U.S. oil producer Hess Corp. on Oct. 27 reported a better-than-expected quarterly profit, as soaring prices for crude and gas cushioned the hit from lower production.

Shale producers in the U.S. are poised to deliver their strongest earnings since the onset of the COVID-19 pandemic as prices for oil and gas have skyrocketed.

WTI crude in the U.S. averaged roughly $71/bbl, almost 80% higher than year-ago levels, and natural gas sold for over $5/MMBtu, a price not seen since 2014.

Hess’ crude sold for an average of $63.17/bbl, including hedging, 39% higher from a year earlier, while gas prices jumped 60% to $4.71/Mcf.

Oil and gas net production, excluding Libya, was 265,000 boe/d, compared with 321,000 boe/d in the year-ago quarter.

Production from Bakken in North Dakota fell due to lower drilling activity, output cuts due to maintenance at a gas plant and sale of some acreage interest.

Volumes from the Gulf of Mexico also declined due to hurricane-led production hit and the sale of the company's interest in a field.

However, some of that was offset by gains in output in Guyana, one of the world’s most important oil and gas blocks in the last decade.

Hess, which earlier this month raised the resource estimate from Guyana by 1 billion boe to 10 billion boe, said startup of the Phase 2 of the Liza Field development in the country remains on track for early 2022.

The company reported an adjusted profit of $86 million, or 28 cents per share, in the third quarter ended Sept. 30, compared with a loss of $216 million, or 71 cents per share, a year earlier.

That compared with estimates for a profit of 23 cents, according to Refinitv IBES.