U.S. oil firm Hess posts $509 million loss on low oil prices
- Exploration & Production
U.S. oil and gas producer Hess saw it first quarter 2016 loss deepen to $509 million, down from a net loss of $389 million in the first quarter of 2015.
This means that the company posted a loss of $1.72 per common share, which is according to Reuters, a better result than expected by the analysts.
Hess said that lower realized selling prices reduced first quarter 2016 after-tax results by approximately $230 million resulting from the weak commodity price environment.
The Corporation’s average realized crude oil selling price was $28.50 per barrel in the first quarter of 2016, down from $45.08 per barrel in the year-ago quarter.
First quarter 2016 results also reflected lower operating costs, general and administrative expenses, and depreciation, depletion and amortization expense versus the prior-year quarter, the New York-based oil company added.
Exploration and production capex was $544 million for the quarter reflecting reduced activities in the United States, Norway, Equatorial Guinea and the Malaysia/Thailand Joint Development Area.
Net production in the first quarter of 2016 was 350,000 boepd compared to pro forma net production, which excludes assets sold, of 355,000 boepd in the first quarter of 2015.