Hess 2008 Annual Report Download - page 38
Download and view the complete annual report
Please find page 38 of the 2008 Hess annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28 -
29 -
30 -
31 -
32 -
33 -
34 -
35 -
36 -
37 -
38 -
39 -
40 -
41 -
42 -
43 -
44 -
45 -
46 -
47 -
48 -
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
 |
 |
Comparison of Results
Exploration and Production
Following is a summarized income statement of the Corporation’s Exploration and Production operations:
2008 2007 2006
(Millions of dollars)
Sales and other operating revenues*........................... $9,806 $7,498 $6,524
Other, net .............................................. (167) 65 428
Total revenues and non operating income ................... 9,639 7,563 6,952
Costs and expenses
Production expenses, including related taxes................... 1,872 1,581 1,250
Exploration expenses, including dry holes and lease impairment .... 725 515 552
General, administrative and other expenses. ................... 302 257 209
Depreciation, depletion and amortization . . ................... 1,952 1,503 1,159
Total costs and expenses ............................... 4,851 3,856 3,170
Results of operations from continuing operations before income
taxes ................................................ 4,788 3,707 3,782
Provision for income taxes ................................. 2,365 1,865 2,019
Results of operations ...................................... $2,423 $1,842 $1,763
*Amounts differ from E&P operating revenues in Note 17 “Segment Information” primarily due to the exclusion of sales of hydrocarbons
purchased from third parties.
After considering the Exploration and Production items in the table on page 21, the remaining changes in
Exploration and Production earnings are primarily attributable to changes in selling prices, production volumes,
operating costs, exploration expenses, foreign exchange, and income taxes, as discussed below.
Selling prices: Higher average selling prices increased Exploration and Production revenues by
approximately $2,100 million in 2008 compared with 2007. At December 31, 2008, the selling prices of crude
oil and natural gas had decreased significantly from the average 2008 selling prices indicated below. In 2007, an
increase in average crude oil selling prices and reduced hedge positions compared with 2006 increased revenues by
approximately $740 million.
22