Hess Reports Estimated Results for the Second Quarter of 2018

Hess Corporation today reported a net loss of $130 million, or $0.48 per common share, in the second quarter of 2018, compared to a net loss of $449 million, or $1.46 per common share, in the second quarter of 2017. On an adjusted basis, the Corporation reported an after-tax net loss of $56 million, or $0.23 per common share, in the second quarter of 2018. The improved after-tax adjusted results reflect higher realized crude oil selling prices, lower operating costs and depreciation, depletion and amortization expense, partially offset by lower production volumes, primarily due to asset sales.

   “We delivered strong operational performance in the quarter – exceeding our production guidance – and further focused our portfolio with the sale of our joint venture interests in the Utica,” Chief Executive Officer  John Hess  said. “In June, we announced another significant oil discovery at Longtail, offshore Guyana, and in July we increased the estimate of gross discovered recoverable resources for the Stabroek Block to more than 4 billion barrels of oil equivalent.”

Key Highlights:

• Estimate of gross discovered recoverable resources on the Stabroek Block, offshore Guyana (Hess 30 percent), increased to more than 4 billion barrels of oil equivalent; total discoveries to date have established the potential for up to five FPSOs to produce over 750,000 barrels of oil per day, gross by 2025
• Announced an eighth oil discovery on the Stabroek Block, offshore Guyana at the Longtail-1 exploration well located approximately five miles to the west of the Turbot-1 well
• Announced an agreement to sell our joint venture interests in the Utica shale play in eastern Ohio for net cash consideration of approximately $400 million, with closing expected by the end of the third quarter
• Completed the purchase of $500 million in common stock, as part of our previously announced $1.5 billionshare repurchase program, bringing total purchases to $1 billion; the remaining $500 million is expected to be completed during 2018
• Completed $500 million of total debt repurchases as of quarter-end, including purchases of approximately $110 million of public notes during the second quarter
• Restarted production at the Conger Field in the Gulf of Mexico in mid-July following repair of the third-party operated Enchilada platform

Second Quarter Financial and Operating Highlights:

• Net loss was $130 million, or $0.48 per common share, compared with a net loss of $449 million, or $1.46per common share, in the prior-year quarter
• Adjusted net loss was $56 million, or $0.23 per common share, in the second quarter of 2018
• Oil and gas production exceeded guidance: net production averaged 247,000 barrels of oil equivalent per day (boepd), excluding Libya; Bakken production was 114,000 boepd
• Exploration & Production capital and exploratory expenditures were $525 million in the quarter, compared to $528 million in the prior-year quarter
• Cash and cash equivalents, excluding Midstream, were $2.5 billion at June 30, 2018

 A replay of the conference call will be available from July 25 through August 8, 2018 by dialing 855-859-2056 and entering the pass code 2156325. Outside the United States, parties should dial 404-537-3406 and enter the pass code 2156325. This conference call will also be accessible by webcast (audio only). 

Full story