Hess $HES Misses Earnings, Where Now With Lower Oil Prices?

Hess Corporation (HES) reported second-quarter 2017 earnings below expectations before the market opened. Stock off 4% with realized prices and debt concerns.

Hess Corporation (HES) reported second-quarter 2017 earnings before the market. Hess is an independent American oil and gas explorer and producer.

Like many energy companies $HES had positive earnings surprise last quarter with the rise in oil prices. Since then we have seen oil fall back around $7-8 on the WTI contract. Today’s reults bring back concerns.

Earnings Loss of $ -1.46 earnings per share for the quarter, missing analyst consensus estimate consensus of $-1.31. and down from $-1.10 EPS same quarter last year. Revenue of $1.228 billion compared to analysts expectations of $1185 billion, down -3.2% compared to the same quarter last year. 

Reaction: Hess Corp. NYSE: HES Open 43.89 -1.48 (-3.26%)

Hess reported second quarter 2017 net production of 300 Mboe/d, falling by 4% from first quarter 2017 net production of 311 Mboe/d.
 
Production by Commodity:
– Natural Gas: 487 MMcf/d (+1% Q/Q)
– NGL: 42 Mbbl/d (+5% Q/Q)
– Crude Oil: 177 Mbbl/d (-7% Q/Q)
 
Hess reported second quarter 2017 capital spending on E&P activity totaling $528 million, bringing first half 2017 E&P spending to $921 million. Comparatively, in the second half of 2016, E&P spending totaled $849 million. As compared to the first quarter of 2017, spending rose 30%.
 
Hess Boosts 2017 Production Guidance to 308 Mboe/d Despite Asset Sales
 

Hess operates in two key U.S. shale plays, the North Dakota Bakken and Three Forks formations, producing shale oil and gas, and the Ohio Utica Basin, where they primarily produce natural gas and natural gas liquids (NGLs). 

Hess is the sixth-largest producer in the Gulf of Mexico and also has offshore assets in Europe, Asia Pacific and West Africa. They operate major offshore projects by Gulf of Mexico partners and by the Malaysian national oil company.

Source: HES, Criterion

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