Hess said Thursday that it booked a fourth quarter unadjusted net loss of about $1.82 billion.
The company reported an adjusted net loss of $396 million, or $1.40 per common share, for the fourth quarter compared with adjusted net income of $53 million, or $0.18 per share, in the fourth quarter of 2014.
Hess said that lower realized selling prices reduced adjusted net income by about $420 million compared with the prior-year quarter.
On an unadjusted basis, the company reported a net loss of $1.82 million for the fourth quarter of 2015 including noncash impairments, compared to a net loss of $8 million in the fourth quarter of last year.
The New York-based company took noncash goodwill and other impairment related charges totaling $1.35 million after tax, including a nontaxable goodwill impairment charge of $1.09 billion related to its exploration and production segment.
Hess’s exploration and production segment posted an adjusted net loss of $328 million in the fourth quarter, down from an adjusted net income of $138 million in the fourth quarter of 2014.
On an unadjusted basis, the exploration and production segment booked a net loss of $1.71 billion in the fourth quarter, down from a net income of $83 million in the same quarter of 2014.
The company’s Bakken Midstream segment posted a net income of $11 million in the fourth quarter, up from $8 million in the prior-year quarter.
Cash provided by operating activities was $623 million in the fourth quarter, down from $1.074 billion in the fourth quarter of 2014.
The company’s exploration and production capital and exploratory expenditures are now expected to be $2.4 billion, down 40 percent from the company’s 2015 spend.
Oil and gas production is forecast to be in the range of 330,000 to 350,000 barrels of oil equivalent per day, compared to full year 2015 net production of 368,000 boepd, excluding Libya and asset sales.
Hess’s year-end 2015 cash and cash equivalents totaled $2.7 billion.
Year-end total proved reserves were 1.086 billion barrels of oil equivalent, down from 1.431 billion boe in the prior year, primarily “due to negative revisions to proved undeveloped reserves resulting from lower crude oil price,” the company said.
“We finished 2015 with one of the strongest balance sheets and liquidity positions among our E&P peers. Looking forward, our top priority is to continue to keep our balance sheet strong,” CEO John Hess said.