Hess Corp. recorded a US$509 million loss in Q1, in addition to a 34% drop in its revenue.
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Image from Hess. |
The loss is much wider than the Q1 2015 loss of $389 million. The decrease, according to Hess, reflected lower operating costs, general and administrative expenses, and depreciation, depletion and amortization expense versus the prior-year quarter.
Revenue for the period came in at $993 million, compared to Q1 2015’s $1.5 billion, representing a 34% decline.
“With our balance sheet strength, oil-leveraged portfolio and attractive growth opportunities, we believe the company is well positioned to deliver strong cash flow growth and long term value as oil prices recover,” said Hess CEO John Hess.
Exploration and production net loss in Q1 was $451 million compared to a net loss of $314 million year-on-year.
Net production in Q1 was 350,000 boe/d.
The company’s Gulf of Mexico net production came in at 69,000 boe/d, an increase of 3000 boe/d compared to Q1 2015.
In the GoM, Hess confirmed noncommercial quantities of hydrocarbons were discovered at ConocoPhillips’s Melmar exploration prospect.
Also in the GoM, the Hess commenced drilling at its operated Stampede development, located in the Green Canyon area. In addition, drilling operations have been completed on the Chevron-operated Sicily #2 (Hess 25 percent) exploration well where results are being evaluated.
In the North Malay Basin, net production from the early production system averaged 5000 boe/d during the period. Progress continues on full field development with first gas projected in 2017. The Phase 1 development drilling campaign is on schedule with six out of 11 planned wells now drilled, Hess said.
Offshore Guyana, on the Stabroek Block, Hess confirmed that the operator, Esso Exploration and Production Guyana, completed a 3D seismic acquisition program covering approximately 17,000sq km on the block and commenced drilling of the Liza #2 well.
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