9.01. Financial Statements and Exhibits. (c) Exhibits 99(1) News release dated April 27, 2005 reporting results for the first quarter of 2005. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: April 26, 2005 AMERADA HESS CORPORATION By: /s/John P. Rielly --------------------------- Name: John P. Rielly Title: Senior Vice President and Chief Financial Officer 3 EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99(1) News release dated April 27, 2005 reporting results for the first quarter of 2005. 4 EX-99.1 2 a4873730ex99.txt EXHIBIT 99(1) PRESS RELEASE Exhibit 99(1) Amerada Hess Reports Estimated Results for the First Quarter of 2005 NEW YORK--(BUSINESS WIRE)--April 27, 2005--Amerada Hess Corporation (NYSE:AHC) reported net income of $219 million for the first quarter of 2005 compared with income of $281 million for the first quarter of 2004. See the following page for a table of items affecting the comparability of earnings between periods. The after-tax results by major operating activity in the first quarter of 2005 and 2004 are as follows: Three months ended March 31 (unaudited) --------------------------- 2005 2004 ------------- ------------ (In millions, except per share amounts) Exploration and production $263 $207 Refining and marketing 63 112 Corporate (69) (2) Interest expense (38) (36) ------------- ------------ Net income $219 $281 ============= ============ Net income per share (diluted) $2.12 $2.77 ============= ============ Weighted average number of shares (diluted) 103.2 101.4 ============= ============ Exploration and production earnings were $263 million in the first quarter of 2005 compared with $207 million in the first quarter of 2004. Pre-tax exploration expenses increased by $55 million to $133 million in the first quarter of 2005, including $93 million of dry hole costs associated with the Wembley and Diamondback deepwater Gulf of Mexico wells. The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 358,000 barrels per day in the first quarter of 2005, an increase of 3% from the first quarter of 2004. In the first quarter of 2005, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $31.31 per barrel, an increase of $4.48 per barrel from the first quarter of 2004. The Corporation's average United States natural gas selling price was $6.15 per Mcf in the first quarter of 2005, an increase of $.95 per Mcf from the first quarter of 2004. Refining and marketing earnings were $63 million in the first quarter of 2005 compared with $112 million in the first quarter of 2004. The fluid catalytic cracking units at HOVENSA and Port Reading, New Jersey were each shutdown for approximately 30 days for scheduled maintenance in the first quarter of 2005. Refining earnings decreased by $32 million, primarily as a result of these maintenance activities and increased HOVENSA taxes. Lower gasoline margins reduced results from retail gasoline operations and income from trading activities was lower by $7 million. The following items, on an after-tax basis, are included in net income in the first quarter of 2005 and 2004 (in millions): Three months ended March 31 -------------------------- 2005 2004 ---------- ---------- Exploration and production - ---------------------------- Gains from asset sales $11 $19 Legal settlement 11 - Corporate - --------- Income tax adjustments (41) 13 ---------- ---------- $(19) $32 ========== ========== First quarter results include a gain related to the exchange of a mature North Sea oil field for an increased interest in the Pangkah natural gas development in Indonesia. The legal settlement reflects the favorable resolution of contingencies on a prior year asset sale. The corporate tax charge represents the income tax provision related to the repatriation of $1.3 billion of foreign earnings under the American Jobs Creation Act of 2004. Capital and exploratory expenditures in the first quarter of 2005 amounted to $483 million compared with $393 million in the first quarter of 2004. Of these amounts, $454 million and $381 million in the first quarter of 2005 and 2004, respectively, related to exploration and production activities. March 31 December 31 2005 2004 ---------- ----------- (unaudited) Balance Sheet Information - ------------------------- Cash and short-term investments $844 $877 Other current assets 3,568 3,458 Investments 1,191 1,254 Property, plant and equipment - net 8,578 8,505 Other assets 2,735 2,218 ---------- ----------- Total assets $16,916 $16,312 ========== =========== Current portion of long-term debt $50 $50 Other current liabilities 5,760 4,647 Long-term debt 3,776 3,785 Deferred liabilities and credits 2,304 2,233 Stockholders' equity, excluding other comprehensive loss 6,825 6,621 Accumulated other comprehensive income (loss) (1,799) (1,024) ---------- ----------- Total liabilities and stockholders' equity $16,916 $16,312 ========== =========== AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) First First Fourth Quarter Quarter Quarter 2005 2004 2004 --------- --------- -------- Income Statement - ---------------- Revenues and Non-operating Income Sales and other operating revenues $ 4,957 $ 4,488 $ 4,612 Non-operating income Gain on asset sales 18 19 32 Equity in income of HOVENSA L.L.C. 50 51 21 Other 45 4 32 --------- --------- -------- Total revenues and non-operating income 5,070 4,562 4,697 --------- --------- -------- Costs and Expenses Cost of products sold 3,628 3,288 3,321 Production expenses 225 187 239 Marketing expenses 197 177 200 Exploration expenses, including dry holes and lease impairment 133 78 83 Other operating expenses 31 48 48 General and administrative expenses 85 76 90 Interest expense 61 57 62 Depreciation, depletion and amortization 254 226 275 --------- --------- -------- Total costs and expenses 4,614 4,137 4,318 --------- --------- -------- Income before income taxes 456 425 379 Provision for income taxes 237 144 150 --------- --------- -------- Net income $ 219 $ 281 $ 229 ========= ========= ======== Preferred stock dividends 12 12 12 --------- --------- -------- Net income applicable to common stockholders $ 207 $ 269 $ 217 ========= ========= ======== Supplemental Income Statement Information - ------------------------------------------ Foreign currency gains (losses), after-tax $ 6 $ (8)$ (1) Capitalized interest 14 16 13 Cash Flow Information - --------------------- Net cash provided by operating activities (a) $ 461 $ 394 $ 254 Capital and Exploratory Expenditures - ------------------------------------ Exploration and Production United States $ 91 $ 139 $ 124 International 363 242 312 --------- --------- -------- Total Exploration and Production 454 381 436 Refining and Marketing 29 12 42 --------- --------- -------- Total Capital and Exploratory Expenditures $ 483 $ 393 $ 478 ========= ========= ======== Exploration expenses charged to income included above United States $ 8 $ 13 $ 32 International 8 16 17 --------- --------- -------- $ 16 $ 29 $ 49 ========= ========= ======== (a) Includes changes in working capital AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) (IN MILLIONS) First Quarter 2005 --------------------------------- United States International Total ---------- ----------- ---------- Sales and other operating revenues $279 $751 $1,030 Non-operating income (expenses) (2) 49 47 ---------- ----------- ---------- Total revenues 277 800 1,077 ---------- ----------- ---------- Costs and expenses Production expenses, including related taxes 49 176 225 Exploration expenses, including dry holes and lease impairment 109 24 133 General, administrative and other expenses 19 10 29 Depreciation, depletion and amortization 44 197 241 ---------- ----------- ---------- Total costs and expenses 221 407 628 ---------- ----------- ---------- Results of operations before income taxes 56 393 449 Provision for income taxes 22 164 186 ---------- ----------- ---------- Results of operations $34 $229 $263 ========== =========== ========== First Quarter 2004 --------------------------------- United States International Total ---------- ----------- ---------- Sales and other operating revenues $210 $658 $868 Non-operating income 3 9 12 ---------- ----------- ---------- Total revenues 213 667 880 ---------- ----------- ---------- Costs and expenses Production expenses, including related taxes 40 147 187 Exploration expenses, including dry holes and lease impairment 38 40 78 General, administrative and other expenses 17 19 36 Depreciation, depletion and amortization 29 184 213 ---------- ----------- --------- Total costs and expenses 124 390 514 ---------- ----------- ---------- Results of operations before income taxes 89 277 366 Provision for income taxes 32 127 159 ---------- ----------- ---------- Results of operations $57 $150 $207 ========== =========== ========== Fourth Quarter 2004 --------------------------------- United States International Total ---------- ----------- ---------- Sales and other operating revenues $278 $651 $929 Non-operating income 28 19 47 ---------- ----------- ---------- Total revenues 306 670 976 ---------- ----------- ---------- Costs and expenses Production expenses, including related taxes 55 184 239 Exploration expenses, including dry holes and lease impairment 35 48 83 General, administrative and other expenses 8 28 36 Depreciation, depletion and amortization 52 210 262 ---------- ----------- ---------- Total costs and expenses 150 470 620 ---------- ----------- ---------- Results of operations before income taxes 156 200 356 Provision for income taxes 50 95 145 ---------- ----------- ---------- Results of operations $106 $105 $211 ========== =========== ========== AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES) First First Fourth Quarter Quarter Quarter 2005 2004 2004 -------- -------- -------- Operating Data - -------------- Net Production Per Day - ---------------------- Crude Oil - barrels United States 49 40 50 Europe 120 127 114 Africa, Asia and other 69 60 66 -------- -------- -------- Total 238 227 230 ======== ======== ======== Natural gas liquids - barrels United States 13 12 14 Europe 7 7 6 -------- -------- -------- Total 20 19 20 ======== ======== ======== Natural gas - mcf United States 165 183 178 Europe 336 333 316 Africa, Asia and other 103 86 82 -------- -------- -------- Total 604 602 576 ======== ======== ======== Barrels of oil equivalent 358 346 346 ======== ======== ======== Average Selling Price (including hedging) - ----------------------------------------- Crude Oil - per barrel United States $32.18 $25.49 $29.92 Europe 31.21 27.19 25.98 Africa, Asia and other 30.92 27.04 27.65 Natural gas liquids - per barrel United States $32.83 $25.78 $33.31 Europe 31.69 21.22 37.15 Natural gas - per mcf United States $6.15 $5.20 $5.83 Europe 5.41 4.34 4.42 Africa, Asia and other 3.93 3.72 4.19 Average Selling Price (excluding hedging) - ----------------------------------------- Crude Oil - per barrel United States $45.18 $33.55 $43.20 Europe 46.82 32.19 42.55 Africa, Asia and other 44.87 31.64 41.33 Natural gas liquids - per barrel United States $32.83 $25.78 $33.31 Europe 31.69 21.22 37.15 Natural gas - per mcf United States $6.15 $5.19 $6.08 Europe 5.41 4.34 4.42 Africa, Asia and other 3.93 3.72 4.19 AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES HEDGED PRICES AND VOLUMES WTI Brent ----------------- ----------------- Thousands Thousands Average of Average of Selling barrels Selling barrels Maturity Price per day Price per day - ----------------------------------- ---------------------------------- 2005 2nd Quarter $33.28 28 $31.37 118 3rd Quarter 32.65 28 30.82 118 4th Quarter 32.16 28 30.37 118 2006 - - 28.10 30 2007 - - 25.85 24 2008 - - 25.56 24 2009 - - 25.54 24 2010 - - 25.78 24 2011 - - 26.37 24 2012 - - 26.90 24 Note: In addition to the income statement effects of the open hedge positions indicated above, the Corporation has after-tax deferred realized losses of $144 million as of March 31 included in other comprehensive income. These after-tax losses will reduce 2005 income as follows: second quarter - $51 million, third quarter - $48 million and fourth quarter - $45 million. There were no natural gas hedges outstanding at March 31. AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES REFINING AND MARKETING SUPPLEMENTAL FINANCIAL AND OPERATING DATA First First Fourth Quarter Quarter Quarter 2005 2004 2004 -------- -------- -------- Financial Information (in millions) - ----------------------------------- Refining and Marketing Earnings - ------------------------------- Income before income taxes $ 102 $ 137 $ 139 Provision for income taxes 39 25 46 -------- -------- -------- Refining and Marketing Earnings $ 63 $ 112 $ 93 ======== ======== ======== Summary of Refining and Marketing Earnings - ------------------------------------------ Refining $ 42 $ 74 $ 36 Marketing 13 23 64 Trading 8 15 (7) -------- -------- -------- Total Refining and Marketing Earnings $ 63 $ 112 $ 93 ======== ======== ======== - ---------------------------------------------------------------------- Operating Data (in thousands unless noted) - ------------------------------------------ Refined Product Sales (barrels per day) - -------------------------------------- Gasoline 181 188 181 Distillates 166 178 152 Residuals 74 82 56 Other 41 35 41 -------- -------- -------- Total 462 483 430 ======== ======== ======== Refinery Throughput (barrels per day) - ------------------------------------ HOVENSA - Crude runs 449 495 472 HOVENSA - AHC 50% share 225 248 236 Port Reading 35 57 55 Refinery Utilization Refinery Capacity (barrels HOVENSA per day) Crude 500 89.8% 99.0% 94.4% FCC 150 57.2%(a) 96.4% 86.2% Coker 58 92.9% 99.8% 84.1% Port Reading 62 56.5%(a) 91.9% 88.7% Retail Marketing - ---------------- Number of retail stations (b) 1,250 1,246 1,254 Convenience store revenue (in millions) (c) $ 218 $ 213 $ 228 Average gasoline volume per station (gallons per month) (c) 195 183 194 (a) The fluid catalytic cracking units at HOVENSA and Port Reading were each shutdown for approximately 30 days for scheduled maintenance in the first quarter of 2005. (b) Includes company operated, branded/dealer and Wilco-Hess. (c) Company operated only. CONTACT: Amerada Hess Corporation J.R. Wilson, 212-536-8940 -----END PRIVACY-ENHANCED MESSAGE-----