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Hess (HES) Surpasses Earnings and Revenue Estimates in Q2
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Hess Corporation (HES - Free Report) reported adjusted second-quarter 2017 loss from continuing operations of 23 cents per share, which is narrower than the Zacks Consensus Estimate of a loss of 32 cents. The figure was substantially narrower than the loss of $1.46 in the year-ago quarter.
Revenues increased 27.5% year over year to $1,566 million from $1,228 million. The top line surpassed the Zacks Consensus Estimate of $1,464 million.
Hess Corporation Price, Consensus and EPS Surprise
Higher realized oil and natural gas prices, rise in throughput volumes along with plunge in operating expenses supported second-quarter numbers. This was partially offset by lower production.
Q2 Operational Performance
In the reported quarter, the company’s Exploration and Production (E&P) business posted adjusted income of $21 million, against the loss of $354 million in the prior-year quarter.
Quarterly hydrocarbon production totaled 265 thousand barrels of oil equivalent per day (MBOE/d), which declined 11.7% year over year and beat the Zacks Consensus Estimate of 255 MBOE/d.
Crude oil production was 133 thousand barrels per day compared with 177 thousand barrels per day in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of 120 thousand barrels per day. Natural gas liquids production totaled 40 thousand barrels against 42 thousand barrels in the prior-year quarter and beat the Zacks Consensus Estimate of 37.39 thousand barrels. Natural gas output was 553 thousand cubic feet (Mcf) compared with 487 Mcf in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 529 Mcf.
Worldwide crude oil realization per barrel of $62.65 (including the impact of hedging) increased 36.3% year over year. Worldwide natural gas prices rose 29.2% year over year to $4.12 per Mcf and surpassed the Zacks Consensus Estimate of $4.01 per Mcf. Worldwide natural gas liquid prices increased 38.1% year over year to $20.51 per barrel but lagged the Zacks Consensus Estimate of $21.53 per barrel.
Midstream: The company generated profits of $30 million, significantly higher than $16 million in the April-to-June quarter of 2017. Rise in throughput volumes primarily contributed to the segment’s profits.
Operating Expenses
Operating expenses in the first quarter totaled $288 million, down more than 23% from the year-ago quarter’s figure of $374 million.
Financials
Quarterly net cash flow from operations was $425 million at the end of the quarter. Hess’ capital expenditures declined 0.6% to $525 million from $528 million in the prior-year quarter.
As of Jun 30, the company had approximately $2,908 million in cash and $6,352 million in long-term debt. The debt-to-capitalization ratio at the end of the quarter was 37.7%.
Q2 Price Performance
During the second quarter, Hess’ shares gained 32.1% compared with the industry’s 19.7% rise.
Zacks Rank & Stocks to Consider
Currently, Hess carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are ConocoPhillips (COP - Free Report) and China Petroleum and Chemical Corporation , also known as Sinopec, and CVR Refining, LP . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. It pulled off an average positive earnings surprise of 226.9% in the last four quarters.
Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.
Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Hess (HES) Surpasses Earnings and Revenue Estimates in Q2
Hess Corporation (HES - Free Report) reported adjusted second-quarter 2017 loss from continuing operations of 23 cents per share, which is narrower than the Zacks Consensus Estimate of a loss of 32 cents. The figure was substantially narrower than the loss of $1.46 in the year-ago quarter.
Revenues increased 27.5% year over year to $1,566 million from $1,228 million. The top line surpassed the Zacks Consensus Estimate of $1,464 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, rise in throughput volumes along with plunge in operating expenses supported second-quarter numbers. This was partially offset by lower production.
Q2 Operational Performance
In the reported quarter, the company’s Exploration and Production (E&P) business posted adjusted income of $21 million, against the loss of $354 million in the prior-year quarter.
Quarterly hydrocarbon production totaled 265 thousand barrels of oil equivalent per day (MBOE/d), which declined 11.7% year over year and beat the Zacks Consensus Estimate of 255 MBOE/d.
Crude oil production was 133 thousand barrels per day compared with 177 thousand barrels per day in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of 120 thousand barrels per day. Natural gas liquids production totaled 40 thousand barrels against 42 thousand barrels in the prior-year quarter and beat the Zacks Consensus Estimate of 37.39 thousand barrels. Natural gas output was 553 thousand cubic feet (Mcf) compared with 487 Mcf in the prior-year quarter. The figure beat the Zacks Consensus Estimate of 529 Mcf.
Worldwide crude oil realization per barrel of $62.65 (including the impact of hedging) increased 36.3% year over year. Worldwide natural gas prices rose 29.2% year over year to $4.12 per Mcf and surpassed the Zacks Consensus Estimate of $4.01 per Mcf. Worldwide natural gas liquid prices increased 38.1% year over year to $20.51 per barrel but lagged the Zacks Consensus Estimate of $21.53 per barrel.
Midstream: The company generated profits of $30 million, significantly higher than $16 million in the April-to-June quarter of 2017. Rise in throughput volumes primarily contributed to the segment’s profits.
Operating Expenses
Operating expenses in the first quarter totaled $288 million, down more than 23% from the year-ago quarter’s figure of $374 million.
Financials
Quarterly net cash flow from operations was $425 million at the end of the quarter. Hess’ capital expenditures declined 0.6% to $525 million from $528 million in the prior-year quarter.
As of Jun 30, the company had approximately $2,908 million in cash and $6,352 million in long-term debt. The debt-to-capitalization ratio at the end of the quarter was 37.7%.
Q2 Price Performance
During the second quarter, Hess’ shares gained 32.1% compared with the industry’s 19.7% rise.
Zacks Rank & Stocks to Consider
Currently, Hess carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are ConocoPhillips (COP - Free Report) and China Petroleum and Chemical Corporation , also known as Sinopec, and CVR Refining, LP . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. It pulled off an average positive earnings surprise of 226.9% in the last four quarters.
Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.
Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>