On an adjusted basis, the corporation reported a net loss of US$182 million, or US$0.60 per common share, in 1Q20. The decrease in after-tax adjusted results compared with the prior-year period primarily reflects lower realised selling prices, partially offset by higher production volumes.
“Our priorities in this low price environment are to preserve cash, preserve capability and preserve the long term value of our assets,” CEO John Hess said. “Our company is in a strong position to manage through this market downturn and to prosper when oil prices recover – with our low cost of supply and high return investments that will drive material cash flow growth and increasing financial returns.”
- Implemented Covid-19 plans and precautions to protect the health and safety of our workforce and the communities where we operate and to maintain business continuity.
- Reduced E&P capital and exploratory budget for 2020 by 37% to US$1.9 billion from the original budget of US$3 billion.
- Have crude oil put options in place for more than 80 percent of forecast 2020 net oil production; fair value of US$1.1 billion at 31 March 2020.
- Chartered three very large crude carriers (VLCCs) to store 2 million bbl each of May, June and July Bakken crude oil production expected to be sold in 4Q20, to maximise the value production.
1Q20 financial and operational highlights
- Net loss was US$2433 million, or US$8.00 per common share, including impairment and other after-tax charges of US$2251 million resulting from the low price environment, compared with net income of US$32 million, or US$0.09 per common share, in 1Q19. Adjusted net loss was US$182 million, or US$0.60 per common share, in 1Q20.
- Oil and gas net production, excluding Libya, averaged 344 000 boe/d, up from 278 000 boe/d in 1Q19; Bakken net production was 190 000 boe/d, up 46% from 130 000 boe/d in the prior-year quarter.
- Exploration and production (E&P) capital and exploratory expenditures were US$631 million, compared with US$542 million in the prior-year quarter.
- Cash and cash equivalents, excluding Midstream, were US$2.1 billion at 31 March 2020.
2020 revised full year guidance
- Oil and gas production, excluding Libya, is forecast to be approximately 320 000 boe/d.
- E&P capital and exploratory expenditures are projected to be US$1.9 billion.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/07052020/hess-announces-1q20-results/