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Hess (HES) Surpasses Earnings and Revenue Estimates in Q3
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Hess Corporation (HES - Free Report) reported adjusted third-quarter 2018income from continuing operations of 38 cents per share, which beat the Zacks Consensus Estimate of a loss of 5 cents. The company reporteda loss of $1.07 in the year-ago quarter.
Revenues increased 11.2% to $1,828 million from $1,644 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1,555 million.
Hess Corporation Price, Consensus and EPS Surprise
Higher realized oil and natural gas prices along with plunge in operating expenses boosted third-quarter results. This was partially offset by lower production.
Q3 Operational Performance
In the reported quarter, the company’s Exploration and Production (E&P) business posted income of $144 million, against a loss of $474 million in the prior-year quarter.
Quarterly hydrocarbon production totaled 297 thousand barrels of oil equivalent per day (MBOE/d), which declined 4.5% year over year but beat the Zacks Consensus Estimate of 266 MBOE/d.
Crude oil production was 155 thousand barrels per day compared with 176 thousand barrels per day in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 135 thousand barrels per day. Natural gas liquids production totaled 40 thousand barrels compared with 43 thousand barrels in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 39.74 thousand barrels. Natural gas output was 611 thousand cubic feet (Mcf) compared with 552Mcf in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 531Mcf.
Worldwide crude oil realization per barrel of $66.08 (including the impact of hedging) increased 40.7% year over year. Worldwide natural gas prices rose 22.7% year over year to $4.11 per Mcf, but lagged the Zacks Consensus Estimate of $4.44 per Mcf. Worldwide natural gas liquid prices increased 41.1% year over year to $24.29 per barrel.
Midstream: The company generated profits of $30 million, against a loss $12 million in the July-to-September quarter of 2017.
Operating Expenses
Operating expenses in the third quarter totaled $266 million, down more than 24% from the year-ago quarter’s figure of $353 million.
Financials
Quarterly net cash flow from operations was $423 million at the end of the quarter. Hess’ capital expenditures declined 2.9% to $542 million from $558 million in the prior-year quarter.
As of Sep 30, the company had approximately $3,004 million in cash and $6,609 million in long-term debt. The debt-to-capitalization ratio at the end of the quarter was 37.5%.
Based in Wayzata, MN, Northern Oil and Gas is an exploration and production company. It pulled off an average positive earnings surprise of 138.5% in the last four quarters.
Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. The company delivered an average positive earnings surprise of 35.3% in the trailing four quarters.
Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership reported a negative earnings surprise of 0.3% in the last four quarters.
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The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
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Hess (HES) Surpasses Earnings and Revenue Estimates in Q3
Hess Corporation (HES - Free Report) reported adjusted third-quarter 2018income from continuing operations of 38 cents per share, which beat the Zacks Consensus Estimate of a loss of 5 cents. The company reporteda loss of $1.07 in the year-ago quarter.
Revenues increased 11.2% to $1,828 million from $1,644 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1,555 million.
Hess Corporation Price, Consensus and EPS Surprise
Hess Corporation Price, Consensus and EPS Surprise | Hess Corporation Quote
Higher realized oil and natural gas prices along with plunge in operating expenses boosted third-quarter results. This was partially offset by lower production.
Q3 Operational Performance
In the reported quarter, the company’s Exploration and Production (E&P) business posted income of $144 million, against a loss of $474 million in the prior-year quarter.
Quarterly hydrocarbon production totaled 297 thousand barrels of oil equivalent per day (MBOE/d), which declined 4.5% year over year but beat the Zacks Consensus Estimate of 266 MBOE/d.
Crude oil production was 155 thousand barrels per day compared with 176 thousand barrels per day in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 135 thousand barrels per day. Natural gas liquids production totaled 40 thousand barrels compared with 43 thousand barrels in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 39.74 thousand barrels. Natural gas output was 611 thousand cubic feet (Mcf) compared with 552Mcf in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 531Mcf.
Worldwide crude oil realization per barrel of $66.08 (including the impact of hedging) increased 40.7% year over year. Worldwide natural gas prices rose 22.7% year over year to $4.11 per Mcf, but lagged the Zacks Consensus Estimate of $4.44 per Mcf. Worldwide natural gas liquid prices increased 41.1% year over year to $24.29 per barrel.
Midstream: The company generated profits of $30 million, against a loss $12 million in the July-to-September quarter of 2017.
Operating Expenses
Operating expenses in the third quarter totaled $266 million, down more than 24% from the year-ago quarter’s figure of $353 million.
Financials
Quarterly net cash flow from operations was $423 million at the end of the quarter. Hess’ capital expenditures declined 2.9% to $542 million from $558 million in the prior-year quarter.
As of Sep 30, the company had approximately $3,004 million in cash and $6,609 million in long-term debt. The debt-to-capitalization ratio at the end of the quarter was 37.5%.
Zacks Rank & Stocks to Consider
Currently, Hess carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Northern Oil and Gas, Inc (NOG - Free Report) , Enbridge Inc (ENB - Free Report) and Eni SpA (E - Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Wayzata, MN, Northern Oil and Gas is an exploration and production company. It pulled off an average positive earnings surprise of 138.5% in the last four quarters.
Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. The company delivered an average positive earnings surprise of 35.3% in the trailing four quarters.
Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership reported a negative earnings surprise of 0.3% in the last four quarters.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>