Hess Reports Estimated Results for the Second Quarter of 2019

Hess Corporation (NYSE: HES) today reported a net loss of $6 million, or $0.02 per common share, in the second quarter of 2019, compared with a net loss of $130 million, or $0.48 per common share, in the second quarter of 2018. On an adjusted basis, the Corporation reported a net loss of $28 million, or $0.09 per common share, in the second quarter of 2019, compared with an adjusted net loss of $56 million, or $0.23 per common share, in the prior-year quarter.

The improved after-tax adjusted results reflect increased U.S. crude oil production and reduced exploration expenses, partially offset by the impact of lower realized selling prices and higher depreciation, depletion and amortization expenses.

“Our production is now expected to come in at the upper end of our full year guidance range, while our capital and exploratory expenditures are projected to come in below our original full year guidance,”

Chief Executive Officer John Hess said. “In Guyana, we have just increased the estimate of gross discovered recoverable resources for the Stabroek Block to more than 6 billion barrels of oil equivalent and continue to see multibillion barrels of additional exploration potential. Our portfolio is on track to generate industry leading cash flow growth and increasing returns to shareholders.”

Financial and Operational Highlights:
 Net loss was $6 million, or $0.02 per common share, compared with a net loss of $130 million, or $0.48 per common share, in the second quarter of 2018

 Adjusted net loss1 was $28 million, or $0.09 per common share, compared with an adjusted net loss of $56 million, or $0.23 per common share, in the second quarter of last year

 Oil and gas net production averaged 273,000 barrels of oil equivalent per day (boepd), excluding Libya, up from 247,000 boepd in the second quarter of 2018; Bakken net production was 140,000 boepd, up 23 percent from 114,000 boepd in the prior-year quarter

 Exploration and Production (E&P) capital and exploratory expenditures were $664 million,compared with $525 million in the prior-year quarter

 Cash and cash equivalents, excluding Midstream, were $2.2 billion at June 30, 2019

Key Developments:
• The Liza Destiny floating production, storage and offloading vessel (FPSO), with a capacity to produce up to 120,000 gross barrels of oil per day (bopd), has set sail from Singapore and is expected to arrive on the Stabroek Block (Hess – 30 percent), offshore Guyana in September 2019; first oil from Liza Phase 1 is expected by the first quarter of 2020

 Sanctioned the second phase of development of the Liza Field; Phase 2 will utilize the Liza Unity FPSO, which will have a capacity to produce up to 220,000 gross bopd with first oil expected by mid-2022

 Announced the 13th discovery on the Stabroek Block at Yellowtail; as a result of this year’s discoveries and further evaluation of previous discoveries, estimated gross discovered recoverable resources on the block have been increased to more than 6 billion barrels of oil equivalent (boe); growing resource base further underpins the potential for at least five FPSOs producing more than 750,000 gross bopd by 2025

Source / More : Hess Corporation

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