Hess 2011 Annual Report Download - page 49

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The Corporation anticipates investing $6.8 billion in capital and exploratory expenditures in 2012,
substantially all of which is targeted for E&P operations.
Consolidated Results of Operations
The after-tax income (loss) by major operating activity is summarized below for the years ended December 31:
2011 2010 2009
(Millions of dollars,
except per share data)
ExplorationandProduction ................................... $2,675 $2,736 $1,042
MarketingandRefining ...................................... (584) (231) 127
Corporate ................................................. (154) (159) (205)
Interestexpense ............................................ (234) (221) (224)
Net income attributable to Hess Corporation ...................... $1,703 $2,125 $ 740
Netincomepershare—diluted................................ $ 5.01 $ 6.47 $ 2.27
The following table summarizes, on an after-tax basis, items of income (expense) that are included in net
income and affect comparability between periods. The items in the table below are explained on pages 27 through 30.
2011 2010 2009
(Millions of dollars)
ExplorationandProduction ..................................... $ 244 $732 $ 45
MarketingandRefining ........................................ (525) (289) 12
Corporate ................................................... —(7) (60)
$ (281) $ 436 $ (3)
In the following discussion and elsewhere in this report, the financial effects of certain transactions are
disclosed on an after-tax basis. Management reviews segment earnings on an after-tax basis and uses after-tax
amounts in its review of variances in segment earnings. Management believes that after-tax amounts are a
preferable method of explaining variances in earnings, since they show the entire effect of a transaction rather
than only the pre-tax amount. After-tax amounts are determined by applying the income tax rate in each tax
jurisdiction to pre-tax amounts.
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