Entering text into the input field will update the search result below

Hess Q3 Production Falls 23% On Asset Sales, Extended Shutdowns

Oct. 30, 2013 10:18 AM ETHES
NaveenS profile picture
NaveenS's Blog
20 Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Hess announced a 23% YoY fall in production to 310 MBOE/d. The decrease was due to asset sales in Russia, UK North Sea and Azerbaijan (83 MBOE/d), extended shutdowns in GoM and lower production in Libya (23 MBOE/d), and maintenance and declines (24 MBOE/d). The reductions were partially offset by rising production at Valhall field, offshore Norway (up by 30 MBOE/d), and Bakken (up by 8 MBOE/d).

Q3-2013 operational highlights:

  • Bakken: Production rose 14% YoY to 71 MBOE/d; guidance remains unchanged at 64-70 MBOE/d
  • Valhall, offshore Norway: Production of 37 MBOE/d, up from 7 MBOE/d in Q3-2012; full year production expected at lower end of the guidance of 24-28 MBOE/d
  • Kurdistan: First exploration well spud in Shakrok Block; a second well, on the Dinarta Block, due to be spud in Nov-2013
  • Divestiture processes advanced for upstream assets in Indonesia and Thailand; Looking for Partners in Kurdistan and Ghana

Q3-2013 financial highlights:

  • Net profit down 25% YoY to $420 million
  • Total revenue of $2.7 billion, down 23% YoY
  • Capex of $1.5 billion, down 35% YoY

2013 guidance:

  • Capex expected to be 18% YoY lower at $6.8 billion
  • Production to be at the lower end of its guidance of 340-355 MBOE/d due to unrest in Libya

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You