Research Desk Line-up: Anadarko Petroleum Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 7, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Hess Corp. (NYSE: HES), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HES, following the Company's announcement of its second quarter fiscal 2017 results on July 26, 2017. The oil and gas producer's net loss had widened on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Independent Oil & Gas industry. Pro-TD has currently selected Anadarko Petroleum Corporation (NYSE: APC) for due-diligence and potential coverage as the Company announced on July 24, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Anadarko Petroleum when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HES; also brushing on APC. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=HES

http://protraderdaily.com/optin/?symbol=APC

Earnings Reviewed

For the quarter ended June 30, 2017, Hess reported revenues of $1.23 billion compared to revenue of $1.27 billion in Q2 2016. The Company revenue numbers came in ahead of analysts' estimates of $1.19 billion.

Hess reported a net loss of $449 million, or $1.46 per common share, in Q2 2017 compared with a net loss of $392 million, or $1.29 per common share, in Q2 2016, reflecting a lower effective tax rate in 2017 from the required change in deferred tax accounting. The Company's loss before income taxes was $425 million in the reported quarter compared with a loss before income taxes of $678 million in the prior-year's corresponding quarter. The Company stated that improved Q2 2017 pre-tax results reflect higher realized crude oil selling prices and lower operating costs and exploration expenses that were partially offset by lower sales volumes. Hess' reported numbers fell short of Wall Street's expectations of $1.32 per share.

Segment Details

During Q2 2017, Hess' Exploration and Production net loss was $354 million compared to a net loss of $328 million in Q2 2016. The Company's average realized crude oil selling price, including the effect of hedging, was $45.95 per barrel in the reported quarter, up from $41.95 per barrel in the year-ago comparable quarter. The average realized natural gas liquids selling price in Q2 2017 was $14.85 per barrel versus $9.03 per barrel in Q2 2016; while average realized natural gas selling price was $3.19 per Mcf compared with $3.58 per Mcf in the prior year's same quarter.

Hess' net production, excluding Libya, was 294,000 boepd in Q2 2017 compared to 313,000 boepd in Q2 2016, the drop was attributed to a reduced drilling program across its portfolio, natural field declines, and plannedshut-downs in the Gulf of Mexico.

Cash operating costs, which include operating costs and expenses, production, and severance taxes, and E&P general and administrative expenses, were $14.68 per boe in Q2 2017, down 8% from $15.91 per boe in Q2 2016. The Company's reported quarter results included a charge of $15 million related to crude oil hedge ineffectiveness.

Operational Highlights

During Q2 2017, Hess' net production from the Bakken averaged 108,000 boepd compared to 106,000 boepd in Q2 2016. The Corporation operated an average of four rigs in the reported quarter, drilling 23 wells and bringing 13 new wells online. Hess' net production from the Gulf of Mexico was 51,000 boepd compared to 54,000 boepd in Q2 2016, primarily reflecting lower production as a result of planned shut-downs, partially offset by higher production at the Tubular Bells Field.

The Midstream segment, which is comprised primarily of the Company's 50/50 midstream joint venture, Hess Infrastructure Partners (HIP), had net income of $16 million in Q2 2017 compared to $11 million in Q2 2016. In April, Hess Midstream Partners L.P. (the "Partnership") successfully sold common units representing limited partner interests in an initial public offering for net proceeds of $365.5 million, of which $175 million was distributed to the Corporation. The Partnership owns an approximate 20% controlling interest in the operating assets that comprise HIP, while HIP retains ownership of the remaining 80%. The public unit-holders own a 30.5% limited partner interest in the Partnership.

Capital and Exploratory Expenditures

During Q2 2017, Hess' Exploration and Production capital and exploratory expenditures were $528 million, up from $484 million in Q2 2016, primarily reflecting increased drilling activity, partially offset by lower exploration activity and a reduction in development expenditures at North Malay Basin.

Liquidity

Hess reported that net cash provided by operating activities was $165 million in Q2 2017 compared to $197 million in Q2 2016. The Company's net cash provided by operating activities before changes in working capital was $332 million in the reported quarter, up from $257 million in the year-ago same quarter. Changes in working capital during Q2 2017 included non-recurring cash outflows totaling approximately $130 million related to crude oil provided to Dakota Access Pipeline as line fill, termination payments for an offshore drilling rig, premiums on crude oil hedging contracts, and prepayments for frac sand in North Dakota.

At June 30, 2017, the Corporation had cash and cash equivalents of $2.49 billion and total debt, excluding the Midstream segment of $6.04 billion. Hess' debt to capitalization ratio was 30.9% at June 30, 2017, and 30.4% at December 31, 2016.

Stock Performance

On Friday, August 04, 2017, the stock closed the trading session at $44.35, rising 2.64% from its previous closing price of $43.21. A total volume of 4.47 million shareshave exchanged hands, which was higher than the 3-month average volume of 4.26 million shares. Hess' stock price advanced 3.55% in the last one month. The stock has a dividend yield of 2.25% and currently has a market cap of $13.74 billion.

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