Hess Corporation

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Type Public Limited Company
Traded as NYSE:HES
Founded 1933
Headquarters} New York, USA.
Key people John Hess (Chairman and CEO)
Revenue US $38.47 billion (2011)[1]
Net Income US $1.7 billion (2011)[2]
% change over previous year (20.2%)
Total assets US $39.14 billion (end 2011)[3]
Total equity US $18.59 billion (end 2011)[4]
Employees 14,350 (end 2011)[5]
Website www.hess.com

Global Snapshot

Forbes ranked Hess Corporation as the 268th largest company in the world by market capitalisation in 2012. It is an integrated global company working in both the Exploration and Production (E&P) and Marketing and Refining (M&R) sectors. E&P activities take place primarily in Algeria, Australia, Azerbaijan, Brazil, Brunei, China, Denmark, Egypt, Equatorial Guinea, France, Ghana, Indonesia, the Kurdistan region of Iraq, Libya, Malaysia, Norway, Peru, Russia, Thailand, the United Kingdom and the United States.[6]

Hess was founded by Leon Hess in 1933, who went on to lead the company for six decades. In 1969 Hess Oil and Chemical Company merged with Amerada Petroleum Company to form Amerada Hess. However, in 2006 the company reverted to being known as the Hess Corporation.[7]

Company Report Highlights

Hess' Annual Report[8] reveals that in 2010, proven reserves increased by 7% to 1,537 million barrels of oil equivalent (boe). Net income for the year showed an impressive rise of 187% to $2.1 billion, reflecting higher crude oil selling prices and increased retail and energy marketing earnings, which offset the impact of weaker refining results. Production of crude oil and natural gas liquids in the US in 2010 rose slightly, however production internationally saw a slight decline of 1.8% on 2009 figures to 218,000 barrels per day (bpd).

Significant progress was made in building Hess' position in unconventional resources over 2010. In addition to acquisitions in the Bakken shale assets in the US, 90,000 acres were secured at Eagle Ford in South Texas and internationally, and joint study agreements were signed with PetroChina and Sinopec in China. The company's capital and exploratory budget for 2011 was $5.6 billion, with the majority targeted towards E&P ($3.1 billion for production, $1.6 billion for developments and $900 million for exploration).

Results released for the Second Quarter of 2011 show that net income was $607 million, up 61.9% on figures for the same period in 2009. Oil and gas production saw a 10.4% decrease to 372,000 boe per day, primarily reflecting the suspension of production in Libya due to the revolution, as well as the sale of natural gas producing assets in the UK in February 2011.[9]

Official Accreditations and Global Perceptions

EITI Supporter Status

Hess Corporation is a supporting company of the EITI.

UN Global Compact

Hess Corporation has been a participant in the UN Global Compact since 2002.[10]

CSR Review

Hess' Annual Report for 2010[11] highlights the following achievements on the corporate responsibility front:

  • Safety performance improved for the sixth consecutive year and their success in building a culture of safety was recognized by the US National Safety Council.
  • In Equatorial Guinea, Hess completed the fourth year of a successful partnership with the government to help transform primary education through teacher training, the development of model schools and improving the education infrastructure. In 2010, nearly 1,000 primary school teachers graduated from a two-year certification course and 1,400 first grade teachers, trainers and school inspectors completed an intensive training course in active learning methodology.
  • The company received recognition for their efforts to build a sustainable enterprise when their Corporate Sustainability Report earned an A+ under the Global Reporting Initiative.
  • Hess were ranked first in the Carbon Disclosure Project's Global 500 Energy Sector and tenth among top corporate citizens by the Corporate Responsibility Officer magazine.
  • In 2010 Hess announced a goal of a 20% reduction in Greenhouse Gas (GHG) emission intensity based on a 2008 baseline.
  • The company continued to reduce flaring in Algeria and Equatorial Guinea while increasing overall production.

External Coverage

  • According to Bloomberg's proprietary index of environmental, social and corporate-governance disclosure, Hess is the most forthcoming of 2,454 oil companies about its performance as a sustainable company.[12]

Global Operations by Country

Azerbaijan

Main article: Hess Operations in Azerbaijan

Egypt

Main article: Hess Operations in Egypt

Ghana

Main article: Hess Operations in Ghana

Libya

Main article: Hess Operations in Libya

References

  1. 2011 Annual Report”. Hess, 2012.
  2. 2011 Annual Report”. Hess, 2012.
  3. 2011 Annual Report”. Hess, 2012.
  4. 2011 Annual Report”. Hess, 2012.
  5. 2011 Annual Report”. Hess, 2012.
  6. Hess Corporation”. Forbes, retrieved 16 January 2013.
  7. History”. Hess Corporation, retrieved 13 October 2011.
  8. 2010 Annual Report”. Hess, retrieved 13 October 2011.
  9. Hess Reports Estimated Results for the Second Quarter of 2011”. Market Watch, 27 July 2011.
  10. Hess: Participant Information”. UN Global Compact, retrieved 13 October 2011.
  11. 2010 Annual Report”. Hess, retrieved 13 October 2011.
  12. 10Q: How Green is Hess's Oil?”. Bloomberg, 8 December 2011.