Exploration and production earnings were $397 million in the third quarter of 2009, compared with $699 million in the third quarter of 2008.
The corporation's oil and gas production was 420,000 barrels of oil equivalent per day in the third quarter of 2009, an increase of 16% from the third quarter of 2008. The company's average worldwide crude-oil selling price, including the effect of hedging, was $56.07 [image-nocss] per barrel in the third quarter of 2009, compared with $93.36 per barrel in the third quarter of 2008. The corporation's average worldwide natural-gas selling price was $4.60 per Mcf in the third quarter of 2009, compared with $7.60 per Mcf in the third quarter of 2008.
Marketing and refining earnings were $38 million in the third quarter of 2009, compared with $161 million in the third quarter of 2008. Refining operations generated a loss of $3 million in the third quarter of 2009, compared with income of $46 million in the third quarter of 2008 as a result of lower refining margins.
Marketing earnings were $35 million in the third quarter of 2009, compared with $110 million in the third quarter of 2008, primarily due to lower margins. Trading activities produced income of $6 million in the third quarter of 2009 and $5 million in the third quarter of 2008.
In the third quarter of 2009, Hess recorded after-tax income of $89 million related to the resolution of a royalty dispute on production from certain leases subject to the U.S. Deep Water Royalty Relief Act. The corporation also recorded a benefit of $12 million due to an income-tax adjustment relating to refining operations.
Net cash provided by operating activities was $534 million in the third quarter of 2009, compared with $1,205 million in the third quarter of 2008. Capital and exploratory expenditures for the third quarter of 2009 amounted to $668 million, of which $646 million related to exploration and production operations.
Capital and exploratory expenditures for the third quarter of 2008 amounted to $1,368 million, of which $1,338 million related to exploration and production operations.
As of Sept. 30, 2009, cash and cash equivalents totaled $957 million, compared with $908 million at Dec. 31, 2008. Total debt was $4,379 million at Sept. 30 and $3,955 million at Dec. 31. The company's debt-to-capitalization ratio at Sept. 30 was 25.2%, compared with 24.2% at the end of 2008.
Hess Corp., New York, is a global independent energy company engaged in the exploration for and production of crude oil and natural gas, as well as in refining and marketing refined petroleum products, natural gas and electricity. The company operates about 1,360 Hess-branded sites in 16 states along the East Coast. It also continues to selectively expand its HESS EXPRESS convenience-store network.
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