Second Quarter Highlights:
• Net Income was $900 million compared with $557 million in second quarter 2007
• Cash flows from operations were $1.7 billion compared with $1.2 billion in second quarter 2007
• Oil and gas production was 393,000 barrels per day, up from 378,000 in second quarter 2007
• Debt to capitalization ratio decreased to 26.2 percent at June 30, 2008, from 28.9 percent at December 31, 2007
Hess Corporation reported net income of $900 million for the second quarter of 2008 compared with net income of $557 million for the second quarter of 2007.
Exploration and Production earnings were $1,025 million in the second quarter of 2008 compared with $505 million in the second quarter of 2007. The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 393,000 barrels per day in the second quarter of 2008, an increase of 4% from the second quarter of 2007. In the second quarter of 2008, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $104.29 per barrel compared with $60.05 per barrel in the second quarter of 2007. The Corporation's average worldwide natural gas selling price, including the effect of hedging, was $7.81 per Mcf in the second quarter of 2008 compared with $4.88 per Mcf in the second quarter of 2007.
Marketing and Refining generated a loss of $52 million in the second quarter of 2008 compared with income of $122 million in the second quarter of 2007, primarily reflecting lower margins and trading results. Refining earnings were $3 million in the second quarter of 2008 compared with $87 million in the second quarter of 2007. Marketing results were a loss of $40 million in the second quarter of 2008 compared with breakeven results in the second quarter of 2007. Trading operations generated a loss of $15 million in the second quarter of 2008 compared with income of $35 million in the second quarter of 2007.
Net cash provided by operating activities was $1,691 million in the second quarter of 2008 compared with $1,199 million in the second quarter of 2007. Capital and exploratory expenditures for the second quarter of 2008 amounted to $1,240 million, of which $1,205 million related to Exploration and Production operations. Capital and exploratory expenditures for the second quarter of 2007 amounted to $993 million, of which $959 million related to Exploration and Production operations.
At June 30, 2008, cash and cash equivalents totaled $1,479 million compared with $607 million at December 31, 2007. Total debt was $3,945 million at June 30, 2008 and $3,980 million at December 31, 2007. The Corporation's debt to capitalization ratio at June 30, 2008 was 26.2 percent compared with 28.9 percent at the end of 2007.