Hess Corporation HES reported adjusted third-quarter 2015 loss – from continuing operation − of $1.03 per share, narrower than the Zacks Consensus Estimate of $1.13 loss. However, the bottom line deteriorated from the year-ago quarter earnings of $1.24 mainly due to a drop in oil and gas prices.
 

Revenues decreased year over year to $1,689 million in the quarter from $2,736 million a year ago. However, revenues surpassed the Zacks Consensus Estimate of $1,518 million.

Third-Quarter Operational Performance

In the reported quarter, the Exploration and Production business digested a loss of $188 million versus the year-earlier profit of $433 million. The company’s Bakken Midstream business posted higher net income of $16 million than $8 million in the prior-year quarter primarily due to higher throughput.

Quarterly hydrocarbon production was 380 thousand barrels of oil equivalent per day, up 19% year over year. The increase in production came primarily on the back of higher output from the Bakken shale play, Utica shale play, and the Gulf of Mexico.

Crude oil production was 244 thousand barrels per day (up from 211 thousand barrels per day in the year-ago quarter), natural gas liquids production totaled 40 thousand barrels (up from 30 thousand barrels). Natural gas output was 574 thousand cubic feet (Mcf) (up from 462 Mcf).

Worldwide crude oil realization per barrel of $45.66 (including the impact of hedging) decreased 53% year over year. The worldwide natural gas liquids selling price was $7.17 per barrel, down from $29.62 per barrel in the year-ago quarter. Finally, the worldwide natural gas selling price was $4.02 per Mcf in the third quarter of 2015 compared with $5.59 per Mcf in the third quarter of 2014.

Financials

Quarterly net cash flow from operations was $489 million at quarter end. Hess’ capital expenditures totaled $849 million.

As of Sep 30, 2015, the company had approximately $3,004 million in cash and $5,952 million in long-term debt. The debt-to-capitalization ratio at the end of the quarter was 22.7%.

Zacks Rank

Hess currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy space are Natural Gas Services Group Inc. NGS, Matrix Service Co. MTRX and ReneSola Ltd SOL. Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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