HESS CORP - FORM 8-K - EX-99.(1) - EXHIBIT 99(1)

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Exhibit 99(1)

HESS CORPORATION

News Release

HESS REPORTS ESTIMATED RESULTS FOR THE SECOND QUARTER OF 2014

Second Quarter Highlights:

●	Net income was $931 million compared to $1,431 million in the second quarter of 2013

●	Adjusted net income was $432 million or $1.38 per share

●	Oil and gas production was 319,000 barrels of oil equivalent per day (boepd) in the second quarter of 2014, compared with 341,000 boepd in the year-ago quarter. Pro forma production was 310,000 boepd in the second quarter of 2014, up 17 percent from 265,000 boepd in 2013

●	Cash flow from operations before working capital changes was $1.3 billion

●	Oil and gas production in the Bakken increased 25 percent from the year-ago quarter to 80,000 boepd, while well costs were reduced by 12 percent to an average of $7.4 million per operated well in the second quarter of 2014

●	The Corporation completed asset sales totaling $1.6 billion comprising approximately $805 million for its Thailand assets, $485 million for 30,000 net acres in the Utica dry gas shale play and $320 million for the Newark, New Jersey power plant

●	The Corporation announced the sale of its retail business for $2.9 billion and increased its authorized share repurchase program to $6.5 billion from $4 billion

●

The Corporation returned an additional $845 million to shareholders during the quarter through share repurchases and dividends. This included repurchasing 8.3 million common shares for approximately $768 million, bringing total shares repurchased under the program to 40.2 million for a total cost of approximately $3.3 billion

NEW YORK, July 30, 2014 -- Hess Corporation (NYSE: HES) today reported net income of $931 million for the quarter ended June 30, 2014. Adjusted net income, which excludes items affecting comparability, was $432 million or $1.38 per common share, compared with $520 million or $1.51 per share in the prior year quarter. The decrease in adjusted net income was primarily due to the impact on operating earnings of divesting E&P assets and downstream businesses.

After-tax income (loss) by major operating activity was as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	(unaudited)						(unaudited)
	2014			2013			2014			2013
	(In millions, except per share amounts)
Net Income (Loss) Attributable to Hess Corporation
Exploration and Production	$	1,057		$	1,533		$	1,565		$	2,819
Corporate and Interest		(91	)		(128	)		(180	)		(237	)
Downstream Businesses		(35	)		26			(68	)		125
Net income attributable to Hess Corporation	$	931		$	1,431		$	1,317		$	2,707

Net income per share (diluted)	$	2.96		$	4.16		$	4.13		$	7.88


Adjusted Net Income (Loss)
Exploration and Production	$	483		$	600		$	997		$	1,298
Corporate and Interest		(82	)		(127	)		(163	)		(225	)
Downstream Businesses		31			47			44			116
Adjusted net income attributable to Hess Corporation	$	432		$	520		$	878		$	1,189

Adjusted net income per share (diluted)	$	1.38		$	1.51		$	2.75		$	3.46

Weighted average number of shares (diluted)		314.1			344.0			318.7			343.4

Note: See page 6 for a table of items affecting comparability of earnings between periods.

John Hess, chief executive officer of Hess, said: “This was another quarter of strong performance and execution of our strategic plan. We continued to grow production and reduce well costs in the Bakken, progressed development of Tubular Bells in the Gulf of Mexico and North Malay Basin in the Gulf of Thailand, and completed asset sales totaling $1.6 billion. We are excited by the potential of our portfolio and confident that we have the strategy, operational capabilities and financial flexibility to deliver 5 to 8 percent annual production growth and generate free cash flow and strong, sustainable returns for our shareholders.”

Exploration and Production:

Exploration and Production earnings were $1,057 million in the second quarter of 2014, compared with $1,533 million in the second quarter of 2013. Adjusted net income was $483 million in the second quarter of 2014 and $600 million in the second quarter of 2013.

Oil and gas production of 319,000 boepd was down from 341,000 boepd in the second quarter a year ago. Asset sales lowered production by 43,000 boepd, while extended shutdowns caused by civil unrest in Libya reduced production by approximately 24,000 boepd versus the year-ago quarter. Production from the Valhall Field offshore Norway was up 18,000 boepd from the prior year quarter, following completion of the Valhall Redevelopment Project in 2013. Higher production in the Bakken contributed an additional 16,000 boepd versus the year-ago quarter, while the North Malay Basin Early Production System, which commenced production in October 2013, contributed 7,000 boepd. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was $101.70 per barrel, up from $97.89 per barrel in the same quarter a year ago. The average worldwide natural gas selling price was $6.35 per mcf in the second quarter of 2014, down from $6.44 per mcf in the second quarter a year ago.

Excluding production from assets sold and Libya, pro forma production was 310,000 boepd in the second quarter of 2014, an increase of 17 percent from 265,000 boepd in the second quarter of 2013. The Corporation expects pro forma production to average between 305,000 boepd and 315,000 boepd in 2014 driven by continued growth in the Bakken, higher production from the Valhall Field and the planned start-up of the Tubular Bells Field in the Gulf of Mexico in the third quarter of 2014.

Operational Highlights for the Second Quarter of 2014:

Bakken (Onshore U.S.): Production from the Bakken increased 25 percent from the prior year quarter to 80,000 boepd due to continued development activities and the completion of the Tioga gas plant expansion project. Hess brought 53 gross operated wells on production in the quarter, bringing the year-to-date total to 83 wells. Drilling and completion costs per operated well averaged $7.4 million in the second quarter of 2014, a reduction of 12 percent from the second quarter of 2013.

Utica (Onshore U.S.): On the Corporation’s joint venture acreage, ten wells were drilled in the second quarter of 2014. In addition, during the quarter the Corporation completed the sale of 30,000 acres, including related wells and facilities in the dry gas area of the play, for cash proceeds of $485 million. This brings total year-to-date proceeds from asset sales in the Utica shale play to approximately $1.1 billion.

Valhall (Offshore Norway): Net production averaged 31,000 boepd during the second quarter, compared with 13,000 boepd in the year-ago quarter. These results reflect completion of the Valhall Redevelopment Project in 2013, ongoing drilling and higher uptimes. Offshore work began in June on the Crestal Gas Lift Project (Phase 1) with hook-up and commissioning expected in the second quarter of 2015.

North Malay Basin (Offshore Malaysia): Production averaged 7,000 boepd in the second quarter of 2014 from the Early Production System. Progress continued on the full field development project in the second quarter with the Corporation signing the gas sales agreement with the Malaysian government and awarding a contract for the construction and installation of a central processing platform, a bridge-linked wellhead platform and three remote wellhead platforms.

Ghana (Offshore): The Corporation commenced drilling of a three well appraisal program in the second quarter of 2014. The first well in the program, Pecan #2A, was completed in June and the second well in the program, Pecan #3A, was also drilled and is currently undergoing production testing as planned. The third well in the program is expected to be drilled in the third quarter.

Tubular Bells (Offshore U.S.): The offshore hook-up and final commissioning activities continued in the second quarter and first oil from the field is expected in September 2014. The drilling of a fourth production well also commenced in the second quarter.

Stampede (Offshore U.S.): During the second quarter, the Corporation received U.S. government approval to unitize Blocks 468, 512, and the eastern half of 511. The Stampede development project continues to progress, and project sanction is expected later this year.

Capital and Exploratory Expenditures:

Capital and exploratory expenditures in the second quarter of 2014 were $1,256 million, down from $1,586 million in the prior year quarter.

Asset Sales:

During the second quarter, the Corporation completed the sale of its assets in Thailand for approximately $805 million after working capital and other adjustments, based on an effective date of July 1, 2013. In addition, the Corporation completed the sale of approximately 30,000 additional net acres of Utica dry gas acreage, including related wells and facilities, for total proceeds of $485 million and the sale of its 50 percent interest in a joint venture that is constructing an electric generating facility in Newark, New Jersey for cash proceeds of $320 million. Finally, in May, the Corporation announced that it had agreed to sell its retail business for a total of $2.874 billion, comprising $2.6 billion in cash plus $274 million for retail gasoline station leases. The Corporation’s divestiture process continues for its energy trading business.

Liquidity:

Net cash provided by operating activities was $946 million in the second quarter of 2014, down from $1,247 million in the same quarter of 2013, primarily reflecting the impact of the asset divestiture program. At June 30, 2014, cash and cash equivalents totaled $2,240 million, compared with $1,814 million at December 31, 2013. Total debt was $6,077 million at June 30, 2014 compared with $5,798 million at December 31, 2013. In June, the Corporation issued $600 million of fixed-rate notes comprising $300 million of 3-year bonds with a coupon of 1.3 percent and $300 million of 10-year bonds with a coupon of 3.5 percent. Proceeds from the debt offerings were primarily used to refinance $250 million of matured debt obligations and retire various lease obligations relating to retail gasoline stations. The Corporation’s debt to capitalization ratio at June 30, 2014 was 20.0 percent, up from 19.0 percent at the end of 2013.

Returning Capital to Shareholders:

In conjunction with the announcement of the Corporation’s sale of its retail business, the existing share repurchase program was increased to $6.5 billion from $4 billion. In the second quarter of 2014, the Corporation repurchased approximately 8.3 million shares of common stock at a cost of approximately $768 million for an average cost per share of $91.85. Since initiation of the buyback program in August 2013, total shares repurchased through June 30, 2014 were approximately 40.2 million shares at a total cost of approximately $3.3 billion for an average cost per share of $82.09. The total shares repurchased through June 30, 2014 represent approximately 12 percent of fully diluted shares at the commencement of the repurchase program.

Dividends paid to shareholders amounted to $156 million in the first half of 2014 and $69 million in the first half of 2013.

Downstream Businesses:

The downstream businesses reported losses of $35 million in the second quarter of 2014, compared with income of $26 million in the same period in 2013. Adjusted net income was $31 million in the second quarter of 2014, down from $47 million in the second quarter of 2013 primarily due to the divestiture of the energy marketing and terminal businesses in the fourth quarter of 2013.

The divested downstream businesses have been reported as discontinued operations in the consolidated financial statements. Effective as of the second quarter of 2014, retail marketing has been reported as discontinued operations for all periods presented in the consolidated financial statements due to the agreed sale of the business in May. The energy trading joint venture will be classified as discontinued operations when the business is divested.

Items Affecting Comparability of Earnings Between Periods:

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	(unaudited)						(unaudited)
	2014			2013			2014			2013
	(In millions)
Exploration and Production	$	574		$	933		$	568		$	1,521
Corporate and Interest		(9	)		(1	)		(17	)		(12	)
Downstream Businesses		(66	)		(21	)		(112	)		9
Total items affecting comparability of earnings
between periods	$	499		$	911		$	439		$	1,518

Exploration and Production: Second quarter 2014 Exploration and Production results included an after-tax gain of $706 million ($706 million pre-tax) from the sale of the Corporation’s assets in Thailand. This nontaxable sale caused the Corporation’s effective income tax rate in the quarter to be substantially lower than normal. In addition, the Corporation recognized an after-tax gain of $35 million ($62 million pre-tax) from the sale of

acreage and related wells in the Utica. These gains were partially offset by an after-tax charge of $105 million ($169 million pre-tax) to write-off a previously capitalized exploration well in the western half of Block 469 in the Gulf of Mexico, since the block will not be part of the unitized Stampede Development Project. In addition, the Corporation recorded net after-tax charges totaling $62 million ($132 million pre-tax) primarily to write-off leasehold acreage in the Paris Basin of France, the Shakrok Block in Kurdistan, and its interest in a natural gas exploration project, offshore Sabah, Malaysia.

Corporate and Interest: Second quarter 2014 results included after-tax charges of $9 million ($15 million pre-tax) for severance, exit related costs and other charges.

Downstream Businesses: Second quarter 2014 results included an after-tax charge of $72 million ($115 million pre-tax) related to the early buyout of leased retail gasoline stations acquired in the quarter in connection with the Corporation’s divestiture of its retail business. Severance, exit related costs and other charges totaled $18 million after-tax ($29 million pre-tax). These charges were partially offset by an after-tax gain of $24 million ($39 million pre-tax) resulting from the liquidation of last-in, first-out (LIFO) inventories.

Reconciliation of U.S. GAAP to Non-GAAP measures:

The following table reconciles reported net income attributable to Hess Corporation and adjusted net income:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	(unaudited)				(unaudited)
	2014		2013		2014		2013
	(In millions)
Net income attributable to Hess Corporation	$	931	$	1,431	$	1,317	$	2,707
Less: Total items affecting comparability of earnings
between periods		499		911		439		1,518
Adjusted net income attributable to Hess Corporation	$	432	$	520	$	878	$	1,189

The following table reconciles reported net cash provided by operating activities to cash flows from operations before changes in working capital:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	(unaudited)				(unaudited)
	2014		2013		2014		2013
	(In millions)
Net cash provided by operating activities	$	946	$	1,247	$	2,104	$	2,066
Add back: Increases in working capital		368		70		616		927
Cash flows from operations, excluding
working capital changes	$	1,314	$	1,317	$	2,720	$	2,993

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

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. 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. Estimates and projections contained in this release are based on the Company’s current understanding and assessment based on reasonable assumptions. Actual results may differ materially from these estimates and projections due to certain risk factors discussed in the Corporation’s periodic filings with the Securities and Exchange Commission and other factors.

Non-GAAP financial measures

The Corporation has used two non-GAAP financial measures in this earnings release. “Adjusted net income” presented in this release is defined as reported net income attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Cash flows from operations, excluding working capital changes” is defined as net cash provided by operating activities before adjustments for changes in working capital. We believe that investors’ understanding of our performance is enhanced by disclosing these measures. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income or cash flow. Reconciliations of both reported net income attributable to Hess Corporation (U.S. GAAP) to adjusted net income and net cash provided by operating activities (U.S. GAAP) to cash flows from operations excluding working capital changes, are provided in the release.

For Hess Corporation

Investor Contact:

Jay Wilson

(212) 536-8940

Media Contact:

Michael Henson/Patrick Scanlan

Sard Verbinnen & Co

(212) 687-8080

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

	Second			Second			First
	Quarter			Quarter			Quarter
	2014			2013			2014
Income Statement
Revenues and Non-operating Income
Sales and other operating revenues	$	2,846		$	3,069		$	2,772
Gains on asset sales, net		779			1,111			10
Other, net		(25	)		(18	)		(90	)

Total revenues and non-operating income		3,600			4,162			2,692

Costs and Expenses
Cost of products sold (excluding items shown separately below)		444			421			393
Operating costs and expenses		522			510			466
Production and severance taxes		78			97			62
Marketing expenses		25			28			40
Exploration expenses, including dry holes and lease impairment		460			200			119
General and administrative expenses		143			168			142
Interest expense		85			117			81
Depreciation, depletion and amortization		787			614			725

Total costs and expenses		2,544			2,155			2,028

Income from continuing operations before income taxes		1,056			2,007			664
Provision (benefit) for income taxes		89			407			249

Income from continuing operations		967			1,600			415
Income (loss) from discontinued operations		(37	)		16			6

Net income		930			1,616			421
Less: Net income (loss) attributable to noncontrolling interests		(1	)		185			35
Net income attributable to Hess Corporation	$	931		$	1,431		$	386

See "Downstream Businesses" on page 6 for basis of presentation.

Cash Flow Information
Net cash provided by operating activities (*)	$	946		$	1,247		$	1,158
Net cash provided by (used in) investing activities		232			936			(262	)
Net cash provided by (used in) financing activities		(226	)		(1,902	)		(1,422	)
Net increase (decrease) in cash and cash equivalents	$	952		$	281		$	(526	)

(*) Includes changes in working capital.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

	First Half
	2014			2013
Income Statement
Revenues and Non-operating Income
Sales and other operating revenues	$	5,618		$	6,537
Gains on asset sales, net		789			1,799
Other, net		(115	)		(55	)

Total revenues and non-operating income		6,292			8,281

Costs and Expenses
Cost of products sold (excluding items shown separately below)		837			1,017
Operating costs and expenses		988			1,095
Production and severance taxes		140			227
Marketing expenses		65			60
Exploration expenses, including dry holes and lease impairment		579			419
General and administrative expenses		285			317
Interest expense		166			223
Depreciation, depletion and amortization		1,512			1,293

Total costs and expenses		4,572			4,651

Income from continuing operations before income taxes		1,720			3,630
Provision (benefit) for income taxes		338			868

Income from continuing operations		1,382			2,762
Income (loss) from discontinued operations		(31	)		127

Net income		1,351			2,889
Less: Net income attributable to noncontrolling interests		34			182
Net income attributable to Hess Corporation	$	1,317		$	2,707

See "Downstream Businesses" on page 6 for basis of presentation.

Cash Flow Information
Net cash provided by operating activities (*)	$	2,104		$	2,066
Net cash provided by (used in) investing activities		(30	)		675
Net cash provided by (used in) financing activities		(1,648	)		(2,658	)
Net increase (decrease) in cash and cash equivalents	$	426		$	83

(*) Includes changes in working capital.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)





	June 30,			December 31,
	2014			2013
Balance Sheet Information

Cash and cash equivalents	$	2,240		$	1,814
Assets held for sale		2,116			1,097
Other current assets		4,411			5,688
Investments		213			687
Property, plant and equipment – net		27,236			28,771
Other long-term assets		4,855			4,697
Total assets	$	41,071		$	42,754

Short-term debt and current maturities of long-term debt	$	124		$	378
Liabilities associated with assets held for sale		343			286
Other current liabilities		4,790			5,894
Long-term debt		5,953			5,420
Other long-term liabilities		5,507			5,992
Total equity excluding other comprehensive income (loss)		24,738			25,122
Accumulated other comprehensive income (loss)		(384	)		(338	)
Total liabilities and equity	$	41,071		$	42,754

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

	Second		Second		First
	Quarter		Quarter		Quarter
	2014		2013		2014
Capital and Exploratory Expenditures
Exploration and Production
United States
Bakken	$	429	$	546	$	451
Other Onshore		190		210		171
Total Onshore		619		756		622
Offshore		157		217		162
Total United States		776		973		784

Europe		162		172		145
Africa		119		163		100
Asia and other		199		278		195

Total Capital and Exploratory Expenditures	$	1,256	$	1,586	$	1,224

Total exploration expenses charged to income included above	$	54	$	113	$	78

	First Half
	2014		2013
Capital and Exploratory Expenditures
Exploration and Production
United States
Bakken	$	880	$	1,081
Other Onshore		361		392
Total Onshore		1,241		1,473
Offshore		319		445
Total United States		1,560		1,918

Europe		307		391
Africa		219		392
Asia and other		394		504

Total Capital and Exploratory Expenditures	$	2,480	$	3,205

Total exploration expenses charged to income included above	$	132	$	223

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

	Second Quarter 2014
	United States				International				Total

Sales and other operating revenues	$	1,653			$	1,176			$	2,829
Gains on asset sales, net		62				704				766
Other, net		(12	)			(16	)			(28	)

Total revenues and non-operating income		1,703				1,864				3,567

Costs and Expenses
Cost of products sold (excluding items shown separately below)		412				32				444
Operating costs and expenses		214				308				522
Production and severance taxes		67				11				78
Exploration expenses, including dry holes and lease impairment		208				252				460
General and administrative expenses		70				9				79
Depreciation, depletion and amortization		433				349				782

Total costs and expenses		1,404				961				2,365

Results of operations before income taxes		299				903				1,202
Provision (benefit) for income taxes		118				27				145

Net income		181				876				1,057
Less: Net income attributable to noncontrolling interests		-				-				-

Net income attributable to Hess Corporation	$	181		(a)	$	876		(b)	$	1,057


	Second Quarter 2013
	United States				International				Total

Sales and other operating revenues	$	1,517			$	1,494			$	3,011
Gains on asset sales, net		(17	)			1,128				1,111
Other, net		(4	)			(14	)			(18	)

Total revenues and non-operating income		1,496				2,608				4,104

Costs and Expenses
Cost of products sold (excluding items shown separately below)		371				50				421
Operating costs and expenses		200				310				510
Production and severance taxes		55				42				97
Exploration expenses, including dry holes and lease impairment		63				137				200
General and administrative expenses		47				40				87
Depreciation, depletion and amortization		335				274				609

Total costs and expenses		1,071				853				1,924

Results of operations before income taxes		425				1,755				2,180
Provision (benefit) for income taxes		171				307				478

Net income		254				1,448				1,702
Less: Net income attributable to noncontrolling interests		-				169				169

Net income attributable to Hess Corporation	$	254		(a)	$	1,279		(b)	$	1,533

(a)	The results of crude oil hedging activities were after-tax realized losses of $2 million in the second quarter of 2014, and gains of $13 million in the second quarter of 2013.

(b)	The results of crude oil hedging activities were after-tax realized losses of $2 million in the second quarter of 2014, and gains of $20 million in the second quarter of 2013.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

	First Quarter 2014
	United States			International				Total

Sales and other operating revenues	$	1,545		$	1,128			$	2,673
Gains on asset sales, net		-			10				10
Other, net		(2	)		(4	)			(6	)

Total revenues and non-operating income		1,543			1,134				2,677

Costs and Expenses
Cost of products sold (excluding items shown separately below)		414			(21	)			393
Operating costs and expenses		209			257				466
Production and severance taxes		58			4				62
Exploration expenses, including dry holes and lease impairment		47			72				119
General and administrative expenses		58			22				80
Depreciation, depletion and amortization		360			361				721

Total costs and expenses		1,146			695				1,841

Results of operations before income taxes		397			439				836
Provision (benefit) for income taxes		157			171				328

Net income		240			268				508
Less: Net income attributable to noncontrolling interests		-			-				-

Net income attributable to Hess Corporation	$	240		$	268		(a)	$	508

(a)	The after-tax realized gains from crude oil hedging activities were $2 million in the first quarter of 2014.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)

(IN MILLIONS)

	First Half 2014
	United States				International				Total

Sales and other operating revenues	$	3,198			$	2,304			$	5,502
Gains on asset sales, net		62				714				776
Other, net		(14	)			(20	)			(34	)

Total revenues and non-operating income		3,246				2,998				6,244

Costs and Expenses
Cost of products sold (excluding items shown separately below)		826				11				837
Operating costs and expenses		423				565				988
Production and severance taxes		125				15				140
Exploration expenses, including dry holes and lease impairment		255				324				579
General and administrative expenses		128				31				159
Depreciation, depletion and amortization		793				710				1,503

Total costs and expenses		2,550				1,656				4,206

Results of operations before income taxes		696				1,342				2,038
Provision (benefit) for income taxes		275				198				473

Net income		421				1,144				1,565
Less: Net income attributable to noncontrolling interests		-				-				-

Net income attributable to Hess Corporation	$	421		(a)	$	1,144		(b)	$	1,565


	First Half 2013
	United States				International				Total

Sales and other operating revenues	$	3,208			$	3,269			$	6,477
Gains on asset sales, net		(17	)			1,816				1,799
Other, net		(10	)			(43	)			(53	)

Total revenues and non-operating income		3,181				5,042				8,223

Costs and Expenses
Cost of products sold (excluding items shown separately below)		948				69				1,017
Operating costs and expenses		391				704				1,095
Production and severance taxes		112				115				227
Exploration expenses, including dry holes and lease impairment		171				248				419
General and administrative expenses		88				84				172
Depreciation, depletion and amortization		700				585				1,285

Total costs and expenses		2,410				1,805				4,215

Results of operations before income taxes		771				3,237				4,008
Provision (benefit) for income taxes		316				697				1,013

Net income		455				2,540				2,995
Less: Net income attributable to noncontrolling interests		-				176				176

Net income attributable to Hess Corporation	$	455		(a)	$	2,364		(b)	$	2,819

(a)	The results of crude oil hedging activities were after-tax realized losses of $2 million in the first six months of 2014, and gains of $9 million in the first six months of 2013.

(b)	The results of crude oil hedging activities were after-tax realized gains of $0.3 million in the first six months of 2014, and gains of $13 million in the first six months of 2013.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)

	Second		Second		First
	Quarter		Quarter		Quarter
	2014		2013		2014
Operating Data
Net Production Per Day (in thousands)
Crude oil - barrels
United States
Bakken		64		52		58
Other Onshore		9		11		9
Total Onshore		73		63		67
Offshore		54		48		51
Total United States		127		111		118

Europe		36		33		39
Africa		51		73		48
Asia		2		9		5
Total		216		226		210

Natural gas liquids - barrels
United States
Bakken		8		6		2
Other Onshore		5		4		2
Total Onshore		13		10		4
Offshore		7		6		7
Total United States		20		16		11

Europe		1		1		2
Asia		-		1		-
Total		21		18		13

Natural gas - mcf
United States
Bakken		48		39		15
Other Onshore		50		27		26
Total Onshore		98		66		41
Offshore		83		75		78
Total United States		181		141		119

Europe		35		15		37
Asia and other		275		427		415
Total		491		583		571

Barrels of oil equivalent		319		341		318

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)

	First Half
	2014		2013
Operating Data
Net Production Per Day (in thousands)
Crude oil - barrels
United States
Bakken		61		52
Other Onshore		9		12
Total Onshore		70		64
Offshore		53		48
Total United States		123		112

Europe		37		49
Africa		49		75
Asia		4		13
Total		213		249

Natural gas liquids - barrels
United States
Bakken		5		6
Other Onshore		4		4
Total Onshore		9		10
Offshore		7		7
Total United States		16		17

Europe		1		-
Asia		-		1
Total		17		18

Natural gas - mcf
United States
Bakken		31		37
Other Onshore		38		27
Total Onshore		69		64
Offshore		81		73
Total United States		150		137

Europe		36		14
Asia and other		345		437
Total		531		588

Barrels of oil equivalent		319		365

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)

	Second		Second		First
	Quarter		Quarter		Quarter
	2014		2013		2014

Sales Volumes Per Day (in thousands)
Crude oil - barrels		222		233		197
Natural gas liquids - barrels		21		18		12
Natural gas - mcf		491		582		571
Barrels of oil equivalent		325		347		305

Sales Volumes (in thousands)
Crude oil - barrels		20,193		21,180		17,750
Natural gas liquids - barrels		1,942		1,593		1,122
Natural gas - mcf		44,662		52,969		51,357
Barrels of oil equivalent		29,578		31,601		27,432


			First Half
			2014		2013

Sales Volumes Per Day (in thousands)
Crude oil - barrels				210		254
Natural gas liquids - barrels				17		18
Natural gas - mcf				530		589
Barrels of oil equivalent				315		370

Sales Volumes (in thousands)
Crude oil - barrels				37,943		45,947
Natural gas liquids - barrels				3,064		3,240
Natural gas - mcf				96,019		106,631
Barrels of oil equivalent				57,010		66,959

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)

	Second		Second		First
	Quarter		Quarter		Quarter
	2014		2013		2014
Operating Data
Average Selling Prices
Crude oil - per barrel (including hedging)
United States
Onshore	$	92.44	$	89.97	$	88.04
Offshore		100.42		106.71		99.34
Total United States		95.82		97.20		92.94

Europe		111.03		77.14		109.17
Africa		108.83		106.15		108.40
Asia		106.33		105.27		102.29
Worldwide		101.70		97.89		99.17

Crude oil - per barrel (excluding hedging)
United States
Onshore	$	92.44	$	88.91	$	88.04
Offshore		101.09		103.43		99.34
Total United States		96.10		95.18		92.94

Europe		111.39		75.22		108.74
Africa		109.10		102.78		107.92
Asia		106.33		105.27		102.29
Worldwide		101.99		95.45		99.00

Natural gas liquids - per barrel
United States
Onshore	$	36.99	$	38.84	$	53.46
Offshore		32.21		27.81		34.07
Total United States		35.39		34.57		41.54

Europe		55.77		53.16		63.83
Asia		-		66.90		-
Worldwide		36.59		36.28		44.28

Natural gas - per mcf
United States
Onshore	$	4.36	$	3.19	$	6.10
Offshore		4.01		3.17		4.37
Total United States		4.22		3.18		4.96

Europe		10.51		9.99		11.48
Asia and other		7.24		7.39		7.23
Worldwide		6.35		6.44		7.03

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)

	First Half
	2014		2013
Operating Data
Average Selling Prices
Crude oil - per barrel (including hedging)
United States
Onshore	$	90.35	$	89.71
Offshore		99.89		107.11
Total United States		94.44		97.12

Europe		110.10		68.37
Africa		108.65		107.94
Asia		104.66		109.30
Worldwide		100.52		96.08

Crude oil - per barrel (excluding hedging)
United States
Onshore	$	90.35	$	89.37
Offshore		100.24		106.03
Total United States		94.58		96.46

Europe		110.06		67.80
Africa		108.62		106.88
Asia		104.66		109.30
Worldwide		100.59		95.34

Natural gas liquids - per barrel
United States
Onshore	$	40.91	$	41.21
Offshore		33.14		27.80
Total United States		37.54		35.97

Europe		60.16		52.58
Asia		-		72.68
Worldwide		39.41		37.49

Natural gas - per mcf
United States
Onshore	$	4.87	$	3.03
Offshore		4.18		2.86
Total United States		4.52		2.94

Europe		11.01		9.08
Asia and other		7.23		7.57
Worldwide		6.72		6.53

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