U.S. oil and gas producer Hess Corporation posted on Wednesday a net loss of $320 million in the second quarter, compared to a loss of $6 million a year ago, Kallanish Energy reports.
The financial performance reflects a decline of 35.4% in its realized crude oil prices and a 38.5% drop in its natural gas prices. Hess sold crude in the April-June period for an average of $39.03 a barrel, and its gas for $2.41 per thousand cubic feet.
Despite the loss in its upstream segment, Hess saw a 45.7% growth on its midstream segment’s income. It posted a $51 million profit in the quarter, compared to $35 million in 2Q19, mainly due to higher throughput volumes.
The U.S. independent company pumped 22.3% more oil and gas in Q2 than a year ago. Volumes, excluding Libya, reached 334,000 barrels of oil equivalent per day (Boe/d), compared to 273,000 Boe/d in 2Q19.
Production in the Bakken was up 38.5% y-o-y to 194,000 Boe/d, mostly because of increased wells online and improved well performance. There was also additional natural gas captured and processed at the Little Missouri 4 natural gas processing plant, and extra volumes received under percentage of proceeds contracts resulting from lower prices.
Hess expects its Bakken production to reach 185,000 Boe/d this year, which is 10,000 Boe/d more than previously estimated. The upwards revision is based on the year-to-date performance and the deferral of the planned maintenance turnaround at the Tioga Gas Plant. The works will now take place in 2021, not 3Q20.
Overall production should reach 330,000 Boe/d, up from 320,000 Boe/d previously. The guidance doesn’t consider equity volumes from Libya, where assets are under force majeure.
This post appeared first on Kallanish Energy News.