Hess swings to profit in Q1
US-based energy company Hess reported April 28 that it recorded an improvement in net income for the first quarter, but saw net production drift lower year-on-year.
Net income in Q1 2021 was $252mn, compared with a first quarter 2021 loss of $2.3bn. Net production, not counting its operations in Libya, came in at 315,000 barrels of oil equivalent (boe)/day, 8.4% lower than Q1 2020 but modestly higher than Q4.
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“Our company continues to successfully execute our strategy to grow our resource base, have a low cost of supply and sustain cash flow growth,” CEO John Hess said.
Hess realised 617mn ft3/day of natural gas production during the first quarter, 4.6% lower than first quarter 2020, but 3.7% higher than Q4. Most of the company’s gas production came from Malaysia and surrounding waters.
Net production in the North Malay basin off Malaysia was 64,000 boe/day, compared with 58,000 boe/day year over year.
Total crude oil production during the first quarter averaged 177,000 boe/day, 7.3% lower yr/yr but 6% higher sequentially. Hess draws most of its oil from the Bakken shale formation in North Dakota.
Bakken production came in at 158,000 boe/day compared with 190,000 boe/day in Q1 2020, a decline attributed to reduced drilling activity during the reporting period.
Hess in the first quarter agreed to sell part of its Bakken acreage for $312mn. That sale is expected to close “within the next few weeks.”