Hess 2002 Annual Report Download - page 27

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EPA issued several draft and final rules in 2002 to implement
requirements of the Clean Air Act to reduce hazardous air pollutant
emissions from certain sources, including certain refinery sources.
Some capital expenditures could be required by the Corporation or
HOVENSA to comply with these regulations, but further review of
these rules is continuing to determine their impact.
The Corporation expects continuing expenditures for environmental
assessment and remediation related primarily to existing conditions.
Sites where corrective action may be necessary include gasoline
stations, terminals, onshore exploration and production facilities,
refineries (including solid waste management units under permits
issued pursuant to the Resource Conservation and Recovery Act)
and, although not significant, “Superfund” sites where the Corpora-
tion has been named a potentially responsible party. The Corporation
expects that existing reserves for environmental liabilities will ade-
quately cover costs to assess and remediate known sites.
The Corporation spent $9 million in 2002, $8 million in 2001 and
$7 million in 2000 for remediation. Capital expenditures for facilities,
primarily to comply with federal, state and local environmental
standards, were $5 million in 2002, $6 million in 2001 and
$5 million in 2000.
Forward Looking Information
Certain sections of the Financial Review, including references to the
Corporation’s future results of operations and financial position, liq-
uidity and capital resources, capital expenditures, oil and gas produc-
tion, tax rates, debt repayment, hedging, derivative and environmental
disclosures, represent forward looking information. Forward looking
disclosures are based on the Corporation’s current understanding and
assessment of these activities and reasonable assumptions about
the future. Actual results may differ from these disclosures because of
changes in market conditions, government actions and other factors.
Dividends
Cash dividends on common stock totaled $1.20 per share
($.30 per quarter) during 2002 and 2001.
Stock Market Information
The common stock of Amerada Hess Corporation is traded
principally on the New York Stock Exchange (ticker symbol: AHC).
High and low sales prices in 2002 and 2001 were as follows:
2002 2001
Quarter Ended High Low High Low
March 31 $80.15 $57.60 $79.45 $66.25
June 30 84.70 74.61 90.40 73.40
September 30 83.00 61.36 82.39 59.07
December 31 71.48 49.40 68.96 53.75
Quarterly Financial Data
Quarterly results of operations for the years ended December 31,
2002 and 2001 follow:
Sales
Millions of and other Net
dollars, except operating Gross Net income (loss)
per share data revenues profit (a) income (loss) per share
2002
First $ 3,021 $ 402 $ 140(b) $ 1.58
Second 2,796 438 149(c) 1.66
Third 2,818 432 (136)(d) (1.54)
Fourth 3,297 460 (371)(e) (4.20)
2001
First $ 4,183 $ 707 $ 337 $ 3.79
Second 3,461 617 357 3.98
Third 2,888 375 166 1.86
Fourth 2,881 414 54(f) .61
(a) Gross profit represents sales and other operating revenues, less cost of products sold,
production expenses, marketing expenses, other operating expenses and depreciation,
depletion and amortization.
(b) Reflects a net gain from asset sales of $27 million.
(c) Includes charges of $14 million for the reduction in carrying value of intangible assets
related to energy marketing activities and $8 million for a severance accrual.
(d) Reflects a net charge of $256 million for impairment of U.S. producing properties and
exploration acreage. Also includes a net gain from asset sales of $42 million and a deferred
tax charge of $43 million for an increase in the United Kingdom income tax rate.
(e) Includes a net charge of $530 million for impairment of the Ceiba field. Also includes
a net gain from an asset sale of $13 million.
(f) Includes a net charge of $19 million related to the Enron bankruptcy and $12 million for
a severance accrual.
The results of operations for the periods reported herein should not
be considered as indicative of future operating results.