Hess reports a quarterly profit increase as Guyana's oil production remains strong

Hess Corp, a leading oil producer in Guyana, beat expectations for the third quarter profit on Wednesday.

The Guyana assets have been at the heart of a dispute between Exxon and Chevron that has delayed Chevron’s $53 billion purchase of Hess.

Hess agreed on the buyout in October last year, but Exxon has challenged the deal. They claim a right over the company's Guyana-based assets.

Exxon will be able to exercise its right of first refusal in May next year after the deal has been approved by the U.S. Federal Trade Commission.

Hess increased its production by 16.7%, to 461,000 barrels per day of oil and natural gas (boepd), in the third quarter. This was boosted by a 57% increase in Guyana at 170,000 boepd. The output from the Bakken Shale Patch in the U.S. has also increased due to increased drilling and completion activities.

The lower prices of commodities in the third quarter were partially offset by higher production.

In the third quarter of last year, the average realized crude oil price for the company was $81.53 per barrel.

The average realized price of natural gas liquids sold (NGL) was slightly higher than the previous quarter.

Hess anticipates a net production range between 475,000 and 485,000 boepd for the current quarter, as a result of resuming planned downtimes in Guyana or Southeast Asia.

The company anticipates that its full-year exploration and production expenditures will be around $4.9 billion. This is a significant increase from the $4.2 billion it had previously forecast. This was due to the decision to purchase some offshore vessels in the fourth quarter rather than 2025.

LSEG data shows that the quarterly profit of $2.14 was higher than analysts' average estimates of $1.77.

(source: Reuters)