- Hess (HES -3.4%) is sharply lower after posting a large but slightly lower than expected Q1 loss on a 36% Y/Y decline in revenues.
- HES says lower realized selling prices reduced Q1 after-tax results by ~$230M due to the the weak commodity price environment, although total costs and expenses declined 20% to $1.75B.
- HES says Q1 average selling prices for crude fell to $28.50/bbl from $45.08 in the prior-year quarter, and selling prices for natural gas liquids sank 50% to $7.44.
- Q1 production fell 1.4% Y/Y to 350K boe/day, as E&P capital spending declined 56% Y/Y to $554M from $1.24B; HES expects FY 2016 net production at 320K-325K boe/day, reflecting downtime at Valhall and several other deepwater Gulf of Mexico fields.
- HES says it plans a three-rig program in the Bakken during Q2 and the closing of one rig in Q3, and notes that it is waiting for $60/bbl oil before starting to put rigs back online.
- Now read Hess Corporation: Promising exploration tailwinds heading into earnings