Hess Corp. (HES.N), an oil and gas producer, exceeded Wall Street projections for third-quarter profit on Wednesday due to increased output, only days after deciding to accept a $53 billion purchase offer from larger competitor Chevron Corp. (CVX.N).
According to LSEG statistics, the business recorded net income, excluding adjustments, of $1.64 per share for the three months ended September 30, versus an average forecast of $1.15 by analysts.
The $2.84 billion in revenue is above the $2.34 billion forecast. Hess, a New York-based company, produced 395,000 barrels of oil equivalent per day (boepd) during the quarter, up from 351,000 boepd the previous year.
For the fourth quarter, the business projected output to be around 410,000 boepd.
Hess reported that its average realized selling price for crude oil globally for the quarter was $81.53 per barrel, excluding hedges, down from $85.32 a year earlier and $71.13 in the previous quarter.
Guyana produced 108,000 boepd in total, 10% more than in the same period last year. The Payara oil project, the nation’s third development, is anticipated to begin operations in the next fourth quarter.
Hess’s thirty percent share in the enormous finds in Guyana, partnered with China’s CNOOC (0883. HK) and larger competitor Exxon Mobil (XOM.N), will be transferred to Chevron. It’s anticipated that by 2027, the Stabroek oil block production will have tripled to about 1.2 million barrels per day (bpd).
In North Dakota, the second-largest shale formation in the United States, the Bakken shale field’s quarterly output averaged about 14% year over year, according to the business. This growth was attributed to greater activity in drilling and well completion and larger amounts of natural gas. There was $986 million in net cash from operating operations as opposed to $1.34 billion in the previous year.
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