Refining Joint Venture

6 Months Ended

Jun. 30, 2011

4. Refining Joint Venture

The Corporation accounts for its investment in HOVENSA L.L.C. (HOVENSA), which is included in Investments in affiliates in the Consolidated Balance Sheet, using the equity method. Summarized financial information for HOVENSA follows:


	June 30,			December 31,
	2011			2010
	(Millions of dollars)
Summarized balance sheet
Cash and cash equivalents	$	32		$	45
Other current assets		656			668
Net fixed assets		1,948			1,987
Other assets		26			27
Current liabilities		(1,260	)		(1,001	)
Long-term debt		(586	)		(706	)
Deferred liabilities and credits		(132	)		(135	)

Members’ equity	$	684		$	885

Carrying value of Hess Corporation’s equity investment	$	62		$	158


	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2011			2010			2011			2010
	(Millions of dollars)
Summarized income statement
Total revenues	$	3,719		$	3,146		$	6,581		$	5,912
Cost and expenses		(3,822	)		(3,158	)		(6,784	)		(6,092	)

Net income (loss)	$	(103	)	$	(12	)	$	(203	)	$	(180	)

Hess Corporation’s income (loss) from equity investment in HOVENSA L.L.C. (*)	$	(49	)	$	(6	)	$	(97	)	$	(91	)


(*)		Reflects the amortization of basis differences between the carrying value of the Corporation’s investment in HOVENSA and its equity in the net assets of the affiliate.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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