Hess 2011 Annual Report Download - page 57

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The increase in Cost of products sold each year principally reflects higher prices for purchased refined
petroleum products.
Liquidity and Capital Resources
The following table sets forth certain relevant measures of the Corporation’s liquidity and capital resources
at December 31:
2011 2010
(Millions of dollars)
Cashandcashequivalents ......................................... $ 351 $ 1,608
Short-term debt and current maturities of long-term debt ................. $52$46
Totaldebt....................................................... $ 6,057 $ 5,583
Totalequity ..................................................... $18,592 $16,809
Debttocapitalizationratio* ........................................ 24.6% 24.9%
* Total debt as a percentage of the sum of total debt plus equity.
Cash Flows
The following table sets forth a summary of the Corporation’s cash flows for the years ended December 31:
2011 2010 2009
(Millions of dollars)
Net cash provided by (used in):
Operatingactivities....................................... $4,984 $4,530 $3,046
Investingactivities ....................................... (6,566) (5,259) (2,924)
Financingactivities....................................... 325 975 332
Net increase (decrease) in cash and cash equivalents ............ $(1,257) $ 246 $ 454
Operating Activities:Net cash provided by operating activities amounted to $4,984 million in 2011
compared with $4,530 million in 2010, reflecting higher operating earnings partially offset by a period over
period increase in the use of cash from changes in operating assets and liabilities of $412 million. Operating cash
flow increased to $4,530 million in 2010 from $3,046 million in 2009 principally reflecting higher earnings.
Investing Activities: The following table summarizes the Corporation’s capital expenditures for the years
ended December 31:
2011 2010 2009
(Millions of dollars)
Exploration and Production
Exploration ............................................ $ 869 $ 552 $ 611
Productionanddevelopment .............................. 4,673 2,592 1,927
Acquisitions (including leaseholds) ......................... 1,346 2,250 262
6,888 5,394 2,800
Marketing,RefiningandCorporate ........................... 118 98 118
Total ............................................... $7,006 $5,492 $2,918
Capital expenditures in 2011 included acquisitions of approximately $800 million for 185,000 net acres in
the Utica Shale play in eastern Ohio, $214 million for interests in two blocks in the Kurdistan Region of Iraq and
$116 million for an additional 4% interest in the South Arne Field in Denmark. Capital expenditures in 2010
included acquisitions of 167,000 net acres in the Bakken oil shale play in North Dakota from TRZ Energy, LLC
for $1,075 million in cash and additional interests of 8% and 13% in the Valhall and Hod fields, respectively, for
$507 million in cash. Capital expenditures in 2009 included acquisitions of $188 million for unproved leaseholds
and $74 million for a 50% interest in blocks PM301 and PM302 in Malaysia, which are adjacent to Block A-18
of the JDA. In addition, proceeds from asset sales were $490 million in 2011 and $183 million in 2010.
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