Hess Corp reported a strong second-quarter profit, exceeding estimates due to significantly higher oil production in Guyana and rising oil prices. The company’s production increased by 27.6% to 494,000 barrels of oil and gas per day (boepd), with Guyana output seeing a nearly 75% year-over-year increase to 192,000 bpd. The Bakken shale output also rose during this period.
Despite this positive performance, Hess anticipates a decline in current-quarter production due to planned maintenance in Guyana and Southeast Asia. The company projects third-quarter net production to be between 460,000 and 470,000 boepd, with a 10% expected drop in Guyana output as a natural gas pipeline is connected.
Hess’s average realized crude oil selling price rose nearly 13% to $80.29 per barrel. The company is currently embroiled in a dispute with Exxon over rights to its Guyana assets, following a $53 billion stock acquisition agreement with Chevron that is stalled due to regulatory reviews.
Hess’s quarterly profit was reported at $2.62 per share, surpassing analysts’ expectations of $2.48 per share.