OIL AND GAS COMPANIES REPORT LOSSES IN FIRST QUARTER 2015

By TONI ELLINGTON

Due to record low prices per barrel for crude oil, a number of oil and gas companies posted first quarter (“1Q”) losses or decreases in profits. Hess Corporation reported an estimated net loss of $389 million for 1Q 2015.  This is compared to a net profit of $386 for 1Q 2014. The company stated that exploration and production losses totaled $286 million during the quarter, even though production levels for crude oil and natural gas liquids increased for that time period. Hess has reduced its 2015 projected expenditures for capital and exploration and production. Hess is headquartered in New York City, with offices in more than a dozen countries.

Total SA reported that its 1Q 2015 income was down 22% from $3.3 billion during 1Q 2014. Total cited a 50% decrease in Brent crude oil prices from last year as the cause. Total is a multinational French oil and gas company.

Eni SPA reported a 1Q 2015 decline of 55% in its adjusted operating profits, due to lower crude oil prices. Its losses were offset in part by better performance in upstream activity and other segments of its business. Eni SPA is an Italian oil and gas company with headquarters in Rome.

A number of other oil and gas companies – Anadarko Petroleum, SandRidge Energy, Inc., and Devon Energy -- are scheduled to report their first quarter earnings the first week of May 2015. For updates, stay tuned to this blog, or call (504) 599-8500.