Hess 2014 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2014 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.

Page out of 137

  • 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
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

61
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
61
3. Dispositions
2014: In January, the Corporation completed the sale of its interest in the Pangkah asset, offshore Indonesia for cash proceeds of
approximately $650 million. This transaction resulted in a pre-tax gain of $31 million ($10 million loss after income taxes) after
deducting the net book value of assets, including allocated goodwill of $56 million. In April, the Corporation completed the sale of its
interests in Thailand for cash proceeds of approximately $805 million. This transaction resulted in a pre-tax gain of $706 million
($706 million after income taxes) after deducting the net book value of assets, including allocated goodwill of $76 million. In the first
six months of 2014, the Corporation completed, through multiple transactions, the sale of approximately 77,000 net acres in the dry
gas area of the Utica shale play including related wells and facilities, for total cash proceeds of approximately $1,075 million and
recorded a pre-tax gain of $62 million ($35 million gain after income taxes) after deducting the net book value of assets, including
allocated goodwill of $11 million. In June, the Corporation completed the sale of its joint venture interest in an electric generating
facility in Newark, New Jersey for cash proceeds of $320 million, resulting in a pre-tax gain of approximately $13 million ($8 million
after income taxes). In September, the Corporation sold its joint venture interest in the Bayonne Energy Center (BEC) for $79 million.
In the first quarter of 2014, the Corporation recorded a charge of $84 million ($52 million after income taxes) to reduce to fair value
its investment in BEC. In September, the Corporation completed the sale of its interest in an exploration asset in the United Kingdom
North Sea for $53 million which resulted in a pre-tax gain of $33 million ($33 million after income taxes).
2013: In January, the Corporation completed the sale of its interests in the Beryl fields and the Scottish Area Gas Evacuation
System (SAGE) in the UK North Sea for cash proceeds of $442 million. The transaction resulted in a pre-tax gain of $328 million
($323 million after income taxes), after deducting the net book value of assets including allocated goodwill of $48 million. In March,
the Corporation sold its interests in the Azeri-Chirag-Guneshli (ACG) fields (Hess 3%), offshore Azerbaijan in the Caspian Sea, and
the associated Baku-Tbilisi-Ceyhan (BTC) oil transportation pipeline company (Hess 2%) for cash proceeds of $884 million. The
transaction resulted in a pre-tax gain of $360 million ($360 million after income taxes), after deducting the net book value of assets
including allocated goodwill of $52 million. In April, the Corporation completed the sale of its Russian subsidiary, Samara-Nafta, for
cash proceeds of $2.1 billion after working capital and other adjustments, including allocated goodwill of $148 million. Based on the
Corporation’s 90% interest in Samara-Nafta, after-tax proceeds to Hess were approximately $1.9 billion. This transaction resulted in a
pre-tax gain of $1,119 million ($1,119 million after income taxes), which was reduced by $168 million for the noncontrolling interest
holder’s share of the gain, resulting in a net gain attributable to the Corporation of $951 million. In December, the Corporation
completed the sale of its interest in the Natuna A Field, offshore Indonesia for total cash proceeds of approximately $656 million. The
transaction resulted in a pre-tax gain of $388 million ($343 million after income taxes), after deducting the net book value of assets
including allocated goodwill of $39 million.
2012: In January, the Corporation completed the sale of its interest in the Snohvit Field (Hess 3%), a liquefied natural gas project,
offshore Norway, for cash proceeds of $132 million. The transaction resulted in a pre-tax gain of $36 million ($36 million after
income taxes), after deducting the net book value of assets including allocated goodwill of $14 million. In September, the Corporation
completed the sale of its interests in the Schiehallion Field (Hess 16%) in the UK North Sea, its share of the associated floating
production, storage and offloading vessel, and the West of Shetland pipeline system for cash proceeds of $524 million. The
transaction resulted in a pre-tax gain of $376 million ($349 million after income taxes), after deducting the net book value of assets
including allocated goodwill of $27 million. In October, the Corporation completed the sale of its interests in the Bittern Field
(Hess 28%) in the UK North Sea and the associated Triton floating production, storage and offloading vessel for cash proceeds of
$187 million. The transaction resulted in a pre-tax gain of $172 million ($172 million after income taxes) after deducting the net book
value of assets including allocated goodwill of $12 million.