U.S. oil company Hess Corporation managed to significantly narrow its quarterly loss helped by higher crude prices and lower operating costs.
The oil company on Wednesday posted a $1.39 billion in revenue for this year’s first quarter compared to $1.26 billion in the prior-year quarter.
Hess reported a net loss of $106 million in the first quarter of 2018, compared to a net loss of $324 million in the first quarter of 2017. Net loss attributable to Hess Corporation common stockholders amounted to $117 million versus $336 million in 1Q 2017.
On an adjusted basis, the company reported an after-tax net loss of $72 million in the first quarter of 2018. The improved after-tax adjusted results reflect higher realized crude oil selling prices, lower operating costs and depreciation, depletion and amortization expense, partially offset by lower production volumes, primarily due to asset sales.
Exploration and Production net loss in the first quarter of 2018 was $25 million, compared to a net loss of $233 million in the first quarter of 2017. On an adjusted basis, first quarter 2018 net income was $12 million.
The corporation’s average realized crude oil selling price, including the effect of hedging, was $59.32 per barrel in the first quarter of 2018, up from $48.58 per barrel in the year-ago quarter. The average realized natural gas liquids selling price in the first quarter of 2018 was $21.11 per barrel, versus $18.71 per barrel in the prior-year quarter, while the average realized natural gas selling price was $3.86 per mcf, compared to $3.20 per mcf in the first quarter of 2017.
Net production, excluding Libya, was 233,000 boepd in the first quarter of 2018, compared to 307,000 boepd in the prior-year quarter. Lower volumes were primarily due to prior-year asset sales, the previously announced unplanned downtime at the third-party operated Enchilada platform in the Gulf of Mexico, and natural decline.
These lower volumes were partially offset by higher production in the Bakken and from North Malay Basin.
Net production from the Gulf of Mexico was 41,000 boepd, compared to 66,000 boepd in the prior-year quarter primarily due to the ongoing shutdown at the third-party operated Enchilada platform from the fourth quarter of 2017.
E&P capital and exploratory expenditures were $384 million in the first quarter of 2018, compared to $393 million in the prior-year quarter.