Hess 2014 Annual Report Download - page 40

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25 25
the first rig commencing operations in the fourth quarter of 2015 and the second in 2016. First production is
expected in 2018.
xAt the Equus project in the offshore Carnarvon Basin of Australia, the Corporation executed a non-binding letter
of intent with a third-party liquefaction partner. Successful execution of a binding agreement with the third party
liquefaction partner is necessary before the Corporation can execute a gas sales agreement and sanction
development.
xIn the second quarter, the Corporation completed its first exploration well on the Shakrok block in the Kurdistan
Region of Iraq (Hess 64%). The well encountered sub-commercial amounts of hydrocarbons and was expensed.
Drilling activities have been suspended on the Shireen exploration well in the Dinarta Block and the Corporation
is currently assessing its completion options.
Liquidity, and Capital and Exploratory Expenditures
Net cash provided by operating activities was $4,464 million in 2014, $4,870 million in 2013 and $5,660 million in 2012.
At December 31, 2014, cash and cash equivalents totaled $2,444 million, up from $1,814 million at December 31, 2013.
Total debt was $5,987 million at December 31, 2014 and $5,798 million at December 31, 2013. The Corporation’s debt to
capitalization ratio at December 31, 2014 was 21.2% compared with 19.0% at December 31, 2013.
Capital and exploratory expenditures from continuing operations were as follows:
2014 2013 2012
(In millions)
United States
Bakken .......................................................................................................... $ 2,149 $ 2,231 $ 3,164
Other Onshore ............................................................................................... 731 766 735
Total Onshore ............................................................................................. 2,880 2,997 3,899
Offshore ........................................................................................................ 765 865 870
Total United States .......................................................................................... 3,645 3,862 4,769
Europe ............................................................................................................. 540 724 1,381
Africa .............................................................................................................. 435 630 771
Asia and other ................................................................................................. 986 993 1,231
Total* ................................................................................................................. $ 5,606 $ 6,209 $8,152
Exploration expenses charged to income included above:
United States ................................................................................................... $ 125 $ 192 $ 142
International .................................................................................................... 207 250 328
Total exploration expenses charged to income included above .................... $ 332 $ 442 $ 470
* Excludes capital expenditures related to discontinued operations of $431 million, $106 million and $113 million in 2014, 2013 and 2012, respectively.
The Corporation anticipates investing approximately $4.7 billion in capital and exploratory expenditures in 2015 down
from $5.6 billion in 2014. The decline reflects a planned reduction in the Corporation’s work program in response to the
lower commodity price environment.