An increase in oil and gas production helped Hess Corp. to partially offset lower prices to report net income of $504 million for the third quarter of the year, the company said Wednesday.
Hess saw production of 395,000 bbl of oil equivalent per day during the quarter, compared to 351,000 boe/d during the third quarter of 2022.
Net income was $504 million, or $1.64 per share, during the latest quarter, compared to $515 million, or $1.67 per share, in the third quarter of 2022, the company said.
Hess officials cancelled a planned call with analysts to discuss the quarterly results after announcing Monday the company would be sold to Chevron in an all-stock transaction valued at $53 billion. The deal is expected to close in the first quarter of next year.
The increase in Hess production was driven largely by its assets in the Bakken play, where output grew from 166,000 boe/d in Q3 2022 to 190,000 boe/d during the recent quarter. The company saw production in Guyana rise from 98,000 barrels of oil per day last year to 108,000 b/d this year and from 57,000 boe/d to 69,000 boe/d in Southeast Asia. Production in the Gulf of Mexico fell from 30,000 boe/d to 28,000 boe/d, the company said.
The increases led Hess to say it now expects production in 2023 to average 390,000 boe/d, which is at the upper end of the 385,000-390,000 boe/d it had previously forecast.
The company said its crude sales, including the effect of hedging, brought in $81.53/bbl during the third quarter, down from the $85.32/bbl seen during Q3 2022. The company’s average realized natural gas liquids price was $20.17/bbl, compared to $35.44/bbl during the same time last year. The average natural gas selling price was $4.57/mcf, compared with $5.85/mcf in Q3 2022.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
–Reporting by Steve Cronin, [email protected]; Editing by Michael Kelly, [email protected]
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