financetom
Business
financetom
/
Business
/
Hess quarterly profit beats on strong Guyana output
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Hess quarterly profit beats on strong Guyana output
Jul 31, 2024 5:57 AM

July 31 (Reuters) - Hess Corp ( HES ) beat estimates for

second-quarter profit on Wednesday, helped by sharply higher oil

production in Guyana and stronger prices.

The South American country and its lucrative oil assets are

at the center of a dispute between Hess, Chevron ( CVX ) and

Exxon.

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's production rose 27.6% to 494,000 barrels of oil and

gas per day (boepd), on nearly 75% year-over-year increase in

Guyana to 192,000 bpd. Its Bakken shale output also rose, the

company said.

It, however, expects a fall in current-quarter production

due to planned downtime in Guyana and Southeast Asia.

Third-quarter net production is expected to be in the range of

460,000 boepd to 470,000 boepd.

Hess said it expects its Guyana output to fall 10% as a

natural gas pipeline is connected this quarter, and expects its

North Dakota output to drop 4.5% on planned maintenance.

The company's average realized crude oil selling price

also rose nearly 13% to $80.29 per barrel in the second quarter.

A three-person arbitration panel is expected to decide

on

the dispute with Exxon. Exxon believes the process could

extend to 2025 while both Chevron ( CVX ) and Hess expect a resolution

by the end of the year.

Hess' quarterly profit of $2.62 per share beat analysts'

average estimate of $2.48 per share, according to LSEG data.

(Reporting by Mrinalika Roy in Bengaluru; Editing by Anil

D'Silva and Maju Samuel)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved