Hess 2008 Annual Report Download - page 92

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Capitalized Costs Relating to Oil and Gas Producing Activities
2008 2007
At December 31
(Millions of dollars)
Unproved properties ............................................ $ 2,265 $ 1,688
Proved properties .............................................. 3,009 3,350
Wells, equipment and related facilities ............................... 20,058 17,865
Total costs ................................................. 25,332 22,903
Less: reserve for depreciation, depletion, amortization and lease impairment . . . 10,269 9,373
Net capitalized costs .......................................... $15,063 $13,530
Results of Operations for Oil and Gas Producing Activities
The results of operations shown below exclude non-oil and gas producing activities, primarily gains on sales of
oil and gas properties, interest expense and gains and losses resulting from foreign exchange transactions.
Therefore, these results are on a different basis than the net income from Exploration and Production
operations reported in management’s discussion and analysis of results of operations and in Note 17, “Segment
Information,” in the notes to the financial statements.
For the Years Ended December 31 Total
United
States Europe Africa
Asia and
Other
(Millions of dollars)
2008
Sales and other operating revenues
Unaffiliated customers .......................... $9,569 $1,415 $3,435 $3,580 $1,139
Inter-company ................................ 237 237 — — —
Total revenues .............................. 9,806 1,652 3,435 3,580 1,139
Costs and expenses
Production expenses, including related taxes(a) ........ 1,872 373 811 465 223
Exploration expenses, including dry holes and lease
impairment................................. 725 305 45 186 189
General, administrative and other expenses ........... 302 159 86 19 38
Depreciation, depletion, amortization(b) ............. 1,952 238 591 888 235
Total costs and expenses ....................... 4,851 1,075 1,533 1,558 685
Results of operations before income taxes ............ 4,955 577 1,902 2,022 454
Provision for income taxes ....................... 2,490 223 920 1,181 166
Results of operations ............................. $2,465 $ 354 $ 982 $ 841 $ 288
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