Weighted Average Common Shares

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Weighted Average Common Shares

12. Weighted Average Common Shares

The net income and weighted average number of common shares used in the basic and diluted earnings per share computations were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013		2012
	(In millions, except per share amounts)
Income from continuing operations, net of income taxes	$	366		$	510	$	3,138	$	1,589
Less: Net income attributable to noncontrolling interests		—			6		176		15
Net income from continuing operations attributable to Hess Corporation		366			504		2,962		1,574
Income from discontinued operations, net of income taxes		52			82		169		98
Less: Net income (loss) attributable to noncontrolling interests		(2	)		29		4		21
Net income from discontinued operations attributable to Hess Corporation		54			53		165		77
Net income attributable to Hess Corporation	$	420		$	557	$	3,127	$	1,651
Weighted average common shares outstanding:
Basic		339.0			338.6		339.3		338.3
Effect of dilutive securities:
Restricted common stock		1.4			1.0		1.3		1.1
Stock options		1.8			0.4		1.6		0.9
Performance share units		1.1			—		1.1		—
Diluted		343.3			340.0		343.3		340.3
Net income attributable to Hess Corporation per share:
Basic:
Continuing operations	$	1.08		$	1.49	$	8.73	$	4.65
Discontinued operations		0.16			0.16		0.49		0.23
Net income per share	$	1.24		$	1.65	$	9.22	$	4.88
Diluted:
Continuing operations	$	1.07		$	1.48	$	8.63	$	4.63
Discontinued operations		0.16			0.16		0.48		0.22
Net income per share	$	1.23		$	1.64	$	9.11	$	4.85

The Corporation granted 1,205,569 shares of restricted stock and 279,093 performance share units (PSUs) during the nine month period ended September 30, 2013 and 1,561,300 shares of restricted stock and 420,628 PSUs for the same period in 2012. The weighted average common shares used in the diluted earnings per share calculations exclude the effect of 3,680,344 and 4,661,606 out-of-the-money stock options for the three and nine months ended September 30, 2013, respectively, as well as 11,519,000 and 8,810,000 out-of-the-money stock options for the three and nine months ended September 30, 2012, respectively, and 412,977 PSUs for the three and nine months ended September 30, 2012.

In March 2013, the Corporation announced a board authorized plan to repurchase up to $4 billion of outstanding common stock with the proceeds from its announced asset divestiture program. In August 2013, the Corporation began purchasing shares and, in the third quarter, purchased approximately 6,530,000 shares for a total cost of approximately $500 million. As of September 30, 2013, the Corporation may purchase up to $3.5 billion of common stock under its board authorized plan. The weighted average of common shares outstanding used in the earnings per share calculations for the three and nine months ended September 30, 2013 were only modestly reduced by the third quarter stock purchases, due to the timing of the purchases. In addition, the weighted averages were increased by employee stock options exercised and the increased number of dilutive shares resulting from the Corporation’s higher stock price.