Hess Narrows Second Quarter Loss

U.S. oil and gas company, Hess has reported a net loss of $6 million in the second quarter of 2019, compared to a net loss of $130 million for the same period last year on the back of increased oil production and reduced expenses.

Hess also decided to trim its full year capex guidance. 

Hess Corporation on Wednesday reported revenues of $1.7 billion compared to $1.56 billion in the same quarter of 2018.

On an adjusted basis, the company reported a net loss of $28 million in the second quarter of 2019. In last year’s second quarter, Hess reported an adjusted net loss of $56 million.

According to the company, the improved adjusted results reflect increased U.S. crude oil production and reduced exploration expenses, partially offset by the impact of lower realized selling prices and higher depreciation, depletion, and amortization expenses.

The company’s CEO, John Hess, said: “Our production is now expected to come in at the upper end of our full-year guidance range, while our capital and exploratory expenditures are projected to come in below our original full-year guidance.

“In Guyana, we have just increased the estimate of gross discovered recoverable resources for the Stabroek Block to more than 6 bboe and continue to see multibillion barrels of additional exploration potential.”

Hess’ Exploration and Production (E&P) net income was $68 million in the second quarter of 2019, compared to $31 million in the second quarter of 2018.

Higher production driven by Bakken & GoM 

The company’s average realized crude oil selling price was $60.45 per barrel in the quarter, versus $62.65 per barrel in the year-ago quarter. The average realized natural gas liquids selling price in the second quarter of 2019 was $12.18 per barrel, versus $20.51 per barrel in the prior-year quarter, while the average realized natural gas selling price was $3.92 per mcf, compared to $4.12 per mcf in the second quarter of 2018.

Net production, excluding Libya, was 273,000 boepd in the second quarter of 2019, up from second quarter 2018 net production of 247,000 boepd, or 234,000 boepd excluding assets sold. The higher production was primarily driven by the Bakken and the Gulf of Mexico.

Libya net production was 20,000 boepd in the second quarter of 2019, compared with 18,000 boepd in the prior-year quarter.

E&P capital and exploratory expenditures were $664 million in the second quarter of 2019, compared to $525 million in the prior-year quarter, reflecting increased drilling in the Bakken and greater development activity in Guyana.

For full-year 2019, Hess’ E&P capital and exploratory expenditures are projected to be $2.8 billion, down from original guidance of $2.9 billion.

Source: Offshoreenergytoday.com