Hess 2000 Annual Report Download - page 25

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The Corporation’s Board of Directors approved a $300 mil-
lion stock repurchase program in March 2000. Through
December 31, 2000, 3,444,000 shares have been repur-
chased for $220 million.
The Corporation conducts foreign exploration and pro-
duction activities in the United Kingdom, Norway, Den-
mark, Gabon, Indonesia, Thailand, Azerbaijan, Algeria
and in other countries. The Corporation also has a refining
joint venture with a Venezuelan company. Therefore, the
Corporation is subject to the risks associated with foreign
operations. These exposures may include political risk,
credit risk and currency risk. There have not been any
material adverse effects on the Corporation’s results of
operations or financial condition as a result of its dealings
with foreign entities.
Capital Expenditures
The following table summarizes the Corporation’s capital
expenditures in 2000, 1999 and 1998:
Millions of dollars 2000 1999 1998
Exploration and production
Exploration $167 $101 $ 242
Production and development 536 626 915
Acquisitions 80 — 150
783 727 1,307
Refining, marketing and shipping
Operations 109 70 132
Acquisitions 46 ——
155 70 132
Total $938 $797 $1,439
During 2000, the Corporation agreed with the Algerian
National Oil Company to acquire a 49% interest in three
producing Algerian oil fields. The Corporation paid $55
million in 2000 for the redevelopment project and will
invest up to $500 million over the next five years for new
wells, workovers of existing wells and water injection and
gas compression facilities. A significant portion of the
future expenditures will be funded by the cash flows from
these fields. The Corporation also purchased an additional
1.04% interest in three fields in Azerbaijan. The total pur-
chase price was approximately $70 million, of which
$45 million is payable over the next two years. The Cor-
poration now owns a 2.72% interest in these fields.
During 2000, the Corporation acquired the remaining out-
standing stock of the Meadville Corporation for $168 mil-
lion in cash, deferred payments and preferred stock.
The purchase included 178 Merit retail gasoline stations
located in the northeastern United States. During the
year, the Corporation also purchased certain energy
marketing operations.
The decrease in capital expenditures in 1999 compared
with 1998, reflects the completion of several major devel-
opment projects and the reduced 1999 exploration pro-
gram. Although not included in capital expenditures
above, the Corporation increased its investment in Pre-
mier Oil plc, an equity affiliate, by $59 million in 1999.
Acquisitions in 1998 included $100 million for explo-
ration and production interests in Azerbaijan.
Capital expenditures in 2001 are currently expected to be
approximately $1,050 million, excluding the acquisitions
referred to below. It is anticipated that these expenditures
will be financed by internally generated funds.