Independent energy company Hess Corporation recorded a bigger loss for this year’s second quarter compared to the one in the prior-year quarter.
Hess on Wednesday reported a net loss of $449 million for the second quarter of 2017 compared with a net loss of $392 million in the second quarter of 2016, reflecting a lower effective tax rate in 2017 from the required change in deferred tax accounting.
The loss before income taxes was $425 million in the second quarter of 2017, compared with a loss before income taxes of $678 million in the prior-year quarter. The improved second quarter 2017 pre-tax results reflect higher realized crude oil selling prices and lower operating costs and exploration expenses that were partially offset by lower sales volumes. On an adjusted basis, second quarter 2016 adjusted loss was $335 million.
The oil company’s revenues fell to $1.23 billion from $1.27 billion in the prior-year quarter.
Oil and gas production exceeded guidance and total production was 294,000 barrels of oil equivalent per day (boepd), excluding Libya, compared to 313,000 boepd in the prior-year quarter.
Lower volumes were due to a reduced drilling program across the portfolio, natural field declines, and planned shut-downs in the Gulf of Mexico. Net production in Libya, which restated in the fourth quarter of 2016, was 6,000 boepd in the second quarter of 2017.
Net production from the Gulf of Mexico was 51,000 boepd, compared to 54,000 boepd in the prior-year quarter, primarily reflecting lower production as a result of planned shut-downs, partially offset by higher production at the Tubular Bells field.
Exploration and Production capital and exploratory expenditures were $528 million in the second quarter of 2017, up from $484 million in the prior-year quarter, primarily reflecting increased drilling activity at Bakken, Stampede and Norway, partially offset by lower exploration activity and a reduction in development expenditures at North Malay Basin.
Offshore Energy Today Staff