Hess Reports 4Q:20 Net Loss

(Hess, 27.Jan.2021) — Hess Corporation reported a net loss of $97mn, or $0.32 per common share, in the fourth quarter of 2020, compared with a net loss of $222mn, or $0.73 per common share, in the fourth quarter of 2019. On an adjusted basis, the corporation reported a net loss of $176mn, or $0.58 per common share, in the fourth quarter of 2020, compared with an adjusted net loss of $180mn, or $0.60 per common share, in the prior-year quarter.

Adjusted after-tax results reflect reductions in operating costs, exploration expense and depreciation, depletion and amortization expenses compared with the fourth quarter of 2019, which were largely offset by lower realized crude oil selling prices in the fourth quarter of 2020.

Fourth Quarter Financial and Operational Highlights:

— Net loss was $97mn, or $0.32 per common share, compared with a net loss of $222mn, or $0.73 per common share in the fourth quarter of 2019

Adjusted net loss was $176mn, or $0.58 per common share, compared with an adjusted net loss of $180mn, or $0.60 per common share in the prior-year quarter

Completed the sale of the corporation’s 28% working interest in the Shenzi Field in the deepwater Gulf of Mexico for net proceeds of $482mn, after closing adjustments

Oil and gas net production, excluding Libya, averaged 309,000 barrels of oil equivalent per day (boepd), down from 316,000 boepd in the fourth quarter of 2019; Bakken net production was 189,000 boepd, up 9% from 174,000 boepd in the prior-year quarter

Production from Phase 1 of the Liza Field development on the Stabroek Block, offshore Guyana, reached its nameplate capacity of 120,000 gross barrels of oil per day (bopd) in December

E&P capital and exploratory expenditures were $371mn, compared with $876mn in the prior-year quarter

Cash and cash equivalents, excluding Midstream, were $1.74bn at 31 December 2020

Year-end proved reserves were 1,170 million barrels of oil equivalent (boe); organic reserve replacement for 2020 was 95% (158% excluding price revisions)

2021 Guidance:

Net production, excluding Libya, is forecast to be approximately 310,000 boepd

E&P capital and exploratory expenditures are expected to be $1.9bn

“We are successfully executing our strategy which has positioned our company to deliver industry leading cash flow growth over the next decade,” CEO John Hess said. “In 2021, our priorities remain to preserve cash, capability and the long term value of our assets, with more than 80% of our capital expenditures allocated to our high return investments in Guyana and the Bakken.”

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