Businessweek

Hess Corporation, an independent energy company, engages in the exploration and production of crude oil and natural gas, as well as marketing refined petroleum products, natural gas, and electricity. The company also operates terminals and retail gasoline stations, majority of which include convenience stores, which are located on the East Coast of the United States. Through February 2013, the company also manufactured refined petroleum products. Segments The company operates through two segments, Exploration and Production (E&P) and Marketing and Refining (M&R). E&P This segment explores for, develops, produces, purchases, transports, and sells crude oil and natural gas. United States The company’s production in the United States is from offshore properties in the Gulf of Mexico, and onshore properties principally in the Williston Basin of North Dakota, as well as in the Permian Basin of Texas. Onshore: In North Dakota, the company holds approximately 725,000 net acres in the Bakken oil shale play. In Texas, the company operates and holds a 34% interest in the Seminole-San Andres Unit. It also holds approximately 45,000 net acres in the Cotulla area of the Eagle Ford Shale. In Ohio’s Utica Shale, the company owns a 100% interest in approximately 95,000 acres. The company also owns a 50% undivided interest in CONSOL Energy Inc.’s (CONSOL) approximately 200,000 gross acres. In 2012, the company participated in 12 wells, 10 of which were joint venture wells with CONSOL. The company has also contracted to acquire seismic data. Offshore: The company’s production offshore in the Gulf of Mexico is principally from the Shenzi (Hess 28%), Llano (Hess 50%), Conger (Hess 38%), Baldpate (Hess 50%), Hack Wilson (Hess 25%), and Penn State (Hess 50%) fields. At the Shenzi Field, development drilling continued during 2012 with the completion of two wells. At the outside operated Llano Field, a workover was completed on the Llano #3 well and drilling of the Llano #4 production well commenced in 2012. As of December 31, 2012, the company had interests in 252 blocks in the Gulf of Mexico, of which 223 were exploration blocks comprising approximately 855,000 net undeveloped acres, with an additional 66,000 net acres held for production and development operations. Europe As of December 31, 2012, 31% of the company’s total proved reserves were located in Europe (Norway 21%, Denmark 4%, Russia 5%, and the United Kingdom 1%). During 2012, 28% of the company’s crude oil and natural gas liquids production and 7% of its natural gas production were from European operations. Norway: The company has interest in the Valhall Field (Hess 64%). As of December 31, 2012, the company also held an interest in the Hod Field (Hess 63%). United Kingdom: The company has interests in the Atlantic (Hess 25%); Cromarty (Hess 90%); Fife, Flora, and Angus (Hess 85%); Fergus (Hess 65%); Ivanhoe and Rob Roy (Hess 77%); Renee (Hess 14%); and Rubie (Hess 19%) fields. Denmark: Production comes from the company’s operated interest in the South Arne Field (Hess 62%), offshore Denmark. Russia: The company’s activities in Russia are conducted through its interest in Samara-Nafta, a subsidiary operating in the Volga-Urals region (Hess 90%). As of December 31, 2012, this subsidiary had exploration and production rights in 23 license areas. France: The company has a 100% interest in and is operator of approximately 630,000 acres in the Paris Basin. Africa As of December 31, 2012, 16% of the company’s total proved reserves were located in Africa (Equatorial Guinea 4%, Libya 11%, and Algeria 1%). During 2012, 25% of the company’s crude oil and natural gas liquids production was from its African operations. Equatorial Guinea: The company is operator and owns an interest in Block G (Hess 85% paying interest), which contains the Ceiba Field and the Okume Complex. The national oil company of Equatorial Guinea holds a 5% carried interest in Block G. During 2012, the company completed three workovers and drilled three production wells in the Ceiba Field. Libya: The company, in conjunction with its Oasis Group partners,