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Chevron-target Hess reports Q1 profit beat on higher production
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Chevron-target Hess reports Q1 profit beat on higher production
Apr 25, 2024 5:51 AM

April 25 (Reuters) - Hess Corp ( HES ) reported a

first-quarter profit on Thursday that beat analysts' estimates,

helped by higher production from the oil and gas company that is

set to be acquired by U.S. energy major Chevron ( CVX ) in a $53

billion deal.

Net production at Hess jumped 27.3% to 476,000 barrels of

oil equivalent per day (boepd) in the quarter, primarily due to

higher production in Guyana and the Bakken oil field in the

United States.

Hess' lucrative assets in oil-rich Guyana have sparked a

major corporate tug-of-war among large North American energy

firms.

Chevron's ( CVX ) acquisition will give it control over Hess' 30%

stake in the Stabroek Block, a major offshore oil project in

Guyana.

However, Exxon Mobil ( XOM ) and CNOOC Ltd are contesting

the deal and have filed cases seeking the right to first refusal

over sale of any Hess stake.

Hess now expects the deal closing to get delayed to next

year from its previous target of this summer.

In Bakken, the company saw increased drilling and completion

activity, while Guyana production was helped by the commencing

of operations at the Payara block, Hess said.

Worldwide average realized crude oil selling price,

excluding hedges, rose 7.8% to $80.06 per barrel during the

quarter from a year earlier.

Quarterly profit of $3.16 per share beat analysts' average

estimate of $1.67 per share, according to LSEG data.

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