Hess (HES) 8-K Hess Reports Estimated Results for the Fourth Quarter of 2007

Exhibit 99(1)

Hess Reports Estimated Results for the Fourth Quarter of 2007

Fourth Quarter Highlights:

• Net Income was $510 million compared with $359 million in fourth quarter 2006
• Cash flows from operations were $806 million compared with $779 million in fourth quarter 2006
• Oil and gas production was 390,000 barrels per day, up from 366,000 in fourth quarter 2006
• Reserve replacement was 167 percent in 2007; reserve life increased to 9.5 years

NEW YORK--(BUSINESS WIRE)--Hess Corporation (NYSE: HES) reported net income of $510 million for the fourth quarter of 2007 compared with net income of $359 million for the fourth quarter of 2006. The after-tax results by major operating activity were as follows:

	Three months ended						Year ended
	December 31 (unaudited)						December 31 (unaudited)
		2007			2006			2007			2006
	(In millions, except per share amounts)
Exploration and Production	$	583		$	350		$	1,842		$	1,763
Marketing and Refining		31			67			300			394
Corporate		(59	)		(27	)		(150	)		(110	)
Interest expense		(45	)		(31	)		(160	)		(127	)
Net income	$	510		$	359		$	1,832		$	1,920
Net income per share (diluted)	$	1.59		$	1.13		$	5.74		$	6.08
Weighted average number of shares (diluted)		321.6			316.4			319.3			315.7

Note: See the following page for a table of items affecting the comparability of earnings between periods.

Exploration and Production earnings were $583 million in the fourth quarter of 2007 compared with $350 million in the fourth quarter of 2006. The Corporation’s oil and gas production, on a barrel-of-oil equivalent basis, was 390,000 barrels per day in the fourth quarter of 2007, an increase of 24,000 from the fourth quarter of 2006. In the fourth quarter of 2007, the Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $76.11 per barrel, an increase of $25.35 per barrel from the fourth quarter of 2006. The Corporation’s average worldwide natural gas selling price was $6.93 per Mcf in the fourth quarter of 2007, an increase of $1.68 from the fourth quarter of 2006.

Oil and gas proved reserves increased to 1,330 million barrels of oil equivalent at the end of 2007 from 1,243 million barrels at the end of 2006. During 2007, the Corporation added 234 million new barrels of oil equivalent to proved reserves. These additions, which are subject to final review, replaced approximately 167 percent of the Corporation’s 2007 production and increased its reserve life to 9.5 years.

Marketing and Refining earnings were $31 million in the fourth quarter of 2007 compared with $67 million in the fourth quarter of 2006 reflecting reduced margins and trading results. Refining earnings were $27 million in the fourth quarter of 2007 compared with $45 million in the fourth quarter of 2006. Marketing earnings were $19 million in the fourth quarter of 2007 compared with $17 million in the fourth quarter of 2006. Trading activities generated a loss of $15 million in the fourth quarter of 2007 compared with income of $5 million in the fourth quarter of 2006.

The following items, on an after-tax basis, are included in net income (in millions):

	Three months ended					Year ended
	December 31					December 31
	2007			2006		2007			2006
Exploration and Production
Gains from asset sales	$	-		$	-	$	15		$	236
Asset impairments		(56	)	-			(56	)		-
Estimated production imbalance settlements
		-			-		(33	)		-
Income tax adjustments		-			-		-			(45	)
Accrued office closing costs		-			-		-			(18	)
Marketing and Refining
LIFO inventory liquidation		24			-		24			-
Corporate
Legal matters		(25	)		-		(25	)		-
	$	(57	)	$	-	$	(75	)	$	173

In the fourth quarter of 2007, the Corporation recorded an after-tax charge of $56 million related to asset impairments at two mature fields in the U.K. North Sea, income of $24 million due to the partial liquidation of prior year LIFO inventories and a charge of $25 million related to MTBE litigation.

Net cash provided by operating activities was $3,507 million for the year 2007 compared with $3,491 million for the year 2006. Capital and exploratory expenditures for 2007 were $3,926 million, of which $3,786 million related to Exploration and Production operations. Capital and exploratory expenditures for 2006 were $4,056 million.

At December 31, 2007, cash and cash equivalents totaled $607 million compared with $383 million at December 31, 2006. Total debt was $3,980 million at December 31, 2007 and $3,772 million at December 31, 2006. The Corporation’s debt to capitalization ratio at December 31, 2007 was 28.9 percent compared with 31.6 percent at the end of 2006.

Hess Corporation will review fourth quarter financial and operating results and other matters on a webcast at 10 a.m. today. For details on the event, refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation, with headquarters in New York, is a global integrated energy company engaged in the exploration, production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. More information on Hess Corporation is available at www.hess.com.

Forward Looking Statements

Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS OF DOLLARS)
	Fourth		Fourth		Third
	Quarter		Quarter		Quarter
	2007		2006		2007
Income Statement
Revenues and Non-operating Income
Sales (excluding excise taxes) and other operating revenues	$	9,456	$	7,155	$	7,451
Equity in income of HOVENSA L.L.C.		20		29		19
Other, net		24		22		34
Total revenues and non-operating income		9,500		7,206		7,504
Costs and Expenses
Cost of products sold (excluding items shown separately below)		6,651		5,058		5,322
Production expenses		463		358		394
Marketing expenses		243		254		238
Exploration expenses, including dry holes and lease impairment
		201		140		131
Other operating expenses		46		33		45
General and administrative expenses		208		117		133
Interest expense		71		51		59
Depreciation, depletion and amortization		530		353		365
Total costs and expenses		8,413		6,364		6,687
Income before income taxes		1,087		842		817
Provision for income taxes		577		483		422
Net income	$	510	$	359	$	395
Preferred stock dividends		-		8		-
Net income applicable to common stockholders	$	510	$	351	$	395
Supplemental Income Statement Information
Foreign currency gains (losses), after-tax	$	1	$	5	$	1
Capitalized interest		1		25		18
Cash Flow Information
Net cash provided by operating activities (*)	$	806	$	779	$	863
Capital and Exploratory Expenditures
Exploration and Production
United States	$	291	$	269	$	270
International		577		715		530
Total Exploration and Production		868		984		800
Marketing, Refining and Corporate		46		47		38
Total Capital and Exploratory Expenditures	$	914	$	1,031	$	838
Exploration expenses charged to income included above
United States	$	43	$	42	$	67
International		66		28		36
	$	109	$	70	$	103
(*) Includes changes in working capital

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS OF DOLLARS)
	Year Ended December 31,
	2007			2006
Income Statement
Revenues and Non-operating Income
Sales (excluding excise taxes) and other operating revenues	$	31,647		$	28,067
Equity in income of HOVENSA L.L.C.		176			201
Gain on asset sales		21			369
Other, net		80			81
Total revenues and non-operating income		31,924			28,718
Costs and Expenses
Cost of products sold (excluding items shown separately below)		22,573			19,912
Production expenses		1,581			1,250
Marketing expenses		944			940
Exploration expenses, including dry holes and lease impairment		515			552
Other operating expenses		161			122
General and administrative expenses		614			471
Interest expense		256			201
Depreciation, depletion and amortization		1,576			1,224
Total costs and expenses		28,220			24,672
Income before income taxes		3,704			4,046
Provision for income taxes		1,872			2,126
Net income	$	1,832		$	1,920
Preferred stock dividends		-			44
Net income applicable to common stockholders	$	1,832		$	1,876
Supplemental Income Statement Information
Foreign currency gains (losses), after-tax	$	(9	)	$	10
Capitalized interest		50			100
Cash Flow Information
Net cash provided by operating
activities (*)	$	3,507		$	3,491
Capital and Exploratory Expenditures
Exploration and Production
United States	$	1,603		$	908
International		2,183			2,979
Total Exploration and Production		3,786			3,887
Marketing, Refining and Corporate		140			169
Total Capital and Exploratory Expenditures	$	3,926		$	4,056
Exploration expenses charged to income included above
United States	$	192		$	110
International		156			102
	$	348		$	212
(*) Includes changes in working capital

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS OF DOLLARS)
	December 31,
	2007			2006
Balance Sheet Information
Cash and cash equivalents	$	607		$	383
Other current assets		6,319			5,465
Investments		1,117			1,243
Property, plant and equipment - net		14,634			12,308
Other long-term assets		3,454			3,043
Total assets	$	26,131		$	22,442
Current maturities of long-term debt	$	62		$	27
Other current liabilities		7,962			6,712
Long-term debt		3,918			3,745
Other long-term liabilities		4,415			3,811
Stockholders' equity excluding other comprehensive income (loss)		11,615			9,711
Accumulated other comprehensive income (loss)		(1,841	)		(1,564	)
Total liabilities and stockholders' equity	$	26,131		$	22,442

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED) (IN MILLIONS OF DOLLARS)
	Fourth Quarter 2007
	United
	States			International		Total
Sales and other operating revenues	$	401		$	2,037	$	2,438
Non-operating income (loss)		(1	)		14		13
Total revenues and non-operating income		400			2,051		2,451
Costs and expenses
Production expenses, including related taxes		71			392		463
Exploration expenses, including dry holes and lease impairment
		122			79		201
General, administrative and other expenses		36			38		74
Depreciation, depletion and amortization		58			454		512
Total costs and expenses		287			963		1,250
Results of operations before income taxes		113			1,088		1,201
Provision for income taxes		44			574		618
Results of operations	$	69		$	514	$	583
	Fourth Quarter 2006
	United
	States			International		Total
Sales and other operating revenues	$	244		$	1,438	$	1,682
Non-operating income		3			18		21
Total revenues and non-operating income		247			1,456		1,703
Costs and expenses
Production expenses, including related taxes		59			299		358
Exploration expenses, including dry holes and lease impairment
		94			46		140
General, administrative and other expenses		30			16		46
Depreciation, depletion and amortization		31			305		336
Total costs and expenses		214			666		880
Results of operations before income taxes		33			790		823
Provision for income taxes		12			461		473
Results of operations	$	21		$	329	$	350
	Third Quarter 2007
	United
	States			International		Total
Sales and other operating revenues	$	296		$	1,451	$	1,747
Non-operating income		1			29		30
Total revenues and non-operating income		297			1,480		1,777
Costs and expenses
Production expenses, including related taxes		80			314		394
Exploration expenses, including dry holes and lease impairment
		79			52		131
General, administrative and other expenses		27			37		64
Depreciation, depletion and amortization		48			297		345
Total costs and expenses		234			700		934
Results of operations before income taxes		63			780		843
Provision for income taxes		25			404		429
Results of operations	$	38		$	376	$	414

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS OF DOLLARS)
	Year Ended December 31, 2007
	United
	States		International		Total
Sales and other operating revenues	$	1,211	$	6,287	$	7,498
Non-operating income		8		57		65
Total revenues and non-operating income		1,219		6,344		7,563
Costs and expenses
Production expenses, including related taxes		280		1,301		1,581
Exploration expenses, including dry holes and lease impairment		302		213		515
General, administrative and other expenses		130		127		257
Depreciation, depletion and amortization		187		1,316		1,503
Total costs and expenses		899		2,957		3,856
Results of operations before income taxes		320		3,387		3,707
Provision for income taxes		125		1,740		1,865
Results of operations	$	195	$	1,647	$	1,842
	Year Ended December 31, 2006
	United
	States		International		Total
Sales and other operating revenues	$	1,232	$	5,292	$	6,524
Non-operating income		385		43		428
Total revenues and non-operating income		1,617		5,335		6,952
Costs and expenses
Production expenses, including related taxes		221		1,029		1,250
Exploration expenses, including dry holes and lease impairment		353		199		552
General, administrative and other expenses		95		114		209
Depreciation, depletion and amortization		127		1,032		1,159
Total costs and expenses		796		2,374		3,170
Results of operations before income taxes		821		2,961		3,782
Provision for income taxes		296		1,723		2,019
Results of operations	$	525	$	1,238	$	1,763

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)
				Fourth		Fourth		Third
				Quarter		Quarter		Quarter
				2007		2006		2007
Operating Data
	Net Production Per Day
		Crude oil - barrels
			United States		34		29		31
			Europe		83		111		83
			Africa		121		89		123
			Asia and other		22		13		20
			Total		260		242		257
		Natural gas liquids - barrels
			United States		11		9		11
			Europe		5		7		3
			Total		16		16		14
		Natural gas - mcf
			United States		91		91		87
			Europe		290		336		188
			Asia and other		300		223		241
			Total		681		650		516
		Barrels of oil equivalent			390		366		357
	Average Selling Price
		Crude oil - per barrel (including hedging)
			United States	$	86.22	$	53.64	$	73.20
			Europe		74.00		50.01		62.06
			Africa		72.85		49.77		64.38
			Asia and other		86.30		57.09		70.69
			Worldwide		76.11		50.76		65.26
		Crude oil - per barrel (excluding hedging)
			United States	$	86.22	$	53.64	$	73.20
			Europe		74.00		51.79		62.06
			Africa		84.84		57.11		73.49
			Asia and other		86.30		57.09		70.69
			Worldwide		81.87		54.46		69.85
		Natural gas liquids - per barrel
			United States	$	63.51	$	43.68	$	51.27
			Europe		70.86		45.19		48.44
			Worldwide		66.13		44.33		50.58
		Natural gas - per mcf
			United States	$	6.47	$	6.27	$	5.80
			Europe		8.92		5.55		6.09
			Asia and other		5.13		4.39		4.69
			Worldwide		6.93		5.25		5.38

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTAL OPERATING DATA (IN THOUSANDS, EXCEPT FOR AVERAGE SELLING PRICES)
				Year Ended December 31,
				2007		2006
Operating Data
	Net Production Per Day
		Crude oil - barrels
			United States		31		36
			Europe		93		109
			Africa		115		85
			Asia and other		21		12
			Total		260		242
		Natural gas liquids - barrels
			United States		10		10
			Europe		5		5
			Total		15		15
		Natural gas - mcf
			United States		88		110
			Europe		259		283
			Asia and other		266		219
			Total		613		612
		Barrels of oil equivalent			377		359
	Average Selling Price
		Crude oil - per barrel (including hedging)
			United States	$	69.23	$	60.45
			Europe		60.99		56.19
			Africa		62.04		51.18
			Asia and other		72.17		61.52
			Worldwide		63.44		55.31
		Crude oil - per barrel (excluding hedging)
			United States	$	69.23	$	60.45
			Europe		60.99		58.46
			Africa		71.71		62.80
			Asia and other		72.17		61.52
			Worldwide		67.79		60.41
		Natural gas liquids - per barrel
			United States	$	51.89	$	46.22
			Europe		57.20		47.30
			Worldwide		53.72		46.59
		Natural gas - per mcf
			United States	$	6.67	$	6.59
			Europe		6.13		6.20
			Asia and other		4.71		4.05
			Worldwide		5.60		5.50

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL HEDGING INFORMATION (UNAUDITED)

The following is a summary of the Corporation's outstanding crude oil hedges at December 31, 2007:

	Brent Crude Oil*
Maturity	Average Selling Price		Thousands of barrels per day
2008	$	25.56	24
2009		25.54	24
2010		25.78	24
2011		26.37	24
2012		26.90	24

* There were no WTI crude oil or natural gas hedges outstanding at December 31, 2007.

The after-tax losses from crude oil hedges were $89 million in the fourth quarter of 2007 and $57 million in the fourth quarter of 2006. After-tax hedge losses totaled $244 million and $285 million for the years ended December 31, 2007 and 2006, respectively. The after-tax deferred hedge loss included in accumulated other comprehensive income at December 31, 2007 amounted to $1.7 billion.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED)
		Fourth			Fourth			Third
		Quarter			Quarter			Quarter
		2007			2006			2007
Financial Information (in millions of dollars)
Marketing and Refining Earnings
Income before income taxes		$	51		$	104		$	75
Provision for income taxes			20			37			29
Marketing and Refining Earnings		$	31		$	67		$	46
Summary of Marketing and Refining Earnings
Refining		$	27		$	45		$	25
Marketing			19			17			21
Trading			(15	)		5			-
Total Marketing and Refining Earnings		$	31		$	67		$	46
Operating Data (in thousands unless noted)
Refined Product Sales (barrels per day)
Gasoline			205			210			216
Distillates			163			169			134
Residuals			57			57			45
Other			37			33			42
Total			462			469			437
Refinery Throughput (barrels per day)
HOVENSA - Crude runs			488			469			459
HOVENSA - Hess 50% share			244			234			230
Port Reading			63			64			61
Refinery Utilization	Refinery Capacity
HOVENSA	(barrels per day)
Crude	500		97.6	%		93.7	%		91.9	%
FCC	150		84.9	%		91.2	%		82.4	%
Coker	58		99.3	%		89.8	%		92.6	%
Port Reading	65		96.3	%		98.1	%		93.8	%
Retail Marketing
Number of retail stations (a)			1,371			1,350			1,362
Convenience store revenue (in millions of dollars) (b)		$	255		$	253		$	279
Average gasoline volume per station (gallons per month) (b)			209			202			232
(a) Includes company operated, Wilco-Hess, dealer and branded retailer.
(b) Company operated only.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED)
		Year Ended December 31,
		2007		2006
Financial Information (in millions of dollars)
Marketing and Refining Earnings
Income before income taxes		$	481	$	620
Provision for income taxes			181		226
Marketing and Refining Earnings		$	300	$	394
Summary of Marketing and Refining Earnings
Refining		$	193	$	240
Marketing			83		108
Trading			24		46
Total Marketing and Refining Earnings		$	300	$	394
Operating Data (in thousands unless noted)
Refined Product Sales (barrels per day)
Gasoline			210		218
Distillates			147		144
Residuals			62		60
Other			32		37
Total			451		459
Refinery Throughput (barrels per day)
HOVENSA - Crude runs			454		448
HOVENSA - Hess 50% share			227		224
Port Reading			61		63
Refinery Utilization	Refinery Capacity
HOVENSA	(barrels per day)
Crude	500		90.8%		89.7%
FCC	150		87.1%		84.3%
Coker	58		83.4%		84.3%
Port Reading	65		93.2%		97.4%
Retail Marketing
Number of retail stations (a)			1,371		1,350
Convenience store revenue (in millions of dollars) (b)		$	1,051	$	1,015
Average gasoline volume per station (gallons per month) (b)			215		208
(a) Includes company operated, Wilco-Hess, dealer and branded retailer.
(b) Company operated only.

CONTACT:

Hess Corporation
Investors:
Jay Wilson, 212-536-8940
or
Media:
Jon Pepper, 212-536-8550