June 2009 -- Plummeting oil prices took a toll on Hess Corp.'s finances for the first quarter of 2009. The New York-based energy company recorded a net loss of $59 million in the first quarter of 2009, compared with net income of $759 million in the first quarter of 2008. The biggest contributor to the revenue swing was Hess' exploration and production segment, which lost $64 million in the three months ended March 31, 2009, versus revenue of $824 million in the same time period of 2008. Hess pointed out in its first-quarter earnings release that the corporation's worldwide crude oil selling price, including the price of hedging, was $34.42 per barrel in the first quarter of 2009. That compares with a selling price of $83.28 in the first quarter of 2008. Similarly, the company's average worldwide natural gas selling price was $5.08 per 1,000 cubic feet (Mcf), compared with $7.06 per Mcf in the first quarter of 2008.
On the positive side, marketing and refining earnings grew in the first quarter compared with year-ago earnings. Specifically, marketing and refining earnings were $102 million in the first quarter of 2009, which is an increase of $86 million from the first quarter of 2008. The increase primarily reflects higher energy marketing margins and improved trading results, as refining operations generated a loss of $18 million versus a loss of $3 million in 2008's first quarter.
Oil and gas production was 390,000 barrels of oil equivalent per day in the 2009's first quarter, compared with 391,000 in the first quarter of 2008.
