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Hess Corp to add rig in Bakken basin, beats profit estimates

Credit: REUTERS/Andrew Cullen

U.S. oil producer Hess Corp said on Wednesday it planned to add a rig in North Dakota's Bakken basin in September, after topping estimates for second-quarter profit on a rebound in crude prices.

Adds details on crude price, production, and estimate

July 28 (Reuters) - U.S. oil producer Hess Corp HES.N said on Wednesday it planned to add a rig in North Dakota's Bakken basin in September, after topping estimates for second-quarter profit on a rebound in crude prices.

U.S. crude prices rose about 25% in the second quarter to trade at $70 at the end of June as fuel demand recovered with the reopening of the economy.

Hess said its average realized prices for crude, excluding hedging, rose 22% sequentially to $64.27 a barrel in the quarter.

That helped it post an adjusted profit of 24 cents per share, compared with analysts' estimates of 18 cents per share, according to Refinitiv IBES data.

But total production, excluding Libya, fell to 307,000 barrels of oil equivalent per day (boepd), from 315,000 boepd in the previous quarter.

Despite the oil price jump, companies have been cautious with production increases due to pressure from shareholders who have punished output growth and favored returns in the form of dividends and buybacks.

(Reporting by Sahil Shaw in Bengaluru; Editing by Aditya Soni)

((Sahil.Shaw@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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