November 14, 2017 - 7:10 AM EST
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Earnings Review and Free Research Report: Hess’ Revenue Jumped 16.1%; Adjusted Net Loss Narrowed

Research Desk Line-up: Continental Resources Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 14, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Hess Corp. (NYSE: HES), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HES, following the Company's announcement of its financial results on October 25, 2017, for the third quarter of the fiscal year 2017. The global energy Company's revenue and earnings results were ahead of market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Independent Oil & Gas industry. Pro-TD has currently selected Continental Resources, Inc. (NYSE: CLR) for due-diligence and potential coverage as the Company announced on November 07, 2017, its operating and financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Continental Resources when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HES; also brushing on CLR. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=HES

http://protraderdaily.com/optin/?symbol=CLR

Earnings Reviewed

Hess' total revenue increased 16.1% to $1.37 billion in Q3 FY17 compared to $1.18 billion in Q3 FY16. The Company's revenue numbers exceeded analysts' expectations of $1.28 billion.

The Company incurred total costs and expenses of $4.23 billion compared to $1.83 billion in the previous year's same quarter, thereby increasing manifolds by 176.50%, the reason for which being impairment costs incurred by the Company in the reported quarter.

Hess incurred a net loss of $624.00 million in Q3 FY17 compared to $339.00 million on a y-o-y basis. The net loss per share amounted to $2.02 in Q3 FY17 compared to $1.12 in Q3 FY16. On an adjusted basis, the Company reported a net loss of $324 million, or $1.07 per common share, versus an adjusted net loss of $340 million, or $1.12 per common share, in the prior year's comparable quarter. The improved adjusted results reflected higher realized crude oil selling prices and lower operating costs, depreciation, depletion, and amortization, and exploration expenses.

Hess' net loss was narrower than analysts' estimates of $1.29 per share.

Operating Results

Hess' Exploration and Production (E&P)'s net loss was $474 million during Q3 FY17 compared to a net loss of $234 million in Q3 FY16. On an adjusted basis, the net loss was $238 million compared to a net loss of $285 million in the prior year's corresponding quarter.

The Company's average realized crude oil selling price, including the effect of hedging, was $46.97 per barrel in Q3 FY17, up from $41.50 per barrel in Q3 FY16. The average realized natural gas liquids selling price was $17.22 per barrel in the reported quarter versus $9.23 per barrel in the prior year's same quarter, while the average realized natural gas selling price was $3.35 per mcf compared to $3.20 per mcf in Q3 FY16.

The Company's net production, excluding Libya, was 299,000 barrels of oil equivalent per day (boepd) in Q3 FY17 compared to 314,000 boepd in Q3 FY16.

Hess' net production from the Bakken of 103,000 boepd was impacted by reduced field availability due to adverse weather and delays in completing new wells. The Company operated an average of four rigs in the reported quarter, drilling 24 wells and bringing 13 new wells online.

For Q3 FY17, Hess' net production from the Gulf of Mexico was 59,000 boepd versus 61,000 boepd in the prior year's comparable quarter. At North Malay Basin, first production of natural gas from the full-field development commenced in July 2017, and production averaged 86 million cubic feet per day (mmcfd) for Q3 FY17. The field is currently producing approximately 155 mmcfd.

Balance Sheet

Hess' net cash provided by operating activities was $88 million in Q3 FY17 compared to $332 million in Q3 FY16. The Company's net cash provided by operating activities, before changes in working capital, was $415 million in the reported quarter, up from $309 million in the year ago quarter.

At September 30, 2017, the Company had cash and cash equivalents of $2,526 million and total debt, excluding the Midstream segment, of $6,016 million. The Company's debt to capitalization ratio was 31.8% at September 30, 2017, and 30.4% at December 31, 2016.

During Q3 FY17, Hess increased its West Texas Intermediate (WTI) crude oil hedging program by 50,000 barrels of oil per day (bopd) to a total of 110,000 bopd for the remainder of 2017. In addition, the Company added WTI crude oil collars covering 115,000 bopd for 2018.

Outlook

Hess' focus remains invested in its highest profit reaping products which would further lower the Company's cash operating costs.

The Company would continue to make strategic acquisitions and launch a $150 million annual cost reduction program in order to reduce its cash unit production costs of oil barrels by 30%. It also aims to reduce debt by $500 million by 2018.

The current production average of 86 mmcfd is expected to rise to 165 mmcfd in the fourth quarter.

Hess aims to reduce its net loss per share from $2.02 to $0.95 for Q3 FY18.

Stock Performance

On Monday, November 13, 2017, the stock closed the trading session at $46.59, dropping 1.10% from its previous closing price of $47.11. A total volume of 3.52 million shares have exchanged hands. Hess' stock price rallied 3.56% in the last one month and 14.47% in the past three months. The stock has a dividend yield of 2.15% and currently has a market cap of $14.94 billion.

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Source: ACCESSWIRE Investor Awareness (November 14, 2017 - 7:10 AM EST)

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