Hess 2008 Annual Report Download - page 39

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The Corporation’s average selling prices were as follows:
2008 2007 2006
Crude oil-per barrel (including hedging)
United States.......................................... $96.82 $69.23 $60.45
Europe .............................................. 78.75 60.99 56.19
Africa ............................................... 78.72 62.04 51.18
Asia and other ......................................... 97.07 72.17 61.52
Worldwide .......................................... 82.04 63.44 55.31
Crude oil-per barrel (excluding hedging)
United States.......................................... $96.82 $69.23 $60.45
Europe .............................................. 78.75 60.99 58.46
Africa ............................................... 93.57 71.71 62.80
Asia and other ......................................... 97.07 72.17 61.52
Worldwide .......................................... 89.23 67.79 60.41
Natural gas liquids-per barrel
United States.......................................... $64.98 $51.89 $46.22
Europe .............................................. 74.63 57.20 47.30
Worldwide .......................................... 67.61 53.72 46.59
Natural gas-per mcf (including hedging)
United States.......................................... $ 8.61 $ 6.67 $ 6.59
Europe .............................................. 9.44 6.13 6.20
Asia and other ......................................... 5.24 4.71 4.05
Worldwide .......................................... 7.17 5.60 5.50
Natural gas-per mcf (excluding hedging)
United States.......................................... $ 8.61 $ 6.67 $ 6.59
Europe .............................................. 9.79 6.13 6.20
Asia and other ......................................... 5.24 4.71 4.05
Worldwide .......................................... 7.30 5.60 5.50
The after-tax impacts of hedging reduced earnings by $423 million ($685 million before income taxes) in
2008, $244 million ($399 million before income taxes) in 2007 and $285 million ($449 million before income
taxes) in 2006. In October 2008, the Corporation closed its Brent crude oil hedge positions by entering into
offsetting contracts with the same counterparty covering 24,000 barrels per day from 2009 through 2012 at a per
barrel price of $86.95 each year. The deferred after-tax loss as of the date the hedge positions were closed will be
recorded in earnings as the contracts mature. The estimated annual after-tax loss from the closed positions will be
approximately $335 million from 2009 through 2012. The pretax amounts will continue to be recorded as a
reduction of revenue and allocated to the selling prices of the Corporation’s African production.
Production and sales volumes: The Corporation’s crude oil and natural gas production was 381,000 boepd
in 2008 compared with 377,000 boepd in 2007 and 359,000 boepd in 2006. The Corporation currently estimates that
its 2009 production will average between 380,000 and 390,000 boepd.
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