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

Exhibit 99(1)

Hess Reports Estimated Results for the Third Quarter of 2010

Third Quarter Highlights:

• Net Income was $1,154 million, including after-tax income of $725 million from items affecting comparability, compared with $341 million in the third quarter 2009
• Items affecting comparability consist of an after-tax gain of $1,072 million relating to an asset exchange and an after-tax charge of $347 million relating to an asset impairment
• Oil and gas production was 413,000 barrels per day, compared with 420,000 in the third quarter 2009
• Net cash provided by operating activities was $1,246 million, compared with $534 million in the third quarter 2009
• The Corporation completed the sale of $1.25 billion of 5.60% notes due February2041

NEW YORK--(BUSINESS WIRE)--October 27, 2010--Hess Corporation (NYSE: HES) reported net income of $1,154 million for the third quarter of 2010 compared with net income of $341 million for the third quarter of 2009. The after-tax income (loss) by major operating activity was as follows:

	Three Months Ended						Nine Months Ended
	September 30, (unaudited)						September 30, (unaudited)
		2010			2009			2010			2009
	(In millions, except per share amounts)
Exploration and Production	$	1,277		$	397		$	2,316		$	548
Marketing and Refining		(38	)		38			30			110
Corporate		(26	)		(33	)		(116	)		(108	)
Interest expense		(59	)		(61	)		(163	)		(168	)
Net income attributable to Hess Corporation	$	1,154		$	341		$	2,067		$	382
Net income per share (diluted)	$	3.52		$	1.05		$	6.31		$	1.17
Weighted average number of shares (diluted)		327.6			326.0			327.3			325.8

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

Exploration and Production earnings were $1,277 million in the third quarter of 2010 up from $397 million in the third quarter of 2009. Third quarter oil and gas production was 413,000 barrels of oil equivalent per day, compared with 420,000 barrels of oil equivalent per day in the third quarter a year ago. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $64.81 per barrel compared with $56.07 per barrel in the third quarter of 2009. The average worldwide natural gas selling price was $5.73 per Mcf in the third quarter of 2010 compared with $4.60 per Mcf in the same quarter a year ago.

Marketing and Refining generated a loss of $38 million in the third quarter of 2010 compared with income of $38 million in the same period of 2009. Refining operations incurred losses of $50 million compared with $3 million in the third quarter a year ago as a result of lower refining margins. Marketing earnings were $40 million, an increase of $5 million from the third quarter of 2009. Trading activities generated a loss of $28 million, compared with income of $6 million in the third quarter of last year.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
		2010		2009		2010			2009
Exploration and Production	$	725	$	89	$	783		$	45
Marketing and Refining		-		12		-			12
Corporate		-		-		(7	)		(16	)
	$	725	$	101	$	776		$	41

Third quarter 2010 results included an after-tax gain of $1,072 million related to the exchange of the Corporation’s interests in Gabon and the Clair Field in the United Kingdom for a 28.1 percent interest in the Valhall Field and a 25.0 percent interest in the Hod Field, both in Norway. The results also included an after-tax charge of $347 million to fully impair the carrying value of the Corporation’s interests in the West Med Block 1 Concession, located offshore Egypt.

Net cash provided by operating activities was $1,246 million in the third quarter of 2010, compared with $534 million in the same quarter of 2009. Capital and exploratory expenditures were $1,567 million, of which $1,548 million related to Exploration and Production operations. In September 2010, the Corporation acquired, for cash of $507 million, a 7.9 percent interest in the Valhall Field and a 12.5 percent in the Hod Field. Capital and exploratory expenditures for the third quarter of 2009 were $668 million, of which $646 million related to Exploration and Production operations.

At September 30, 2010, cash and cash equivalents totaled $2,353 million compared with $1,362 million at December 31, 2009. Total debt was $5,584 million at September 30, 2010 and $4,467 million at December 31, 2009. In August 2010, the Corporation issued $1.25 billion of 30 year unsecured notes with a coupon of 5.60 percent. The Corporation’s debt to capitalization ratio at September 30, 2010 was 26.1 percent compared with 24.8 percent at the end of 2009.

Hess Corporation will review third 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)
	Third			Third			Second
	Quarter			Quarter			Quarter
		2010			2009			2010
Income Statement
Revenues and Non-operating Income
Sales (excluding excise taxes) and other operating revenues	$	7,864		$	7,270		$	7,732
Equity in income (loss) of HOVENSA L.L.C.		(83	)		(49	)		(6	)
Other, net		1,172			163			24
Total revenues and non-operating income		8,953			7,384			7,750
Costs and Expenses
Cost of products sold (excluding items shown separately below)		5,330			5,069			5,316
Production expenses		475			460			440
Marketing expenses		232			240			245
Exploration expenses, including dry holes
and lease impairment		225			167			172
Other operating expenses		39			43			80
General and administrative expenses		151			148			159
Interest expense		94			97			83
Depreciation, depletion and amortization		584			626			558
Asset impairments		532			-			-
Total costs and expenses		7,662			6,850			7,053
Income before income taxes		1,291			534			697
Provision for income taxes		200			182			301
Net income		1,091			352			396
Less: Net income (loss) attributable to noncontrolling interests		(63	)		11			21
Net income attributable to Hess Corporation	$	1,154		$	341		$	375
Supplemental Income Statement Information
Foreign currency gains (losses), after-tax	$	(5	)	$	3		$	(4	)
Capitalized interest		1			1			1
Cash Flow Information
Net cash provided by operating activities (*)	$	1,246		$	534		$	981
Capital and Exploratory Expenditures
Exploration and Production
United States	$	379		$	198		$	399
International		1,169			448			531
Total Exploration and Production		1,548			646			930
Marketing, Refining and Corporate		19			22			33
Total Capital and Exploratory Expenditures	$	1,567		$	668		$	963
Exploration expenses charged to income included above
United States	$	46		$	22		$	21
International		59			42			41
	$	105		$	64		$	62

(*) Includes changes in working capital

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS OF DOLLARS)
				Nine Months
					2010			2009
Income Statement
	Revenues and Non-operating Income
		Sales (excluding excise taxes) and other operating revenues		$	24,855		$	20,936
		Equity in income (loss) of HOVENSA L.L.C.			(174	)		(165	)
		Other, net			1,242			240
			Total revenues and non-operating income		25,923			21,011
	Costs and Expenses
		Cost of products sold (excluding items shown separately below)			17,186			14,956
		Production expenses			1,392			1,313
		Marketing expenses			730			742
		Exploration expenses, including dry holes
			and lease impairment		548			672
		Other operating expenses			171			134
		General and administrative expenses			465			444
		Interest expense			261			269
		Depreciation, depletion and amortization			1,684			1,616
		Asset impairments			532			54
			Total costs and expenses		22,969			20,200
		Income before income taxes			2,954			811
		Provision for income taxes			899			374
		Net income			2,055			437
		Less: Net income (loss) attributable to noncontrolling interests			(12	)		55
		Net income attributable to Hess Corporation		$	2,067		$	382
Supplemental Income Statement Information
	Foreign currency gains (losses), after-tax			$	(10	)	$	(1	)
	Capitalized interest				3			4
Cash Flow Information
	Net cash provided by operating activities (*)			$	3,052		$	1,775
Capital and Exploratory Expenditures
	Exploration and Production
		United States		$	1,115		$	813
		International			2,204			1,362
			Total Exploration and Production		3,319			2,175
	Marketing, Refining and Corporate				72			83
			Total Capital and Exploratory Expenditures	$	3,391		$	2,258
	Exploration expenses charged to income included above
		United States		$	108		$	127
		International			132			138
				$	240		$	265

(*) Includes changes in working capital

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS OF DOLLARS)
	September 30,			December 31,
		2010			2009
Balance Sheet Information
Cash and cash equivalents	$	2,353		$	1,362
Other current assets		6,486			6,625
Investments		775			913
Property, plant and equipment – net		19,084			16,627
Other long-term assets		4,787			3,938
Total assets	$	33,485		$	29,465
Current maturities of long-term debt	$	43		$	148
Other current liabilities		6,524			6,702
Long-term debt		5,541			4,319
Other long-term liabilities		5,549			4,768
Total equity excluding other comprehensive income (loss)		17,205			15,203
Accumulated other comprehensive income (loss)		(1,377	)		(1,675	)
Total liabilities and equity	$	33,485		$	29,465

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS OF DOLLARS)
	Third Quarter 2010
	United
	States			International		Total
Sales and other operating revenues	$	622		$	1,657	$	2,279
Other, net		(2	)		1,159		1,157
Total revenues and non-operating income		620			2,816		3,436
Costs and expenses
Production expenses, including related taxes		117			357		474
Exploration expenses, including dry holes
and lease impairment		105			120		225
General, administrative and other expenses		37			33		70
Depreciation, depletion and amortization		172			388		560
Asset impairments		-			532		532
Total costs and expenses		431			1,430		1,861
Results of operations before income taxes		189			1,386		1,575
Provision for income taxes		71			227		298
Results of operations attributable to Hess Corporation	$	118		$	1,159	$	1,277
	Third Quarter 2009
	United
	States			International		Total
Sales and other operating revenues	$	499		$	1,293	$	1,792
Other, net		137			8		145
Total revenues and non-operating income		636			1,301		1,937
Costs and expenses
Production expenses, including related taxes		106			354		460
Exploration expenses, including dry holes
and lease impairment		56			111		167
General, administrative and other expenses		37			28		65
Depreciation, depletion and amortization		176			426		602
Asset impairments		-			-		-
Total costs and expenses		375			919		1,294
Results of operations before income taxes		261			382		643
Provision for income taxes		99			147		246
Results of operations attributable to Hess Corporation	$	162		$	235	$	397
	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
Asset impairments		-			-		-
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

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS OF DOLLARS)
	Nine Months 2010
	United
	States		International		Total
Sales and other operating revenues	$	1,774	$	4,678	$	6,452
Other, net		2		1,223		1,225
Total revenues and non-operating income		1,776		5,901		7,677
Costs and expenses
Production expenses, including related taxes		346		1,046		1,392
Exploration expenses, including dry holes
and lease impairment		243		305		548
General, administrative and other expenses		105		96		201
Depreciation, depletion and amortization		465		1,148		1,613
Asset impairments		-		532		532
Total costs and expenses		1,159		3,127		4,286
Results of operations before income taxes		617		2,774		3,391
Provision for income taxes		232		843		1,075
Results of operations attributable to Hess Corporation	$	385	$	1,931	$	2,316
	Nine Months 2009
	United
	States		International		Total
Sales and other operating revenues	$	1,024	$	3,598	$	4,622
Other, net		132		78		210
Total revenues and non-operating income		1,156		3,676		4,832
Costs and expenses
Production expenses, including related taxes		327		986		1,313
Exploration expenses, including dry holes
and lease impairment		306		366		672
General, administrative and other expenses		97		85		182
Depreciation, depletion and amortization		338		1,213		1,551
Asset impairments		-		54		54
Total costs and expenses		1,068		2,704		3,772
Results of operations before income taxes		88		972		1,060
Provision for income taxes		35		477		512
Results of operations attributable to Hess Corporation	$	53	$	495	$	548

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
	Third		Third		Second
	Quarter		Quarter		Quarter
	2010		2009		2010
Operating Data
Net Production Per Day (in thousands)
Crude oil - barrels
United States		78		73		73
Europe		82		83		81
Africa		117		124		118
Asia and other		13		17		14
Total		290		297		286
Natural gas liquids - barrels
United States		15		12		12
Europe		3		2		3
Asia and other		-		-		1
Total		18		14		16
Natural gas - mcf
United States		120		105		102
Europe		104		120		140
Asia and other		406		429		437
Total		630		654		679
Barrels of oil equivalent		413		420		415
Average Selling Price
Crude oil - per barrel (including hedging)*
United States	$	71.92	$	63.79	$	72.99
Europe		57.28		47.34		56.21
Africa		64.78		54.97		63.54
Asia and other		75.95		67.49		78.01
Worldwide		64.81		56.07		64.81
Crude oil - per barrel (excluding hedging)
United States	$	71.92	$	63.79	$	72.99
Europe		57.28		47.34		56.21
Africa		75.70		67.27		77.03
Asia and other		75.95		67.49		78.01
Worldwide		69.47		61.42		70.15
Natural gas liquids - per barrel
United States	$	43.20	$	36.05	$	45.84
Europe		57.69		43.53		54.61
Asia and other		53.60		44.74		60.89
Worldwide		46.10		37.27		48.10
Natural gas - per mcf
United States	$	3.56	$	2.65	$	3.65
Europe		6.50		4.38		5.35
Asia and other		6.18		5.12		6.09
Worldwide		5.73		4.60		5.57

* The after-tax losses from crude oil hedging activities were $85 million in the third quarter of 2010, $84 million in the third quarter of 2009 and second quarter of 2010.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
					Nine Months
					2010		2009
Operating Data
	Net Production Per Day (in thousands)
		Crude oil - barrels
			United States			74		54
			Europe			83		82
			Africa			117		125
			Asia and other			14		16
				Total		288		277
		Natural gas liquids - barrels
			United States			13		10
			Europe			3		3
			Asia and other			1		1
				Total		17		14
		Natural gas - mcf
			United States			107		92
			Europe			133		153
			Asia and other			432		442
				Total		672		687
		Barrels of oil equivalent				417		406
	Average Selling Price
		Crude oil - per barrel (including hedging)*
			United States		$	73.05	$	56.02
			Europe			56.29		42.80
			Africa			63.67		44.98
			Asia and other			75.97		56.63
				Worldwide		64.44		47.09
		Crude oil - per barrel (excluding hedging)
			United States		$	73.05	$	56.02
			Europe			56.29		42.80
			Africa			76.19		56.59
			Asia and other			75.97		56.63
				Worldwide		69.56		52.35
		Natural gas liquids - per barrel
			United States		$	46.49	$	32.38
			Europe			57.28		37.86
			Asia and other			60.15		38.49
				Worldwide		48.84		33.90
		Natural gas - per mcf
			United States		$	3.91	$	3.19
			Europe			5.67		5.25
			Asia and other			6.21		4.88
				Worldwide		5.74		4.74

* The after-tax losses from hedging activities were $252 million for the nine months ended September 30, 2010 and $249 million for the nine months ended September 30, 2009.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARKETING AND REFINING SUPPLEMENTAL FINANCIAL AND OPERATING DATA (UNAUDITED)
		Third			Third			Second
		Quarter			Quarter			Quarter
		2010			2009			2010
Financial Information (in millions of dollars)
Marketing and Refining Results
Income (loss) before income taxes		$	(78	)	$	29		$	(37	)
Provision (benefit) for income taxes			(40	)		(9	)		(18	)
Results of operations attributable to Hess Corporation		$	(38	)	$	38		$	(19	)
Summary of Marketing and Refining Results
Refining		$	(50	)	$	(3	)	$	(31	)
Marketing			40			35			17
Trading			(28	)		6			(5	)
Results of operations attributable to Hess Corporation		$	(38	)	$	38		$	(19	)
Operating Data (barrels and gallons in thousands)
Refined Product Sales (barrels per day)
Gasoline			253			253			238
Distillates			96			113			112
Residuals			56			51			57
Other			41			26			28
Total			446			443			435
Refinery Throughput (barrels per day)
HOVENSA - Crude runs			408			384			392
HOVENSA - Hess 50% share			204			192			196
Port Reading			61			65			35
Refinery Utilization	Refinery Capacity
HOVENSA	(barrels per day)
Crude	500		81.6	%		76.9	%		78.5	%
FCC	150		76.1	%		82.9	%		91.0	%
Coker	58		73.0	%		78.9	%		81.9	%
Port Reading	70		87.7	%		92.2	%		49.7	%
Retail Marketing
Number of retail stations (a)			1,360			1,353			1,358
Convenience store revenue (in millions of dollars) (b)		$	322		$	313		$	317
Average gasoline volume per station (gallons per month) (b)			204			202			203

(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)
		Nine Months
		2010			2009
Financial Information (in millions of dollars)
Marketing and Refining Results
Income (loss) before income taxes		$	24		$	135
Provision (benefit) for income taxes			(6	)		25
Results of operations attributable to Hess Corporation		$	30		$	110
Summary of Marketing and Refining Results
Refining		$	(137	)	$	(47	)
Marketing			178			123
Trading			(11	)		34
Results of operations attributable to Hess Corporation		$	30		$	110
Operating Data (barrels and gallons in thousands)
Refined Product Sales (barrels per day)
Gasoline			247			234
Distillates			112			129
Residuals			66			67
Other			40			36
Total			465			466
Refinery Throughput (barrels per day)
HOVENSA - Crude runs			392			412
HOVENSA - Hess 50% share			196			206
Port Reading			53			64
Refinery Utilization	Refinery Capacity
HOVENSA	(barrels per day)
Crude	500		78.4	%		82.4	%
FCC	150		69.5	%		75.2	%
Coker	58		80.0	%		83.6	%
Port Reading	70		75.4	%		91.1	%
Retail Marketing
Number of retail stations (a)			1,360			1,353
Convenience store revenue (in millions of dollars) (b)		$	915		$	868
Average gasoline volume per station (gallons per month) (b)			198			203

(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