Hess Posts Narrower-Than-Expected Second-Quarter Loss
Bloomberg
Hess (HES) - Get Report reported an adjusted net loss of $28 million, or 9 cents a share, for the second quarter, narrower than analysts' forecasts that called for a loss of 10 cents.
In the comparable 2018 quarter, the company lost $56 million, or 23 cents a share.
Hess attributed the beat to increased U.S. crude oil production and reduced exploration expenses, partially offset by the impact of lower realized selling prices and higher depreciation, depletion and amortization expenses.
"Our production is now expected to come in at the upper end of our full year guidance range, while our capital and exploratory expenditures are projected to come in below our original full year guidance," CEO John Hess said.
The company projected its capital and exploratory costs would be $2.8 billion, down from its earlier estimate of $2.9 billion.
Quarterly hydrocarbon production was 293 thousand barrels of oil equivalent per day, up 10.6% year over year on contributions from resources in the Gulf of Mexico and the Bakken formation in the American northwest. Crude oil production increased from 133 thousand barrels per day in second-quarter 2018 to 161 thousand barrels per day in second-quarter 2019.
Shares were up 7.9% to $66.91 a share in trading Wednesday.
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