Hess 3Q Revenue Slips as Fuel Prices Drop

Hess 3Q Revenue Slips as Fuel Prices Drop

Hess logged lower revenue and flat earnings in the third quarter as production climbed and fuel prices dropped.

The oil-and-gas production company posted a profit of $504 million, or $1.64 a share, compared with $515 million, or $1.67 a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were $1.89 a share. Analysts surveyed by FactSet had been expecting $1.22 a share.

Total revenue and nonoperating income fell to $2.84 billion from $3.16 billion in the year-ago quarter, topping analyst forecasts for $2.68 billion, according to FactSet.

Oil and natural gas net production jumped 13% to 395,000 barrels of oil equivalent a day, largely driven by higher production in the Bakken shale oilfields, Guyana and Southeast Asia.

The company’s average realized crude oil selling price, including the effect of hedging, fell to $81.53 a barrel from $85.32 a barrel a year ago.

The average realized natural gas liquids selling price during the quarter sank even further to $20.17 per barrel from $35.44 a barrel last year, while Hess’ average realized natural gas selling slipped as well.

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