Second quarter highlights:
- Adjusted net loss was US$147 million or US$0.52 per share compared to net income of US$432 million or US$1.38 per share in the prior-year quarter; lower hydrocarbon prices reduced second quarter 2015 adjusted net income by approximately US$740 million, after-tax.
- Net loss was US$567 million compared to net income of US$931 million in the second quarter of 2014.
- Oil and gas production increased to 39 000 barrels of oil equivalent per day (boe/p) compared to 319 000 boe/d in the second quarter of 2014.
- Oil and gas production in the Bakken was 119 000 boe/d, up from 80,000 boe/d in the year-ago quarter.
- Announced sale of 50% interest in Bakken Midstream, resulting in US$3 billion of cash proceeds.
- Capital and exploratory expenditures totaled US$1.1 billion in the second quarter down from US$1.3 billion in the prior-year quarter.
- Liza-1 well completed on the Stabroek Block, offshore Guyana; announced as a significant discovery by the operator.
Hess Corporation (NYSE: HES) today reported an adjusted net loss, which excludes items affecting comparability, of US$147 million or US$0.52 per common share, for the second quarter of 2015 compared with adjusted net income of US$432 million or US$1.38 per share in the second quarter of 2014. Lower realised selling prices reduced adjusted net income by approximately US$740 million after-tax compared with the prior-year quarter. In addition, second quarter 2015 results benefitted from higher production, lower cash operating costs and reduced exploration expenses that were partially offset by higher depreciation, depletion, and amortisation expense. On an unadjusted basis, the Corporation reported a net loss of US$567 million for the second quarter of 2015, including a noncash goodwill impairment charge of US$385 million, and net income of US$931 million in the prior-year quarter.
'We achieved strong operating performance in the quarter and delivered significant and immediate value to our shareholders with the sale of a 50 % interest in our Bakken midstream assets,' Chief Executive Officer John Hess said. 'We remain confident that our financial strength, resilient portfolio and proven operating capabilities position us well in the current low oil price environment as well as for a future price recovery.'
Adapted from a press release by Louise Mulhall