Hess 2014 Annual Report Download - page 109

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in the computation of future income tax expenses for December 31, 2012 and prior years as such attributes were available to be
utilized against future taxable income of the Corporation’s business activities other than those associated with proved oil and gas
reserves. Commencing with 2013, the Corporation changed its computation of future income tax expenses to include excess tax
carryforward deductions relating to proved oil and gas reserves in conjunction with the Corporation’s transition to a pure play
Exploration and Production company, based on the expectation such excess carryforward deductions would be utilized against future
taxable income relating to proved oil and gas reserves. In the presentation below, amounts are shown on a restated basis and as
originally presented in the 2013 Form 10-K.
At December 31 Total
United
States Europe * Africa Asia
(In millions)
2014
Future revenues ............................................................................ $ 107,949 $ 51,054 $ 31,150 $ 19,448 $ 6,297
Less:
Future production costs ........................................................... 27,790 14,553 9,116 2,743 1,378
Future development costs ........................................................ 21,393 10,150 7,930 1,244 2,069
Future income tax expenses ..................................................... 27,060 6,798 7,143 12,876 243
76,243 31,501 24,189 16,863 3,690
Future net cash flows ................................................................... 31,706 19,553 6,961 2,585 2,607
Less: Discount at 10% annual rate ............................................... 14,704 9,988 3,251 393 1,072
Standardized measure of discounted future net cash flows .......... $ 17,002 $ 9,565 $ 3,710 $ 2,192 $ 1,535
2013
Future revenues ............................................................................ $ 115,826 $ 49,370 $ 33,705 $ 23,404 $ 9,347
Less:
Future production costs ........................................................... 32,112 14,877 12,506 3,034 1,695
Future development costs ........................................................ 19,985 8,826 8,080 1,466 1,613
Future income tax expenses ..................................................... 30,427 7,281 6,088 15,491 1,567
82,524 30,984 26,674 19,991 4,875
Future net cash flows ................................................................... 33,302 18,386 7,031 3,413 4,472
Less: Discount at 10% annual rate ............................................... 12,842 7,708 3,134 704 1,296
Standardized measure of discounted future net cash flows .......... $ 20,460 $ 10,678 $ 3,897 $ 2,709 $ 3,176
2012 – Revised
Future revenues ............................................................................ $ 126,603 $ 39,900 $ 44,387 $ 27,162 $ 15,154
Less:
Future production costs ........................................................... 32,529 12,603 13,277 3,547 3,102
Future development costs ........................................................ 17,363 6,465 6,648 1,623 2,627
Future income tax expenses ..................................................... 40,319 5,844 14,233 17,510 2,732
90,211 24,912 34,158 22,680 8,461
Future net cash flows ................................................................... 36,392 14,988 10,229 4,482 6,693
Less: Discount at 10% annual rate ............................................... 13,160 6,139 3,659 1,109 2,253
Standardized measure of discounted future net cash flows .......... $ 23,232 $ 8,849 $ 6,570 $ 3,373 $ 4,440
2012 – As Reported in 2013 Form 10-K
Future revenues ............................................................................ $ 126,603 $ 39,900 $ 44,387 $ 27,162 $ 15,154
Less:
Future production costs ........................................................... 32,529 12,603 13,277 3,547 3,102
Future development costs ........................................................ 17,363 6,465 6,648 1,623 2,627
Future income tax expenses ..................................................... 44,201 7,686 16,273 17,510 2,732
94,093 26,754 36,198 22,680 8,461
Future net cash flows ................................................................... 32,510 13,146 8,189 4,482 6,693
Less: Discount at 10% annual rate ............................................... 11,951 5,906 2,683 1,109 2,253
Standardized measure of discounted future net cash flows .......... $ 20,559 $ 7,240 $ 5,506 $ 3,373 $ 4,440