Exploration and production earnings were $1.02 billion in the second quarter of 2008, compared with $505 million in the second quarter of 2007. The company’s oil and gas production, on a barrel-of-oil equivalent basis, was 393,000 barrels per day in the second quarter of 2008, an increase of 4% from the second quarter of 2007.
In the second quarter of 2008, the company’s average worldwide crude oil selling price, including the effect of hedging, was $104.29 per barrel compared with $60.05 per barrel in the second quarter of 2007. Hess’s average worldwide natural gas selling price, including the effect of hedging, was $7.81 per thousand cubic feet (Mcf) in the second quarter of 2008, compared with $4.88 per Mcf in the second quarter of 2007.
Hess’s marketing and refining operations generated a loss of $52 million in the second quarter of 2008 compared with income of $122 million in the second quarter of 2007, primarily reflecting lower margins and trading results. Trading operations generated a loss of $15 million in the second quarter of 2008, compared with income of $35 million in the second quarter of 2007.
Refining earnings were $3 million in the second quarter of 2008, compared with $87 million in the second quarter of 2007. Marketing operations reported a loss of $40 million in the second quarter of 2008, compared with break even results in the second quarter of 2007.
