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Hess (HES) Q3 Earnings Top Estimates, Production Outlook Rises
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Hess Corporation (HES - Free Report) has reported third-quarter 2022 earnings per share of $1.89, beating the Zacks Consensus Estimate by a penny. The bottom line improved from the year-ago quarter’s 28 cents per share.
Total quarterly revenues increased to $3,157 million from $1,811 million a year ago. The top line also beat the Zacks Consensus Estimate of $2,939 million.
The strong quarterly results have been driven by higher realizations of commodity prices and increased hydrocarbon production.
Hess Corporation Price, Consensus and EPS Surprise
For the quarter under review, the Exploration and Production business reported adjusted earnings of $626 million, improving from $149 million a year ago. The business was favored by higher realized commodity prices.
Quarterly hydrocarbon production was 368 thousand barrels of oil equivalent per day (MBoe/d), up from 284 MBoe/d in the year-ago period, primarily due to higher production in Guyana.
Crude oil production increased from 153 thousand barrels per day (MBbls/d) in third-quarter 2021 to 217 MBbls/d. Natural gas liquid production totaled 60 MBbls/d, up from 47 MBbls/d in the prior-year quarter. Natural gas output was 547 thousand cubic feet per day (Mcf/d), up from 503 Mcf/d a year ago.
Worldwide crude oil realization per barrel of $93.95 (excluding the impacts of hedging) significantly improved from $67.88 in the year-ago period. Also, worldwide natural gas prices rose to $5.85 per Mcf from the year-ago figure of $4.71. The average worldwide natural gas liquids’ selling price increased to $35.44 per barrel from $32.88 a year ago.
Midstream:
From the midstream business, the company generated adjusted net earnings of $68 million, up from $61 million a year ago.
Operating Expenses
Operating expenses for the third quarter totaled $398 million versus the year-ago level of $333 million. Marketing costs increased to $982 million from $522 million a year ago. Also, exploration expenses increased to $58 million from $36 million in the year-ago period.
Total costs and expenses increased to $2,269 million for the quarter from $1,483 million a year ago.
Financials
Net cash provided by operating activities was $1,339 million for the third quarter. Hess’ capital expenditure for exploration and production activities totaled $701 million.
As of Sept 30, 2022, the company had $2,384 million in cash and cash equivalents. Its long-term debt was $8,303 million at the third-quarter end.
Guidance
For 2022, Hess has revised its net production guidance (excluding Libya) upward to 325,000 barrels of oil equivalent per day (Boe/d) from the prior stated 320,000 Boe/d. For the fourth quarter, net production (excluding Libya) is projected to be 370,000 Boe/d.
The company has reiterated its capital and exploratory expenditure guidance of $2.7 billion.
Zacks Rank & Stocks to Consider
Hess currently carries a Zacks Rank #5 (Strong Sell).
The Williams Companies, Inc. (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB’s board recently approved a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.
Williams is scheduled to report third-quarter results on Oct 31. The Zacks Consensus Estimate for WMB’s earnings is pegged at 43 cents per share, suggesting a significant increase from the prior-year reported figure.
Equinor ASA (EQNR - Free Report) is one of the premier integrated energy companies in the world. For 2022, EQNR announced the increase of the share buyback program of up to $6 billion from the prior stated $5 billion.
Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
Cactus Inc. (WHD - Free Report) is involved in manufacturing, designing, and selling wellhead and pressure-control equipment. At the second-quarter end, Cactus had cash and cash equivalents of $311.7 million, which can provide it with immense financial flexibility. WHD has a strong balance sheet. Per the company, it had no bank debt outstanding as of Jun 30, 2022.
Cactus is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 49 cents per share, suggesting a significant increase from the prior-year reported figure.
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Hess (HES) Q3 Earnings Top Estimates, Production Outlook Rises
Hess Corporation (HES - Free Report) has reported third-quarter 2022 earnings per share of $1.89, beating the Zacks Consensus Estimate by a penny. The bottom line improved from the year-ago quarter’s 28 cents per share.
Total quarterly revenues increased to $3,157 million from $1,811 million a year ago. The top line also beat the Zacks Consensus Estimate of $2,939 million.
The strong quarterly results have been driven by higher realizations of commodity prices and increased hydrocarbon production.
Hess Corporation Price, Consensus and EPS Surprise
Hess Corporation price-consensus-eps-surprise-chart | Hess Corporation Quote
Operational Update
Exploration and Production:
For the quarter under review, the Exploration and Production business reported adjusted earnings of $626 million, improving from $149 million a year ago. The business was favored by higher realized commodity prices.
Quarterly hydrocarbon production was 368 thousand barrels of oil equivalent per day (MBoe/d), up from 284 MBoe/d in the year-ago period, primarily due to higher production in Guyana.
Crude oil production increased from 153 thousand barrels per day (MBbls/d) in third-quarter 2021 to 217 MBbls/d. Natural gas liquid production totaled 60 MBbls/d, up from 47 MBbls/d in the prior-year quarter. Natural gas output was 547 thousand cubic feet per day (Mcf/d), up from 503 Mcf/d a year ago.
Worldwide crude oil realization per barrel of $93.95 (excluding the impacts of hedging) significantly improved from $67.88 in the year-ago period. Also, worldwide natural gas prices rose to $5.85 per Mcf from the year-ago figure of $4.71. The average worldwide natural gas liquids’ selling price increased to $35.44 per barrel from $32.88 a year ago.
Midstream:
From the midstream business, the company generated adjusted net earnings of $68 million, up from $61 million a year ago.
Operating Expenses
Operating expenses for the third quarter totaled $398 million versus the year-ago level of $333 million. Marketing costs increased to $982 million from $522 million a year ago. Also, exploration expenses increased to $58 million from $36 million in the year-ago period.
Total costs and expenses increased to $2,269 million for the quarter from $1,483 million a year ago.
Financials
Net cash provided by operating activities was $1,339 million for the third quarter. Hess’ capital expenditure for exploration and production activities totaled $701 million.
As of Sept 30, 2022, the company had $2,384 million in cash and cash equivalents. Its long-term debt was $8,303 million at the third-quarter end.
Guidance
For 2022, Hess has revised its net production guidance (excluding Libya) upward to 325,000 barrels of oil equivalent per day (Boe/d) from the prior stated 320,000 Boe/d. For the fourth quarter, net production (excluding Libya) is projected to be 370,000 Boe/d.
The company has reiterated its capital and exploratory expenditure guidance of $2.7 billion.
Zacks Rank & Stocks to Consider
Hess currently carries a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies, Inc. (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB’s board recently approved a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.
Williams is scheduled to report third-quarter results on Oct 31. The Zacks Consensus Estimate for WMB’s earnings is pegged at 43 cents per share, suggesting a significant increase from the prior-year reported figure.
Equinor ASA (EQNR - Free Report) is one of the premier integrated energy companies in the world. For 2022, EQNR announced the increase of the share buyback program of up to $6 billion from the prior stated $5 billion.
Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
Cactus Inc. (WHD - Free Report) is involved in manufacturing, designing, and selling wellhead and pressure-control equipment. At the second-quarter end, Cactus had cash and cash equivalents of $311.7 million, which can provide it with immense financial flexibility. WHD has a strong balance sheet. Per the company, it had no bank debt outstanding as of Jun 30, 2022.
Cactus is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 49 cents per share, suggesting a significant increase from the prior-year reported figure.