Hess Reports Q2 Financial Results

Hess Corp. releases its second quarter estimated results for 2011, including a net income increase compared with one year ago.

Hess Corp. reported net income of $607 million for the second quarter of 2011, which is up from $375 million for the second quarter of 2010.

The after-tax income (loss) by major operating activity was as follows:  Exploration and production earnings were $747 million in the second quarter of 2011, which is up from $488 million in the second quarter of 2010. The corporation’s average worldwide crude oil selling price, including the effect of hedging, was $97.20 per barrel, up from $64.81 per barrel in the second quarter of 2010. The average worldwide natural gas selling price was $5.93 per Mcf in the second quarter of 2011 compared with $5.57 per Mcf in the same quarter a year ago. The corporation’s second quarter oil and gas production was 372,000 barrels of oil equivalent per day, compared with 415,000 barrels of oil equivalent per day in the second quarter a year ago, due to lower production from Africa, primarily reflecting the suspension of production in Libya due to civil unrest, and the sale of certain natural gas producing assets in the United Kingdom North Sea in February 2011.

Marketing and Refining generated a loss of $39 million in the second quarter of 2011 compared with a loss of $19 million in the same period in 2010. Refining operations incurred a loss of $44 million in the second quarter of 2011 compared with a loss of $31 million in the second quarter a year ago. Marketing earnings were $28 million, which is up from $17 million in the second quarter of 2010. Trading activities generated a loss of $23 million in the second quarter of 2011 compared with a loss of $5 million in the second quarter of last year.

Net cash provided by operating activities was $1,689 million in the second quarter of 2011, which is up from $981 million in the same quarter of 2010. Capital and exploratory expenditures were $1,490 million, of which $1,469 million related to exploration and production operations. Capital and exploratory expenditures for the second quarter of 2010 were $963 million, of which $930 million related to exploration and production operations.

On June 30, 2011, cash and cash equivalents totaled $2,194 million, which is up from $1,608 million at Dec. 31, 2010. Total debt was $5,541 million at June 30, 2011 and $5,583 million at Dec. 31, 2010. The corporation’s debt to capitalization ratio at June 30, 2011 improved to 22.7% compared with 24.9% at the end of 2010.

Although finances have been up, oil and gas production was 372,000 barrels of oil equivalent per day, compared with 415,000 in the second quarter of 2010.

Hess operates more than 1,350 gasoline and retail stores, serving more than 1.3 million customers a day in the Eastern U.S.

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