Hess 2014 Annual Report Download - page 42
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27 27
Comparison of Results
Exploration and Production
Following is a summarized income statement of the Corporation’s E&P operations:
2014 2013 2012
(In millions)
Revenues and Non-operating Income
Sales and other operating revenues ................................................................... $ 10,737
$ 11,905 $ 12,245
Gains on asset sales, net .................................................................................... 817 2,171 584
Other, net .......................................................................................................... (46) (57) 99
Total revenues and non-operating income ....................................................... 11,508 14,019 12,928
Costs and Expenses
Cost of products sold (excluding items shown separately below) .................... 1,826 1,853 1,334
Operating costs and expenses ........................................................................... 1,927 2,116 2,202
Production and severance taxes ........................................................................ 275 372 550
Exploration expenses, including dry holes and lease impairment ..................... 840 1,031 1,070
General and administrative expenses ................................................................ 336 377 314
Depreciation, depletion and amortization ......................................................... 3,210 2,671 2,853
Asset impairments ............................................................................................. — 289 582
Total costs and expenses .................................................................................. 8,414 8,709 8,905
Results of operations before income taxes ........................................................... 3,094 5,310 4,023
Provision for income taxes ................................................................................ 996 831 1,793
N
et income ........................................................................................................... 2,098 4,479 2,230
Less: Net income attributable to noncontrolling interests ................................. — 176 18
N
et income attributable to Hess Corporation ....................................................... $ 2,098
$ 4,303 $ 2,212
Excluding the E&P items affecting comparability of earnings between periods in the table on page 31, the changes in E&P
earnings are primarily attributable to changes in selling prices, production and sales volumes, cost of products sold, cash
operating costs, depreciation, depletion and amortization, exploration expenses and income taxes, as discussed below.
Selling Prices: Average crude oil realized selling prices were $92.17 per boe in 2014, or 6% lower compared to 2013
primarily due to declines in the benchmark prices for Brent and West Texas Intermediary (WTI) crude oil. Average crude oil
selling prices were 13% higher in 2013 compared to 2012 due to a combination of hedging losses realized in 2012, the
second quarter 2013 sale of the Corporation’s subsidiary in Russia which realized significantly lower crude oil prices, and
slightly higher average WTI benchmark prices in 2013.