Hess (HES) 8-K Hess Reports Estimated Results for the Second Quarter of 2010

Exhibit 99(1)

Hess Reports Estimated Results for the Second Quarter of 2010

Second Quarter Highlights:

• Net Income was $375 million compared with $100 million in the second quarter 2009
• Oil and gas production was 415,000 barrels per day, compared with 407,000 in the second quarter 2009
• Net cash provided by operating activities was $981 million, up from $616 million in the second quarter 2009
• Capital and exploratory expenditures were $963 million, up from $780 million in the second quarter 2009

NEW YORK--(BUSINESS WIRE)--July 28, 2010--Hess Corporation (NYSE: HES) reported net income of $375 million for the second quarter of 2010 compared with net income of $100 million for the second quarter of 2009. The after-tax income (loss) by major operating activity was as follows:

	Three Months Ended						Six Months Ended
	June 30, (unaudited)						June 30, (unaudited)
	2010			2009			2010			2009
	(In millions, except per share amounts)
Exploration and Production	$	488		$	215		$	1,039		$	151
Marketing and Refining		(19	)		(30	)		68			72
Corporate		(42	)		(26	)		(90	)		(75	)
Interest expense		(52	)		(59	)		(104	)		(107	)
Net income attributable to Hess Corporation	$	375		$	100		$	913		$	41
Net income per share (diluted)	$	1.15		$	.31		$	2.79		$	.13
Weighted average number of shares (diluted)		327.5			325.8			327.2			325.7

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

Exploration and Production earnings were $488 million in the second quarter of 2010 compared with $215 million in the second quarter of 2009. The Corporation’s oil and gas production was 415,000 barrels of oil equivalent per day in the second quarter of 2010, an increase of 2 percent from the second quarter of 2009. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $64.81 per barrel in the second quarter of 2010 compared with $49.27 per barrel in the second quarter of 2009. The Corporation’s average worldwide natural gas selling price was $5.57 per Mcf in the second quarter of 2010 compared with $4.56 per Mcf in the second quarter of 2009.

Marketing and Refining generated a loss of $19 million in the second quarter of 2010 compared with a loss of $30 million in the second quarter of 2009. Refining operations incurred a loss of $31 million compared with a loss of $26 million in the second quarter of 2009. During the second quarter of 2010, the Port Reading refining facility was shutdown for 41 days for a scheduled turnaround. The after-tax expenses for the Port Reading turnaround were approximately $27 million in the second quarter. Marketing earnings were $17 million, an increase of $30 million from the second quarter of 2009 primarily due to higher margins. Trading activities generated a loss of $5 million, compared with income of $9 million in the second quarter of 2009.

The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods (in millions):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2010		2009			2010			2009
Exploration and Production	$	-	$	(31	)	$	58		$	(44	)
Corporate		-		-			(7	)		(16	)
	$	-	$	(31	)	$	(51	)	$	(60	)

Net cash provided by operating activities was $981 million compared with $616 million in the second quarter of 2009. Capital and exploratory expenditures were $963 million in the second quarter of 2010, of which $930 million related to Exploration and Production operations. Capital and exploratory expenditures for the second quarter of 2009 were $780 million, of which $765 million related to Exploration and Production operations.

At June 30, 2010, cash and cash equivalents totaled $1,363 million compared with $1,362 million at December 31, 2009. Total debt was $4,326 million at June 30, 2010 and $4,467 million at December 31, 2009. The Corporation’s debt to capitalization ratio at June 30, 2010 was 22.9 percent compared with 24.8 percent at the end of 2009.

Hess Corporation will review second 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 leading global independent energy company engaged in the exploration for and production of crude oil and natural gas, as well as in refining and in marketing refined petroleum products, natural gas and electricity. 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)
	Second			Second			First
	Quarter			Quarter			Quarter
	2010			2009			2010
Income Statement
Revenues and Non-operating Income
Sales (excluding excise taxes) and other operating revenues	$	7,732		$	6,751		$	9,259
Equity in income (loss) of HOVENSA L.L.C.		(6	)		(75	)		(85	)
Other, net		24			79			46
Total revenues and non-operating income		7,750			6,755			9,220
Costs and Expenses
Cost of products sold (excluding items shown separately below)		5,316			4,705			6,540
Production expenses		440			444			477
Marketing expenses		245			245			253
Exploration expenses, including dry holes and lease impairment
		172			312			151
Other operating expenses		80			43			52
General and administrative expenses		159			136			155
Interest expense		83			95			84
Depreciation, depletion and amortization		558			558			542
Total costs and expenses		7,053			6,538			8,254
Income before income taxes		697			217			966
Provision for income taxes		301			115			398
Net income		396			102			568
Less: Net income attributable to noncontrolling interests		21			2			30
Net income attributable to Hess Corporation	$	375		$	100		$	538
Supplemental Income Statement Information
Foreign currency gains (losses), after-tax	$	(4	)	$	6		$	(1	)
Capitalized interest		1			2			1
Cash Flow Information
Net cash provided by operating activities (*)	$	981		$	616		$	825
Capital and Exploratory Expenditures
Exploration and Production
United States	$	399		$	295		$	337
International		531			470			504
Total Exploration and Production		930			765			841
Marketing, Refining and Corporate		33			15			20
Total Capital and Exploratory Expenditures	$	963		$	780		$	861
Exploration expenses charged to income included above
United States	$	21		$	47		$	41
International		41			48			32
	$	62		$	95		$	73
(*) Includes changes in working capital

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS OF DOLLARS)
	First Half
	2010			2009
Income Statement
Revenues and Non-operating Income
Sales (excluding excise taxes) and other operating revenues	$	16,991		$	13,666
Equity in income (loss) of HOVENSA L.L.C.		(91	)		(116	)
Other, net		70			77
Total revenues and non-operating income		16,970			13,627
Costs and Expenses
Cost of products sold (excluding items shown separately below)		11,856			9,887
Production expenses		917			853
Marketing expenses		498			502
Exploration expenses, including dry holes and lease impairment
		323			505
Other operating expenses		132			91
General and administrative expenses		314			296
Interest expense		167			172
Depreciation, depletion and amortization		1,100			1,044
Total costs and expenses		15,307			13,350
Income before income taxes		1,663			277
Provision for income taxes		699			192
Net income		964			85
Less: Net income attributable to noncontrolling interests		51			44
Net income attributable to Hess Corporation	$	913		$	41
Supplemental Income Statement Information
Foreign currency gains (losses), after-tax	$	(5	)	$	(4	)
Capitalized interest		2			3
Cash Flow Information
Net cash provided by operating activities (*)	$	1,806		$	1,241
Capital and Exploratory Expenditures
Exploration and Production
United States	$	736		$	610
International		1,035			914
Total Exploration and Production		1,771			1,524
Marketing, Refining and Corporate		53			61
Total Capital and Exploratory Expenditures	$	1,824		$	1,585
Exploration expenses charged to income included above
United States	$	62		$	100
International		73			96
	$	135		$	196
(*) Includes changes in working capital

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS OF DOLLARS)
	June 30,			December 31,
	2010			2009
Balance Sheet Information
Cash and cash equivalents	$	1,363		$	1,362
Other current assets		6,933			6,625
Investments		864			913
Property, plant and equipment – net		16,535			16,627
Other long-term assets		3,805			3,938
Total assets	$	29,500		$	29,465
Current maturities of long-term debt	$	33		$	148
Other current liabilities		6,297			6,702
Long-term debt		4,293			4,319
Other long-term liabilities		4,347			4,768
Total equity excluding other comprehensive income (loss)		16,133			15,203
Accumulated other comprehensive income (loss)		(1,603	)		(1,675	)
Total liabilities and equity	$	29,500		$	29,465

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS OF DOLLARS)
	Second Quarter 2010
	United
	States			International		Total
Sales and other operating revenues	$	570		$	1,489	$	2,059
Other, net		5			9		14
Total revenues and non-operating income		575			1,498		2,073
Costs and expenses
Production expenses, including related taxes		113			328		441
Exploration expenses, including dry holes and lease impairment
		60			112		172
General, administrative and other expenses		32			32		64
Depreciation, depletion and amortization		157			377		534
Total costs and expenses		362			849		1,211
Results of operations before income taxes		213			649		862
Provision for income taxes		84			290		374
Results of operations attributable to Hess Corporation	$	129		$	359	$	488
	Second Quarter 2009
	United
	States			International		Total
Sales and other operating revenues	$	358		$	1,341	$	1,699
Other, net		(3	)		60		57
Total revenues and non-operating income		355			1,401		1,756
Costs and expenses
Production expenses, including related taxes		109			335		444
Exploration expenses, including dry holes and lease impairment
		139			173		312
General, administrative and other expenses		33			28		61
Depreciation, depletion and amortization		105			433		538
Total costs and expenses		386			969		1,355
Results of operations before income taxes		(31	)		432		401
Provision (benefit) for income taxes		(11	)		197		186
Results of operations attributable to Hess Corporation	$	(20	)	$	235	$	215
	First Quarter 2010
	United
	States			International		Total
Sales and other operating revenues	$	582		$	1,532	$	2,114
Other, net		(1	)		55		54
Total revenues and non-operating income		581			1,587		2,168
Costs and expenses
Production expenses, including related taxes		116			361		477
Exploration expenses, including dry holes and lease impairment
		78			73		151
General, administrative and other expenses		36			31		67
Depreciation, depletion and amortization		136			383		519
Total costs and expenses		366			848		1,214
Results of operations before income taxes		215			739		954
Provision for income taxes		77			326		403
Results of operations attributable to Hess Corporation	$	138		$	413	$	551

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS OF DOLLARS)
	First Half 2010
	United
	States			International		Total
Sales and other operating revenues	$	1,152		$	3,021	$	4,173
Other, net		4			64		68
Total revenues and non-operating income		1,156			3,085		4,241
Costs and expenses
Production expenses, including related taxes		229			689		918
Exploration expenses, including dry holes and lease impairment
		138			185		323
General, administrative and other expenses		68			63		131
Depreciation, depletion and amortization		293			760		1,053
Total costs and expenses		728			1,697		2,425
Results of operations before income taxes		428			1,388		1,816
Provision for income taxes		161			616		777
Results of operations attributable to Hess Corporation	$	267		$	772	$	1,039
	First Half 2009
	United
	States			International		Total
Sales and other operating revenues	$	525		$	2,305	$	2,830
Other, net		(5	)		70		65
Total revenues and non-operating income		520			2,375		2,895
Costs and expenses
Production expenses, including related taxes		221			632		853
Exploration expenses, including dry holes and lease impairment
		250			255		505
General, administrative and other expenses		60			57		117
Depreciation, depletion and amortization		162			841		1,003
Total costs and expenses		693			1,785		2,478
Results of operations before income taxes		(173	)		590		417
Provision (benefit) for income taxes		(64	)		330		266
Results of operations attributable to Hess Corporation	$	(109	)	$	260	$	151

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
	Second		Second		First
	Quarter		Quarter		Quarter
	2010		2009		2010
Operating Data
Net Production Per Day (in thousands)
Crude oil - barrels
United States		73		58		71
Europe		81		76		86
Africa		118		124		118
Asia and other		14		16		14
Total		286		274		289
Natural gas liquids - barrels
United States		12		10		13
Europe		3		3		3
Asia and other		1		1		1
Total		16		14		17
Natural gas - mcf
United States		102		92		97
Europe		140		160		156
Asia and other		437		459		452
Total		679		711		705
Barrels of oil equivalent		415		407		423
Average Selling Price
Crude oil - per barrel (including hedging)*
United States	$	72.99	$	55.53	$	74.40
Europe		56.21		47.41		55.25
Africa		63.54		47.16		62.38
Asia and other		78.01		55.84		71.67
Worldwide		64.81		49.27		63.62
Crude oil - per barrel (excluding hedging)
United States	$	72.99	$	55.53	$	74.40
Europe		56.21		47.41		55.25
Africa		77.03		57.13		75.96
Asia and other		78.01		55.84		71.67
Worldwide		70.15		54.03		69.06
Natural gas liquids - per barrel
United States	$	45.84	$	31.03	$	51.11
Europe		54.61		36.51		59.38
Asia and other		60.89		35.92		63.92
Worldwide		48.10		32.97		52.93
Natural gas - per mcf
United States	$	3.65	$	3.26	$	4.63
Europe		5.35		4.53		5.41
Asia and other		6.09		4.82		6.37
Worldwide		5.57		4.56		5.92
* The after-tax losses from crude oil hedging activities were $84 million in the second quarter of 2010, $83 million in the second quarter of 2009 and first quarter of 2010.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
	First Half
	2010		2009
Operating Data
Net Production Per Day (in thousands)
Crude oil - barrels
United States		72		45
Europe		83		82
Africa		118		125
Asia and other		14		16
Total		287		268
Natural gas liquids - barrels
United States		12		10
Europe		3		3
Asia and other		1		-
Total		16		13
Natural gas - mcf
United States		100		85
Europe		148		170
Asia and other		445		449
Total		693		704
Barrels of oil equivalent		419		398
Average Selling Price
Crude oil - per barrel (including hedging)*
United States	$	73.68	$	49.56
Europe		55.72		41.09
Africa		62.96		40.29
Asia and other		75.99		51.50
Worldwide		64.22		42.62
Crude oil - per barrel (excluding hedging)
United States	$	73.68	$	49.56
Europe		55.72		41.09
Africa		76.50		51.58
Asia and other		75.99		51.50
Worldwide		69.61		47.84
Natural gas liquids - per barrel
United States	$	48.50	$	30.12
Europe		57.00		36.61
Asia and other		62.11		35.92
Worldwide		50.51		32.25
Natural gas - per mcf
United States	$	4.12	$	3.61
Europe		5.38		5.56
Asia and other		6.23		4.76
Worldwide		5.75		4.82
* The after-tax losses from hedging activities were $167 million for the six months ended June 30, 2010   and $165 million for the six months ended June 30, 2009.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED)
		Second			Second			First
		Quarter			Quarter			Quarter
		2010			2009			2010
Financial Information (in millions of dollars)
Marketing and Refining Results
Income (loss) before income taxes		$	(37	)	$	(56	)	$	139
Provision (benefit) for income taxes			(18	)		(26	)		52
Results of operations attributable to Hess Corporation		$	(19	)	$	(30	)	$	87
Summary of Marketing and Refining Results
Refining		$	(31	)	$	(26	)	$	(56	)
Marketing			17			(13	)		121
Trading			(5	)		9			22
Results of operations attributable to Hess Corporation		$	(19	)	$	(30	)	$	87
Operating Data (barrels and gallons in thousands)
Refined Product Sales (barrels per day)
Gasoline			238			223			251
Distillates			112			126			126
Residuals			57			65			86
Other			28			41			51
Total			435			455			514
Refinery Throughput (barrels per day)
HOVENSA - Crude runs			392			442			375
HOVENSA - Hess 50% share			196			221			188
Port Reading			35			65			62
Refinery Utilization	Refinery Capacity
HOVENSA	(barrels per day)
Crude	500		78.5	%		88.4	%		75.1	%
FCC	150		86.8	%		71.2	%		41.2	%
Coker	58		81.9	%		91.2	%		85.0	%
Port Reading	70		49.7	%		93.0	%		88.8	%
Retail Marketing
Number of retail stations (a)			1,358			1,355			1,359
Convenience store revenue (in millions of dollars) (b)		$	317		$	300		$	276
Average gasoline volume per station (gallons per month) (b)			203			209			188
(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)
		First Half
		2010			2009
Financial Information (in millions of dollars)
Marketing and Refining Results
Income (loss) before income taxes		$	102		$	106
Provision for income taxes			34			34
Results of operations attributable to Hess Corporation		$	68		$	72
Summary of Marketing and Refining Results
Refining		$	(87	)	$	(44	)
Marketing			138			88
Trading			17			28
Results of operations attributable to Hess Corporation		$	68		$	72
Operating Data (barrels and gallons in thousands)
Refined Product Sales (barrels per day)
Gasoline			245			225
Distillates			119			138
Residuals			71			75
Other			39			40
Total			474			478
Refinery Throughput (barrels per day)
HOVENSA - Crude runs			384			426
HOVENSA - Hess 50% share			192			213
Port Reading			48			64
Refinery Utilization	Refinery Capacity
HOVENSA	(barrels per day)
Crude	500		76.8	%		85.2	%
FCC	150		64.1	%		71.3	%
Coker	58		83.4	%		85.9	%
Port Reading	70		69.1	%		90.6	%
Retail Marketing
Number of retail stations (a)			1,358			1,355
Convenience store revenue (in millions of dollars) (b)		$	593		$	555
Average gasoline volume per station (gallons per month) (b)			195			204
(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