April 25 (Reuters) -

Hess Corp ( HES ) on Thursday reported first-quarter

earnings well above analysts' forecasts, driven by a 28%

increase in Guyana oil output, a sign Exxon Mobil's ( XOM ) results out

Friday could also top forecasts.

Last October, Hess agreed to sell itself to Chevron ( CVX )

for $53 billion in stock, but the deal has been stalled by a

regulatory review and challenged by Exxon, which claims a right

to Hess's Guyana assets. Hess and Chevron ( CVX ) dispute Exxon's claim,

now before an arbitration panel.

Hess's production rose 27% to 476,000 barrels of oil and gas

per day (boepd), on a 70% year-over-year increase in Guyana to

190,000 bpd. Its Bakken shale output also rose, the company

said.

The company posted higher than expected production in

Guyana on much lower than forecast spending, analysts said. The

results indicated that the consortium's three offshore

production vessel were pumping near or at capacity, a positive

sign for Exxon results.

Hess share traded up a fraction at $159.29 in morning

trade even as the wider market fell sharply on rising inflation

expectations and poor results technology giant Meta.

Chevron's ( CVX ) proposed deal would give it Hess' 30% stake in the

Stabroek Block, a major offshore oil project in Guyana that has

been tallied more than 30 oil discoveries since 2015.

Exxon and CNOOC Ltd, another partner in the Guyana

consortium, have filed arbitration cases with the International

Chamber of Commerce. Hess expects any decision may not arrive

until year-end, leaving a closing unlikely this year.

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.