Hess sinks deeper into the red but production grows

U.S.-based oil and gas player Hess Corporation saw its net loss deepen in the third quarter of 2020 compared to the prior-year period while its production increased by 11 per cent driven by Bakken and Liza field in Guyana.

Hess Corporation on Wednesday reported a net loss of $243 million in the third quarter of 2020, compared with a net loss of $212 million in the third quarter of 2019.

On an adjusted basis, the company reported a net loss of $216 million in the third quarter of 2020, compared with an adjusted net loss of $105 million in the prior-year quarter.

According to Hess, the decrease in adjusted after-tax results compared with the prior-year period primarily reflects lower realized selling prices and higher exploration expenses.

The company’s revenues in 3Q 2020 totalled $1.18 billion compared to revenues of $1.51 billion in the prior-year quarter.

Net production, excluding Libya, was 321,000 boepd in the third quarter of 2020, up 11 per cent from the third quarter 2019 net production of 290,000 boepd.

The improved performance primarily resulted from a 21 per cent increase in Bakken production and production from the ExxonMobil-operated Liza field, offshore Guyana, which started in December 2019, partially offset by hurricane-related downtime in the Gulf of Mexico and lower production in South East Asia.

Hess’ E&P capital and exploratory expenditures were $331 million in the third quarter of 2020, down from $661 million in the prior-year quarter.

The decrease is primarily driven by the lower rig count in the Bakken and reduced development drilling in the Gulf of Mexico during the third quarter of 2020.

For full-year 2020, E&P capital and exploratory expenditures are expected to be approximately $1.8 billion which is down from prior guidance of approximately $1.9 billion.