Hess Corporation* included the information in this case as part of the supplementary oil and gas data. This case only represents a small portion of the supplementary oil and gas data.
Results of Operations for Oil and Gas-Producing Activities
The results of operations shown below exclude non-oil and gas-producing activities, primarily gains on sales of oil and gas properties, interest expense, and gains and losses resulting from foreign exchange transactions. Therefore, these results are on a different basis than the net income from Exploration and Production operations reported in management’s discussion and analysis of results of operations and in Note 17, ‘‘Segment Information,’’ in the notes to the financial statements.
Required
a. Prepare a vertical common-size analysis for results of operations for oil and gas-producing activities for 2008. Use total revenues as the base.
b. Prepare a horizontal common-size analysis for 2008. Use total as the base.
c. Comment on the common-size analysis in (a) and (b).