Hess Corp. expects net production, excluding Libya, to reach 370,000 boe/d in this year’s fourth quarter, and about 325,000 boe/d for the full year, primarily from Bakken and Guyana (OGJ Online, Oct. 27, 2021).
Bakken net production is forecast to be 165,000-170,000 boe/d in this year’s fourth quarter, and about 155,000 boe/d for full year 2022. Guyana net production is forecast to be about 110,000 b/d of oil in fourth quarter 2022, which includes about 20,000 b/d of tax barrels. For full year 2022, Guyana net production is forecast to be about 77,000 b/d of oil, which includes about 7,000 b/d of tax barrels.
Full year E&P capex is expected to be $2.7 billion, unchanged from previous guidance. Hess provided guidance as part of its third-quarter 2022 report, released Oct. 26.
Third-quarter production
Net oil and gas net production, excluding Libya, was 351,000 boe/d for third-quarter 2022, up from 303,000 boe/d in this year’s second quarter, and up 32% from 265,000 boe/d in third-quarter 2021, due to higher production in the US Bakken and in Guyana.
Bakken net production was 166,000 boe/d up 12% from 148,000 boe/d in third-quarter 2021, primarily due to increased drilling and completion activity and a curtailment of production in third-quarter 2021 resulting from a planned maintenance turnaround at the Tioga gas plant. Hess added a third drilling rig in September 2021 and a fourth drilling rig in July 2022. During the third quarter, Hess drilled 20 wells, completed 20 wells, and brought 22 new wells online.
Guyana net production was 98,000 b/d of oil, compared with 32,000 b/d in the prior-year quarter. At the Stabroek block (30%), net production from Liza Destiny and Liza Unity floating production, storage and offloading vessels (FPSOs) totaled 98,000 b/d of oil in third-quarter 2022, compared with 32,000 b/d in the prior-year quarter.
Net production from the Gulf of Mexico was 30,000 boe/d, compared with 32,000 boe/d in the prior-year quarter.
Net production in Southeast Asia was 57,000 boe/d, compared with 50,000 boe/d in the prior-year quarter, primarily due to higher buyer nominations.
Third-quarter earnings
The company had net income of $515 million in third-quarter 2022, compared with $667 million for second-quarter 2022, and $115 million in the year-ago quarter. Adjusted net income was $583 million, compared with $86 million in third-quarter 2021.
Net cash provided by operating activities was $1.339 billion in the quarter, up from $615 million in third-quarter 2021. Net cash provided by operating activities before changes in operating assets and liabilities was $1.405 billion in the quarter, compared with $631 million in the prior-year quarter primarily due to higher realized selling prices and sales volumes.
The exploration and production segment had net income was $572 million in third-quarter 2022, compared with $723 million in this year’s second quarter, and $178 million in third-quarter 2021. On an adjusted basis, third quarter 2022 E&P net income was $626 million, compared with $149 million in the prior-year quarter.
The midstream segment had net income of $68 million in the quarter, compared with net income of $61 million in the prior-year quarter.
Exploration and production capital and exploratory expenditures (capex) were $701 million compared with $498 million in the prior-year quarter.
Midstream capital expenditures were $60 million in the third quarter and $59 million in the prior-year quarter.