Hess Corp. reported a smaller-than-expected quarterly loss and raised its full-year production forecast on Oct. 30, owing to higher output at the U.S. oil and gas producer’s assets in the Bakken shale.
Production from Bakken rose 38% to 163,000 barrels of oil equivalent per day (boe/d) in the quarter, helping net production, excluding Libya, rise about 4% to 290,000 boe/d.
Oil from seven big shale formations, particularly the Permian Basin of Texas and New Mexico and the Bakken in North Dakota, have helped the United States become the biggest crude oil producer in the world.
Hess cut its capex by $100 million to $2.7 billion for the full year, while also raising its Bakken net production outlook to about 150,000 boe/d, up from 140,000 boe/d to 145,000 boe/d.
The company raised its annual net production expectation, excluding Libya, to about 285,000 boe/d, from the prior range of 275,000 boe/d to 280,000 boe/d.
Adjusted net loss was $98 million, or 32 cents per share, in the third quarter ended Sept. 30, compared with a profit of $29 million, or 6 cents per share, a year earlier.
Analyst on average expected a loss of 33 cents, according to IBES data from Refinitiv.
EPIC Midstream loaded its first oil tanker at its new Texas export terminal and plans to open another dock in the third quarter of 2020, benefiting from rising demand for low-sulfur U.S. crude.
Stratas Advisors expects a 76 Bcf withdrawal for the week ending Dec. 6.
Added supply could put more downward pressure on spot prices.