Hess 2008 Annual Report Download - page 93
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For the Years Ended December 31 Total
United
States Europe Africa
Asia and
Other
(Millions of dollars)
2007
Sales and other operating revenues
Unaffiliated customers .......................... $7,297 $1,010 $2,670 $2,609 $1,008
Inter-company ................................ 201 201 — — —
Total revenues .............................. 7,498 1,211 2,670 2,609 1,008
Costs and expenses
Production expenses, including related taxes .......... 1,581 280 723 381 197
Exploration expenses, including dry holes and lease
impairment................................. 515 302 43 90 80
General, administrative and other expenses ........... 257 130 73 17 37
Depreciation, depletion and amortization(c) .......... 1,503 187 548 593 175
Total costs and expenses ....................... 3,856 899 1,387 1,081 489
Results of operations before income taxes ............ 3,642 312 1,283 1,528 519
Provision for income taxes ....................... 1,817 121 661 911 124
Results of operations ............................. $1,825 $ 191 $ 622 $ 617 $ 395
2006
Sales and other operating revenues
Unaffiliated customers .......................... $6,249 $ 957 $3,052 $1,637 $ 603
Inter-company ................................ 275 275 — — —
Total revenues .............................. 6,524 1,232 3,052 1,637 603
Costs and expenses
Production expenses, including related taxes .......... 1,250 221 631 284 114
Exploration expenses, including dry holes and lease
impairment................................. 552 353 39 117 43
General, administrative and other expenses(d) ......... 209 95 74 15 25
Depreciation, depletion and amortization ............ 1,159 127 490 401 141
Total costs and expenses ....................... 3,170 796 1,234 817 323
Results of operations before income taxes ............ 3,354 436 1,818 820 280
Provision for income taxes ....................... 1,870 161 1,009 609 91
Results of operations ............................. $1,484 $ 275 $ 809 $ 211 $ 189
(a) Includes $15 million ($9 million after income taxes) of Gulf of Mexico hurricane related costs.
(b) Includes asset impairment charges of $30 million ($17 million after income taxes).
(c) Includes asset impairment charges of $112 million ($56 million after income taxes).
(d) Includes accrued costs for vacated office space of approximately $30 million ($18 million after income taxes).
Oil and Gas Reserves
The Corporation’s oil and gas reserves are calculated in accordance with SEC regulations and interpretations
and the requirements of the FASB. For reserves to be booked as proved they must be commercially producible;
government approvals must be obtained and depending on the amount of the project cost, senior management or the
board of directors, must commit to fund the project. The Corporation’s oil and gas reserve estimation and reporting
process involves an annual independent third party reserve determination as well as internal technical appraisals of
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