Hess 2000 Annual Report Download - page 6

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4
We continue to invest in retail marketing because we believe that over time
this business can deliver superior financial returns. In 2000, we acquired 178
Merit retail facilities, greatly strengthening our business in the metropolitan
Philadelphia, New York and Boston markets. We have rebranded nearly all
of these HESS.
We have reached agreement to form a joint venture to own and operate 141
WILCO retail facilities, which are located primarily in North Carolina, South
Carolina and Virginia. The gasoline will be sold under the HESS brand. We
also have agreed to purchase 53 Gibbs retail facilities, located primarily in
the Boston metropolitan area and southern New Hampshire. We will rebrand
them HESS. At the end of 2001, we expect to have about 1,150 HESS retail
facilities, more than double the number at the end of 1996, and we will be
the leading independent convenience retail marketer on the East Coast.
During 2000, we continued to expand our energy marketing business. Sales
of distillates and residual fuel oil increased as a result of colder weather in
the fourth quarter of 2000. Natural gas sales to industrial and commercial
customers were in excess of 500,000 Mcf per day at year-end 2000. We also
invested in innovative technologies to make alternate sources of energy avail-
able to our customers. We are manufacturing and marketing to industrial and
commercial customers a cogeneration unit that generates electricity and ther-
mal energy. We made an investment in a fuel cell company that designs and
develops integrated fuel cell systems capable of using multiple fuels to pro-
duce cleaner energy for both the stationary and vehicular markets.
CURRENT RETURNS TO SHAREHOLDERS
At its March 7, 2001 meeting, the Corporation’s Board of Directors increased
the regular quarterly dividend on the Common Stock to 30 cents per share
from 15 cents per share. The Board’s action reflects the Corporation’s contin-
uing commitment to increasing current returns to shareholders, the
Corporation’s sound financial condition and the positive outlook for the future.
In 2000, the Corporation’s Board of Directors authorized the expenditure of
$300 million to repurchase shares of Amerada Hess Common Stock. During
2000, $220 million was spent, leaving $80 million available for continued
share repurchases. Management and the Board of Directors continue to believe
that the Corporation’s Common Stock is an excellent investment.