Hess Corp. raised its net production guidance to 390,000 boe/d, which is at the upper end of previous guidance of 385,000-390,000 boe/d.
The company had net oil and gas production of 395,000 boe/d in third-quarter 2023, up 13% from 351,000 boe/d, proforma for asset sold, in third-quarter 2022, it said as part of a release Oct. 25.
Hess, which entered a deal to be acquired by Chevron for $53 billion, said increased production was primarily due to higher production in the Bakken, Guyana, and Southeast Asia (OGJ Online, Oct. 23, 2023).
Net production from the Bakken was 190,000 boe/d in third-quarter 2023, compared with 166,000 boe/d in the prior-year quarter, reflecting increased drilling and completion activity and higher NGL and natural gas volumes received under percentage of proceeds contracts due to lower commodity prices.
NGL and natural gas volumes received under percentage of proceeds contracts were 19,000 boe/d in third-quarter 2023, compared with 11,000 boe/d in third-quarter 2022, due to lower realized NGL and natural gas prices increasing volumes received as consideration for gas processing fees.
During this year’s third quarter, Hess drilled 28 wells, completed 41 wells, and brought 26 new wells online in the Bakken.
Net production from the Gulf of Mexico in third-quarter 2023 was 28,000 boe/d, compared with 30,000 boe/d in the prior-year quarter.
At the Stabroek block offshore Guyana (Hess, 30%), net production from the Liza Destiny and the Liza Unity FPSOs totaled 108,000 b/d of oil in third-quarter 2023, compared with 98,000 b/d in the prior-year quarter.
During this year’s third quarter, a mechanical issue on the Liza Destiny reduced production during the quarter. Repairs were completed by ExxonMobil (operator) in October. Production is currently about 150,000-160,000 b/d gross.
The Lancetfish-2 appraisal well encountered about 125 ft of net oil pay in appraisal reservoirs and about 65 ft of net oil pay in a new discovery interval. The well was drilled in 5,649 ft of water and lies about 4 miles southeast of the Lancetfish-1 discovery well.
Net production at North Malay basin and JDA in southeast Asia was 69,000 boe/d in third-quarter 2023, compared with 57,000 boe/d in the prior-year quarter, primarily due to planned maintenance during third-quarter 2022.
Third-quarter financials
Net income was $504 million in this year’s third quarter, down slightly from net income of $515 million in the same quarter in 2022.
Exploration and production (E&P) capital and exploratory expenditures were $998 million in third-quarter 2023, compared with $701 million in the prior-year quarter, primarily due to development activities in Guyana and higher drilling activity in the Bakken. Full year 2023 E&P capital and exploratory expenditures are expected to be about $4.1 billion, up from previous guidance of $3.7 billion, reflecting the decision to purchase the Liza Unity FPSO in fourth-quarter 2023 instead of first-quarter 2024.
Midstream capital expenditures were $65 million in the third quarter of 2023 and $60 million in the prior-year quarter.
