Hess 2011 Annual Report Download - page 50

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Comparison of Results
Exploration and Production
Following is a summarized income statement of the Corporation’s E&P operations for the years ended
December 31:
2011 2010 2009
(Millions of dollars)
Sales and other operating revenues* .......................... $ 10,047 $ 8,744 $ 6,835
Other,net............................................... 464 1,233 207
Total revenues and non operating income ................... 10,511 9,977 7,042
Costs and expenses
Production expenses, including related taxes ................. 2,352 1,924 1,805
Exploration expenses, including dry holes and lease
impairment ......................................... 1,195 865 829
General, administrative and other expenses .................. 313 281 255
Depreciation, depletion and amortization .................... 2,305 2,222 2,113
Assetimpairments ...................................... 358 532 54
Totalcostsandexpenses ............................... 6,523 5,824 5,056
Results of operations before income taxes ..................... 3,988 4,153 1,986
Provisionforincometaxes ................................. 1,313 1,417 944
Results of operations attributable to Hess Corporation ............ $ 2,675 $ 2,736 $ 1,042
* Amounts differ from E&P operating revenues in Note 19, Segment Information in the notes to the Consolidated Financial Statements
primarily due to the exclusion of sales of hydrocarbons purchased from third parties.
After considering the E&P items affecting comparability of earnings between periods in the table on
page 27, the remaining changes in E&P earnings are primarily attributable to changes in selling prices,
production and sales volumes, operating costs, exploration expenses, income taxes and foreign exchange, as
discussed below.
Selling Prices: Higher average selling prices increased E&P revenues by approximately $2,400 million in
2011 compared with 2010. Higher average selling prices increased E&P revenues by approximately $1,775
million in 2010 compared with 2009.
The Corporation’s average selling prices were as follows for the years ended December 31:
2011 2010 2009
Crude oil — per barrel (including hedging)
UnitedStates .......................................... $ 98.56 $75.02 $60.67
Europe ............................................... 80.18 58.11 47.02
Africa ................................................ 88.46 65.02 48.91
Asia.................................................. 111.71 79.23 63.01
Worldwide .......................................... 89.99 66.20 51.62
Crude oil — per barrel (excluding hedging)
UnitedStates .......................................... $ 98.56 $75.02 $60.67
Europe ............................................... 80.18 58.11 47.02
Africa ................................................ 110.28 78.31 60.79
Asia.................................................. 111.71 79.23 63.01
Worldwide .......................................... 95.60 71.40 56.74
Natural gas liquids — per barrel
UnitedStates .......................................... $ 58.59 $47.92 $36.57
Europe ............................................... 75.49 59.23 43.23
Asia.................................................. 72.29 63.50 46.48
Worldwide .......................................... 62.72 50.49 38.47
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