Hess (HES) 8-K Amerada Hess Reports Results for the First Quarter of 2004

EXHIBIT 99(1)

news release

AMERADA HESS CORPORATION 1185 Avenue of the Americas, N.Y., N.Y. 10036

FOR IMMEDIATE RELEASE

AMERADA HESS REPORTS RESULTS FOR THE FIRST QUARTER OF 2004

     New York, New York....April 28, 2004...Amerada Hess Corporation (NYSE:AHC) reported net income of $281 million for the first quarter of 2004 compared with income of $176 million for the first quarter of 2003. First quarter 2004 income includes a net gain of $19 million from the sale of an asset and an income tax benefit of $13 million resulting from the completion of a prior year United States income tax audit. First quarter 2003 income included a net gain of $31 million from the sale of an asset. The after-tax results by major operating activity in 2004 and 2003 are as follows:

	Three months ended
	March 31 (unaudited)
	2004			2003(*)
	(In millions, except per share amounts)
Exploration and production	$	207		$	120
Refining and marketing		112			136
Corporate		(2	)		(20	)
Interest expense		(36	)		(46	)
Income from continuing operations		281			190
Discontinued operations		—			(21	)
Income from cumulative effect of accounting change		—			7
Net income	$	281		$	176
Income per share from continuing operations (diluted)	$	2.77		$	2.13
Net income per share (diluted)	$	2.77		$	1.98

(*) Reclassified to conform with current period presentation.

     Exploration and production earnings were $207 million in the first quarter of 2004 compared with $120 million in the first quarter of 2003. The Corporation’s oil and gas production, on a barrel-of-oil equivalent basis, was 346,000 barrels per day in the first quarter of 2004, a decrease of 18% from the first quarter of 2003. Approximately 60% of the decline in production resulted from asset sales and exchanges in 2003. In the first quarter of 2004, the Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $26.83 per barrel, an increase of $1.64 per barrel from the first quarter of 2003. The Corporation’s average United States natural gas selling price, including the effect of hedging, was $5.20 per Mcf in the first quarter of 2004, an increase of $.77 per Mcf from the first quarter

of 2003. Exploration and production earnings include after-tax gains from asset sales of $19 million and $31 million ($19 million and $47 million before income taxes) in the first quarters of 2004 and 2003, respectively. The gain in the first quarter of 2004 reflects the sale of an office building in Aberdeen, Scotland.

     Refining and marketing earnings were $112 million in the first quarter of 2004 compared with $136 million in the first quarter of 2003. The decrease reflects lower earnings from retail gasoline station operations and energy marketing activities, partially offset by increased earnings from refining operations.

     Capital expenditures in the first quarter of 2004 amounted to $364 million of which $352 million related to exploration and production activities. Capital expenditures in the first quarter of 2003 amounted to $341 million, including $321 million for exploration and production.

Consolidated Financial Information (unaudited)

	Three months ended March 31
	2004		2003
	(In millions, except per share amounts)
Income Statement Information
Sales and other operating revenues	$	4,488	$	4,254
Income from continuing operations	$	281	$	190
Discontinued operations		—		(21	)
Cumulative effect of accounting change		—		7
Net income	$	281	$	176
Income per share from continuing operations (diluted)	$	2.77	$	2.13
Net income per share (diluted)	$	2.77	$	1.98
Weighted average number of shares (diluted)		101.4		89.1

	March 31			December 31
	2004			2003
Balance Sheet Information
Current assets	$	3,196		$	3,186
Investments		1,132			1,095
Property, plant and equipment — net		8,036			7,978
Other assets		1,752			1,724
Total assets	$	14,116		$	13,983
Current portion of long-term debt	$	73		$	73
Other current liabilities		2,661			2,596
Long-term debt		3,855			3,868
Deferred liabilities and credits		2,038			2,106
Stockholders’ equity, excluding other comprehensive loss		5,942			5,690
Accumulated other comprehensive loss		(453	)		(350	)
Total liabilities and stockholders’ equity	$	14,116		$	13,983

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AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)

			First			First			Fourth
Line			Quarter			Quarter			Quarter
No.			2004			2003 (*)			2003
			(A)			(B)			(C)
		Income Statement
		Revenues and Non-operating Income
	1	Sales and other operating revenues	$	4,488		$	4,254		$	3,628
		Non-operating income (expense)
	2	Gain on asset sales		19			47			—
	3	Equity in income of HOVENSA L.L.C.		51			50			10
	4	Other		4			12			(30	)
	5	Total revenues and non-operating income		4,562			4,363			3,608
		Costs and Expenses
	6	Cost of products sold		3,288			3,088			2,523
	7	Production expenses		187			192			207
	8	Marketing expenses		177			170			201
	9	Exploration expenses, including dry holes and lease impairment		78			106			116
	10	Other operating expenses		48			51			49
	11	General and administrative expenses		76			77			87
	12	Interest expense		57			74			69
	13	Depreciation, depletion and amortization		226			276			254
	14	Total costs and expenses		4,137			4,034			3,506
	15	Income from continuing operations before income taxes		425			329			102
	16	Provision for income taxes		144			139			34
	17	Income from continuing operations		281			190			68
	18	Discontinued operations		—			(21	)		—
	19	Cumulative effect of change in accounting principle, net		—			7			—
	20	Net income	$	281		$	176		$	68
	21	Preferred stock dividends		12			—			5
	22	Net income applicable to common stockholders	$	269		$	176		$	63
		Segment Earnings Analysis
	23	Exploration and production	$	207		$	120		$	83
	24	Refining and marketing		112			136			55
	25	Corporate		(2	)		(20	)		(29	)
	26	Interest expense		(36	)		(46	)		(41	)
	27	Income from continuing operations		281			190			68
	28	Discontinued operations		—			(21	)		—
	29	Cumulative effect of change in accounting principle, net		—			7			—
	30	Net income	$	281		$	176		$	68
	31	Net Cash Provided by Operating Activities (**)	$	394		$	488		$	423
		Capital Expenditures
	32	Exploration and production	$	352		$	321		$	328
	33	Refining and marketing		12			20			14
	34	Total capital expenditures	$	364		$	341		$	342
		At End of Period
	35	Total debt	$	3,928		$	4,849		$	3,941
	36	Stockholders’ equity	$	5,489		$	4,387		$	5,340

(*)	Reclassified to conform with current period presentation.
(**)	Includes changes in working capital.

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AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)

			First		First		Fourth
Line			Quarter		Quarter		Quarter
No.			2004		2003		2003
			(A)		(B)		(C)
		Operating Data
		Net Production Per Day
		Crude oil — barrels
	1	United States		40		50		40
	2	United Kingdom		78		102		79
	3	Norway		27		24		27
	4	Denmark		22		25		23
	5	Equatorial Guinea		22		25		18
	6	Algeria		20		20		19
	7	Gabon		13		11		12
	8	Azerbaijan		2		2		2
	9	Indonesia		1		4		1
	10	Colombia		—		12		—
	11	Total		225		275		221
		Natural gas liquids — barrels
	12	United States		12		11		10
	13	United Kingdom		6		6		7
	14	Norway		1		1		1
	15	Indonesia and Thailand		2		2		2
	16	Total		21		20		20
		Natural gas — mcf
	17	United States		183		317		213
	18	United Kingdom		282		321		339
	19	Norway		28		26		28
	20	Denmark		23		34		23
	21	Indonesia and Thailand		86		56		88
	22	Total		602		754		691
	23	Barrels of oil equivalent (*)		346		421		356
		Average Selling Price (including hedging)
		Crude oil — per barrel
	24	United States	$	25.49	$	24.41	$	25.06
	25	Foreign		27.10		25.40		25.40
		Natural gas liquids — per barrel
	26	United States	$	25.78	$	26.88	$	24.01
	27	Foreign		23.44		27.04		24.71
		Natural gas — per mcf
	28	United States	$	5.20	$	4.43	$	3.96
	29	Foreign		4.22		3.04		3.74
		Marketing and Refining - Barrels Per Day
	30	Refined products sold		483		463		423
	31	Refinery runs (net)		247		198		225

(*) Includes production from properties classified as discontinued operations of 37 thousand barrels of oil equivalent per day in the first quarter of 2003.

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