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)