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How Have Hess’s 4Q17 Earnings and Revenues Performed?

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Feb. 7 2018, Published 12:20 p.m. ET

Hess’s 4Q17 and fiscal 2017 revenues

Hess (HES) reported its 4Q17 earnings on February 5, 2018. Its 4Q17 revenues totaled ~$1.29 billion, slightly lower than the Wall Street estimate of $1.3 billion. Its 4Q17 revenues were slightly lower than its 4Q16 revenues of ~$1.4 billion.

For fiscal 2017, Hess Corporation’s revenues were higher compared to the previous year. HES’s revenues for fiscal 2017 totaled $5.4 billion compared to $4.8 billion reported in fiscal 2016.

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Higher realized crude oil prices supported higher revenues in fiscal 2017. HES reported that for the year, its realized prices for crude oil had averaged $49.23 per barrel compared to $39.20 per barrel in fiscal 2016. While realized prices had averaged higher in 4Q17 compared to 4Q16, revenues in 4Q17 were impacted by a loss on asset sales of $362.0 million.

Hess’s 4Q17 and fiscal 2017 earnings

Hess reported adjusted EPS (earnings per share) of -$1.01 in 4Q17, worse than Wall Street analysts’ consensus estimate of -$0.89 EPS. In 4Q16, HES reported earnings per share of -$1.01.

HES’s earnings per share for fiscal 2017 totaled -$4.61, compared to -$4.94 per share reported in fiscal 2016. Hess’s 4Q17 earnings were impacted by impairments of $1.7 billion.

Key highlights

In its 4Q17 earnings release, Hess (HES) noted that it completed the sale of its interests in Equatorial Guinea and Norway. As a result, its cash and cash equivalents at the end of 2017 totaled $4.8 billion.

The company expects to use these funds to fund Phases 1 and 2 of its Liza Field development, increase its rig count from four to six rigs in the Bakken Shale, finance a $500.0 million stock repurchase program, and utilize another $500.0 million in debt retirement.

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