First Quarter Highlights:
- Income was $759 million compared with $370 million in first quarter 2007
- Cash flows from operations were $1,176 million compared with $639 million in first quarter 2007
- Oil and gas production was 391,000 barrels per day, up from 382,000 in first quarter 2007
- Debt to capitalization ratio decreased to 26.9 percent at March 31, 2008, from 28.9 percent at December 31, 2007
Hess Corporation has reported net income of $759 million for the first quarter of 2008 compared with net income of $370 million for the first quarter of 2007.
Exploration and Production earnings were $824 million in the first quarter of 2008 compared with $340 million in the first quarter of 2007. The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 391,000 barrels per day in the first quarter of 2008, compared with 382,000 barrels per day in the first quarter of 2007. In the first quarter of 2008, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $83.28 per barrel, an increase of $32.54 per barrel from the first quarter of 2007. The Corporation's average worldwide natural gas selling price, including the effect of hedging, was $7.06 per Mcf in the first quarter of 2008, an increase of $2.06 per Mcf from the first quarter of 2007.
Marketing and Refining earnings were $16 million in the first quarter of 2008 compared with $101 million in the first quarter of 2007, primarily reflecting lower refining margins and trading results. Refining operations generated a loss of $3 million in the first quarter of 2008 compared with earnings of $54 million in the first quarter of 2007. Marketing earnings were $32 million in the first quarter of 2008 compared with $43 million in the first quarter of 2007. Trading activities produced a loss of $13 million in the first quarter of 2008 compared with income of $4 million in the first quarter of 2007.
Net cash provided by operating activities was $1,176 million in the first quarter of 2008 compared with $639 million in the first quarter of 2007. Capital and exploratory expenditures for the first quarter of 2008 amounted to $970 million, of which $938 million related to Exploration and Production operations. Capital and exploratory expenditures for the first quarter of 2007 amounted to $1,181 million, of which $1,159 million related to Exploration and Production operations.
At March 31, 2008, cash and cash equivalents totaled $902 million compared with $607 million at December 31, 2007. Total debt was $3,960 million at March 31, 2008 and $3,980 million at December 31, 2007. The Corporation's debt to capitalization ratio at March 31, 2008 was 26.9 percent compared with 28.9 percent at the end of 2007.