Hess posts a profit in Q1 2010, buoyed by oil prices

Source: Hess

Hess Corporation (HES) reported net income of $538 million for the first quarter of 2010 compared with a net loss of $59 million for the first quarter of 2009. 

Exploration and Production earnings, including a gain on an asset sale, were $551 million in the first quarter of 2010 compared with a loss of $64 million in the first quarter of 2009. The Corporation's oil and gas production was 423,000 barrels of oil equivalent per day in the first quarter of 2010, an increase of 8 percent from the first quarter of 2009. The Corporation's average worldwide crude oil selling price, including the effect of hedging, was $63.62 per barrel in the first quarter of 2010 compared with $34.42 per barrel in the first quarter of 2009. The Corporation's average worldwide natural gas selling price was $5.92 per Mcf in the first quarter of 2010 compared with $5.08 per Mcf in the first quarter of 2009. 

Marketing and Refining earnings were $87 million in the first quarter of 2010 compared with $102 million in the first quarter of 2009. Refining operations generated a loss of $56 million compared with a loss of $18 million in the first quarter of 2009. During the first quarter of 2010, the fluid catalytic cracking unit at HOVENSA was shut down for a scheduled turnaround. Marketing earnings were $121 million, an increase of $20 million from the first quarter of 2009 primarily due to higher margins. Income from trading activities was $22 million, up from $19 million in the first quarter of 2009. 

First quarter 2010 results included a gain of $58 million related to the sale of the Corporation's interest in the Jambi Merang natural gas development project in Indonesia. In addition, the Corporation recorded an after-tax charge of $7 million related to the previously announced repurchase of the remaining $116 million of bonds that were scheduled to mature in 2011. 

Net cash provided by operating activities was $825 million compared with $625 million in the first quarter of 2009. Capital and exploratory expenditures were $861 million in the first quarter of 2010, of which $841 million related to Exploration and Production operations. Capital and exploratory expenditures for the first quarter of 2009 were $805 million, of which $759 million related to Exploration and Production operations.
At March 31, 2010, cash and cash equivalents totaled $1,370 million compared with $1,362million at December 31, 2009. Total debt was $4,335 million at March 31, 2010 and $4,467 million at December 31, 2009. The Corporation's debt to capitalization ratio at March 31, 2010 was 23.6 percent compared with 24.8 percent at the end of 2009.



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