Weighted Average Common Shares and Share Repurchase Plan

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Weighted Average Common Shares and Share Repurchase Plan

12. Weighted Average Common Shares and Share Repurchase Plan

The net income and weighted average number of common shares used in the basic and diluted earnings per share computations were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014		2013			2014		2013
	(In millions, except per share amounts)
Income from continuing operations, net of income taxes	$	387	$	356		$	1,769	$	3,118
Less: Net income (loss) attributable to noncontrolling interests		22		(2	)		56		180
Net income from continuing operations attributable to Hess Corporation		365		358			1,713		2,938
Income from discontinued operations, net of income taxes		643		62			612		189
Net income attributable to Hess Corporation	$	1,008	$	420		$	2,325	$	3,127
Weighted average common shares outstanding:
Basic		300.7		339.0			308.6		339.3
Effect of dilutive securities:
Restricted common stock		1.5		1.4			1.4		1.3
Stock options		2.0		1.8			2.0		1.6
Performance share units		0.8		1.1			0.7		1.1
Diluted		305.0		343.3			312.7		343.3
Net income attributable to Hess Corporation per share:
Basic:
Continuing operations	$	1.21	$	1.06		$	5.55	$	8.66
Discontinued operations		2.14		0.18			1.99		0.56
Net income per share	$	3.35	$	1.24		$	7.54	$	9.22
Diluted:
Continuing operations	$	1.20	$	1.05		$	5.48	$	8.56
Discontinued operations		2.11		0.18			1.96		0.55
Net income per share	$	3.31	$	1.23		$	7.44	$	9.11

The Corporation granted 1,073,179 shares of restricted stock, 298,222 performance share units (PSUs) and 162,911 stock options during the nine month period ended September 30, 2014 and 1,205,569 shares of restricted stock and 279,093 PSUs for the same period in 2013. The weighted average common shares used in the diluted earnings per share calculations exclude the effect of 124,357 and 1,214,422 stock options for the three and nine months ended September 30, 2014, respectively, as well as 3,680,344 and 4,661,606 stock options for the three and nine months ended September 30, 2013, respectively, because their effect would be anti-dilutive.

In March 2013, the Corporation announced a board authorized plan to repurchase up to $4 billion of outstanding common stock using proceeds from its announced asset divestiture program. In May 2014, the Corporation increased its board authorized share repurchase program to $6.5 billion. The share repurchase program commenced in August 2013. During the first nine months of 2014, the Corporation purchased 30.1 million shares for a total cost of $2,669 million, at an average cost of $88.67 per share including transaction fees. As of September 30, 2014, the Corporation has approximately $2.3 billion available under its board authorized plan for purchasing additional common shares.