REPORT OF MANAGEMENT The consolidated financial statements of Amerada Hess Corporation and consolidated subsidiaries were prepared by and are the responsibility of management. These finan- cial statements conform with generally accepted account- ing principles and are, in part, based on estimates and judgements of management. Other information included in this Annual Report is consistent with that in the consoli- dated financial statements. Amerada Hess Corporation and Consolidated Subsidiaries The Corporation maintains a system of internal controls designed to provide reasonable assurance that assets are safeguarded and that transactions are properly executed and recorded. Judgements are required to balance the rela- tive costs and benefits of this system of internal controls. The Corporation’s consolidated financial statements have been audited by Ernst & Young LLP, independent auditors, who have been appointed by the Audit Committee of the Board of Directors and approved by the stockholders. Ernst & Young LLP assesses the Corporation’s system of internal controls and performs tests and procedures that they con- sider necessary to arrive at an opinion on the fairness of the consolidated financial statements. John Y. Schreyer Executive Vice President and Chief Financial Officer John B. Hess Chairman of the Board and Chief Executive Officer The Audit Committee of the Board of Directors consists solely of independent directors. The Audit Committee meets periodically with the independent auditors, internal auditors and management to review and discuss the annual audit scope and plans, the adequacy of staffing, the system of internal controls and the results of examinations. In 2003, the Audit Committee met three times with the independent auditors and three times with the internal auditors without management present. The Audit Committee also reviews the Corporation’s financial statements with management and the independent auditors. This review includes a dis- cussion of accounting principles, significant judgements inherent in the financial statements, disclosures and such other matters required by generally accepted auditing stan- dards. Ernst & Young LLP and the Corporation’s internal auditors have unrestricted access to the Audit Committee. 57