Independent oil and gas company Hess Corporation narrowed its loss and increased revenues during the first quarter of 2017 helped by higher oil prices.
The oil company on Wednesday reported a net loss of $324 million in the first quarter of 2017 compared with a net loss of $509 million in the first quarter of 2016. The company’s loss for the last quarter of 2016 was $4.9 billion.
Hess explained in its quarterly report that the first quarter 2017 results were improved as higher realized crude oil selling prices and lower operating costs and exploration expenses more than offset the change in deferred income taxes and lower production volumes.
During the first quarter 2017, Hess’ revenues were $1.28 billion, an increase compared to $993 million in the corresponding period of 2016.
“Production momentum returns to our portfolio starting in the second half of 2017, underpinned by the Bakken, the North Malay Basin and Stampede developments, and offshore Guyana, one of the industry’s largest oil discoveries in the past 10 years,” Chief Executive Officer John Hess said.
Hess’ net loss in the Exploration and Production section of the business was $233 million in 1Q 2017, compared to a net loss of $453 million in the same period of 2016.
The company’s average realized crude oil selling price, including the effect of hedging, was $48.58 per barrel in the first quarter of 2017, up from $28.50 per barrel in the year-ago quarter.
Excluding production from Libya, pro forma net production in the first quarter of 2017 was 307,000 boepd, compared to 350,000 boepd in the first quarter of 2016. Lower volumes were due to a reduced drilling program across the portfolio, natural field declines and lower entitlement in Asia.
Exploration and production capital and exploratory expenditures were $393 million in the first quarter of 2017, down 28 percent from $543 million in the prior-year quarter, reflecting reduced work program in response to the low commodity price environment.
Offshore Energy Today Staff