Hess Corporation reported an adjusted net loss, which excludes items affecting comparability, of $147 million or $0.52 per common share, for the second quarter of 2015 compared with adjusted net income of $432 million or $1.38 per share in Q2 2014.
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Lower realized selling prices reduced adjusted net income by approximately $740 million after-tax compared with the prior-year quarter. In addition, second quarter 2015 results benefitted from higher production, lower cash operating costs and reduced exploration expenses that were partially offset by higher depreciation, depletion, and amortization expense.
On an unadjusted basis, the Corporation reported a net loss of $567 million for the second quarter of 2015, including a 2 noncash goodwill impairment charge of $385 million, and net income of $931 million in the prior-year quarter.
“We achieved strong operating performance in the quarter and delivered significant and immediate value to our shareholders with the sale of a 50 percent interest in our Bakken midstream assets,†chief executive officer John Hess said.
“We remain confident that our financial strength, resilient portfolio and proven operating capabilities position us well in the current low oil price environment as well as for a future price recovery.â€
Capital and exploratory expenditures were $1,071 million in the second quarter of 2015 down from $1,256 million in the prior-year quarter of which $1,006 million and $1,208 million, respectively, relate to Exploration and Production activities.
Second quarter 2015 Exploration and Production expenditures reflect reduced activity in assets including the Bakken, the Utica, Norway and Equatorial Guinea, partly offset by expenditures associated with development of the North Malay Basin project and exploratory activities in the Gulf of Mexico and Guyana.
Net cash provided by operating activities was $541 million in the second quarter of 2015, compared with $911 million in the second quarter of 2014. At June 30, 2015, cash and cash 5 equivalents totaled $931 million compared with $2,444 million at December 31, 2014.
Total debt was $5,957 million at June 30, 2015 compared with $5,987 million at December 31, 2014. The Corporation’s debt to capitalization ratio at June 30, 2015 was 22.0 percent, compared with 21.2 percent at December 31, 2014.
In July 2015, the Corporation received after-tax cash proceeds of approximately $3 billion from the Bakken Midstream joint venture transaction described above. ■