Hess, Murphy release quarterly figures
USA
NEW YORK, January 26, 2017 – US independents Hess Corporation and Murphy Oil announced fourth-quarter losses on Wednesday, yet remain optimistic about the new year.
Arkansas-based driller Murphy Oil recorded net losses of USD 64 million for the fourth quarter and USD 276 million for the full year 2016. However, quarterly production was better than expected thanks to strong performances in Malaysia and Texas’ Eagle Ford Shale. Murphy averaged 168,000 boepd for the quarter and 176,000 boepd in 2016.
Hess’ net losses for the fourth quarter were USD 4.89 billion, up significantly from the same period the previous year, when it posted net losses of USD 1.82 billion. However, much of last year’s loss can be attributed to non-cash accounting charges. Among comparable items, losses for the most recent quarter were USD 305 million, compared to an adjusted net loss of USD 396 million for Q4 2015.
Hess also announced that production for the fourth quarter was 311,000 boepd. Net production for the year was 321,000 boepd. The company expects production for 2017 to hover around 300,000-310,000 boepd. However, despite the declining production and mounting losses, Hess sees reasons for optimism going into 2017.
In the past quarter, the company confirmed a second oil discovery offshore Guyana on the Stabroek Block, of which it has a 30% stake. Known as the Payara-1 well, the find is 16 kilometres northwest of the massive Liza discovery. Also in 2016, Hess achieved reserve-replacement ratio of 119%. At the end the year, its proven reserves stood at 1.11 billion boe. In 2017, the company plans to spend USD 2.25 billion on E&P capital and exploratory expenditures, an increase of 18% from 2016.
CEO John Hess expressed the firm’s optimism in a company statement. “We see 2017 as the start of an exciting new chapter of value-driven growth for our company and our shareholders,” Hess remarked. “We are increasing activity in the Bakken, our two offshore developments at North Malay Basin in the Gulf of Thailand and Stampede in the Gulf of Mexico are on track to come online in 2017 and 2018, and the Liza Field in Guyana is one of the industry’s largest oil discoveries in the last 10 years.”
Murphy Oil President and CEO Roger W. Jenkins expressed similar optimism for the current year. “The company is now set up with a solid balance sheet, ample liquidity and stabilized production levels while maintaining our top quartile dividend yield within cash flow,” he said.
“2016 was a year of improving the company’s North American onshore portfolio while surviving one of our industry’s worst commodity price collapses. We successfully monetized non-core assets, including Montney midstream and Syncrude, while entering into a new unconventional liquids play in the Kaybob Duvernay,” he added.
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