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Hess Corp (HES) Reports Wider-than-Expected Loss in Q2

Hess Corporation HES reported adjusted second-quarter 2017 loss from continuing operations of $1.46 per share, which is wider than the Zacks Consensus Estimate of a loss of $1.32. The reported figure was substantially wider that the loss of $1.29 in the year-ago quarter, attributed to the plunge in gas prices.

Revenues plunged more than 3% year over year to $1,228 million from $1,269 million. However, the top line surpassed the Zacks Consensus Estimate of $1,192 million.
 

Hess Corporation Price, Consensus and EPS Surprise

 

Hess Corporation Price, Consensus and EPS Surprise | Hess Corporation Quote

Second-Quarter Operational Performance

In the reported quarter, the company’s Exploration and Production (E&P) business incurred adjusted loss of $354 million, narrower than the year-earlier loss of $328 million.

Quarterly hydrocarbon production totaled 300 thousand barrels of oil equivalent per day (MBOE/d), down 4.2% year over year.

Crude oil production was 177 thousand barrels per day compared with 179 thousand barrels per day in the year-ago quarter. Natural gas liquids production totaled 42 thousand barrels against 44 thousand barrels a year ago. Natural gas output was 487 thousand cubic feet (Mcf) compared with 539 Mcf in the prior-year quarter.

Worldwide crude oil realization per barrel of $45.95 (including the impact of hedging) increased 9.5% year over year. Worldwide natural gas prices plummeted 10.9% year over year to $3.19 per Mcf.

Financials

Quarterly net cash flow from operations was $165 million at the end of the quarter. Hess’ capital expenditures increased 9.1% to $528 million from $484 million in the prior-year quarter.

As of Jun 30, the company had approximately $2,492 million in cash and $6,612 million in long-term debt. The debt-to-capitalization ratio at the end of the quarter was 30.2%.

Zacks Rank

Currently, Hess carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same space include Enbridge Energy, LP EEP, Braskem S.A. BAK and TransCanada Corp TRP. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average positive earnings surprise of 38.22%.

Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.

TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 1.06%.

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