Solid operating performance and record refining margins resulted in strong earnings for our refining business. During the first quarter of 2005, we successfully completed major turnarounds of the FCC units at HOVENSA and Port Reading and are on schedule to meet clean fuel requirements for ultra-low sulfur gasoline and diesel fuel at both of our refineries.

The HOVENSA refinery in the United States Virgin Islands is jointly owned by the Corporation and Petroleos de Venezuela S.A. (PDVSA) and is one of the largest refineries in the world. The facility is strategically positioned and enjoys significant economies of scale. The refinery has 500,000 barrels per day of crude distillation capacity and a 150,000 barrel per day FCC, which allow it to make a significant volume of high quality gasoline and distillates. In addition, the refinery has a 58,000 barrel per day delayed coking unit, which enables the refinery to process lower cost heavy crude oils. Gross crude runs at the refinery averaged 461,000 barrels per day in 2005. Crude runs were below 2004 levels primarily as a result of the turnaround of the refinery’s FCC. After the completion of the turnaround, the refinery ran at higher rates, which allowed HOVENSA to benefit from the strong refining margin environment.

The Corporation also operates an FCC unit located in Port Reading, NJ, which produces clean-burning gasoline and heating oil for markets in the northeast. The facility averaged feedstock runs of about 55,000 barrels per day and benefited from favorable product margins in 2005.

The Corporation operates twenty-two East Coast terminals that provide a competitive advantage in supplying our Retail and Energy Marketing networks. In 2005, the oil industry experienced major supply disruptions as a result of Hurricanes Katrina and Rita. During this challenging period, our Supply and Terminal operations managed to keep our HESS Retail and Energy Marketing customers supplied with refined products.

Our Energy Marketing business is an important supplier of natural gas, fuel oil and electricity to commercial and industrial customers located on the East Coast, as well as a supplier of natural gas to several large utilities in this region. Our acquisitions of the natural gas marketing businesses of First Energy Solutions and EnLine Solutions in 2005 contributed to increasing commercial and industrial natural gas sales volumes. During the year, we maintained our market-leading position in fuel oil sales to commercial and industrial accounts in the northeast.

The HESS retail network continued to expand in 2005, further solidifying our position as the leading independent gasoline convenience store marketer on the East Coast. In June of 2005, our WilcoHess joint venture acquired 101 retail sites in North Carolina through the acquisition of Trade Oil Company. During 2005, the Corporation built eight new retail sites and acquired an additional five locations. We also constructed 17 new convenience stores at existing HESS retail sites. The Corporation plans to continue this opportunistic growth through selective acquisitions and new site development in key East Coast markets.