Hess Corp HES
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/24/2013

Operator: Good day, ladies and gentlemen, and welcome to the First Quarter 2013 Hess Corporation Earnings Conference Call. My name is Mathew, and I'll be your operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session towards the end of this conference. As a reminder, this call is being recorded for replay purposes.

Now, I would like to turn the call over to Mr. Jay Wilson, Vice President of Investor Relations. Please proceed, sir.

Jay R. Wilson - VP, IR: Thank you, Mathew. Good morning, everyone and thank you for participating in our first quarter earnings conference call. Our earnings release was issued this morning and appears on our website,

Today's conference call contains projections and other forward-looking statements within the meaning of the Federal Securities laws. These statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in such statements. These risks include those set forth in the Risk Factor section of Hess's Annual and Quarterly reports filed with the SEC.

With me today are John Hess, Chairman of the Board and Chief Executive Officer; Greg Hill, President, Worldwide Exploration and Production and John Rielly, Senior Vice President and Chief Financial Officer.

I'll now turn the call over to John Hess.

John B. Hess - Chairman and CEO: Thank you, Jay, and welcome to our first quarter conference call. I will make a few brief comments, after which Greg Hill will provide an operational update and John Riley will review our financial results.

As most of you are aware, our management team and Board of Directors have been in the process of undertaking a multiyear transformation of Hess Corporation into a more focused, higher growth, lower risk pure play E&P Company.

We are successfully executing our plan and are gratified by the results of our first quarter adjusted earnings of $669 million, which from last year's first quarter of $509 million represents an increase of 31%. We achieved these results even after the loss of production from the sale of our interest in the Beryl, Schiehallion and Bittern fields in the United Kingdom North Sea as well as the downtime associated with the Valhall redevelopment project in Norway.

This accomplishment in the context of our continuing transformation is testimony to the focus, commitment and hard work of our dedicated team of senior managers and employees. While we will get into the financial details behind these results later, I would like to spend the next few minutes reviewing the progress we have made toward becoming a pure play E&P company. On March 4 of this year, we announced the final steps of this strategy with three overarching goals. One, that we continue to reshape our upstream portfolio and exit our remaining downstream operations. Two, that the proceeds from these divestitures be allocated both the fund, the Company's future growth and provide substantial current returns to shareholders. Three, that has deliver on its forecast of 5% to 8% compound average annual growth in production.

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