Hess Company (IT IS – Free Report) reported Q1 2022 earnings per share of $1.30, beating Zacks’ consensus estimate of $1.12. The figure also improved from the previous year’s earnings of 82 cents per share.
Quarterly revenue increased to $2,371 million from $1,919 million a year ago. The first line also beat Zacks’ consensus estimate of $2,030 million.
Higher commodity price realizations supported the strong quarterly results.
exploration and production
For the quarter under review, the Exploration and Production activity recorded an adjusted profit of $460 million, up from a profit of $308 million a year ago. Activity was supported by higher realized commodity prices, partially offset by lower production.
Quarterly hydrocarbon production was 297,000 barrels of oil equivalent per day (MBoe/d), compared to 333 Mboe/d a year ago, due to unscheduled shutdowns in the Gulf of Mexico.
Crude oil production fell from 177,000 barrels per day (MBbls/d) in the first quarter of 2021 to 151 MBbls/d. Natural gas liquids production totaled 50 MBbl/d, compared to 53 MBbl/d in the prior year quarter. Natural gas production was 577,000 cubic feet per day (Mcf/d), compared to 617 Mcf/da a year ago.
Global crude oil realization per barrel of $94.04 (excluding hedging impacts) improved significantly from $52.52 a year ago. Additionally, global natural gas prices rose to $5.28 per Mcf from $4.90 a year ago. The global average selling price for natural gas liquids rose to $39.79 a barrel from $29.49 a year ago.
From the midstream business, the company generated adjusted net income of $72 million, compared to $75 million a year ago.
Operating expenses for the first quarter totaled $313 million from a level of $265 million a year ago. Marketing costs increased to $682 million from $518 million a year ago. Exploration spending reached $43 million, compared to $33 million a year ago.
Total costs and expenses increased to $1,669 million for the quarter from $1,460 million a year ago.
Net cash used in operations was $156 million for the first quarter. Hess’ capital expenditures for exploration and production activities totaled $580 million.
As of March 31, 2022, the company had $1,370 million in cash and cash equivalents. Its long-term debt was recorded at $7,934 million at the end of the first quarter. The current maturity of long-term debt is $22 million.
On April 26, Hess announced three discoveries in the Stabroek Block, increasing the gross estimate of the block’s discovered recoverable resources from 10 billion barrels of oil equivalent to 11 billion barrels of oil equivalent.
Zacks Ranking and Other Stocks to Consider
Hess currently sports a Zacks rank #1 (Strong Buy). Other potential stocks ranked #1 in the energy space include Conoco Phillips (COP – free report), Marathon Oil (RRM – free report) and western oil (OXY – free report). You can see the full list of today’s Zacks #1 Rank stocks here.
Considering production and reserves, ConocoPhillips is one of the major exploration and production players in the global market. ConocoPhillips is expected to release its first quarter results on May 5.
The Zacks consensus estimate for ConocoPhillips earnings is pegged at $3.24 per share, suggesting massive year-over-year growth.
Marathon Oil is a major oil and natural gas exploration and production company. Marathon Oil is expected to release its first quarter results on May 4.
Zacks’ consensus estimate for Marathon Oil’s earnings is pegged at 98 cents per share, suggesting a massive year-over-year improvement.
In the United States, Occidental Petroleum is one of the largest oil producers. Occidental Petroleum is expected to release its first quarter results on May 10.
The Zacks consensus estimate for Occidental Petroleum’s earnings is set at $2 per share.