January 27, 2016 - 7:30 AM EST
Print Email Article Font Down Font Up
Hess Reports Estimated Results for the Fourth Quarter of 2015

Fourth Quarter Highlights:

  • Adjusted net loss was $396 million or $1.40 per share compared to adjusted net income of $53 million or $0.18 per share in the prior-year quarter; lower realized selling prices reduced fourth quarter 2015 adjusted net income by approximately $420 million
  • Net loss was $1,821 million, including noncash impairment charges of $1,359 million after tax 
  • Oil and gas production was 368,000 barrels of oil equivalent per day (boepd) compared to 362,000 boepd in the fourth quarter of 2014
  • E&P capital and exploratory expenditures were $943 million. Full year E&P capital and exploratory expenditures were $4.0 billion, down 25 percent from $5.3 billion in 2014
  • Year-end 2015 cash and cash equivalents totaled $2.7 billion
  • Year-end total proved reserves were 1,086 million barrels of oil equivalent (boe), down from 1,431 million boe in the prior year, primarily due to negative revisions to proved undeveloped reserves resulting from lower crude oil prices

2016 Guidance:

  • E&P capital and exploratory expenditures are expected to be $2.4 billion, down 40 percent from 2015 E&P capital and exploratory expenditures
  • Oil and gas production is forecast to be in the range of 330,000 to 350,000 boepd compared to full year 2015 net production of 368,000 boepd, excluding Libya and asset sales

Hess Corporation (NYSE:HES) today reported an adjusted net loss, which excludes items affecting comparability, of $396 million or $1.40 per common share, for the fourth quarter of 2015 compared with adjusted net income of $53 million or $0.18 per share in the fourth quarter of 2014. Lower realized selling prices reduced adjusted net income by approximately $420 million compared with the prior-year quarter. On an unadjusted basis, the Corporation reported a net loss of $1,821 million for the fourth quarter of 2015 compared with a net loss of $8 million in the fourth quarter of last year. Fourth quarter 2015 results included noncash goodwill and other impairment related charges totaling $1,359 million after tax.

   “We finished 2015 with one of the strongest balance sheets and liquidity positions among our E&P peers,” Chief Executive Officer John Hess said. “Looking forward, our top priority is to continue to keep our balance sheet strong. Our 2016 capital and exploratory budget is 40 percent below our 2015 spend and we will continue to pursue further cost reductions. At the same time, we plan to continue to invest in future growth.”

After-tax income (loss) by major operating activity was as follows:

 
Three Months Ended Year Ended
December 31, December 31,
(unaudited) (unaudited)

    2015    

 

    2014    

    2015    

 

    2014    

(In millions, except per share amounts)

Net Income (Loss) Attributable to Hess Corporation

Exploration and Production $ (1,713 ) $ 83 $

  (2,717

) $

  2,086

Bakken Midstream 11 8 86 10
Corporate, Interest and Other   (111 )   (96 )   (377 )   (404 )
Net income (loss) from continuing operations (1,813 ) (5 ) (3,008 ) 1,692
Discontinued operations   (8 )   (3 )   (48 )   625
Net income (loss) attributable to Hess Corporation $ (1,821 ) $ (8 ) $ (3,056 ) $ 2,317
 
Net income (loss) per share (diluted) $ (6.43 ) $ (0.03 ) $ (10.78 ) $ 7.53
 

Adjusted Net Income (Loss) Attributable to Hess Corporation

Exploration and Production $ (328 ) $ 138 $ (866 ) $ 1,544
Bakken Midstream 11 8 86 10
Corporate, Interest and Other   (79 )   (93 )   (333 )   (330 )
Adjusted net income (loss) from continuing operations (396 ) 53 (1,113 ) 1,224
Discontinued operations  

-

 

-

 

-

  84
Adjusted net income (loss) attributable to Hess Corporation $ (396 ) $ 53 $ (1,113 ) $ 1,308
 
Adjusted net income (loss) per share (diluted) $ (1.40 ) $ 0.18 $ (3.93 ) $ 4.25
 
Weighted average number of shares (diluted)   283.2   289.0   283.6   307.7
 

Exploration and Production:

   The Exploration and Production adjusted net loss in the fourth quarter of 2015 was $328 million compared with adjusted net income of $138 million in the fourth quarter of 2014. On an unadjusted basis, Exploration and Production had a net loss of $1,713 million in the fourth quarter of 2015, compared with net income of $83 million in the fourth quarter of 2014.

   The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was down 42 percent to $43.73 per barrel in the fourth quarter of 2015 from $75.34 per barrel in the fourth quarter of 2014. The average worldwide natural gas liquids selling price was $9.61 per barrel, down from $22.37 per barrel in the year-ago quarter while the average worldwide natural gas selling price was $3.44 per mcf in the fourth quarter of 2015 compared with $5.24 per mcf in the fourth quarter a year ago.

   Excluding production from assets sold and Libya, pro forma net production in the fourth quarter of 2015 was 358,000 boepd, up 4 percent from 343,000 boepd in the fourth quarter of 2014. Production growth at the Utica shale play (17,000 boepd), the Bakken shale play (7,000 boepd) and the Gulf of Mexico (5,000 boepd) was offset by lower production from the Joint Development area of Malaysia/Thailand (10,000 boepd) and Denmark (5,000 boepd). Our Algeria operations, which had production of 10,000 boepd in the fourth quarter of 2015 (9,000 boepd in the fourth quarter of 2014) were sold in December. The Corporation expects 2016 net production, excluding Libya, to average between 330,000 boepd and 350,000 boepd compared with 2015 net production of 368,000 boepd, excluding Libya and asset sales.

Oil and Gas Reserve Estimates:

   Oil and gas proved reserves were 1,086 million barrels of oil equivalent (boe) at December 31, 2015, compared with 1,431 million boe at December 31, 2014. Lower crude oil prices and reduced drilling plans resulted in negative revisions to proved reserves of 282 million boe. Proved reserve additions and other technical revisions added 84 million boe in 2015, primarily from Bakken drilling activity in 2015. Proved developed reserves at December 31, 2015 were 795 million boe, up from 762 million boe at December 31, 2014.

Operational Highlights for the Fourth Quarter of 2015:

   Bakken (Onshore U.S.): Net production from the Bakken increased approximately 7 percent to 109,000 boepd from the prior-year quarter due to continued drilling activities. The Corporation brought 34 gross operated wells on production in the fourth quarter of 2015 increasing the year-to-date total to 219 wells. Drilling and completion costs per operated well averaged $5.1 million in the fourth quarter of 2015, down 28 percent from the year-ago quarter.

   Utica (Onshore U.S.): On the Corporation’s joint venture acreage, 8 wells were brought on production and net production averaged 30,000 boepd in the fourth quarter of 2015 compared with 13,000 boepd in the prior-year quarter.

   Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 72,000 boepd compared to 67,000 boepd in the prior-year quarter, with higher volumes from Tubular Bells, which totaled 17,000 boepd in the fourth quarter of 2015, being partially offset by lower production from the Conger, Llano and Shenzi Fields. Drilling at the ConocoPhillips operated Melmar exploration project (Hess 35 percent) in the Alaminos Canyon area of the Gulf of Mexico commenced in December.

   North Malay Basin (Offshore Malaysia): Development drilling commenced in December 2015 with full field development anticipated to be completed in 2017.

   Guyana (Offshore): On the Stabroek Block (Hess 30 percent), the operator, Esso Exploration and Production Guyana Limited, announced a significant oil discovery at the Liza #1 well in the second quarter of 2015. The operator is currently in the process of acquiring approximately 17,000 square kilometers of 3D seismic on the block and is expected to commence drilling of the Liza #2 well in the first quarter of 2016.

Bakken Midstream:

   The Corporation’s Bakken Midstream segment had net income of $11 million in the fourth quarter of 2015 compared to $8 million in the prior-year quarter.

Capital and Exploratory Expenditures:

   Exploration and Production capital and exploratory expenditures were $943 million in the fourth quarter of 2015 down from $1,575 million in the prior-year quarter reflecting reduced activities primarily in the United States, Norway and Equatorial Guinea. Full year 2016 E&P capital and exploratory expenditures are forecast to be $2.4 billion or 40 percent lower than 2015.

   Bakken Midstream capital expenditures were $103 million in the fourth quarter of 2015 and $133 million in the year-ago quarter. In 2016, the Bakken Midstream capital budget is $340 million up from full year 2015 capital expenditures of $296 million.

Liquidity:

   Cash provided by operating activities was $623 million in the fourth quarter of 2015, compared with $1,074 million in the fourth quarter of 2014. At December 31, 2015, cash and cash equivalents, excluding Bakken Midstream, were $2,713 million compared with $2,444 million at December 31, 2014. Total debt, excluding Bakken Midstream, was $5,920 million at December 31, 2015 compared with $5,987 million at December 31, 2014. The Corporation’s debt to capitalization ratio, excluding Bakken Midstream, at December 31, 2015 was 24.4 percent. The debt to capitalization ratio at December 31, 2014 was 21.2 percent.

Items Affecting Comparability of Earnings Between Periods:

   The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:

           
Three Months Ended Year Ended
December 31, December 31,
(unaudited) (unaudited)

    2015    

 

    2014    

    2015    

 

    2014    

(In millions)
Exploration and Production $ (1,385 ) $ (55 ) $

  (1,851

) $

542

Bakken Midstream

-

-

-

-

Corporate, Interest and Other (32 ) (3 ) (44 ) (74 )
Discontinued operations   (8 )   (3 )   (48 )   541

Total items affecting comparability of earnings between periods

$ (1,425 ) $ (61 ) $ (1,943 ) $

  1,009

 

   Fourth quarter 2015 Exploration and Production results contained noncash charges of $1,359 million resulting from the low commodity price environment, including a nontaxable goodwill impairment charge related to the E&P segment of $1,098 million that was allocated in our financial results to U.S. and international operations. In addition, exploration costs include charges totaling $178 million after tax ($271 million pre tax) for the write-off of previously capitalized gas wells in Ghana, three previously capitalized wells in Australia that are not included in the most recent development concept, and the impairment of certain leasehold costs in the Gulf of Mexico. The Corporation also recognized an asset impairment charge of $83 million after tax ($133 million pre tax) associated with our legacy conventional assets in North Dakota.

   Corporate, Interest and Other fourth quarter results include after tax charges of $41 million ($66 million pre tax) for the Corporation’s estimated liability resulting from Hovensa LLC’s bankruptcy settlement.

Reconciliation of U.S. GAAP to Non-GAAP measures:

The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):

   
Three Months Ended Year Ended
December 31, December 31,
(unaudited) (unaudited)

    2015    

 

    2014    

    2015    

 

    2014    

(In millions)
Net income (loss) attributable to Hess Corporation $ (1,821 ) $ (8 ) $

  (3,056

) $

  2,317

Less: Total items affecting comparability of earnings between periods   (1,425 )   (61 )   (1,943 )   1,009
Adjusted net income (loss) attributable to Hess Corporation $ (396 ) $ 53 $ (1,113 ) $ 1,308
 

The reconciliations of net cash flow provided by operating activities before working capital changes to net cash provided by (used in) operating activities are detailed on pages 8 and 9.

Hess Corporation will review fourth quarter financial and operating results and other matters on a webcast at 10 a.m. today. For details about the event, refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Forward-looking Statements

Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, uncertainties inherent in the measurement and interpretation of geological, geophysical and other technical data. Estimates and projections contained in this release are based on the Company’s current understanding and assessment based on reasonable assumptions. Actual results may differ materially from these estimates and projections due to certain risk factors discussed in the Corporation’s periodic filings with the Securities and Exchange Commission and other factors.

Non-GAAP financial measure

The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income (loss)” presented in this release is defined as reported net income (loss) attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by operating activities before working capital change” is defined as Cash provided by operating activities excluding changes in working capital. We believe that investors’ understanding of our performance is enhanced by disclosing these measures. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income (loss) or cash provided by operating activities. A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss) as well as a reconciliation of cash provided by operating activities (U.S. GAAP) to cash provided by operating activities before working capital change are provided in the release.

     
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
 
Fourth Fourth Third
Quarter Quarter Quarter

    2015    

    2014    

    2015    

Income Statement

 
Revenues and Non - operating Income
Sales and other operating revenues $ 1,474 $ 2,557 $ 1,671
Other, net   (87 )   (29 )   18
Total revenues and non - operating income   1,387   2,528   1,689
 
Costs and Expenses
Cost of products sold (excluding items shown separately below) 304 511 356
Operating costs and expenses 512 483 508
Production and severance taxes 36 66 29
Exploration expenses, including dry holes and lease impairment 378 171 144
General and administrative expenses 140 164 119
Interest expense 86 82 84
Depreciation, depletion and amortization 983 875 988
Impairments   1,231    
Total costs and expenses   3,670   2,352   2,228
 
Income (loss) from continuing operations before income taxes (2,283 ) 176 (539 )
Provision (benefit) for income taxes   (492 )   181   (300 )
Income (loss) from continuing operations (1,791 ) (5 ) (239 )
Income (loss) from discontinued operations, net of income taxes   (8 )   (2 )   (13 )
 
Net income (loss) (1,799 ) (7 ) (252 )
Less: Net income (loss) attributable to noncontrolling interests   22   1   27
Net income (loss) attributable to Hess Corporation $

  (1,821

) $ (8 ) $ (279 )
 
 
 

Cash Flow Information

 
Net cash provided by operating activities before working capital changes $ 222 $ 967 $ 489
Changes in working capital   401   107   (207 )
Net cash provided by (used in) operating activities 623 1,074 282
Net cash provided by (used in) investing activities (909 ) (1,555 ) (956 )
Net cash provided by (used in) financing activities   (11 )   (1,195 )   2,756
Net increase (decrease) in cash and cash equivalents $ (297 ) $

  (1,676

) $

  2,082

 
             
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
 
Year Ended December 31,
2015   2014

Income Statement

 
Revenues and Non-operating Income
Sales and other operating revenues $ 6,636 $ 10,737
Gains on asset sales, net 51 823
Other, net   (126 )   (121 )
Total revenues and non-operating income   6,561   11,439
 
Costs and Expenses
Cost of products sold (excluding items shown separately below) 1,294 1,719
Operating costs and expenses 2,029 2,034
Production and severance taxes 146 275
Exploration expenses, including dry holes and lease impairment 881 840
General and administrative expenses 557 588
Interest expense 341 323
Depreciation, depletion and amortization 3,955 3,224
Impairments   1,616  
Total costs and expenses   10,819   9,003
 
Income (loss) from continuing operations before income taxes (4,258 ) 2,436
Provision (benefit) for income taxes   (1,299 )   744
Income (loss) from continuing operations (2,959 ) 1,692
Income (loss) from discontinued operations, net of income taxes   (48 )   682
 
Net income (loss) (3,007 ) 2,374
Less: Net income (loss) attributable to noncontrolling interests   49   57
Net income (loss) attributable to Hess Corporation $ (3,056 ) $ 2,317
 
 
 

Cash Flow Information

 
Net cash provided by operating activities before working capital changes $ 1,892 $ 5,195
Changes in working capital   89   (738 )
Net cash provided by (used in) operating activities 1,981 4,457
Net cash provided by (used in) investing activities (4,206 ) 8
Net cash provided by (used in) financing activities   2,497   (3,835 )
Net increase (decrease) in cash and cash equivalents $ 272 $ 630
 
                                             
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
 
December 31,

    2015    

 

    2014    

Balance Sheet Information

 
Cash and cash equivalents $ 2,716 $ 2,444
Other current assets

1,688

3,869
Property, plant and equipment – net 26,352 27,517
Other long-term assets   3,439   4,577
Total assets $

34,195

$ 38,407
 
Current maturities of long-term debt $ 86 $ 68
Other current liabilities

2,542

4,783
Long-term debt 6,544 5,919
Other long-term liabilities

4,622

5,317
Total equity excluding other comprehensive income (loss) 21,050 23,615
Accumulated other comprehensive income (loss) (1,664 ) (1,410 )
Noncontrolling interests   1,015   115
Total liabilities and equity $

  34,195

$

  38,407

 
                                                                                    December 31, 2015

       Hess       

   

Bakken
  Midstream   

   

Hess
Consolidated 

   

Total debt      

$

  5,920

$ 710 $ 6,630
                       
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
(IN MILLIONS)
 
Fourth Fourth Third
Quarter Quarter Quarter

    2015    

    2014    

    2015    

E&P Capital and Exploratory Expenditures
United States
Bakken $ 248 $ 564 $ 295
Other Onshore   72   179   70
Total Onshore 320 743 365
Offshore   257   241   199
Total United States   577   984   564
 
Europe 43 122 58
Africa 2 91 13
Asia and other   321   378   214
E&P Capital and Exploratory Expenditures $ 943 $ 1,575 $ 849
 
Total exploration expenses charged to income included above $ 105 $ 144 $ 79
 
Bakken Midstream capital expenditures $ 103 $ 133 $ 88
 
 
Twelve Months Ended
2015 2014
E&P Capital and Exploratory Expenditures
United States
Bakken $ 1,308 $ 1,854
Other Onshore   332   725
Total Onshore 1,640 2,579
Offshore   923   765
Total United States   2,563   3,344
 
Europe 298 540
Africa 161 435
Asia and other   1,020   986
E&P Capital and Exploratory Expenditures $ 4,042 $ 5,305
 
Total exploration expenses charged to income included above $ 289 $ 332
 
Bakken Midstream capital expenditures $ 296 $ 301
 
 
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 
Fourth Quarter 2015

  United States  

 

   International   

 

         Total          

 
Sales and other operating revenues $ 932 $ 542 $ 1,474
Other, net   (15 )   (36 )   (51 )
Total revenues and non-operating income   917   506   1,423
 
Costs and Expenses
Cost of products sold (excluding items shown separately below)(c) 342 (11 ) 331
Operating costs and expenses 199 244 443
Production and severance taxes 32 4 36
Bakken Midstream tariffs 114

114
Exploration expenses, including dry holes and lease impairment 84 294 378
General and administrative expenses 60 14 74
Depreciation, depletion and amortization 602 351 953
Impairments   601   630   1,231
Total costs and expenses   2,034   1,526   3,560
 
Results of operations before income taxes (1,117 ) (1,020 ) (2,137 )
Provision (benefit) for income taxes   (234 )   (190 )   (424 )
Net income (loss) attributable to Hess Corporation $ (883 ) (a) $ (830 ) (b) $

  (1,713

)
 
Fourth Quarter 2014
United States International Total
 
Sales and other operating revenues $ 1,443 $ 1,114 $ 2,557
Other, net  

  (29 )   (29 )
Total revenues and non-operating income   1,443   1,085   2,528
 
Costs and Expenses
Cost of products sold (excluding items shown separately below)(c) 484 58 542
Operating costs and expenses 175 247 422
Production and severance taxes 53 13 66
Bakken Midstream tariffs 70

70
Exploration expenses, including dry holes and lease impairment 70 101 171
General and administrative expenses 83 5 88
Depreciation, depletion and amortization   462   389   851
Total costs and expenses   1,397   813   2,210
 
Results of operations before income taxes 46 272 318
Provision (benefit) for income taxes   36   199   235
Net income (loss) attributable to Hess Corporation $ 10 (a) $ 73 (b) $ 83
 
(a)   After-tax realized net gains from crude oil hedging activities were $18 million in the fourth quarter of 2015 and $31 million in the fourth quarter of 2014.
(b) After-tax realized net gains from crude oil hedging activities were $37 million in the fourth quarter of 2015 and $75 million in the fourth quarter of 2014.
(c) Includes amounts charged from the Bakken Midstream.

 

 
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 
Third Quarter 2015

  United States  

 

   International   

 

         Total          

 
Sales and other operating revenues $ 1,022 $ 649 $ 1,671
Other, net   46   (19 )   27
Total revenues and non-operating income   1,068   630   1,698
 
Costs and Expenses
Cost of products sold (excluding items shown separately below)(c) 350 36 386
Operating costs and expenses 193 250 443
Production and severance taxes 28 1 29
Bakken Midstream tariffs 117

117
Exploration expenses, including dry holes and lease impairment 87 57 144
General and administrative expenses 47 13 60
Depreciation, depletion and amortization   622   341   963
Total costs and expenses   1,444   698   2,142
 
Results of operations before income taxes (376 ) (68 ) (444 )
Provision (benefit) for income taxes   (129 )   (127 )   (256 )
Net income (loss) attributable to Hess Corporation $ (247 )

(a)

$ 59

(b)

$ (188 )
 
(a)   The after-tax realized results from crude oil hedging activities amounted to a net gain of $13 million in the third quarter of 2015.
(b) The after-tax realized results from crude oil hedging activities amounted to a net gain of $19 million in the third quarter of 2015.

(c)

Includes amounts charged from the Bakken Midstream.
 
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION EARNINGS (UNAUDITED)
(IN MILLIONS)
 
Year Ended December 31, 2015

  United States  

 

   International   

 

         Total          

 
Sales and other operating revenues $ 4,150 $ 2,486 $ 6,636
Other, net   11   (41 )   (30 )
Total revenues and non-operating income   4,161   2,445   6,606
 
Costs and Expenses
Cost of products sold (excluding items shown separately below)(c) 1,418 (9 ) 1,409
Operating costs and expenses 786 978 1,764
Production and severance taxes 138 8 146
Bakken Midstream tariffs 449 449
Exploration expenses, including dry holes and lease impairment 255 626 881
General and administrative expenses 262 55 317
Depreciation, depletion and amortization 2,361 1,491 3,852
Impairment   986   630   1,616
Total costs and expenses   6,655   3,779   10,434
 
Results of operations before income taxes (2,494 ) (1,334 ) (3,828 )
Provision (benefit) for income taxes   (574 )   (537 )   (1,111 )
Net income (loss) attributable to Hess Corporation $ (1,920 ) (a) $ (797 ) (b) $

  (2,717

)
 
 
Year Ended December 31, 2014
United States International Total
 
Sales and other operating revenues $ 6,270 $ 4,467 $ 10,737
Gains on asset sales, net 69 748 817
Other, net   (26 )   (20 )   (46 )
Total revenues and non-operating income   6,313   5,195   11,508
 
Costs and Expenses
Cost of products sold (excluding items shown separately below)(c) 1,737 89 1,826
Operating costs and expenses 731 1,084 1,815
Production and severance taxes 240 35 275
Bakken Midstream tariffs 212 212
Exploration expenses, including dry holes and lease impairment 359 481 840
General and administrative expenses 270 55 325
Depreciation, depletion and amortization   1,681   1,459   3,140
Total costs and expenses   5,230   3,203   8,433
 
Results of operations before income taxes 1,083 1,992 3,075
Provision for income taxes   439   550   989
Net income (loss) attributable to Hess Corporation $ 644 (a) $ 1,442 (b) $ 2,086
 
(a)   After-tax realized net gains from crude oil hedging activities were $30 million for the year ended December 31, 2015 and $33 million for the year ended December 31, 2014.
(b) After-tax realized net gains from crude oil hedging activities amounted to $49 million for the year ended December 31, 2015 and $88 million for the year ended December 31, 2014.
(c) Includes amounts charged from the Bakken Midstream.
                                                                                                                             
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
Fourth Fourth Third
Quarter Quarter Quarter
2015 2014 2015

Operating Data

     

Net Production Per Day (in thousands)

Crude oil - barrels
United States
Bakken 78 78 82
Other Onshore   11   10   10
Total Onshore 89 88 92
Offshore   52   48   60
Total United States   141   136   152
 
Europe 38 40 40
Africa 52 63 50
Asia   2   2   2
Total   233   241   244
 
Natural gas liquids - barrels
United States
Bakken 21 16 20
Other Onshore   12   9   12
Total Onshore 33 25 32
Offshore   6   6   7
Total United States   39   31   39
 
Europe   1   1   1
Total   40   32   40
 
Natural gas - mcf
United States
Bakken 60 50 65
Other Onshore   138   60   125
Total Onshore 198 110 190
Offshore   90   74   93
Total United States   288   184   283
 
Europe 48 43 45
Asia and other   235   304   246
Total   571   531   574
 
Barrels of oil equivalent   368   362   380
 
                                                                                                                         
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
Year Ended December 31,
2015     2014

Operating Data

   

Net Production Per Day (in thousands)

Crude oil - barrels
United States
Bakken 81 66
Other Onshore   10   10
Total Onshore 91 76
Offshore   56   51
Total United States   147   127
 
Europe 38 36
Africa 51 54
Asia   2   3
Total   238   220
 
Natural gas liquids - barrels
United States
Bakken 20 10
Other Onshore   12   7
Total Onshore 32 17
Offshore   6   6
Total United States   38   23
 
Europe   1   1
Total   39   24
 
Natural gas - mcf
United States
Bakken 64 40
Other Onshore   109   47
Total Onshore 173 87
Offshore   87   78
Total United States   260   165
 
Europe 43 36
Asia and other   282   312
Total   585   513
 
Barrels of oil equivalent   375   329
 
                                                                                                                             
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
Fourth Fourth Third
Quarter Quarter Quarter
2015 2014 2015

Sales Volumes Per Day (in thousands)

     
Crude oil - barrels 221 252 245
Natural gas liquids - barrels 41 32 40
Natural gas - mcf   572   531   574
Barrels of oil equivalent   357   373   381
 

Sales Volumes (in thousands)

Crude oil - barrels 20,316 23,207 22,592
Natural gas liquids - barrels 3,732 2,957 3,701
Natural gas - mcf   52,591   48,851   52,784
Barrels of oil equivalent   32,813   34,306   35,090
 
                                                                                                                         
Year Ended December 31,
2015     2014

Sales Volumes Per Day (in thousands)

   
Crude oil - barrels 234 222
Natural gas liquids - barrels 39 24
Natural gas - mcf   584   513
Barrels of oil equivalent   371   331
 

Sales Volumes (in thousands)

Crude oil - barrels 85,344 80,869
Natural gas liquids - barrels 14,400 8,793
Natural gas - mcf   213,195   187,381
Barrels of oil equivalent   135,277   120,892
 
                                                                                                                 
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
Fourth Fourth Third
Quarter Quarter Quarter
2015 2014 2015

Operating Data

Average Selling Prices

Crude oil - per barrel (including hedging)
United States
Onshore $ 40.48 $ 61.96 $ 40.43
Offshore 37.88 82.22 42.70
Total United States 39.52 69.20 41.33
Europe 52.81 89.44 53.49
Africa 49.99 79.55 51.98
Asia 40.89 63.91
Worldwide 43.73 75.34 45.66
 
Crude oil - per barrel (excluding hedging)
United States
Onshore $ 36.93 $ 61.96 $ 37.91
Offshore 37.88 70.99 42.70
Total United States 37.28 65.19 39.81
Europe 44.49 74.58 50.12
Africa 41.98 69.99 48.60
Asia 40.89 63.91
Worldwide 39.40 68.05 43.43
 
Natural gas liquids - per barrel
United States
Onshore $ 8.34 $ 21.26 $ 5.45
Offshore 13.74 23.25 12.56
Total United States 9.13 21.64 6.69
Europe 22.19 39.69 21.44
Worldwide 9.61 22.37 7.17
 
Natural gas - per mcf
United States
Onshore $ 1.31 $ 2.34 $ 1.70
Offshore 1.37 3.09 2.37
Total United States 1.33 2.62 1.92
Europe 5.55 8.63 6.43
Asia and other 5.60 6.34 5.98
Worldwide 3.44 5.24 4.02
 
                                                                                                   
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
 
Year Ended December 31,

       2015       

   

       2014       

Operating Data

Average Selling Prices

Crude oil - per barrel (including hedging)
United States
Onshore $ 42.67 $ 81.89
Offshore 46.21 95.05
Total United States 44.01 87.21
Europe 55.10 104.21
Africa 53.89 97.31
Asia 52.74 89.71
Worldwide 47.85 92.59
 
Crude oil - per barrel (excluding hedging)
United States
Onshore $ 41.22 $ 81.89
Offshore 46.21 92.22
Total United States 43.11 86.06
Europe 52.37 99.20
Africa 51.57 93.70
Asia 52.74 89.71
Worldwide 46.37 90.20
 
Natural gas liquids - per barrel
United States
Onshore $ 9.18 $ 28.92
Offshore 14.40 30.40
Total United States 10.02 29.32
Europe 24.59 52.66
Worldwide 10.52 30.59
 
Natural gas - per mcf
United States
Onshore $ 1.64 $ 3.18
Offshore 2.03 3.79
Total United States 1.77 3.47
Europe 6.72 10.00
Asia and other 5.97 6.94
Worldwide 4.16 6.04
 
                                                                           
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
BAKKEN MIDSTREAM EARNINGS (UNAUDITED)
(IN MILLIONS)
 
Fourth Fourth Third
Quarter Quarter Quarter

    2015    

    2014    

    2015    

Income Statement

 
Revenues and Non-operating Income
Total revenues and non-operating income $ 141 $ 101 $ 148
 
Costs and Expenses
Operating costs and expenses 69 61 65
General and administrative expenses 5 4 4
Depreciation, depletion and amortization 23 22 22
Interest expense   4   1   4
Total costs and expenses   101   88   95
 
Results of operations before income taxes 40 13 53
Provision (benefit) for income taxes   7   5   10
Net income (loss) 33 8 43
Less: Net income attributable to noncontrolling interests*   22     27
Net income (loss) attributable to Hess Corporation $ 11 $ 8 $ 16

* - On July 1, 2015, the Corporation completed the sale of a 50 percent interest in its Bakken Midstream segment. Our partner’s 50 percent share of net income is presented as a noncontrolling interest charge in the Bakken Midstream income statements effective from the third quarter of 2015.

                                                                             
Fourth Fourth Third
Quarter Quarter Quarter

    2015    

 

    2014    

 

     2015     

Bakken Midstream - Operating Volumes (in thousands)

     
 

Processing

Tioga gas plant – mcf of natural gas per day 186 160 210
 

Export

Terminal throughput – bopd (a) 62 72 72
Tioga rail terminal crude loading – bopd (b) 42 43 47

Rail services – bopd (c)

43 41 45
 

Pipelines

Oil gathering – bopd 50 27 41
Gas gathering – mcf of natural gas per day 198 176 226
 
(a)   Volume of crude oil received at the Ramburg Truck Facility for transportation to the Tioga Rail Terminal or third party pipelines.
(b) Volume of crude oil loaded to Hess Midstream and third party rail cars at the Tioga Rail Terminal.
(c) Volume of crude oil transported by Hess Midstream rail cars from the Tioga Rail Terminal and third party terminals.
                                                                               
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
BAKKEN MIDSTREAM EARNINGS (UNAUDITED)
(IN MILLIONS)
 
Year Ended December 31,
2015     2014

Income Statement

 
Revenues and Non-operating Income
Total revenues and non-operating income $ 564 $ 319
 
Costs and Expenses
Operating costs and expenses 265 219
General and administrative expenses 14 11
Depreciation, depletion and amortization 88 70
Interest expense   10   2
Total costs and expenses   377   302
 
Results of operations before income taxes 187 17
Provision (benefit) for income taxes   52   7
Net income (loss) 135 10
Less: Net income attributable to noncontrolling interests*   49  

-

Net income (loss) attributable to Hess Corporation $ 86 $ 10
 

* - On July 1, 2015, the Corporation completed the sale of a 50 percent interest in its Bakken Midstream segment. Our partner’s 50 percent share of net income is presented as a noncontrolling interest charge in the Bakken Midstream income statements effective from the third quarter of 2015.

                                                                                       
Year Ended December 31,
2015   2014

Bakken Midstream - Operating Volumes (in thousands)

   
 

Processing

Tioga gas plant – mcf of natural gas per day 194 107
 

Export

Terminal throughput – bopd (a) 73 61
Tioga rail terminal crude loading – bopd (b) 47 38

Rail services – bopd (c)

43 36
 

Pipelines

Oil gathering – bopd 39 25
Gas gathering – mcf of natural gas per day 214 129
 
(a)   Volume of crude oil received at the Ramburg Truck Facility for transportation to the Tioga Rail Terminal or third party pipelines.
(b) Volume of crude oil loaded to Hess Midstream and third party rail cars at the Tioga Rail Terminal.
(c) Volume of crude oil transported by Hess Midstream rail cars from the Tioga Rail Terminal and third party terminals.

For Hess Corporation
Investors:
Jay Wilson, 212-536-8940
or
Media:
Sard Verbinnen & Co
Michael Henson/Patrick Scanlan, 212-687-8080


Source: Business Wire (January 27, 2016 - 7:30 AM EST)

News by QuoteMedia
www.quotemedia.com

Legal Notice