Hess Q3 Profit More Than Doubles, Results Beat View

(RTTNews) - Energy company Hess Corp. (HES) on Wednesday reported a profit for the third quarter that more than doubled from last year, reflecting higher production and gain on asset sales that helped offset lower crude oil prices.

Both revenue and adjusted earnings per share for the quarter beat analysts' expectations. Looking ahead to 2014, Hess expects pro forma production to average near the top end of its guidance range.

For the third quarter, net income attributable to the company was $1.01 billion or $3.31 per share, up from $420 million or $1.23 per share in the prior-year quarter.

The latest quarter's results include an after-tax gain of $33 million from the $53 million sale of the company's interest in the Cambo Field in the UK North Sea, and another after-tax gain of $602 million related to the $2.8 billion sale of the company's retail business in September.

Excluding items, adjusted net income for the quarter was $377 million or $1.24 per share, compared to $405 million or $1.18 per share in the year-ago quarter.

On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $1.08 per share for the quarter. Analysts estimates typically exclude special items.

Total revenues and non-operating income for the quarter rose 3 percent to $2.80 billion from $2.71 billion in the same quarter last year. Analysts had a consensus revenue estimate of $2.58 billion for the quarter.

Oil and gas production for the quarter was 318,000 barrels of oil equivalent per day or boepd, up 3 percent from 310,000 boepd in the year-ago quarter.

Hess noted that higher production in the Bakken shale play contributed 15,000 boepd compared to the year-ago quarter, while ongoing development of Utica wet gas acreage increased production by an additional 10,000 boepd.

Excluding production from assets sold and Libya, pro forma production in the quarter was 314,000 boepd, up 17 percent from 269,000 boepd in 2013.

The company's average worldwide crude oil selling price, including the effect of hedging, was $96.36 per barrel, down 8 percent from the same quarter a year ago. Meanwhile, average worldwide natural gas selling price decreased 14 percent from last year to $5.59 per mcf.

Looking ahead to 2014, Hess expects pro forma production to average near the top end of its guidance range of 305,000 bope to 315,000 boepd, driven by continued growth in the Bakken, higher production from the Valhall Field and the start-up of the Tubular Bells Field in the Gulf of Mexico.

Hess noted that in September 2014, Hess Midstream Partners LP filed a registration statement with the U.S. Securities and Exchange Commission for a proposed 2015 initial public offering.

In October, Hess signed a deal to sell its interest in HETCO, its energy trading joint venture.

HES is currently trading at $83.16, up $1.21 or 1.48 percent on a volume of 1.48 million shares.