Hess 2014 Annual Report Download - page 103

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Results of Operations for Oil and Gas Producing Activities
The results of operations shown below exclude non-oil and gas producing activities, primarily gains on sales of oil and gas
properties, sales of purchased crude oil and natural gas, interest expense, gains and losses resulting from foreign exchange transactions
and other non-operating income. Therefore, these results are on a different basis than the net income from E&P operations reported in
Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Note 19, Segment Information in the
Notes to the Consolidated Financial Statements.
For the Years Ended December 31 Total
United
States
Europe
(a) Africa
Asia and
Other
(In millions)
2014
Sales and other operating revenues ................................................... $ 8,839 $ 4,461 $ 1,540 $ 1,962 $ 876
Costs and expenses
Operating costs and expenses ...................................................... 1,927 843 461 441 182
Production and severance taxes ................................................... 275 240 3
—
32
Exploration expenses, including dry holes and lease
impairment ............................................................................. 840 359 90 36 355
General and administrative expenses .......................................... 336 281
—
16 39
Depreciation, depletion and amortization.................................... 3,210 1,751 683 487 289
Total costs and expenses ......................................................... 6,588 3,474 1,237 980 897
Results of operations before income taxes ........................................ 2,251 987 303 982 (21)
Provision (benefit) for income taxes ........................................... 926 399 101 435 (9)
Results of operations ......................................................................... $ 1,325 $ 588 $ 202 $ 547 $ (12) (b)
2013
Sales and other operating revenues ................................................... $ 9,995 $ 4,268 $ 1,482 $ 2,671 $ 1,574
Costs and expenses
Operating costs and expenses ...................................................... 2,116 795 539 448 334
Production and severance taxes ................................................... 372 232 98 3 39
Exploration expenses, including dry holes and lease
impairment ............................................................................. 1,031 371 114 323 223
General and administrative expenses .......................................... 377 218 79 17 63
Depreciation, depletion and amortization.................................... 2,671 1,393 484 518 276
Asset impairments ....................................................................... 289
—
—
—
289
Total costs and expenses ......................................................... 6,856 3,009 1,314 1,309 1,224
Results of operations before income taxes ........................................ 3,139 1,259 168 1,362 350
Provision for income taxes (c) .................................................... 1,479 483 60 767 169
Results of operations ......................................................................... $ 1,660 $ 776 $ 108 $ 595 $ 181(b)
2012
Sales and other operating revenues ................................................... $ 10,893 $ 4,104 $ 2,460 $ 2,545 $ 1,784
Costs and expenses
Operating costs and expenses ...................................................... 2,202 758 678 404 362
Production and severance taxes ................................................... 550 199 335 2 14
Exploration expenses, including dry holes and lease
impairment ............................................................................. 1,070 426 71 84 489
General and administrative expenses .......................................... 314 196 46 17 55
Depreciation, depletion and amortization.................................... 2,853 1,406 466 528 453
Asset impairments ....................................................................... 582 432 119
—
31
Total costs and expenses ......................................................... 7,571 3,417 1,715 1,035 1,404
Results of operations before income taxes ........................................ 3,322 687 745 1,510 380
Provision for income taxes (d) .................................................... 1,664 269 334 905 156
Results of operations ......................................................................... $ 1,658 $ 418 $ 411 $ 605 $ 224(b)