Hess Corp to Add Platform to Bakken Basin, Beats Earnings Estimates

July 28 (Reuters) – U.S. oil producer Hess Corp (HES.N) said on Wednesday it plans to add a rig in the Bakken Basin in North Dakota in September, after exceeding estimates second quarter earnings following a rebound in crude prices.

U.S. crude prices rose about 25% in the second quarter to trade at $ 70 in late June as demand for fuel picked up as the economy reopened.

Hess said its average realized prices for crude, excluding hedge, rose 22% sequentially to $ 64.27 per barrel in the quarter.

This helped him post adjusted earnings of 24 cents per share, compared to analysts’ estimates of 18 cents per share, according to data from Refinitiv IBES.

But total production, excluding Libya, fell to 307,000 barrels of oil equivalent per day (bepd), against 315,000 boed in the previous quarter.

Despite the surge in oil prices, companies have been cautious with increases in production due to pressure from shareholders who penalized production growth and favored returns in the form of dividends and buybacks.

Report by Sahil Shaw in Bengaluru; Editing by Aditya Soni

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