New York-based Hess Corp. (NYSE: HES – $50.98) posted another loss for its second quarter as the oil and gas supplier continues to deal with the slowdown in the global energy market. According to Hess, the average crude selling price fell 25% in the quarter to $41.95 a barrel from $55.83 a year earlier. Hess’ exploration and production business posted a loss of $328 million in the quarter, compared with a loss of $502 million a year ago. The segment’s capital and exploratory expenditures fell by more than half to $485 million. Hess expects capital and exploratory expenditures to total $2.1 billion for the year. Oil and gas production dropped 19% to 313,000 barrels of oil equivalent a day, compared with 386,000 a year before. For the year, Hess originally said it projected net production of 315,000 to 325,000 barrels of oil equivalent a day, excluding Libya. Eliminating certain costs, the company posted an adjusted per share loss of $1.10, wider than its year-earlier loss of $0.52 per share, but better than the $1.23 loss predicted by analysts. Revenue fell sharply, down 34% to $1.27 billion from a year ago, but higher than Street views of $1.2 billion.
A long slump in energy prices, particularly in crude oil, has hurt the energy provider’s results. So much so that in February, the company said it would sell about $1.5 billion worth of shares to raise cash. Further losses are in the cards, but the company has a relatively strong balance sheet, especially when compared to its peers. The shares took a hit on the news along with a further slump in oil prices, which tumbled to a two-month low on the day. I don’t expect much from HES until energy prices rebound, which may be awhile. However, I am going to continue to hold the shares with a 6% allocation in the aggressive portfolio for eventual recovery.