Hess Reports Estimated Results for the Third Quarter of 2019
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Hess Reports Estimated Results for the Third Quarter of 2019

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10.30.2019

Key Developments:

  • The Liza Destiny floating production, storage and offloading vessel (FPSO) arrived at the Stabroek Block (Hess - 30 percent), offshore Guyana, in late August; production from Phase 1 is now targeted to startup in December 2019
  • A 14th discovery was announced on the Stabroek Block at the Tripletail-1 exploration well located approximately 3 miles northeast of the Longtail discovery; the Tripletail discovery adds to the previously announced estimate of gross discovered recoverable resources on the Stabroek Block of more than 6 billion barrels of oil equivalent
  • A discovery was announced at the Esox-1 exploration well in the Gulf of Mexico that will be a tieback to the Tubular Bells production facilities; first oil is expected in the first quarter of 2020
  • Hess Corporation will receive approximately $275 million in cash and will own approximately 134 million units, or 47 percent, of Hess Midstream upon closing of its proposed acquisition of Hess Infrastructure Partners LP, expected in the fourth quarter of 2019

 

Financial and Operational Highlights:

  • Net loss was $205 million, or $0.68 per common share, compared with a net loss of $42 million, or $0.18 per common share, in the third quarter of 2018
  • Adjusted net loss1 was $98 million, or $0.32 per common share, compared with adjusted net income of $29 million, or $0.06 per common share, in the third quarter of last year
  • Oil and gas net production averaged 290,000 barrels of oil equivalent per day (boepd), excluding Libya, up from 279,000 boepd in the third quarter of 2018; Bakken net production was 163,000 boepd, up 38 percent from 118,000 boepd in the prior-year quarter
  • Exploration and Production (E&P) capital and exploratory expenditures were $661 million, compared with $542 million in the prior-year quarter
  • Cash and cash equivalents, excluding Midstream, were $1.9 billion at September 30, 2019

 

2019 Updated Full Year Guidance:

  • Net production guidance, excluding Libya, increased to approximately 285,000 boepd, up from the previous guidance range of 275,000 boepd to 280,000 boepd; Bakken net production guidance increased to approximately 150,000 boepd, up from the previous guidance range of 140,000 boepd to 145,000 boepd
  • E&P capital and exploratory expenditures are projected to be $2.7 billion, down from previous guidance of $2.8 billion 

 

Hess today reported a net loss of $205 million, or $0.68 per common share, in the third quarter of 2019, compared with a net loss of $42 million, or $0.18 per common share, in the third quarter of 2018. On an adjusted basis, the Corporation reported a net loss of $98 million, or $0.32 per common share, in the third quarter of 2019, compared with an adjusted net income of $29 million, or $0.06 per common share, in the prior-year quarter. The decrease in after-tax adjusted results primarily reflects lower realized selling prices, partially offset by reduced exploration expenses.

“We achieved strong operational performance once again this quarter, delivering higher production and lower capital and exploratory expenditures than previous guidance,” Chief Executive Officer John Hess said. “In September, we announced our 14th discovery in the Stabroek Block at Tripletail, offshore Guyana and are now targeting December for first oil from the Liza-1 development. We also just announced an oil discovery at the Esox-1 well, part of our focused exploration program in the deepwater Gulf of Mexico, which will be a low cost, high return tieback to Tubular Bells production facilities.”

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