ITEM 1. BUSINESS
Amerada Hess Corporation (the "Registrant") is a Delaware corporation, incorporated in 1920. The Registrant and its subsidiaries (collectively referred to as the "Corporation") explore for, produce, purchase, transport and sell crude oil and natural gas. These exploration and production activities take place in the United States, United Kingdom, Norway, Denmark, Gabon, Algeria, Azerbaijan, Indonesia, Thailand, Malaysia, Brazil and other countries. The Corporation also manufactures, purchases, transports, trades and markets refined petroleum and other energy products. The Corporation owns 50% of a refinery joint venture in the United States Virgin Islands, and another refining facility, terminals and retail outlets located on the East Coast of the United States.
EXPLORATION AND PRODUCTION
At December 31, 2000, the Corporation had 755 million barrels of proved crude oil and natural gas liquids reserves compared with 698 million barrels at the end of 1999. Proved natural gas reserves were 1,807 million Mcf at December 31, 2000 compared with 1,904 million Mcf at December 31, 1999. Of the Corporation's proved reserves (on a barrel of oil equivalent basis), 23% are located in the United States, 55% are located in the United Kingdom, Norwegian and Danish sectors of the North Sea and the remainder are located in Algeria, Azerbaijan, Gabon, Indonesia and Thailand.
Worldwide crude oil and natural gas liquids production amounted to 261,000 barrels per day in 2000 compared with 232,000 barrels per day in 1999. Worldwide natural gas production was 679,000 Mcf per day in 2000 compared with 643,000 Mcf per day in 1999. The Corporation has a number of oil and gas developments in progress and it also has an inventory of domestic and foreign drillable prospects.
UNITED STATES. Amerada Hess Corporation operates mainly offshore in the Gulf of Mexico and onshore in Texas, Louisiana and North Dakota. During 2000, 26% of the Corporation's crude oil and natural gas liquids production and 42% of its natural gas production were from United States operations.
The table below sets forth the Corporation's average daily net production by area in the United States:
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At December 31, 2000, the Corporation has an interest in 151 exploration blocks in the Gulf of Mexico of which it operates 101. The Corporation has 514,000 net undeveloped acres in the Gulf of Mexico.
In the first quarter of 2001, the Corporation reached agreement to purchase natural gas properties onshore and offshore Louisiana for approximately $750 million. Production from these properties is averaging
about 200,000 Mcf of natural gas equivalent per day in 2001 and will peak at about 250,000 Mcf per day in 2003. In addition, the Corporation acquired Gulf of Mexico properties that will produce about 30,000 Mcf of natural gas equivalent per day in 2001.
UNITED KINGDOM. The Corporation's activities in the United Kingdom are conducted by its wholly-owned subsidiary, Amerada Hess Limited. During 2000, 48% of the Corporation's crude oil and natural gas liquids production and 44% of its natural gas production were from United Kingdom operations.
The table below sets forth the Corporation's average daily net production in the United Kingdom by field and the Corporation's interest in each at December 31, 2000:
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The Corporation is developing several oil and gas fields in the United Kingdom North Sea and is evaluating other discoveries. Amerada Hess Limited owns 25% of the shares of Premier Oil plc, a United Kingdom company with international exploration and production interests.
NORWAY. The Corporation's activities in Norway are conducted through its wholly-owned Norwegian subsidiary, Amerada Hess Norge A/S. Norwegian operations accounted for crude oil and natural gas liquids production of 27,000 barrels per day in 2000 and 1999. Natural gas production averaged 24,000 Mcf and 31,000 Mcf per day in 2000 and 1999, respectively. Substantially all of the 2000 Norwegian production is from the Corporation's 28.09% interest in the Valhall Field. An enhanced-recovery waterflood project for the Valhall Field has been approved and initial water injection is scheduled for 2003.
DENMARK. Amerada Hess ApS, the Corporation's Danish subsidiary, operates the South Arne Field, which completed its first full year of production in 2000. Net production from the Corporation's 57.48% interest in the South Arne Field was 25,000 barrels of oil per day and 37,000 Mcf of natural gas per day in 2000.
GABON. Amerada Hess Production Gabon (AHPG), the Corporation's 77.5% Gabonese subsidiary, has a 10% interest in the Rabi Kounga Field in Gabon. The Corporation's share of production averaged 7,000 net
barrels of crude oil per day in 2000 and 10,000 net barrels per day in 1999. AHPG has a 40% interest in the onshore Atora Field, which began producing in 2001. Net production in 2001 is expected to be approximately 9,000 barrels of crude oil per day from the Corporation's interests in Gabon.
INDONESIA. The Corporation has a 30% interest in the Jabung Production Sharing Contract, which contains the North Geragai and Makmur fields. Net production from these fields averaged 4,000 barrels of oil per day in 2000. The Jabung production sharing contract area contains additional discoveries for which development plans are either underway or being considered. In addition, the Corporation has interests in other production sharing contracts in Indonesia on which discoveries have been made.
THAILAND. The Corporation has a 15% interest in the Pailin gas field offshore Thailand. Net production from the Corporation's interest in 2000 averaged 23,000 Mcf of natural gas per day.
ALGERIA. In 2000, the Corporation acquired a 49% interest in a joint venture with the Algerian national oil company, which will redevelop three Algerian oil fields. The Corporation will invest up to $500 million over the next five years for new wells, workovers of existing wells and water injection and gas compression facilities. The Corporation expects net production of 14,000 barrels of crude oil per day in 2001.
AZERBAIJAN. The Corporation has a 2.72% equity interest in the AIOC Consortium in the Caspian Sea. Net production from its interest averaged 3,000 barrels of oil per day in 2000 and is expected to average in excess of 5,000 barrels per day late in 2001.
BRAZIL. The Corporation has varying interests in six exploration blocks offshore Brazil. Seismic acquisitions and initial drilling have taken place. Additional seismic activity and two exploration wells are planned in 2001.
REFINING AND MARKETING
REFINING. The Corporation owns a 50% interest in the HOVENSA refining joint venture in the United States Virgin Islands. In addition, it owns and operates a refining facility in Port Reading, New Jersey.
HOVENSA. In 2000, the Corporation's share of refinery crude runs averaged 211,000 barrels per day compared with 209,000 barrels per day in 1999. The refinery joint venture with a subsidiary of Petroleos de Venezuela S.A. was formed on October 30, 1998. Petroleos de Venezuela supplies 155,000 barrels per day of Venezuelan Mesa crude oil to HOVENSA under a long-term crude oil supply contract. The remaining crude oil is purchased mainly under contracts of one year or less from third parties and through spot purchases on the open market. After sales of refined products by HOVENSA to third parties, the Corporation purchases 50% of HOVENSA's remaining production at market prices. Construction is in process on a 58,000 barrel per day delayed coking unit and related facilities, which are anticipated to be completed in the second quarter of 2002. HOVENSA has a long-term supply contract with Petroleos de Venezuela to purchase 115,000 barrels per day of heavy Venezuelan Merey crude oil commencing on completion of the coker.
Port Reading Facility. The Corporation owns and operates a fluid catalytic cracking facility in Port Reading, New Jersey. This facility processes vacuum gas oil and residual fuel oil. It currently operates at a rate of approximately 60,000 barrels per day and produces substantially all gasoline and heating oil.
MARKETING. The Corporation markets refined petroleum products on the East Coast of the United States to the motoring public, wholesale distributors, industrial and commercial users, other petroleum companies, commercial airlines, governmental agencies and public utilities. It also markets natural gas to utilities and other industrial and commercial customers. The Corporation has expanded its energy marketing activities to include electricity.
Including gasoline stations acquired from the Meadville Corporation in 2000, the Corporation has 929 HESS(R) gasoline stations at December 31, 2000, of which approximately 75% are company operated. Most of the gasoline stations are concentrated in densely populated areas, principally in New York, New Jersey, Pennsylvania and Florida, and approximately 540 have convenience stores. The Corporation owns approximately 70% of the properties on which the stations are located.
In late 2000, the Corporation announced that it plans to invest approximately $90 million in a 50% joint venture which will own and operate 120 gasoline stations and 21 travel centers, located primarily in North Carolina, South Carolina and Virginia. Gasoline and diesel fuel will be sold under the Hess brand. The Corporation also reached agreement to purchase 53 retail outlets located in Boston and southern New Hampshire. The Corporation expects these transactions to close early in the second quarter of 2001.
During 2000, the Corporation's energy marketing activities included the sale and distribution of distillate and fuel oil to customers in its East Coast market area and the continued expansion of its natural gas marketing activities to industrial and commercial customers, principally through acquisitions. In addition, the Corporation has a wholly-owned subsidiary which provides distributed electric generation to industrial and commercial customers as an alternative to purchasing electric from local utilities. The Corporation also has invested in long-term technology to develop fuel cells for electricity generation through a joint venture with two other parties.
The Corporation has 23 terminals with an aggregate storage capacity of 22 million barrels concentrated in its East Coast marketing areas. Refined product sales averaged 366,000 barrels per day in 2000 and 344,000 barrels per day in 1999. Of total refined products sold in 2000, approximately 60% was obtained from HOVENSA and Port Reading. The Corporation purchased the balance from others under short-term supply contracts and by spot purchases from various sources.
COMPETITION AND MARKET CONDITIONS
The petroleum industry is highly competitive. The Corporation encounters competition from numerous companies in each of its activities, particularly in acquiring rights to explore for crude oil and natural gas and in the purchasing and marketing of refined products. Many competitors are larger and have substantially greater resources than the Corporation. The Corporation is also in competition with producers and marketers of other forms of energy.
The petroleum business involves large-scale capital expenditures and risk-taking. In the search for new oil and gas reserves, long lead times are often required from successful exploration to subsequent production. Operations in the petroleum industry depend on a depleting natural resource. The number of areas where it can be expected that hydrocarbons will be discovered in commercial quantities is constantly diminishing and exploration risks are high. Areas where hydrocarbons may be found are often in remote locations or offshore where exploration and development activities are capital intensive and operating costs are high.
The major foreign oil producing countries, including members of the Organization of Petroleum Exporting Countries ("OPEC"), exert considerable influence over the supply and price of crude oil and refined petroleum products. Their ability or inability to agree on a common policy on rates of production and other matters has a significant impact on oil markets and the Corporation. The derivatives markets are also important in influencing the selling prices of crude oil, natural gas and refined products. The Corporation cannot predict the extent to which future market conditions may be affected by foreign oil producing countries, the derivatives markets or other external influences.
OTHER ITEMS
The Corporation's operations may be affected by federal, state, local, territorial and foreign laws and regulations relating to tax increases and retroactive tax claims, expropriation of property, cancellation of contract rights, and changes in import regulations, as well as other political developments. The Corporation has been affected by certain of these events in various countries in which it operates. The Corporation markets motor fuels through lessee-dealers and wholesalers in certain states where legislation prohibits producers or refiners of crude oil from directly engaging in retail marketing of motor fuels. Similar legislation has been periodically proposed in the U.S. Congress and in various other states. The Corporation, at this time, cannot predict the effect of any of the foregoing on its future operations.
Compliance with various environmental and pollution control regulations imposed by federal, state and local governments is not expected to have a materially adverse effect on the Corporation's earnings and competitive position within the industry. The Corporation expended $7 million in 2000 for environmental
remediation, with a comparable amount anticipated for 2001. Capital expenditures for facilities, primarily to comply with federal, state and local environmental standards, were $5 million in 2000 and the Corporation anticipates comparable capital expenditures in 2001. Regulatory changes already made or anticipated in the United States will alter the composition and emissions characteristics of motor fuels. Future capital expenditures necessary to comply with these regulations may be substantial.
The number of persons employed by the Corporation averaged 9,891 in 2000 and 8,485 in 1999.
Additional operating and financial information relating to the business and properties of the Corporation appears in the text on pages 6 through 12 under the heading "Exploration and Production," on pages 15 and 16 under the heading "Refining and Marketing," on pages 19 through 26 under the heading "Financial Review" and on pages 27 through 57 of the accompanying 2000 Annual Report to Stockholders, which information is incorporated herein by reference.*
ITEM 2.
ITEM 2. PROPERTIES
Reference is made to Item 1 and the operating and financial information relating to the business and properties of the Corporation which is incorporated in Item 1 by reference.
Additional information relating to the Corporation's oil and gas operations follows:
1. OIL AND GAS RESERVES
The Corporation's net proved oil and gas reserves at the end of 2000, 1999 and 1998 are presented under Supplementary Oil and Gas Data in the accompanying 2000 Annual Report to Stockholders, which has been incorporated herein by reference.
During 2000, the Corporation provided oil and gas reserve estimates for 1999 to the Department of Energy. Such estimates are compatible with the information furnished to the SEC on Form 10-K, although not necessarily directly comparable due to the requirements of the individual requests. There were no differences in excess of 5%.
The Corporation has no contracts or agreements to sell fixed quantities of its crude oil production, although derivative instruments are used to reduce the effects of changes in selling prices. In the United States, natural gas is sold through the Company's marketing division to local distribution companies, and commercial, industrial, and other purchasers, on a spot basis and under contracts for varying periods. The Corporation's United States production is expected to approximate 40% of its 2001 commitments under these contracts which total approximately 1,100,000 Mcf per day. Third party purchases will be used to supplement the Corporation's production in fulfilling its sales commitments and in making spot sales. In the United Kingdom, approximately 25% of annual natural gas production is sold under field specific take or pay contracts. Additionally, approximately 300,000 Mcf per day of natural gas is sold by the Corporation's United Kingdom marketing subsidiary to commercial and industrial companies, generally under one year contracts, and to residential customers. After take or pay sales, the Company can supply approximately 70% of United Kingdom marketing sales commitments from its own production. The remainder will be supplied by purchases of natural gas from third parties. The Corporation attempts to minimize price and supply risks associated with its United States and United Kingdom natural gas supply commitments by entering into purchase contracts with third parties having adequate sources of supply, on terms substantially similar to those under its commitments.
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* Except as to information specifically incorporated herein by reference under Items 1, 2, 5, 6, 7, 7A and 8, no other information or data appearing in the 2000 Annual Report to Stockholders is deemed to be filed with the Securities and Exchange Commission (SEC) as part of this Annual Report on Form 10-K, or otherwise subject to the SEC's regulations or the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended.
2. AVERAGE SELLING PRICES AND AVERAGE PRODUCTION COSTS
Note A: Includes inter-company transfers valued at approximate market prices and the effect of the Corporation's hedging activities.
Note B: Production (lifting) costs consist of amounts incurred to operate and maintain the Corporation's producing oil and gas wells, related equipment and facilities (including lease costs of floating production and storage facilities) and production and severance taxes. The average production costs per barrel reflect the crude oil equivalent of natural gas production converted on the basis of relative energy content (6 Mcf equals one barrel).
Note C: Variations in production costs reflect changes in the mix of the Corporation's producing fields in Africa and Asia, including fields under production sharing contracts.
The foregoing tabulation does not include substantial costs and charges applicable to finding and developing proved oil and gas reserves, nor does it reflect significant outlays for related general and administrative expenses, interest expense and income taxes.
3. GROSS AND NET UNDEVELOPED ACREAGE AT DECEMBER 31, 2000
* Includes acreage held under production sharing contracts.
4. GROSS AND NET DEVELOPED ACREAGE AND PRODUCTIVE WELLS AT DECEMBER 31, 2000
Note A: Includes multiple completion wells (wells producing from different formations in the same bore hole) totaling 44 gross wells and 18 net wells.
5. NUMBER OF NET EXPLORATORY AND DEVELOPMENT WELLS DRILLED
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6. NUMBER OF WELLS IN PROCESS OF DRILLING AT DECEMBER 31, 2000
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7. NUMBER OF WATERFLOODS AND PRESSURE MAINTENANCE PROJECTS IN PROCESS OF INSTALLATION AT DECEMBER 31, 2000 -- 4
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ITEM 3.
ITEM 3. LEGAL PROCEEDINGS
As reported in Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1998, allegations were made to the Registrant's internal reporting hotline concerning noncompliance at the Corpus Christi terminal, formerly owned by Registrant, with federal and state environmental regulations and its investigation of this noncompliance. These allegations and the subsequent investigations were voluntarily disclosed to the Texas Natural Resource Conservation Commission ("TNRCC") and related to (i) onsite disposal of wastes and whether or not such wastes should have been managed as hazardous wastes under the Resource Conservation and Recovery Act; and (ii) nonreporting or misreporting of the results of wastewater
discharge samples required to be obtained by the Corpus Christi wastewater discharge permit. The Registrant settled all civil liabilities to TNRCC that might have attached as a result of the alleged discharge of hydrocarbons and certain specified waste disposal and wastewater discharge allegations. Investigations by TNRCC and the United States Environmental Protection Agency ("EPA") relating to waste disposal practices and wastewater discharge reporting at Corpus Christi may be continuing. It is not possible at this time for Registrant to state whether any additional proceedings arising out of the investigations will be commenced against the Registrant, or what claims would be asserted or what relief would be sought.
The Registrant investigated and disclosed to TNRCC allegations made to the Registrant's internal reporting hotline of noncompliance at the Galena Park, Texas terminal, formerly owned by Registrant, with state environmental regulations. The Registrant's investigation focused on whether (i) the vapor control system at Galena Park met applicable regulatory requirements during loading of marine vessels; and (ii) Galena Park implemented required controls on air emissions resulting from tank cleaning operations. The Registrant settled all civil liabilities relating to air emissions from tank cleaning by payment of a fine of $47,600 on September 22, 2000. On December 22, 2000, TNRCC issued a proposed Appeal Order assessing a fine of $103,125 relating to control of emissions from loading of marine vessels. The Registrant and the current owner of the Galena Park terminal, Williams Terminals Holdings, LLC are engaging in discussion with TNRCC and anticipate resolution of this matter.
On February 16, 1999, the Florida Department of Environmental Protection ("FLDEP") mailed the Registrant a proposed consent order relating to alleged violations of the Industrial Wastewater Discharge Permit limits for the Tampa, Florida terminal. The consent order proposes a fine of $1,060,000. The Registrant has previously undertaken a program of corrective measures and other appropriate responses to these alleged permit violations. The Registrant is engaging in discussions with the FLDEP to resolve this matter and expects that the amount, if any, ultimately paid by the Registrant will be substantially less than the proposed fine.
The Corporation periodically receives notices from EPA that the Corporation is a "potentially responsible party" under the Superfund legislation with respect to various waste disposal sites. Under this legislation, all potentially responsible parties are jointly and severally liable. For certain sites, EPA's claims or assertions of liability against the Corporation relating to these sites have not been fully developed. With respect to the remaining sites, EPA's claims have been settled, or a proposed settlement is under consideration, in all cases for amounts which are not material. The ultimate impact of these proceedings, and of any related proceedings by private parties, on the business or accounts of the Corporation cannot be predicted at this time due to the large number of other potentially responsible parties and the speculative nature of clean-up cost estimates, but is not expected to be material.
The Corporation is from time to time involved in other judicial and administrative proceedings, including proceedings relating to other environmental matters. Although the ultimate outcome of these proceedings cannot be ascertained at this time and some of them may be resolved adversely to the Corporation, no such proceeding is required to be disclosed under applicable rules of the Securities and Exchange Commission. In management's opinion, based upon currently known facts and circumstances, such proceedings in the aggregate will not have a material adverse effect on the financial condition of the Corporation.
ITEM 4.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
During the fourth quarter of 2000, no matter was submitted to a vote of security holders through the solicitation of proxies or otherwise.
EXECUTIVE OFFICERS OF THE REGISTRANT
The following table presents information as of February 1, 2001 regarding executive officers of the Registrant:
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* All officers referred to herein hold office in accordance with the By-Laws until the first meeting of the Directors following the annual meeting of stockholders of the Registrant, and until their successors shall have been duly chosen and qualified. Each of said officers was elected to the office set forth opposite his name on May 3, 2000. The first meeting of Directors following the next annual meeting of stockholders of the Registrant is scheduled to be held May 2, 2001.
Except for Messrs. Strode, Gartman and Walker, each of the above officers has been employed by the Registrant or its subsidiaries in various managerial and executive capacities for more than five years. Mr. Strode had served in senior executive positions in the area of exploration at Vastar Resources, Inc. and Atlantic Richfield Company prior to his employment with Registrant in April 2000. Prior to his employment with the Registrant in August 1996, Mr. Walker had been a general manager in the areas of gasoline marketing, convenience store development and advertising at Mobil Corporation. Mr. Gartman had been a vice president of Public Service Electric and Gas Company in the area of energy marketing prior to his employment with the Registrant in October 1997.
PART II
ITEM 5.
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS
Information pertaining to the market for the Registrant's Common Stock, high and low sales prices of the Common Stock in 2000 and 1999, dividend payments and restrictions thereon and the number of holders of Common Stock is presented on page 26 (Financial Review), pages 36 and 37 (Long-Term Debt) and on page 54 (Ten-Year Summary of Financial Data) of the accompanying 2000 Annual Report to Stockholders, which has been incorporated herein by reference.
ITEM 6.
ITEM 6. SELECTED FINANCIAL DATA
A Ten-Year Summary of Financial Data is presented on pages 52 through 55 of the accompanying 2000 Annual Report to Stockholders, which has been incorporated herein by reference.
ITEM 7.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information required by this item is presented on pages 19 through 26 of the accompanying 2000 Annual Report to Stockholders, which has been incorporated herein by reference.
ITEM 7A.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The information required by this item is presented under "Derivative Instruments" on pages 24 and 25 and in Footnote 14 on pages 42 and 43 of the accompanying 2000 Annual Report to Stockholders, which has been incorporated herein by reference.
ITEM 8.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The consolidated financial statements, including the Report of Ernst & Young LLP, Independent Auditors, the Supplementary Oil and Gas Data (unaudited) and the Quarterly Financial Data (unaudited) are presented on pages 26 through 51 of the accompanying 2000 Annual Report to Stockholders, which has been incorporated herein by reference.
ITEM 9.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None. ------------------------
PART III
ITEM 10.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Information relating to Directors is incorporated herein by reference to "Election of Directors" from the Registrant's definitive proxy statement for the annual meeting of stockholders to be held on May 2, 2001.
Information regarding executive officers is included in Part I hereof.
ITEM 11.
ITEM 11. EXECUTIVE COMPENSATION
Information relating to executive compensation is incorporated herein by reference to "Election of Directors-Executive Compensation and Other Information," other than information under "Compensation Committee Report on Executive Compensation" and "Performance Graph" included therein, from the Registrant's definitive proxy statement for the annual meeting of stockholders to be held on May 2, 2001.
ITEM 12.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Information pertaining to security ownership of certain beneficial owners and management is incorporated herein by reference to "Election of Directors-Ownership of Voting Securities by Certain Beneficial Owners" and "Election of Directors-Ownership of Equity Securities by Management" from the Registrant's definitive proxy statement for the annual meeting of stockholders to be held on May 2, 2001.
ITEM 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Information relating to this item is incorporated herein by reference to "Election of Directors" from the Registrant's definitive proxy statement for the annual meeting of stockholders to be held on May 2, 2001.
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PART IV
ITEM 14.
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) 1. AND 2. FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
The financial statements filed as part of this Annual Report on Form 10-K are listed in the accompanying index to financial statements and schedules.
3. EXHIBITS
3. EXHIBITS (continued)
3. EXHIBITS (continued)
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* These exhibits relate to executive compensation plans and arrangements.
(b) REPORTS ON FORM 8-K
A current report on Form 8-K dated November 6, 2000 was filed in the last quarter of Registrant's fiscal year ended December 31, 2000 relating to Registrant's announcement of a recommended cash and share offer for the entire issued share capital of Lasmo plc, a public company incorporated under the laws of England and Wales. This offer subsequently lapsed. A current report on Form 8-K dated October 25, 2000 was filed in the last quarter of Registrant's fiscal year ended December 31, 2000 setting forth certain information discussed in a teleconference relating to Registrant's operating results for the third quarter of 2000.
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED, ON THE 21ST DAY OF MARCH 2001.
AMERADA HESS CORPORATION (REGISTRANT)
By /s/ JOHN Y. SCHREYER ................................ (JOHN Y. SCHREYER) EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THIS REPORT HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS ON BEHALF OF THE REGISTRANT AND IN THE CAPACITIES AND ON THE DATES INDICATED.
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
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* The financial statements and notes thereto together with the Report of Ernst & Young LLP, Independent Auditors, on pages 27 through 46, the Quarterly Financial Data (unaudited) on page 26, and the Supplementary Oil and Gas Data (unaudited) on pages 47 through 51 of the accompanying 2000 Annual Report to Stockholders are incorporated herein by reference.
** Schedules other than Schedule II have been omitted because of the absence of the conditions under which they are required or because the required information is presented in the financial statements or the notes thereto.
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in this Annual Report (Form 10-K) of Amerada Hess Corporation of our report dated February 21, 2001, included in the 2000 Annual Report to Stockholders of Amerada Hess Corporation.
Our audits also included the financial statement schedule of Amerada Hess Corporation listed in Item 14(a). This schedule is the responsibility of the Corporation's management. Our responsibility is to express an opinion based on our audits. In our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
We also consent to the incorporation by reference in the Registration Statement (Form S-3 No. 333-79317) and in the related Prospectus, and in the Registration Statements (Form S-8, Nos. 333-94851, 333-43569, 333-43571 and 33-65115) pertaining to the Amerada Hess Corporation Employees' Savings and Stock Bonus Plan, Amerada Hess Corporation Savings and Stock Bonus Plan for Retail Operations Employees and the 1995 Long-Term Incentive Plan, of our report dated February 21, 2001, with respect to the consolidated financial statements incorporated herein by reference.
/s/ ERNST & YOUNG LLP -------------------------------------- Ernst & Young LLP New York, N.Y. March 21, 2001
SCHEDULE II
AMERADA HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998
(IN THOUSANDS)
(A) Primarily reflects use of tax loss carryforward.
(B) Represents cost of turnaround at refining facility.
(C) Primarily due to formation of refining joint venture.
EXHIBIT INDEX
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* These exhibits relate to executive compensation plans and arrangements.