USA: Hess Q3 Profit Climbs

Hess Corporation reported net income of S557 million for the third quarter of 2012, compared with $298 million for the third quarter of 2011.

Third Quarter Highlights:

• Net income was $557 million, compared with $298 million in the third quarter of 2011

• Net income excluding items affecting comparability between periods was $495 million compared with $379 million in the third quarter of 2011

• Oil and gas production increased to 402,000 barrels of oil equivalent per day, up from 344,000 in the third quarter of 2011

• Production from the Bakken oil shale play in North Dakota increased to 62,000 barrels of oil equivalent per day, up from 32,000 in the third quarter of 2011 • Net cash provided by operating activities was $1,862 million, compared with $1,022 million in the third quarter of 2011.

Exploration and Production earnings were $608 million in the third quarter of 2012, compared with $422 million in the third quarter of 2011. The Corporation’s average worldwide crude oil selling price, including the effect of hedging, was S86.69 per barrel, up from $85.81 per barrel in the same quarter a year ago. The average worldwide natural gas selling price was $5.88 per mcf in the third quarter of 2012, up from $5.74 per mcf in the third quarter of 2011. Third quarter oil and gas production was 402.000 barrels of oil equivalent per day. up from 344,000 barrels of oil equivalent per day in the third quarter of 2011. primarily reflecting an increase in production from the Bakken oil shale play and the resumption of operations in Libya. Net production from the Bakken averaged 62.000 barrels of oil equivalent per day in the third quarter of 2012 compared to 32,000 barrels of oil equivalent per day in the same period last year. At the Waha concessions in Libya, net production averaged 23,000 barrels of oil equivalent per day in the third quarter of 2012. Due to civil unrest in the country, there was no production in Libya in the same period last year.

Marketing and Refining generated income ol $53 million in the third quarter of 2012, compared with a loss of $23 million in the same period in 2011. Marketing earnings were $1 7 million in the third quarter of 2012, down from S41 million in the third quarter of 2011 as a result of lower margins. Port Reading refining operations generated income of $18 million in the third quarter of 2012. compared with break even in the same quarter last year. Refining operations generated a loss of $38 million in the third quarter a year ago, almost entirely related to our share of HOVENSA’s results. The HOVENSA refinery was shut down in the first quarter of 2012. Trading activities generated income of $18 million in the third quarter of 2012 and a loss of $26 million in the same quarter of last year.

[mappress]

LNG World News Staff, November 2, 2012