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Hess (HES) Surpasses Earnings & Revenue Estimates in Q2
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Hess Corporation (HES - Free Report) has reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The bottom line improved from the year-ago quarter’s 24 cents per share.
Total quarterly revenues increased to $2,988 million from $1,598 million a year ago. The top line also beat the Zacks Consensus Estimate of $2,608 million.
The strong quarterly results have been driven by higher realizations of commodity prices.
Hess Corporation Price, Consensus and EPS Surprise
For the quarter under review, the Exploration and Production business reported adjusted earnings of $723 million, improving from $122 million reported a year ago. The business was favored by higher realized commodity prices.
Quarterly hydrocarbon production was 322 thousand barrels of oil equivalent per day (MBoe/d), down from 328 MBoe/d in the year-ago period, owing to the unplanned downtime in the Gulf of Mexico.
Crude oil production increased from 166 thousand barrels per day (MBbls/d) in second-quarter 2021 to 176 MBbls/d. Natural gas liquid production totaled 49 MBbls/d, down from 57 MBbls/d in the prior-year quarter. Natural gas output was 580 thousand cubic feet per day (Mcf/d), down from 632 Mcf/d a year ago.
Worldwide crude oil realization per barrel of $109.51 (excluding the impacts of hedging) significantly improved from $64.27 in the year-ago period. Also, worldwide natural gas prices rose to $6.45 per Mcf from the year-ago figure of $4.05. The average worldwide natural gas liquids’ selling price increased to $40.92 per barrel from $23.12 a year ago.
Midstream:
From the midstream business, the company generated adjusted net earnings of $65 million, down from $76 million a year ago.
Operating Expenses
Operating expenses for the second quarter totaled $356 million versus the year-ago level of $315 million. Marketing costs increased to $843 million from $322 million a year ago. However, exploration expenses declined to $33 million from $48 million in the year-ago period.
Total costs and expenses increased to $1,906 million for the quarter from $1,463 million a year ago.
Financials
Net cash provided by operating activities was $1,509 million for the second quarter. Hess’ capital expenditure for exploration and production activities totaled $622 million.
As of Jun 30, 2022, the company had $2,159 million in cash and cash equivalents. Its long-term debt was $8,332 million at the second-quarter end.
Guidance
For 2022, Hess projects net production (excluding Libya) of 320,000 barrels of oil equivalent per day (Boe/d).
Net Bakken production is expected to be 150,000-155,000 Boe/d for the year. For the third quarter, the figure is forecast to be 155,000-160,000 Boe/d.
Schlumberger Limited (SLB - Free Report) reported second-quarter 2022 earnings of 50 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 40 cents. The strong quarterly results were primarily driven by higher sales of exploration data licensing, and strong drilling activities in land and offshore resources in North America and the international market.
Schlumberger revised its 2022 revenue outlook upward to at least $27 billion. This reflects year-over-year revenue growth in the high-teens compared with the prior mentioned mid-teens. Increased participation in growth of drilling and completion activities across the world brightened the company’s outlook.
Kinder Morgan Inc. (KMI - Free Report) reported second-quarter 2022 adjusted earnings per share of 27 cents, in line with the Zacks Consensus Estimate. Contributions from natural gas pipelines and Products Pipelines primarily aided KMI’s second-quarter results.
Kinder Morgan projects net income attributable to the midstream player of $2.5 billion for 2022. For the year, it expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior year. For 2022, KMI forecasts DCF generation of $4.7 billion and adjusted EBITDA of $7.2 billion.
Halliburton Company (HAL - Free Report) reported second-quarter 2022 adjusted net income per share of 49 cents, surpassing the Zacks Consensus Estimate of 45 cents. The outperformance reflects stronger-than-expected profit from both its divisions.
Halliburton believes that its smart strategy, digital leadership, capital efficiency, and global presence will lead to a rosy outlook. The Houston-based company’s cash flow generation capabilities and balance sheet strength should also ensure increased shareholder returns.
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Hess (HES) Surpasses Earnings & Revenue Estimates in Q2
Hess Corporation (HES - Free Report) has reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The bottom line improved from the year-ago quarter’s 24 cents per share.
Total quarterly revenues increased to $2,988 million from $1,598 million a year ago. The top line also beat the Zacks Consensus Estimate of $2,608 million.
The strong quarterly results have been driven by higher realizations of commodity prices.
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 $723 million, improving from $122 million reported a year ago. The business was favored by higher realized commodity prices.
Quarterly hydrocarbon production was 322 thousand barrels of oil equivalent per day (MBoe/d), down from 328 MBoe/d in the year-ago period, owing to the unplanned downtime in the Gulf of Mexico.
Crude oil production increased from 166 thousand barrels per day (MBbls/d) in second-quarter 2021 to 176 MBbls/d. Natural gas liquid production totaled 49 MBbls/d, down from 57 MBbls/d in the prior-year quarter. Natural gas output was 580 thousand cubic feet per day (Mcf/d), down from 632 Mcf/d a year ago.
Worldwide crude oil realization per barrel of $109.51 (excluding the impacts of hedging) significantly improved from $64.27 in the year-ago period. Also, worldwide natural gas prices rose to $6.45 per Mcf from the year-ago figure of $4.05. The average worldwide natural gas liquids’ selling price increased to $40.92 per barrel from $23.12 a year ago.
Midstream:
From the midstream business, the company generated adjusted net earnings of $65 million, down from $76 million a year ago.
Operating Expenses
Operating expenses for the second quarter totaled $356 million versus the year-ago level of $315 million. Marketing costs increased to $843 million from $322 million a year ago. However, exploration expenses declined to $33 million from $48 million in the year-ago period.
Total costs and expenses increased to $1,906 million for the quarter from $1,463 million a year ago.
Financials
Net cash provided by operating activities was $1,509 million for the second quarter. Hess’ capital expenditure for exploration and production activities totaled $622 million.
As of Jun 30, 2022, the company had $2,159 million in cash and cash equivalents. Its long-term debt was $8,332 million at the second-quarter end.
Guidance
For 2022, Hess projects net production (excluding Libya) of 320,000 barrels of oil equivalent per day (Boe/d).
Net Bakken production is expected to be 150,000-155,000 Boe/d for the year. For the third quarter, the figure is forecast to be 155,000-160,000 Boe/d.
The Zacks Rank #2 (Buy) company expects capital and exploratory expenditure of $2.7 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy)stocks here.
A Glimpse of Other Players’ Q2 Earnings
Schlumberger Limited (SLB - Free Report) reported second-quarter 2022 earnings of 50 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 40 cents. The strong quarterly results were primarily driven by higher sales of exploration data licensing, and strong drilling activities in land and offshore resources in North America and the international market.
Schlumberger revised its 2022 revenue outlook upward to at least $27 billion. This reflects year-over-year revenue growth in the high-teens compared with the prior mentioned mid-teens. Increased participation in growth of drilling and completion activities across the world brightened the company’s outlook.
Kinder Morgan Inc. (KMI - Free Report) reported second-quarter 2022 adjusted earnings per share of 27 cents, in line with the Zacks Consensus Estimate. Contributions from natural gas pipelines and Products Pipelines primarily aided KMI’s second-quarter results.
Kinder Morgan projects net income attributable to the midstream player of $2.5 billion for 2022. For the year, it expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior year. For 2022, KMI forecasts DCF generation of $4.7 billion and adjusted EBITDA of $7.2 billion.
Halliburton Company (HAL - Free Report) reported second-quarter 2022 adjusted net income per share of 49 cents, surpassing the Zacks Consensus Estimate of 45 cents. The outperformance reflects stronger-than-expected profit from both its divisions.
Halliburton believes that its smart strategy, digital leadership, capital efficiency, and global presence will lead to a rosy outlook. The Houston-based company’s cash flow generation capabilities and balance sheet strength should also ensure increased shareholder returns.