Upcoming AWS Coverage on Enterprise Products Partners Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 7, 2017 / Active Wall St. announces its post-earnings coverage on Hess Corp. (NYSE: HES). The Company posted its fourth quarter 2016 results on January 25, 2017. The oil and gas producer's average realized crude oil selling price increased 5%, while natural gas selling price surged 53%. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Hess' competitors within the Independent Oil & Gas space, Enterprise Products Partners L.P. (NYSE: EPD), reported on January 30, 2017, its financial results for the three months and twelve months ended December 31, 2016. AWS will be initiating a research report on Enterprise Products Partners in the coming days.

Today, AWS is promoting its earnings coverage on HES; touching on EPD. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=HES

http://www.activewallst.com/registration-3/?symbol=EPD

Earnings Reviewed

For the three months ended December 31, 2016, Hess reported total revenues and non-operating income of $1.386 billion, marginally down from total revenues and non-operating income of $1.387 billion in Q4 2015. The Company's reported number surpassed analysts' consensus estimates of $1.28 billion.

Hess reported a net loss of $4.89 billion, or $15.65 per common share, in Q4 2016, compared to a net loss of $1.82 billion, or $6.43 per common share, in Q4 2015. The Company's Q4 2016 results include a noncash accounting charge of $3.75 billion on deferred tax asset. The reported quarter results also include an after-tax charge of $693 million to impair the Equus natural gas project, offshore the North West Shelf of Australia, and other after-tax charges totaling $145 million. Excluding items affecting comparability between periods, Hess' Q4 2016 net loss was $305 million, or $1.01 per common share, compared to a net loss of $396 million, or $1.40 per share in Q4 2015. The Company's loss was narrower than Wall Street's forecast of $1.09 per share.

Exploration and Production

For Q4 2016, Hess' Exploration and Production net loss was $3.95 billion compared to a net loss of $1.71 billion in Q4 2015. On an adjusted basis, the reported quarter net loss was $257 million compared to $328 million in the prior-year's same quarter.

The Corporation's average realized crude oil selling price was $45.97 per barrel in Q4 2016, up 5% from $43.73 per barrel in the year-ago same quarter. The average realized natural gas liquids selling price in the reported quarter was $14.68 per barrel, up from $9.61 per barrel in the prior-year's comparable quarter, while the average realized natural gas selling price was $3.24 per Mcf compared to $3.44 per Mcf in Q4 2015. Excluding production from Libya and assets sold, Hess' pro-forma net production in Q4 2016 was 307,000 boepd compared to 358,000 boepd in Q4 2015.

Oil and Gas Reserve Estimates

At December 31, 2016, Hess' Oil and gas proved reserves were 1.11 billion barrels of oil equivalent (Boe) compared to 1.09 billion Boe at December 31, 2015. Proved reserve additions and other technical revisions added 172 million Boe in FY16, primarily relating to the Bakken, North Malay Basin in Malaysia, and the South Arne Field in Denmark.

Operational Highlights for Q4 2016

Hess reported that net production from the Bakken decreased approximately 13% to 95,000 boepd in Q4 2016 from the prior year's corresponding quarter due to constrained production operations in the reported quarter caused by severe winter weather and a reduced drilling program during FY16. The Corporation operated an average of two rigs and brought 21 gross operated wells on production in Q4 2016, increasing the year-to-date total to 100 wells. Drilling and completion costs per operated well had averaged $4.6 million in Q4 2016, down 10% from the year ago same quarter.

During Q4 2016, Hess' net production from the Gulf of Mexico was 61,000 boepd compared to 73,000 boepd in Q4 2015, primarily as a result of unplanned well downtime due to subsurface valve failures at two fields and natural field declines.

The Corporation's Bakken Midstream segment had net income of $3 million in Q4 2016 compared to $11 million in the prior year's comparable quarter. Hess' reported quarter results include a pre-tax charge of $67 million ($21 million after income taxes and non-controlling interest) to impair older specification rail cars. Excluding the rail car charge, adjusted Q4 2016 net income was $24 million compared to $11 million in Q4 2015.

Capital and Exploratory Expenditures

Hess' Exploration and Production capital and exploratory expenditures was $414 million in Q4 2016, down 56% from $943 million in Q4 2015, reflecting reduced work program in response to the low commodity price environment. FY17 Exploration and Production capital and exploratory expenditures are forecasted to be $2.25 billion. Hess' Bakken Midstream capital expenditures were $86 million in Q4 2016 and $103 million in the year-ago same quarter. In FY17, midstream capital expenditures are forecasted to be $190 million, down from FY16 total expenditures of $276 million due to the expected completion of the Hawkeye compressor station project in Q1 2017.

Liquidity

Hess reported that net cash provided by operating activities was $326 million in Q4 2016 compared to $623 million in Q4 2015. In the reported quarter, the Corporation used $625 million of cash to purchase and redeem notes to complete the previously announced debt refinancing that commenced in Q3 2016.

As of December 31, 2016, Hess had cash and cash equivalents of $2.73 billion and total debt, excluding the Bakken Midstream, of $6.07 billion. The Corporation's debt to capitalization ratio was 30.4% and 24.4% at December 31, 2016 and 2015, respectively.

Stock Performance

On Monday, February 06, 2017, the stock closed the trading session at $53.16, dropping 2.12% from its previous closing price of $54.31. A total volume of 3.31 million shares have exchanged hands. Hess' stock price advanced 13.34% in the last three months, and 42.45% in the previous twelve months. The Company's shares have a dividend yield of 1.88%. At Monday's closing price, the stock's net capitalization stands at $16.72 billion.

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SOURCE: Active Wall Street