Hess 2008 Annual Report Download - page 63

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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT OF CONSOLIDATED CASH FLOWS
2008 2007 2006
Years Ended December 31,
(Millions of dollars)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ................................................ $ 2,360 $ 1,832 $ 1,920
Adjustments to reconcile net income to net cash provided by operating
activities
Depreciation, depletion and amortization ......................... 2,029 1,576 1,224
Exploratory dry hole costs ................................... 210 65 241
Lease impairment . . . ....................................... 125 102 99
Pre-tax gain on asset sales ................................... —(21) (369)
Provision (benefit) for deferred income taxes ...................... (57) (33) 281
Distributed earnings of HOVENSA L.L.C., net .................... 6124 199
Changes in other operating assets and liabilities:
(Increase) decrease in accounts receivable ...................... 357 (783) (179)
Increase in inventories ..................................... (56) (254) (152)
Increase (decrease) in accounts payable and accrued liabilities ....... (252) 597 (44)
Increase in taxes payable ................................... 61 134 47
Changes in other assets and liabilities ......................... (216) 168 224
Net cash provided by operating activities ..................... 4,567 3,507 3,491
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures . . . ....................................... (4,438) (3,578) (3,844)
Proceeds from asset sales ...................................... —93 444
Payments received on notes receivable ............................ 61 61 76
Other, net.................................................. (67) (50) 35
Net cash used in investing activities ......................... (4,444) (3,474) (3,289)
CASH FLOWS FROM FINANCING ACTIVITIES
Debt with maturities of greater than 90 days
Borrowings ............................................. 380 1,094 320
Repayments ............................................ (412) (886) (333)
Cash dividends paid . . . ....................................... (130) (127) (161)
Employee stock options exercised, including income tax benefits ......... 340 110 40
Net cash provided by (used in) financing activities .............. 178 191 (134)
NET INCREASE IN CASH AND CASH EQUIVALENTS ............. 301 224 68
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR ....... 607 383 315
CASH AND CASH EQUIVALENTS AT END OF YEAR .............. $ 908 $ 607 $ 383
See accompanying notes to consolidated financial statements.
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