US oil explorers anticipated to report a loss of $14 billion
Feb 02, 2016 09:48 AM EST
As a result, of the sharpest oil price fall in a generation, the oil explorers in the USare anticipated to report losses amounting to nearly 14 billion US dollar in the following eight days. Analysts expect Hess Corp to report an annual loss of 1.6 billion US dollar, a worst of its result in 28 years.
The scenario remains identical for Hess' peers like Anadarko Petroleum and Murphy Oil Corp, which are also clutched by the collapse in the crude oil price of over 70% since June 2014, according to Bloomberg. Investors have wiped out over 300 billion US dollar in the market value for the oil explorers in the previous year.
Bankruptcies and disappointing debt exchanges have led the oil explorers to cut thousands of staffs, trim dividends, and abandon drilling projects to preserve capital and resist insolvency.
Based on the middling of 22 analysts' predictions compiled by Bloomberg, Hess is anticipated to report a fourth quarter loss per share, excluding per-time items, to be $1.46. On Tuesday, the US-based oil explorer axed its drilling budget for 2016 by 40% to 2.4 billion US dollar.
Analysts at CLSA have reduced their 2016 earnings per share outlook for Hess Corp, according to EMQ. The CLSA consensus estimate for Hess Cop's earnings per share is ($4.68) for 2016 and 2017 earnings per share at ($3.32).
EMQ said that JPMorgan Chase & Co have reduced their price target on stocks of Hess Corp to $38.0 from $58.00. Analysts at Nomura have also reduced their price target on Hess Corp's shares to $43.00 from $70.00 and also fixed a "neutral" rating for the oil explorer.
Meanwhile, Anadarko Petroleum is anticipated to post a loss of 6 billion US dollar for the year, Bloomberg said. The producer has been stricken by sinking natural gas prices and collapse in oil, which is over 60% of the firm's output.
Analysts at KLR Group lowered their price target on Anadarko's stocks from $98.00 to $85.00 in its research report on January 19th, according to Corvus Business. However, Argus enhanced their price objective on the producer's shares from $90.00 to $105.00 and also offered the company a buy rating in a report on December 3rd.
Among the peers in the industry, Occidental Petroleum Cop is expected to post a loss of 2.74 billion US dollar for the full-year and ConocoPhillips' annual loss is expected to be 1.58 billion US dollar.
Analysts at Wells Fargo Securities said that for many oil explorers, who don't possess retail gasoline stations and oil refineries, capital flows have been devastated by the collapse in crude prices. According to Michael Scialla, a Stifel Nicolaus & Co analyst, with oil price currently down at around $30, the oil explorers will be forced into monster cuts.