hes-ex99_6.htm

NEW YORK, July 29, 2015, — Hess Corporation (NYSE: HES) today reported an adjusted net loss, which excludes items affecting comparability, of $147 million or $0.52 per common share, for the second quarter of 2015 compared with adjusted net income of $432 million or $1.38 per share in the second quarter of 2014. Lower realized selling prices reduced adjusted net income by approximately $740 million after-tax compared with the prior-year quarter. In addition, second quarter 2015 results benefitted from higher production, lower cash operating costs and reduced exploration expenses that were partially offset by higher depreciation, depletion, and amortization expense. On an unadjusted

basis, the Corporation reported a net loss of $567 million for the second quarter of 2015, including a noncash goodwill impairment charge of $385 million, and net income of $931 million in the prior-year quarter.

“We achieved strong operating performance in the quarter and delivered significant and immediate value to our shareholders with the sale of a 50 percent interest in our Bakken midstream assets,” Chief Executive Officer John Hess said. “We remain confident that our financial strength, resilient portfolio and proven operating capabilities position us well in the current low oil price environment as well as for a future price recovery.”

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	(unaudited)						(unaudited)
	2015			2014			2015			2014
	(In millions, except per share amounts)
Net Income (Loss) Attributable to Hess Corporation
Exploration and Production	$	(502	)	$	1,049		$	(816	)	$	1,570
Bakken Midstream		32			7			59			(6	)
Corporate, Interest and Other		(83	)		(82	)		(172	)		(226	)
Net income (loss) from continuing operations		(553	)		974			(929	)		1,338
Discontinued operations		(14	)		(43	)		(27	)		(21	)
Net income (loss) attributable to Hess Corporation	$	(567	)	$	931		$	(956	)	$	1,317

Net income (loss) per share (diluted)	$	(1.99	)	$	2.96		$	(3.37	)	$	4.13

Adjusted Net Income (Loss) Attributable to Hess Corporation
Exploration and Production	$	(96	)	$	475		$	(317	)	$	1,002
Bakken Midstream		32			7			59			(6	)
Corporate, Interest and Other		(83	)		(73	)		(168	)		(157	)
Adjusted net income (loss) from continuing operations		(147	)		409			(426	)		839
Discontinued operations		—			23			—			39
Adjusted net income (loss) attributable to Hess Corporation	$	(147	)	$	432		$	(426	)	$	878

Adjusted net income (loss) per share (diluted)	$	(0.52	)	$	1.38		$	(1.50	)	$	2.75

Weighted average number of shares (diluted)		284.3			314.1			283.9			318.7

The Corporation’s Exploration and Production activities had a net loss of $502 million in the second quarter of 2015, compared with net income of $1,049 million in the second quarter of 2014. Adjusted net loss was $96 million in the second quarter of 2015 compared with adjusted net income of $475 million in the second quarter of 2014.

The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was down 45 percent to $55.83 per barrel in the second quarter of 2015 from $102.16 per barrel in the second quarter of last year. The average worldwide natural gas liquids selling price was $11.06 per barrel, down from $36.59 per barrel in the year-ago quarter while the average worldwide natural gas selling price was $4.49 per mcf in the second quarter of 2015 compared with $6.35 per mcf in the second quarter a year-ago.

Oil and gas production was 391,000 boepd, up 23 percent from 319,000 boepd in the second quarter of 2014. Assets contributing to the volume growth were primarily the Bakken shale play (39,000 boepd), the Utica shale play (19,000 boepd), the Joint Development Area of Malaysia/Thailand (11,000 boepd) and the Gulf of Mexico (9,000 boepd). Asset sales reduced production by 9,000 boepd.

Bakken (Onshore U.S.): Net production from the Bakken increased approximately 49 percent to 119,000 boepd from the prior-year quarter due to continued drilling activities. The Corporation brought 67 gross operated wells on production in the second quarter of 2015 bringing the year-to-date total to 137 wells. Drilling and completion costs per operated well averaged $5.6 million in the second quarter of 2015, down 24 percent from the year-ago quarter. During the second quarter, the Corporation operated 8 rigs.

Utica (Onshore U.S.): On the Corporation’s joint venture acreage, 10 wells were drilled and net production averaged 22,000 boepd in the second quarter of 2015 compared with 3,000 boepd in the prior-year quarter.

Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was up compared to the prior-year quarter with higher volumes from Tubular Bells, which totaled 23,000 boepd in the second quarter of 2015, being partially offset by lower production from the Conger and Llano Fields.

At the Corporation’s non-operated Sicily exploration prospect in the Keathley Canyon area (Hess 25 percent), the operator successfully completed drilling and logging activities in the second quarter. The well was drilled to a depth of 30,214 feet and is being evaluated. The drilling of an appraisal well to further evaluate the discovery is expected late this year or in early 2016.

Guyana (Offshore): On the Stabroek Block (Hess 30 percent), the operator announced a significant oil discovery at the Liza #1 well and is now in the process of evaluating the resource potential on the block. The operator recently commenced the acquisition of 17,000 square kilometers of 3D seismic.

The Corporation’s Bakken Midstream activities had net income of $32 million in the second quarter of 2015 compared to $7 million in the prior-year quarter primarily due to higher throughput throughout the system. In July 2015, the Corporation completed the sale of a 50 percent interest in its Bakken Midstream assets for cash consideration of $2.7 billion. The joint venture incurred $600 million of debt in July with proceeds distributed equally to both partners, resulting in total after-tax cash proceeds net to Hess of approximately $3.0 billion. These transactions will be reflected in the Corporation’s third quarter results. As a result of the joint venture transaction, Hess has reported its Bakken-related midstream operations as a separate Midstream segment in its consolidated financial statements and will begin disclosing certain historical and forward-looking financial information for this segment.

Capital and exploratory expenditures were $1,071 million in the second quarter of 2015 down from $1,256 million in the prior-year quarter of which $1,006 million and $1,208 million, respectively, relate to Exploration and Production activities. Second quarter 2015 Exploration and Production expenditures reflect reduced activity in assets including the Bakken, the Utica, Norway and Equatorial Guinea, partly offset by expenditures associated with development of the North Malay Basin project and exploratory activities in the Gulf of Mexico and Guyana.

Net cash provided by operating activities was $541 million in the second quarter of 2015, compared with $911 million in the second quarter of 2014. At June 30, 2015, cash and cash

equivalents totaled $931 million compared with $2,444 million at December 31, 2014. Total debt was $5,957 million at June 30, 2015 compared with $5,987 million at December 31, 2014. The Corporation’s debt to capitalization ratio at June 30, 2015 was 22.0 percent, compared with 21.2 percent at December 31, 2014. In July 2015, the Corporation received after-tax cash proceeds of approximately $3 billion from the Bakken Midstream joint venture transaction described above.

During the second quarter, the Corporation hedged an additional 20,000 barrels per day of crude oil production for the remainder of 2015 by entering into West Texas Intermediate crude collars with a floor price of $60 per barrel and a ceiling price of $80 per barrel. The Corporation’s crude oil hedging program for the remainder of 2015 is detailed on page 18.

Losses from discontinued operations amounted to $14 million in the second quarter of 2015 compared to $44 million in the prior-year quarter. The Corporation completed the sale of its energy trading partnership (HETCO) in the first quarter of 2015. Financial results for the second quarter of 2014 have been recast to report HETCO as discontinued operations in the consolidated income statement on page 7.

The following table reflects the total after‑tax income (expense) of items affecting comparability of earnings between periods:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	(unaudited)						(unaudited)
	2015			2014			2015			2014
	(In millions)
Exploration and Production	$	(406	)	$	574		$	(499	)	$	568
Bakken Midstream		—			—			—			—
Corporate, Interest and Other		—			(9	)		(4	)		(69	)
Discontinued operations		(14	)		(66	)		(27	)		(60	)
Total items affecting comparability of earnings between periods	$	(420	)	$	499		$	(530	)	$	439

Second quarter 2015 results include a goodwill impairment charge of $385 million associated with the Corporation’s onshore reporting unit. As a result of establishing the Bakken Midstream business as a separate operating segment in the second quarter of 2015, U.S. GAAP required the reallocation of goodwill to the Bakken Midstream segment and a goodwill impairment test for each of the Corporation’s reporting units. The nontaxable impairment charge for the onshore reporting unit

caused the Corporation’s effective tax rate in the quarter to be substantially less than normal. In addition, the Corporation recognized after-tax charges totaling $21 million ($21 million pre-tax) associated with terminated international office space.

The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):

Hess Corporation will review second quarter financial and operating results and other matters on a webcast at 10 a.m. today. For details about the event, refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data. Estimates and projections contained in this release are based on the Company’s current understanding and assessment based on reasonable assumptions. Actual results may differ materially from these estimates and projections due to certain risk factors discussed in the Corporation’s periodic filings with the Securities and Exchange Commission and other factors.

The Corporation has used a non-GAAP financial measure in this earnings release. “Adjusted net income (loss)” presented in this release is defined as reported net income (loss) attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. We believe that investors’ understanding of our performance is enhanced by disclosing this measure. This measure is not, and should not be viewed as, a substitute for U.S. GAAP net income (loss). A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss) is provided in the release.

	Second			Second			First
	Quarter			Quarter			Quarter
	2015			2014			2015
Income Statement

Revenues and Non-operating Income
Sales and other operating revenues	$	1,953		$	2,829		$	1,538
Gains on asset sales, net		—			779			—
Other, net		(18	)		(25	)		12
Total revenues and non-operating income		1,935			3,583			1,550

Costs and Expenses
Cost of products sold (excluding items shown separately below)		356			421			278
Operating costs and expenses		503			545			506
Production and severance taxes		45			78			36
Exploration expenses, including dry holes and lease impairment		90			460			269
General and administrative expenses		151			143			147
Interest expense		86			85			85
Depreciation, depletion and amortization		1,028			785			956
Impairment		385			—			—
Total costs and expenses		2,644			2,517			2,277

Income (loss) from continuing operations before income taxes		(709	)		1,066			(727	)
Provision (benefit) for income taxes		(156	)		92			(351	)
Income (loss) from continuing operations		(553	)		974			(376	)

Income (loss) from discontinued operations, net of income taxes		(14	)		(44	)		(13	)

Net income (loss)		(567	)		930			(389	)
Less: Net income (loss) attributable to noncontrolling interests		—			(1	)		—
Net income (loss) attributable to Hess Corporation	$	(567	)	$	931		$	(389	)

See "Discontinued Operations" on page 5 for basis of presentation.

Cash Flow Information

Net cash provided by (used in) operating activities (*)	$	541		$	911		$	362
Net cash provided by (used in) investing activities		(1,016	)		232			(1,152	)
Net cash provided by (used in) financing activities		(100	)		(226	)		(148	)
Net increase (decrease) in cash and cash equivalents	$	(575	)	$	917		$	(938	)

	First half
	2015			2014
Income Statement

Revenues and Non-operating Income
Sales and other operating revenues	$	3,491		$	5,502
Gains on asset sales, net		—			789
Other, net		(6	)		(116	)
Total revenues and non-operating income		3,485			6,175

Costs and Expenses
Cost of products sold (excluding items shown separately below)		634			785
Operating costs and expenses		1,009			1,040
Production and severance taxes		81			140
Exploration expenses, including dry holes and lease impairment		359			579
General and administrative expenses		298			285
Interest expense		171			166
Depreciation, depletion and amortization		1,984			1,511
Impairment		385			—
Total costs and expenses		4,921			4,506

Income (loss) from continuing operations before income taxes		(1,436	)		1,669
Provision (benefit) for income taxes		(507	)		331
Income (loss) from continuing operations		(929	)		1,338

Income (loss) from discontinued operations, net of income taxes		(27	)		13

Net income (loss)		(956	)		1,351
Less: Net income (loss) attributable to noncontrolling interests		—			34
Net income (loss) attributable to Hess Corporation	$	(956	)	$	1,317

See "Discontinued Operations" on page 5 for basis of presentation.

Cash Flow Information

Net cash provided by (used in) operating activities (*)	$	903		$	2,069
Net cash provided by (used in) investing activities		(2,168	)		(30	)
Net cash provided by (used in) financing activities		(248	)		(1,648	)
Net increase (decrease) in cash and cash equivalents	$	(1,513	)	$	391

	June 30,			December 31,
	2015			2014
Balance Sheet Information

Cash and cash equivalents	$	931		$	2,444
Other current assets		2,995			4,243
Property, plant and equipment – net		27,298			27,517
Other long-term assets		4,334			4,374
Total assets	$	35,558		$	38,578

Current maturities of long-term debt	$	69		$	68
Other current liabilities		3,424			4,783
Long-term debt		5,888			5,919
Other long-term liabilities		5,074			5,488
Total equity excluding other comprehensive income (loss)		22,539			23,730
Accumulated other comprehensive income (loss)		(1,436	)		(1,410	)
Total liabilities and equity	$	35,558		$	38,578

	Second		Second		First
	Quarter		Quarter		Quarter
	2015		2014		2015
Capital and Exploratory Expenditures
Exploration and Production
United States
Bakken	$	331	$	385	$	434
Other Onshore		110		186		80
Total Onshore		441		571		514
Offshore		188		157		279
Total United States		629		728		793

Europe		82		162		115
Africa		58		119		88
Asia and other		237		199		248
Capital and Exploratory Expenditures - Exploration and Production		1,006		1,208		1,244

Bakken Midstream		65		48		40

Total Capital and Exploratory Expenditures	$	1,071	$	1,256	$	1,284

Total exploration expenses charged to income included above	$	58	$	54	$	47

			First half
			2015		2014
Capital and Exploratory Expenditures
Exploration and Production
United States
Bakken			$	765	$	765
Other Onshore				190		355
Total Onshore				955		1,120
Offshore				467		319
Total United States				1,422		1,439

Europe				197		307
Africa				146		219
Asia and other				485		394
Capital and Exploratory Expenditures - Exploration and Production				2,250		2,359

Bakken Midstream				105		121

Total Capital and Exploratory Expenditures			$	2,355	$	2,480

Total exploration expenses charged to income included above			$	105	$	132

	Second Quarter 2015
	United States				International				Total

Sales and other operating revenues	$	1,259			$	694			$	1,953
Other, net		(13	)			(4	)			(17	)
Total revenues and non-operating income		1,246				690				1,936

Costs and Expenses
Cost of products sold (excluding items shown separately below)		382				4				386
Operating costs and expenses		181				254				435
Production and severance taxes		44				1				45
Bakken Midstream tariffs		116				—				116
Exploration expenses, including dry holes and lease impairment		48				42				90
General and administrative expenses		79				18				97
Depreciation, depletion and amortization		609				395				1,004
Impairment		385				—				385
Total costs and expenses		1,844				714				2,558

Results of operations before income taxes		(598	)			(24	)			(622	)
Provision (benefit) for income taxes		(69	)			(51	)			(120	)
Net income (loss) attributable to Hess Corporation	$	(529	)	(a)	$	27		(b)	$	(502	)

	Second Quarter 2014
	United States				International				Total

Sales and other operating revenues	$	1,653			$	1,176			$	2,829
Gains on asset sales, net		62				704				766
Other, net		(12	)			(16	)			(28	)
Total revenues and non-operating income		1,703				1,864				3,567

Costs and Expenses
Cost of products sold (excluding items shown separately below)		412				32				444
Operating costs and expenses		190				308				498
Production and severance taxes		67				11				78
Bakken Midstream tariffs		58				—				58
Exploration expenses, including dry holes and lease impairment		208				252				460
General and administrative expenses		68				9				77
Depreciation, depletion and amortization		413				349				762
Total costs and expenses		1,416				961				2,377

Results of operations before income taxes		287				903				1,190
Provision (benefit) for income taxes		114				27				141
Net income (loss) attributable to Hess Corporation	$	173		(a)	$	876		(b)	$	1,049

	First Quarter 2015
	United States			International				Total

Sales and other operating revenues	$	937		$	601			$	1,538
Other, net		(7	)		18				11
Total revenues and non-operating income		930			619				1,549

Costs and Expenses
Cost of products sold (excluding items shown separately below)		344			(38	)			306
Operating costs and expenses		213			230				443
Production and severance taxes		34			2				36
Bakken Midstream tariffs		102			—				102
Exploration expenses, including dry holes and lease impairment		36			233				269
General and administrative expenses		76			10				86
Depreciation, depletion and amortization		528			404				932
Total costs and expenses		1,333			841				2,174

Results of operations before income taxes		(403	)		(222	)			(625	)
Provision (benefit) for income taxes		(142	)		(169	)			(311	)
Net income (loss) attributable to Hess Corporation	$	(261	)	$	(53	)	(a)	$	(314	)

	First Half 2015
	United States				International				Total

Sales and other operating revenues	$	2,196			$	1,295			$	3,491
Other, net		(20	)			14				(6	)
Total revenues and non-operating income		2,176				1,309				3,485

Costs and Expenses
Cost of products sold (excluding items shown separately below)		726				(34	)			692
Operating costs and expenses		394				484				878
Production and severance taxes		78				3				81
Bakken Midstream tariffs		218				—				218
Exploration expenses, including dry holes and lease impairment		84				275				359
General and administrative expenses		155				28				183
Depreciation, depletion and amortization		1,137				799				1,936
Impairment		385				—				385
Total costs and expenses		3,177				1,555				4,732

Results of operations before income taxes		(1,001	)			(246	)			(1,247	)
Provision (benefit) for income taxes		(211	)			(220	)			(431	)
Net income (loss) attributable to Hess Corporation	$	(790	)	(a)	$	(26	)	(b)	$	(816	)

	First Half 2014
	United States				International				Total

Sales and other operating revenues	$	3,198			$	2,304			$	5,502
Gains on asset sales, net		62				714				776
Other, net		(14	)			(20	)			(34	)
Total revenues and non-operating income		3,246				2,998				6,244

Costs and Expenses
Cost of products sold (excluding items shown separately below)		826				11				837
Operating costs and expenses		371				565				936
Production and severance taxes		125				15				140
Bakken Midstream tariffs		77				—				77
Exploration expenses, including dry holes and lease impairment		255				324				579
General and administrative expenses		124				31				155
Depreciation, depletion and amortization		764				710				1,474
Total costs and expenses		2,542				1,656				4,198

Results of operations before income taxes		704				1,342				2,046
Provision for income taxes		278				198				476
Net income (loss) attributable to Hess Corporation	$	426		(a)	$	1,144		(b)	$	1,570

	Second		Second		First
	Quarter		Quarter		Quarter
	2015		2014		2015
Operating Data
Net Production Per Day (in thousands)
Crude oil - barrels
United States
Bakken		85		64		79
Other Onshore		11		9		11
Total Onshore		96		73		90
Offshore		61		54		50
Total United States		157		127		140

Europe		39		36		36
Africa		48		51		52
Asia		2		2		2
Total		246		216		230

Natural gas liquids - barrels
United States
Bakken		22		8		19
Other Onshore		12		5		9
Total Onshore		34		13		28
Offshore		6		7		6
Total United States		40		20		34

Europe		2		1		1
Total		42		21		35

Natural gas - mcf
United States
Bakken		71		48		58
Other Onshore		95		50		79
Total Onshore		166		98		137
Offshore		98		83		65
Total United States		264		181		202

Europe		41		35		36
Asia and other		312		275		336
Total		617		491		574

Barrels of oil equivalent		391		319		361

	First half
	2015		2014
Operating Data
Net Production Per Day (in thousands)
Crude oil - barrels
United States
Bakken		82		61
Other Onshore		11		9
Total Onshore		93		70
Offshore		55		53
Total United States		148		123

Europe		38		37
Africa		50		49
Asia		2		4
Total		238		213

Natural gas liquids - barrels
United States
Bakken		21		5
Other Onshore		10		4
Total Onshore		31		9
Offshore		6		7
Total United States		37		16

Europe		1		1
Total		38		17

Natural gas - mcf
United States
Bakken		65		31
Other Onshore		87		38
Total Onshore		152		69
Offshore		82		81
Total United States		234		150

Europe		39		36
Asia and other		324		345
Total		597		531

Barrels of oil equivalent		376		319

	Second		Second		First
	Quarter		Quarter		Quarter
	2015		2014		2015
Sales Volumes Per Day (in thousands)
Crude oil - barrels		250		222		219
Natural gas liquids - barrels		42		21		35
Natural gas - mcf		617		491		574
Barrels of oil equivalent		395		325		349

Sales Volumes (in thousands)
Crude oil - barrels		22,729		20,193		19,708
Natural gas liquids - barrels		3,848		1,942		3,119
Natural gas - mcf		56,179		44,662		51,641
Barrels of oil equivalent		35,940		29,578		31,434

	First half
	2015		2014
Sales Volumes Per Day (in thousands)
Crude oil - barrels		234		210
Natural gas liquids - barrels		38		17
Natural gas - mcf		596		530
Barrels of oil equivalent		372		315

Sales Volumes (in thousands)
Crude oil - barrels		42,436		37,943
Natural gas liquids - barrels		6,967		3,064
Natural gas - mcf		107,820		96,019
Barrels of oil equivalent		67,373		57,010

	Second		Second		First
	Quarter		Quarter		Quarter
	2015		2014		2015
Operating Data
Average Selling Prices
Crude oil - per barrel (including hedging)
United States
Onshore	$	50.33	$	93.84	$	39.01
Offshore		57.82		100.42		43.55
Total United States		53.25		96.62		40.62
Europe		60.88		111.03		53.31
Africa		59.70		108.83		52.93
Asia		59.37		106.33		48.44
Worldwide		55.83		102.16		45.08

Crude oil - per barrel (excluding hedging)
United States
Onshore	$	50.54	$	93.84	$	39.01
Offshore		57.82		101.09		43.55
Total United States		53.38		96.90		40.62
Europe		62.39		111.39		53.17
Africa		61.00		109.10		52.82
Asia		59.37		106.33		48.44
Worldwide		56.40		102.45		45.04

Natural gas liquids - per barrel
United States
Onshore	$	9.47	$	36.99	$	14.22
Offshore		15.82		32.21		15.71
Total United States		10.46		35.39		14.47
Europe		27.53		55.77		27.58
Worldwide		11.06		36.59		14.91

Natural gas - per mcf
United States
Onshore	$	1.81	$	4.36	$	2.07
Offshore		2.13		4.01		2.31
Total United States		1.93		4.22		2.15
Europe		7.35		10.51		7.95
Asia and other		6.27		7.24		5.95
Worldwide		4.49		6.35		4.74

	First half
	2015		2014
Operating Data
Average Selling Prices
Crude oil - per barrel (including hedging)
United States
Onshore	$	44.85	$	91.67
Offshore		52.11		99.89
Total United States		47.56		95.19
Europe		57.42		110.10
Africa		56.54		108.65
Asia		56.85		104.66
Worldwide		50.99		100.96

Crude oil - per barrel (excluding hedging)
United States
Onshore	$	44.97	$	91.67
Offshore		52.11		100.24
Total United States		47.63		95.33
Europe		58.18		110.06
Africa		57.18		108.62
Asia		56.85		104.66
Worldwide		51.28		101.03

Natural gas liquids - per barrel
United States
Onshore	$	11.58	$	40.91
Offshore		15.77		33.14
Total United States		12.26		37.54
Europe		27.56		60.16
Worldwide		12.78		39.41

Natural gas - per mcf
United States
Onshore	$	1.93	$	4.87
Offshore		2.20		4.18
Total United States		2.03		4.52
Europe		7.63		11.01
Asia and other		6.11		7.23
Worldwide		4.61		6.72

	Second		Second		First
	Quarter		Quarter		Quarter
	2015		2014		2015
Income Statement

Revenues and Non-operating Income
Total revenues and non-operating income	$	145	$	81	$	130

Costs and Expenses
Operating costs and expenses		68		47		63
General and administrative expenses		3		2		2
Depreciation, depletion and amortization		22		20		21
Interest expense		1		1		1
Total costs and expenses		94		70		87

Results of operations before income taxes		51		11		43
Provision (benefit) for income taxes		19		4		16
Net income (loss) attributable to Hess Corporation	$	32	$	7	$	27

	First half
	2015		2014
Income Statement

Revenues and Non-operating Income
Total revenues and non-operating income	$	275	$	129

Costs and Expenses
Operating costs and expenses		131		104
General and administrative expenses		5		4
Depreciation, depletion and amortization		43		29
Interest expense		2		1
Total costs and expenses		181		138

Results of operations before income taxes		94		(9	)
Provision (benefit) for income taxes		35		(3	)
Net income (loss) attributable to Hess Corporation	$	59	$	(6	)

The reported amounts above represent 100 percent of the Bakken Midstream operating segment. On July 1, 2015, the Corporation completed the sale of a 50 percent interest in its Bakken Midstream segment. Our partner’s 50 percent share of net income will be presented as a noncontrolling interest charge in the Bakken Midstream income statements beginning in the third quarter of 2015.

	Brent	West Texas Intermediate
Q3 and Q4 2015 Hedging program:
Daily production(bopd)	50,000	20,000
Ceiling price	$80	$80
Floor price	$60	$60
Program finishing date	December 31, 2015	December 31, 2015