(Reuters) – Hess Corp (HES.N) beat estimates for third-quarter profit yesterday, helped by higher oil production in Guyana.
The Guyana assets are at the centre of an ongoing dispute between oil giants Chevron (CVX.N), and Exxon (XOM.N), that has delayed Chevron’s US$53 billion takeover of Hess.
Hess agreed to the buyout last October, but the deal has been challenged by Exxon claiming a right to the company’s Guyana assets.
The deal recently cleared a U.S. Federal Trade Commission review, and a three-judge arbitration panel is set to consider Exxon’s right to first refusal next May.
Hess’s production rose 16.7% to 461,000 barrels of oil and gas per day (boepd) in the quarter, bolstered by an increase of about 57% in Guyana to 170,000 bpd. Output from the Bakken shale patch in the U.S. also rose on increased drilling and completion activity.
The higher output helped offset lower commodity prices in the quarter.
The company’s average realized crude oil selling price was US$77.06 per barrel in the third quarter, compared with US$81.53 per barrel last year. However, average realized natural gas liquids (NGL) selling price slightly improved from the prior-year quarter.
Hess expects current-quarter net production in the range of 475,000 boepd to 485,000 boepd, due to a recovery from planned downtime in Guyana and Southeast Asia.
The company expects full-year production and exploratory expenditures to be about $4.9 billion, compared with its prior guidance of US$4.2 billion, reflecting the decision to accelerate the purchase of some offshore vessels to the fourth quarter instead of in 2025.
Quarterly profit of US$2.14 per share was above analysts’ average estimate of US$1.77 per share, according to data compiled by LSEG.
