I suppose it's a matter of proportion. Those integrated oil and gas companies whose exploration and production units are significantly larger than their refining and marketing sectors performed well amid the most recent quarter's rising crude prices and falling refinery margins.
That was how it was for Hess
Looking at the company's individual sectors, earnings from exploration and production more than doubled to $414 million. At the same time, the contribution from refining and marketing was less than a third of that earned the prior year. The biggest difference in the sector results was a $6.45-per-barrel increase to $65.26 in the selling price for crude oil.
As is frequently the case for any company larger than your local coin laundry, there were a couple of one-time items in the quarter that deserve at least a passing mention. In the most recent quarter, the company took a $33 million charge for production imbalances relating to meter reading at a couple of its offshore fields. And in the year-ago quarter, Hess recorded charges totaling $105 million to reflect a new supplementary tax in the U.K. on petroleum operations.
So, at least for this quarter, Hess has beaten ConocoPhillips
In the meantime, I'm inclined to like Hess' relative "oiliness" and, yes, the relative proportion between its two main operating sectors. It's a name I hope Fools with an appetite for oil and gas companies will keep close at hand.
- For related Foolishness:
- Getting Fueled Again?
- Getting Crude in All the Wrong Places
- Chevron Gassing Up Down Under