Hess (HES) 10-K 26 Feb 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
	12 Months Ended Dec. 31, 2009	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	HESS CORP
Entity Central Index Key	0000004447
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$17,579,000,000
Entity Common Stock, Shares Outstanding (actual number)	327,229,488

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
CURRENT ASSETS
Cash and cash equivalents	$1,362	$908
Accounts receivable
Trade	3,650	4,059
Other	274	238
Inventories	1,438	1,308
Other current assets	1,263	819
Total current assets	7,987	7,332
INVESTMENTS IN AFFILIATES
HOVENSA L.L.C.	681	919
Other	232	208
Total investments in affiliates	913	1,127
PROPERTY, PLANT AND EQUIPMENT
Total - at cost	29,871	27,437
Less reserves for depreciation, depletion, amortization and lease impairment	13,244	11,166
Property, plant and equipment - net	16,627	16,271
GOODWILL	1,225	1,225
DEFERRED INCOME TAXES	2,409	2,292
OTHER ASSETS	304	342
TOTAL ASSETS	29,465	28,589
CURRENT LIABILITIES
Accounts payable	4,223	5,045
Accrued liabilities	1,954	1,905
Taxes payable	525	637
Current maturities of long-term debt	148	143
Total current liabilities	6,850	7,730
LONG-TERM DEBT	4,319	3,812
DEFERRED INCOME TAXES	2,222	2,241
ASSET RETIREMENT OBLIGATIONS	1,234	1,164
OTHER LIABILITIES AND DEFERRED CREDITS	1,312	1,251
Total liabilities	15,937	16,198
EQUITY
Common stock, par value $1.00, Authorized: 600,000 shares, Issued: 2009 - 327,229 shares; 2008 - 326,133 shares	327	326
Capital in excess of par value	2,481	2,347
Retained earnings	12,251	11,642
Accumulated other comprehensive income (loss)	(1,675)	(2,008)
Total Hess Corporation stockholders' equity	13,384	12,307
Noncontrolling interests	144	84
Total equity	13,528	12,391
TOTAL LIABILITIES AND EQUITY	$29,465	$28,589

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
Share data in Thousands	Dec. 31, 2009	Dec. 31, 2008
EQUITY
Common stock, par value	1	1
Common stock, shares authorized	600,000	600,000
Common stock, shares issued	327,229	326,133

Statement of Consolidated Incom

Statement of Consolidated Income (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
REVENUES AND NON-OPERATING INCOME
Sales (excluding excise taxes) and other operating revenues	$29,614	$41,134	$31,727
Equity in income (loss) of HOVENSA L.L.C.	(229)	44	176
Gain on asset sales	0	0	21
Other, net	184	(115)	80
Total revenues and non-operating income	29,569	41,063	32,004
COSTS AND EXPENSES
Cost of products sold (excluding items shown separately below)	20,961	29,567	22,532
Production expenses	1,805	1,872	1,581
Marketing expenses	1,008	1,025	944
Exploration expenses, including dry holes and lease impairment	829	725	515
Other operating expenses	183	209	161
General and administrative expenses	647	672	614
Interest expense	360	267	256
Depreciation, depletion and amortization	2,254	2,029	1,576
Total costs and expenses	28,047	36,366	28,179
INCOME BEFORE INCOME TAXES	1,522	4,697	3,825
Provision for income taxes	715	2,340	1,872
NET INCOME	807	2,357	1,953
Less: Net income (loss) attributable to noncontrolling interests	67	(3)	121
NET INCOME ATTRIBUTABLE TO HESS CORPORATION	$740	$2,360	$1,832
BASIC NET INCOME PER SHARE	2.28	7.35	5.86
DILUTED NET INCOME PER SHARE	2.27	7.24	5.74
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (DILUTED)	326	325.8	319.3

Statement of Consolidated Cash

Statement of Consolidated Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$807	$2,357	$1,953
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation, depletion and amortization	2,254	2,029	1,576
Exploratory dry hole costs	267	210	65
Lease impairment	231	125	102
Pre-tax gain on asset sales	0	0	(21)
Benefit for deferred income taxes	(438)	(57)	(33)
Distributed earnings of HOVENSA L.L.C., net	229	6	124
Stock compensation expense	128	119	87
Changes in other operating assets and liabilities:
(Increase) decrease in accounts receivable	320	357	(783)
Increase in inventories	(137)	(56)	(254)
Increase (decrease) in accounts payable and accrued liabilities	(542)	(252)	597
Increase (decrease) in taxes payable	(81)	61	134
Changes in other assets and liabilities	8	(211)	80
Net cash provided by operating activities	3,046	4,688	3,627
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(2,918)	(4,438)	(3,578)
Proceeds from asset sales	0	0	93
Payments received on notes receivable	15	61	61
Other, net	(21)	(67)	(50)
Net cash used in investing activities	(2,924)	(4,444)	(3,474)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (repayments) borrowings of debt with maturities of 90 days or less	(850)	30	202
Debt with maturities of greater than 90 days
Borrowings	1,991	0	32
Repayments	(694)	(62)	(26)
Cash dividends paid	(131)	(130)	(127)
Payments to noncontrolling interests, net	(2)	(121)	(121)
Employee stock options exercised, including income tax benefits	18	340	111
Net cash provided by (used in) financing activities	332	57	71
NET INCREASE IN CASH AND CASH EQUIVALENTS	454	301	224
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	908	607	383
CASH AND CASH EQUIVALENTS AT END OF YEAR	$1,362	$908	$607

Statement of Consolidated Equit

Statement of Consolidated Equity and Comprehensive Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Beginning Balance	$12,391	$10,000	$8,376
Net income	807	2,357	1,953
Deferred gains (losses) on cash flow hedges, after tax
Effect of hedge losses recognized in income	963	311	325
Net change in fair value of cash flow hedges	(729)	(310)	(659)
Effect of adoption of fair value measurements accounting standards		193
Change in post retirement plan liabilities, after tax	(6)	(241)	17
Change in foreign currency translation adjustment and other	100	(138)	37
Total Comprehensive Income	1,135	2,172	1,673
Activity related to restricted common stock awards, net	62	146	51
Employee stock options, including income tax benefits	73	324	148
Cash dividends declared	(131)	(130)	(127)
Payments to noncontrolling interests, net	(2)	(121)	(121)
Ending Balance	13,528	12,391	10,000
Total Hess Stockholders' Equity
Beginning Balance	12,307	9,774	8,147
Net income	740	2,360	1,832
Deferred gains (losses) on cash flow hedges, after tax
Effect of hedge losses recognized in income	963	311	325
Net change in fair value of cash flow hedges	(729)	(310)	(659)
Effect of adoption of fair value measurements accounting standards		193
Change in post retirement plan liabilities, after tax	(6)	(241)	17
Change in foreign currency translation adjustment and other	105	(120)	40
Total Comprehensive Income	1,073	2,193	1,555
Activity related to restricted common stock awards, net	62	146	51
Employee stock options, including income tax benefits	73	324	148
Cash dividends declared	(131)	(130)	(127)
Ending Balance	13,384	12,307	9,774
Common Stock
Beginning Balance	326	321	315
Deferred gains (losses) on cash flow hedges, after tax
Activity related to restricted common stock awards, net	1	1	1
Employee stock options, including income tax benefits		4	5
Ending Balance	327	326	321
Capital in Excess of Par
Beginning Balance	2,347	1,882	1,689
Deferred gains (losses) on cash flow hedges, after tax
Activity related to restricted common stock awards, net	61	145	50
Employee stock options, including income tax benefits	73	320	143
Ending Balance	2,481	2,347	1,882
Retained Earnings
Beginning Balance	11,642	9,412	7,707
Net income	740	2,360	1,832
Deferred gains (losses) on cash flow hedges, after tax
Cash dividends declared	(131)	(130)	(127)
Ending Balance	12,251	11,642	9,412
Accumulated Other Comprehensive Income
Beginning Balance	(2,008)	(1,841)	(1,564)
Deferred gains (losses) on cash flow hedges, after tax
Effect of hedge losses recognized in income	963	311	325
Net change in fair value of cash flow hedges	(729)	(310)	(659)
Effect of adoption of fair value measurements accounting standards		193
Change in post retirement plan liabilities, after tax	(6)	(241)	17
Change in foreign currency translation adjustment and other	105	(120)	40
Ending Balance	(1,675)	(2,008)	(1,841)
Noncontrolling Interests
Beginning Balance	84	226	229
Net income	67	(3)	121
Deferred gains (losses) on cash flow hedges, after tax
Change in foreign currency translation adjustment and other	(5)	(18)	(3)
Total Comprehensive Income	62	(21)	118
Payments to noncontrolling interests, net	(2)	(121)	(121)
Ending Balance	$144	$84	$226

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Nature of Business:Hess Corporation and its subsidiaries (the Corporation) engage in the exploration for and the development, production, purchase, transportation and sale of crude oil and natural gas. These activities are conducted principally in Algeria, Australia, Azerbaijan, Brazil, Colombia, Denmark, Egypt, Equatorial Guinea, Gabon, Ghana, Indonesia, Libya, Malaysia, Norway, Peru, Russia, Thailand, the United Kingdom and the United States. In addition, the Corporation manufactures, purchases, transports, markets and trades, refined petroleum and other energy products. The Corporation owns 50% of HOVENSA L.L.C. (HOVENSA), a refinery joint venture in the United States Virgin Islands. An additional refining facility, terminals and retail gasoline stations, most of which include convenience stores, are located on the East Coast of the United States. In preparing financial statements in conformity with U.S.generally accepted accounting principles (GAAP), management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses in the income statement. Actual results could differ from those estimates. Among the estimates made by management are oil and gas reserves, asset valuations, depreciable lives, pension liabilities, legal and environmental obligations, asset retirement obligations and income taxes. In the preparation of these financial statements, the Corporation has evaluated subsequent events through the date the financial statements are issued. Principles of Consolidation:The consolidated financial statements include the accounts of Hess Corporation and entities in which the Corporation owns more than a 50% voting interest or entities that the Corporation controls. The Corporations undivided interests in unincorporated oil and gas exploration and production ventures are proportionately consolidated. Investments in affiliated companies, 20% to 50% owned, including HOVENSA, are stated at cost of acquisition plus the Corporations equity in undistributed net income since acquisition. The Corporation consolidates the trading partnership in which it owns a 50% voting interest and over which it exercises control. Intercompany transactions and accounts are eliminated in consolidation. Revenue Recognition:The Corporation recognizes revenues from the sale of crude oil, natural gas, petroleum products and other merchandise when title passes to the customer. Sales are reported net of excise and similar taxes in the Statement of Consolidated Income. The Corporation recognizes revenues from the production of natural gas properties based on sales to customers. Differences between EP natural gas volumes sold and the Corporations share of natural gas production are not material. Revenues from natural gas and electricity sales by the Corporations marketing operations are recognized based on meter readings and estimated deliveries to customers since the last meter reading. In its exploration and production activities, the Corporation enters into crude oil purchase and sale transactions w

Acquisitions and Divestitures

Acquisitions and Divestitures
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions and Divestitures [Abstract]
Acquisitions and Divestitures	2. Acquisitions and Divestitures 2009:The Corporation acquired for $74million a 50% interest in Blocks PM301 and PM302 in Malaysia, which are adjacent to Block A-18 of the Joint Development Area of Malaysia/Thailand (JDA) and contain an extension of the Bumi Field. The Corporation also acquired 37 previously leased retail gasoline stations, primarily through the assumption of $65million of fixed rate notes. 2008:The Corporation acquired the remaining 22.5% interest in its Gabonese subsidiary for $285million, of which $210million was allocated to proved properties. The Corporation expanded its energy marketing business by acquiring fuel oil, natural gas, and electricity customer accounts, and a terminal and related assets, for an aggregate of approximately $100million. 2007:The Corporation completed the acquisition of a 28% interest in the Genghis Khan oil and gas development located in the deepwater Gulf of Mexico on Green Canyon Blocks652 and 608 for $371million, of which $342million was allocated to proved and unproved properties and the remainder to wells and equipment. This transaction was accounted for as an asset acquisition. Genghis Khan has been unitized with the Shenzi development. The Corporation completed the sale of its interests in the Scott and Telford fields located in the United Kingdom North Sea for $93million and recorded a gain of $21million ($15million after income taxes) that is included in Other, net in the Statement of Consolidated Income.

Inventories

Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
Inventories [Abstract]
Inventories	3. Inventories Inventories at December 31 are as follows: 2009 2008 (Millions of dollars) Crude oil and other charge stocks $ 424 $ 383 Refined products and natural gas 1,429 988 Less: LIFO adjustment (815 ) (500 ) 1,038 871 Merchandise, materials and supplies 400 437 Total $ 1,438 $ 1,308 The percentage of LIFO inventory to total crude oil, refined products and natural gas inventories was 64% and 60% at December31, 2009 and 2008, respectively. In 2009, the Corporation recorded a pre-tax charge of $25million ($18million after income taxes) to write down materials inventories in Equatorial Guinea and the United States, the majority of which was recorded in Production expenses. During 2007, the Corporation reduced LIFO inventories, which are carried at lower costs than current inventory costs. The effect of the LIFO inventory liquidation was to decrease Cost of products sold by approximately $38million ($24million after income taxes).

Refining Joint Venture

Refining Joint Venture
	12 Months Ended Dec. 31, 2009 USD / shares
Refining Joint Venture [Abstract]
Refining Joint Venture	4. Refining Joint Venture The Corporation has an investment in HOVENSA L.L.C., a 50% joint venture with Petroleos de Venezuela, S.A. (PDVSA), which is accounted for using the equity method. HOVENSA owns and operates a refinery in the U.S.Virgin Islands. Summarized financial information for HOVENSA as of December 31 and for the years then ended follows: 2009 2008 2007 (Millions of dollars) Summarized Balance Sheet, at December 31 Cash and cash equivalents $ 78 $ 75 $ 279 Other current assets 580 664 1,183 Net fixed assets 2,080 2,136 2,181 Other assets 33 58 62 Current liabilities (953 ) (679 ) (1,459 ) Long-term debt (356 ) (356 ) (356 ) Deferred liabilities and credits (137 ) (104 ) (75 ) Members equity $ 1,325 $ 1,794 $ 1,815 Summarized Income Statement, for the years ended December31 Total revenues $ 10,085 $ 17,518 $ 13,439 Costs and expenses (10,536 ) (17,423 ) (13,082 ) Net income (loss) $ (451 ) $ 95 $ 357 Hess Corporations share* $ (229 ) $ 44 $ 176 Summarized Cash Flow Statement, for the years ended December 31 Net cash provided by (used in): Operating activities $ 87 $ (20 ) $ 654 Investing activities (84 ) (85 ) (165 ) Financing activities (99 ) (500 ) Net increase (decrease) in cash and cash equivalents $ 3 $ (204 ) $ (11 ) * Before Virgin Islands income taxes, which were recorded in the Corporations income tax provision. The Corporation received cash distributions from HOVENSA of $50million in 2008 and $300million during 2007. The Corporation guarantees the payment of up to 50% of the value of HOVENSAs crude oil purchases from certain suppliers other than PDVSA. The guarantee amounted to $121million at December31, 2009. This amount fluctuates based on the volume of crude oil purchased and the related crude oil prices. In addition, the Corporation has agreed to provide funding up to $15million to the extent HOVENSA does not have funds to meet its senior debt obligations.

Property, Plant and Equipment

Property, Plant and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	5. Property, Plant and Equipment Property, plant and equipment at December 31 consists of the following: 2009 2008 (Millions of dollars) Exploration and Production Unproved properties $ 2,347 $ 2,265 Proved properties 3,121 3,009 Wells, equipment and related facilities 22,118 20,058 27,586 25,332 Marketing, Refining and Corporate 2,285 2,105 Total at cost 29,871 27,437 Less: reserves for depreciation, depletion, amortization and lease impairment 13,244 11,166 Property, plant and equipment net $ 16,627 $ 16,271 In December 2009, the Corporation agreed to a strategic exchange of all of its interests in Gabon and the Clair Field in the United Kingdom for additional interests in the Valhall and Hod fields offshore Norway. The transaction, which has an effective date of January1, 2010, is subject to various regulatory and other approvals. In addition, the partners are in discussions regarding the applicability of pre-emption to this transaction. In January 2010, the Corporation completed the sale of its interest in the Jambi Merang Field in Indonesia. The Corporation has classified its interests in Gabon, the Clair Field and Jambi Merang Field as assets held for sale. At December31, 2009, the carrying amount of these assets totaling $717million were reported in Other current assets, and asset retirement obligations and deferred income taxes totaling $254million were reported in Accrued liabilities. The Corporation recorded asset impairments totaling $52million ($26million after income taxes) in 2009, $30million ($17million after income taxes) in 2008, and $112million ($56million after income taxes) in 2007. These impairments are reflected in Depreciation, depletion and amortization. The following table discloses the amount of capitalized exploratory well costs pending determination of proved reserves at December31, and the changes therein during the respective years: 2009 2008 2007 (Millions of dollars) Beginning balance at January 1 $ 1,094 $ 608 $ 399 Additions to capitalized exploratory well costs pending the determination of proved reserves 433 560 229 Reclassifications to wells, facilities, and equipment based on the determination of proved reserves (16 ) (67 ) (20 ) Capitalized exploratory well costs charged to expense (74 ) (7 ) Ending balance at December 31 $ 1,437 $ 1,094 $ 608 Number of wells at end of year 53 45 30 The preceding table excludes exploratory dry hole costs of $193million, $203million and $65mi

Asset Retirement Obligations

Asset Retirement Obligations
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Retirement Obligations [Abstract]
Asset Retirement Obligations	6. Asset Retirement Obligations The following table describes changes to the Corporations asset retirement obligations: 2009 2008 (Millions of dollars) Asset retirement obligations at January 1 $ 1,214 $ 1,055 Liabilities incurred 14 35 Liabilities settled or disposed of (58 ) (56 ) Accretion expense 72 67 Revisions (23 ) 309 Foreign currency translation 78 (196 ) Asset retirement obligations at December 31 1,297 1,214 Less: current obligations 63 50 Long-term obligations at December 31 $ 1,234 $ 1,164 Revisions are primarily attributable to changes in service and equipment costs in the oil and gas industry.

Long-Term Debt

Long-Term Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Long-Term Debt [Abstract]
Long-Term Debt	7. Long-Term Debt Long-term debt at December 31 consists of the following: 2009 2008 (Millions of dollars) Revolving credit facility $ $ 350 Asset-backed credit facility 500 Fixed rate debentures: 7.4% due 2009 104 6.7% due 2011 116 662 7.0% due 2014 250 8.1% due 2019 997 7.9% due 2029 694 694 7.3% due 2031 746 745 7.1% due 2033 598 598 6.0% due 2040 744 Total fixed rate debentures 4,145 2,803 Fixed rate notes, weighted average rate 8.5%, due through 2023 154 108 Project lease financing, weighted average rate 5.1%, due through 2014 113 132 Pollution control revenue bonds, weighted average rate 5.9%, due through 2034 53 53 Other loans, weighted average rate 9.0%, due through 2019 2 9 4,467 3,955 Less: amount included in current maturities 148 143 Total $ 4,319 $ 3,812 In February 2009, the Corporation issued $250million of 5year senior unsecured notes with a coupon of 7% and $1billion of 10year senior unsecured notes with a coupon of 8.125%. The majority of the proceeds were used to repay debt under the revolving credit facility and outstanding borrowings on other credit facilities. In December 2009, the Corporation issued $750million of 30year bonds with a coupon of 6% and tendered for the $662million of bonds due in August 2011. The Corporation completed the purchase of $546million of the 2011 bonds in December 2009. The Corporation recorded a charge of $54million related to the repurchase in Other, net within the Statement of Consolidated Income ($34million after income taxes). The remaining $116million of the 2011 bonds, classified as Current maturities of long term debt at December31, 2009, was redeemed in January 2010, resulting in a charge of approximately $11million ($7million after income taxes). The aggregate long-term debt maturing during the next five years is as follows (in millions): 2010 $148 (included in current liabilities); 2011 $32; 2012 $34; 2013 $37 and 2014 $333. At December31, 2009, the Corporations fixed rate debentures have a principal amount of $4,166million ($4,145million net of unamortized discount). Interest rates on the outstanding fixed rate debentures have a weighted average rate of 7.3%. The Corporation has a $3.0billion syndicated revolving credit facility (the facility), which can be used for borrowings and letters of credit, substantially all of which is committed through May 2012. At December31, 2009, the Corporation has available capacity on the facility of $3.0billion. Current borrowings under the facility bear interest at 0.4% above the London Interbank Offered Rate and a facility fee of 0.1%

Share-Based Compensation

Share-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Share-Based Compensation [Abstract]
Share-Based Compensation	8. Share-Based Compensation The Corporation awards restricted common stock and stock options under its 2008 Long-Term Incentive Plan. Generally, stock options vest in one to three years from the date of grant, have a 10-year option life, and the exercise price equals or exceeds the market price on the date of grant. Outstanding restricted common stock generally vests in three years from the date of grant. Share-based compensation expense consists of the following: Before Income Taxes After Income Taxes 2009 2008 2007 2009 2008 2007 (Millions of dollars) Stock options $ 58 $ 51 $ 36 $ 36 $ 31 $ 23 Restricted stock 70 68 51 44 43 31 Total $ 128 $ 119 $ 87 $ 80 $ 74 $ 54 Based on restricted stock and stock option awards outstanding at December31, 2009, unearned compensation expense, before income taxes, will be recognized in future years as follows (in millions): 2010 $88, 2011 $42 and 2012 $4. The Corporations stock option and restricted stock activity consisted of the following: Stock Options Restricted Stock Weighted- Shares of Weighted- Average Restricted Average Exercise Price Common Price on Date Options per Share Stock of Grant (Thousands) (Thousands) Outstanding at January1, 2007 12,923 $ 29.68 5,044 $ 27.68 Granted 3,066 53.82 1,032 53.92 Exercised (4,566 ) 24.07 Vested (1,184 ) 24.53 Forfeited (131 ) 46.41 (91 ) 36.40 Outstanding at December31, 2007 11,292 38.31 4,801 33.93 Granted 2,473 82.55 1,289 85.22 Exercised (3,852 ) 29.17 Vested (2,787 ) 21.40 Forfeited (213 ) 60.61 (142 ) 58.60 Outstanding at December31, 2008 9,700 52.73 3,161 64.78 Granted 3,135 56.44 1,056 56.27 Exercised (416 ) 38.85 Vested (893 ) 50.13 Forfeited (317 ) 65.68 (376 ) 66.11 Outstanding at December31

Foreign Currency Translation

Foreign Currency Translation
	12 Months Ended Dec. 31, 2009 USD / shares
Foreign Currency Translation [Abstract]
Foreign Currency Translation	9. Foreign Currency Translation Foreign currency gains (losses) before income taxes amounted to $20million in 2009, $(212)million in 2008 and $17million in 2007. The foreign currency loss in 2008 reflects the net effect of significant exchange rate movements in the fourth quarter of 2008 on the remeasurement of assets, liabilities and foreign currency forward contracts by certain foreign businesses. The balances in accumulated other comprehensive income (loss) related to foreign currency translation were reductions in stockholders equity of $18million at December31, 2009 and $123million at December31, 2008.

Retirement Plans

Retirement Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Retirement Plans [Abstract]
Retirement Plans	10. Retirement Plans The Corporation has funded noncontributory defined benefit pension plans for a significant portion of its employees. In addition, the Corporation has an unfunded supplemental pension plan covering certain employees. The unfunded supplemental pension plan provides for incremental pension payments from the Corporation so that total pension payments equal amounts that would have been payable from the Corporations principal pension plans, were it not for limitations imposed by income tax regulations. The plans provide defined benefits based on years of service and final average salary. Additionally, the Corporation maintains an unfunded postretirement medical plan that provides health benefits to certain qualified retirees from ages55 through 65. The measurement date for all retirement plans is December31. The following table summarizes the Corporations benefit obligations and the fair value of plan assets and shows the funded status of the pension and postretirement medical plans: Funded Unfunded Postretirement Pension Plans Pension Plan Medical Plan 2009 2008 2009 2008 2009 2008 (Millions of dollars) Change in benefit obligation Balance at January 1 $ 1,125 $ 1,136 $ 165 $ 147 $ 77 $ 86 Service cost 34 36 6 6 3 3 Interest cost 72 71 11 9 4 4 Actuarial (gain) loss 139 19 43 11 3 (13 ) Benefit payments (43 ) (42 ) (2 ) (8 ) (3 ) (3 ) Plan settlement* (35 ) Foreign currency exchange rate changes 32 (95 ) Balance at December 31 1,359 1,125 188 165 84 77 Change in fair value of plan assets Balance at January 1 745 1,075 Actual return on plan assets 161 (280 ) Employer contributions 183 70 37 8 3 3 Benefit payments (43 ) (42 ) (37 ) (8 ) (3 ) (3 ) Foreign currency exchange rate changes 26 (78 ) Balance at December 31 1,072 745

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	11. Income Taxes The provision for (benefit from) income taxes consisted of: 2009 2008 2007 (Millions of dollars) Federal Current $ 39 $ 10 $ 2 Deferred (284 ) (140 ) 62 State (15 ) 10 (149 ) (260 ) (120 ) (85 )* Foreign Current 1,143 2,377 1,898 Deferred (168 ) 87 64 975 2,464 1,962 Adjustment of deferred tax liability for foreign income tax rate change (4 ) (5 ) Total provision for income taxes $ 715 $ 2,340 $ 1,872 * Includes a provision for an increase in the valuation allowance for foreign tax credit carryforwards of $81million and a benefit from a decrease in the valuation allowance for state net operating loss carryforwards of $96million. Income (loss) before income taxes consisted of the following: 2009 2008 2007 (Millions of dollars) United States* $ (711 ) $ (349 ) $ (147 ) Foreign** 2,233 5,046 3,972 Total income before income taxes $ 1,522 $ 4,697 $ 3,825 * Includes substantially all of the Corporations interest expense and the results of hedging activities. ** Foreign income includes the Corporations Virgin Islands and other operations located outside of the United States. A summary of the components of deferred tax liabilities, deferred tax assets and taxes deferred at December 31 follows: 2009 2008 (Millions of dollars) Deferred tax liabilities Property, plant and equipment and investments $ 3,021 $ 2,918 Deferred taxes on undistributed earnings of foreign subsidiaries 174 Other 13 114 Total deferred tax liabilities 3,208 3,032 Deferred tax assets Net operating loss carryforwards 529 1,832 Tax credit carryforwards 860 458 Property, plant and equipment 1,575 Accrued liabilities 459 415 Asset retirement obligations 484 406 Other 339 227 Total deferred tax assets 4,246 3,338 Valuation allowance (500 ) (266 ) Total deferred tax assets, net 3,

Outstanding and Weighted Averag

Outstanding and Weighted Average Common Shares
	12 Months Ended Dec. 31, 2009 USD / shares
Outstanding and Weighted Average Common Shares [Abstract]
Outstanding and Weighted Average Common Shares	12. Outstanding and Weighted Average Common Shares The following table provides the changes in the Corporations outstanding common shares: 2009 2008 2007 (Thousands of shares) Balance at January 1 326,133 320,600 315,018 Activity related to restricted common stock awards, net 680 1,148 941 Employee stock options 416 3,852 4,566 Conversion of preferred stock 533 75 Balance at December 31 327,229 326,133 320,600 During 2008, the Corporations remaining 284,139 outstanding shares of 3% cumulative convertible preferred shares were converted into common stock at a conversion rate of 1.8783shares of common stock for each preferred share. The Corporation issued 533,697shares of common stock for the conversion of these preferred shares and fractional shares were settled by cash payments. The weighted average number of common shares used in the basic and diluted earnings per share computations for each year is summarized below: 2009 2008 2007 (Thousands of shares) Common shares basic 323,890 320,803 312,736 Effect of dilutive securities Stock options 836 2,870 2,925 Restricted common stock 1,239 1,815 3,066 Convertible preferred stock 359 585 Common shares diluted 325,965 325,847 319,312 The calculation of weighted average common shares excludes the effect of 4,050,000, 425,000 and 715,000 out-of-the-money options for 2009, 2008 and 2007, respectively. Cash dividends on common stock totaled $0.40 per share ($0.10 per quarter) during 2009, 2008 and 2007.

Leased Assets

Leased Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Leased Assets [Abstract]
Leased Assets	13. Leased Assets The Corporation and certain of its subsidiaries lease gasoline stations, drilling rigs, tankers, office space and other assets for varying periods under contractual obligations accounted for as operating leases. Certain operating leases provide an option to purchase the related property at fixed prices. At December31, 2009, future minimum rental payments applicable to non-cancelable operating leases with remaining terms of one year or more (other than oil and gas property leases) are as follows (in millions): 2010 $ 482 2011 341 2012 354 2013 357 2014 320 Remaining years 1,428 Total minimum lease payments 3,282 Less: income from subleases 144 Net minimum lease payments $ 3,138 Operating lease expenses for drilling rigs used to drill development wells and successful exploration wells are capitalized. Rental expense was as follows: 2009 2008 2007 (Millions of dollars) Total rental expense $ 266 $ 270 $ 266 Less: income from subleases 11 12 13 Net rental expense $ 255 $ 258 $ 253

Risk Management and Trading Act

Risk Management and Trading Activities
	12 Months Ended Dec. 31, 2009 USD / shares
Risk Management and Trading Activities [Abstract]
Risk Management and Trading Activities	14. Risk Management and Trading Activities In the normal course of its business, the Corporation is exposed to commodity risks related to changes in the prices of crude oil, natural gas, refined products and electricity, as well as to changes in interest rates and foreign currency values. The Corporation also has trading operations, principally through a 50% voting interest in a consolidated partnership, that are exposed to commodity price risks primarily related to the prices of crude oil, natural gas and refined products. The Corporation maintains a control environment under the direction of its chief risk officer and through its corporate risk policy, which the Corporations senior management has approved. Controls include volumetric, term and value-at-risk limits. The chief risk officer must approve the use of new instruments or commodities. Risk limits are monitored and reported on daily to business units and to senior management. The Corporations risk management department also performs independent verifications of sources of fair values and validations of valuation models. These controls apply to all of the Corporations risk management and trading activities, including the consolidated trading partnership. The Corporations treasury department is responsible for administering foreign exchange and interest rate hedging programs. Following is a description of the Corporations activities that use derivatives as part of their operations and strategies. Derivatives include both financial instruments and forward purchase and sale contracts. Gross notional amounts of both long and short positions are presented in the volume tables below. These amounts include long and short positions that offset in a closed position and have not reached contractual maturity. Gross notional amounts do not quantify risk or represent assets or liabilities of the Corporation, but are used in the calculation of cash settlements under the contracts. Energy Marketing Activities:In its energy marketing activities the Corporation sells refined petroleum products, natural gas and electricity principally to commercial and industrial businesses at fixed and floating prices for varying periods of time. Commodity contracts such as futures, forwards, swaps and options, together with physical assets such as storage, are used to obtain supply and reduce margin volatility or lower costs related to sales contracts with customers. The table below shows the gross volume of the Corporations energy marketing commodity contracts outstanding at December31, 2009: Commodity Contracts Crude oil and refined products (millions of barrels) 34 Natural gas (millions of mcf) 1,876 Electricity (millions of megawatt hours) 166 At December31, 2009, a portion of energy marketing commodity contracts are designated as cash flow hedges to hedge variability of expected future cash flows of forecasted supply transactions. The length of time over which the Corporation hedges exposure to variability in future cash flows is predominantly two years or less. For contracts outstanding at December31, 2009

Guarantees and Contingencies

Guarantees and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Guarantees and Contingencies [Abstract]
Guarantees and Contingencies	15. Guarantees and Contingencies At December31, 2009, the Corporations guarantees include $121million of HOVENSAs crude oil purchases and $15million of HOVENSAs senior debt obligations. In addition, the Corporation has $100million in letters of credit for which it is contingently liable. As a result, the maximum potential amount of future payments that the Corporation could be required to make under its guarantees is $236million at December31, 2009 ($219million at December31, 2008). The Corporation also has a contingent purchase obligation expiring in April 2012, to acquire the remaining interest in WilcoHess, a retail gasoline station joint venture. As of December31, 2009, the estimated value of the purchase obligation is approximately $184million. The Corporation is subject to loss contingencies with respect to various lawsuits, claims and other proceedings, including environmental matters. A liability is recognized in the Corporations consolidated financial statements when it is probable a loss has been incurred and the amount can be reasonably estimated. If the risk of loss is probable, but the amount cannot be reasonably estimated or the risk of loss is only reasonably possible, a liability is not accrued; however, the Corporation discloses the nature of those contingencies. The Corporation, along with many other companies engaged in refining and marketing of gasoline, has been a party to lawsuits and claims related to the use of methyl tertiary butyl ether (MTBE) in gasoline. A series of similar lawsuits, many involving water utilities or governmental entities, were filed in jurisdictions across the United States against producers of MTBE and petroleum refiners who produced gasoline containing MTBE, including the Corporation. The principal allegation in all cases is that gasoline containing MTBE is a defective product and that these parties are strictly liable in proportion to their share of the gasoline market for damage to groundwater resources and are required to take remedial action to ameliorate the alleged effects on the environment of releases of MTBE. In 2008, the majority of the cases against the Corporation were settled. In February 2010, the Corporation reached an agreement in principle to settle all but three of the remaining cases. The three unresolved cases consist of two cases that have been consolidated for pre-trial purposes in the Southern District of New York as part of a multi-district litigation proceeding and an action brought in state court by the State of New Hampshire. In 2007, a pre-tax charge of $40million was recorded to cover all of the known MTBE cases against the Corporation. Over the last several years, many refiners have entered into consent agreements to resolve the United States Environmental Protection Agencys (EPA) assertions that refining facilities were modified or expanded without complying with New Source Review regulations that require permits and new emission controls in certain circumstances and other regulations that impose emissions control requirements. These consent agreements, which arise out of an EPA enforcement initiative focusing on petroleum refiners

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information [Abstract]
Segment Information	16. Segment Information The Corporation has two operating segments that comprise the structure used by senior management to make key operating decisions and assess performance. These are (1)Exploration and Production and (2)Marketing and Refining. The Exploration and Production segment explores for, develops, produces, purchases, transports and sells crude oil and natural gas. The Marketing and Refining segment manufactures refined petroleum products and purchases, trades and markets refined petroleum products, natural gas and electricity. The following table presents financial data by operating segment for each of the three years ended December31, 2009: Exploration Marketing Corporate and Production and Refining and Interest Consolidated(a) (Millions of dollars) 2009 Operating revenues Total operating revenues(b) $ 7,259 $ 22,464 $ 1 Less: Transfers between affiliates 110 Operating revenues from unaffiliated customers $ 7,149 $ 22,464 $ 1 $ 29,614 Net income (loss) attributable to Hess Corporation $ 1,042 $ 127 $ (429 ) $ 740 Equity in income (loss) of HOVENSA L.L.C. $ $ (229 ) $ $ (229 ) Interest expense 360 360 Depreciation, depletion and amortization 2,167 79 8 2,254 Provision (benefit) for income taxes 944 24 (253 ) 715 Investments in affiliates 57 856 913 Identifiable assets 21,810 6,388 1,267 29,465 Capital employed(c) 14,163 2,979 853 17,995 Capital expenditures 2,800 83 35 2,918 2008 Operating revenues Total operating revenues(b) $ 10,095 $ 31,273 $ 3 Less: Transfers between affiliates 237 Operating revenues from unaffiliated customers $ 9,858 $ 31,273 $ 3 $ 41,134 Net income (loss) attributable to Hess Corporation $ 2,423 $ 277 $ (340 ) $ 2,360 Equity in income of HOVENSA L.L.C. $ $ 44 $ $ 44 Interest expense 267 267 Depreciation, depletion and amortization

Related Party Transactions

Related Party Transactions
	12 Months Ended Dec. 31, 2009 USD / shares
Related Party Transactions [Abstract]
Related Party Transactions	17. Related Party Transactions The following table presents related party transactions for the year-ended December 31: 2009 2008 2007 (Millions of dollars) Purchases of petroleum products: HOVENSA* $ 3,659 $ 6,589 $ 5,238 Sales of petroleum products and crude oil: WilcoHess 1,634 2,590 2,014 HOVENSA 530 701 213 * The Corporation has agreed to purchase 50% of HOVENSAs production of refined products at market prices, after sales by HOVENSA to unaffiliated parties.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Valuation and Qualifying Accounts [Abstract]
Valuation and Qualifying Accounts	Schedule Of Valuation And Qualifying Accounts Disclosure ScheduleII HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December31, 2009, 2008 and 2007 Additions Charged to Costs Charged Deductions Balance and to Other from Balance Description January1 Expenses Accounts Reserves December31 (In millions) 2009 Losses on receivables $ 46 $ 13 $ $ 5 $ 54 2008 Losses on receivables $ 41 $ 9 $ $ 4 $ 46 2007 Losses on receivables $ 39 $ 5 $ $ 3 $ 41