Hess 1Q19 Earnings

Later: see also this post on the Vantage Pipeline.

Original Post

Hess day?

I just posted a long note on Hess' plans to expand it Tioga facility. I previously mentioned in passing 1Q19 earnings for Hess, but now it seems a good time to look at the story a bit more closely.

We will start with Zacks, April 25, 2019, link here. Data points:

• adjusted 1Q19 profit of 9 cents vs a Zacks estimate of a loss of 26 cents.

Let's stop there. How in the world could Zacks be off by that much? There must have only been one analyst following Hess and he/she phoned it in. LOL. My hunch is this: the analyst simply took the year-ago adjusted loss of 27 cents and revised the 1Q19 estimate by a penny. Wow.

From the linked story: The strong first-quarter results were attributed to higher hydrocarbon production, backed by prolific plays like Bakken and Gulf of Mexico.

More data points:

• Production: Exploration and Production business reported a profit of $109 million, improving from $25 million a year ago
• quarterly production: 
• 299K boepd; up almost 20% year-over-year
• crude oil: 164K bopd 1Q19 vs 134K 1Q18 (a 22% increase year-over-year)
• NGL: 40K bbls vs 37K bbls a year ago
• NG: 572K cf vs 504K cf a year ago
• pricing:
• worldwide crude oil realization of $55.91 (including the impact of hedging)
• that $55.91 represented a 6% decline year-over-year
• NGL selling price also fell to $18.46 from $21.11 a year ago
• NG: worldwide natural gas prices rose 15% to $4.43 per Mcf
• Midstream: earned $37 million, up from $28 million
• Net cash flow: $238 million at the end of 1Q19
• Cash: $2.3 billion
• Debt: $6.5 billion
• Debt-to-capitalization ratio: almost 40%

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