HOUSTON — Hess Corp.’s third quarter profits increased 140 percent to $1 billion, the New York-based energy company announced, as it enjoyed the proceeds of a massive asset sale.
The company reported third quarter earnings of $1 billion, or $3.31 per share, up from $420 million, or $1.23 per share during the same period a year ago.
The company’s adjusted earnings compensated for the massive sale of is retail marketing business, which netted $2.8 billion cash and was completed in the third quarter.
Those adjusted earnings were down on the quarter — from $405 million to $377 million — due in part to falling crude oil prices that averaged $96.36 per barrel, compared to $104.95 a year ago.
“We are delivering strong performance and executing our plan,” said chief executive John Hess in a statement. “With our focused, balanced portfolio and strong balance sheet, we are well positioned in the current price environment to drive cash generative growth and sustainable returns for our shareholders.”
Company leaders also announced that they expect production to begin from Tubular Bells, its latest Gulf of Mexico project, to begin next week. Net production to the company from that project will amount to about 25,000 barrels of oil per day, Hess said.
In the Bakken, production was up 21 percent for the quarter to 86,000 barrels of oil equivalent per day. At the same time, the company reduced its drilling and completion costs per will there to $7.2 million, a 8 percent improvement from last year.
The company — like others with investment in Libya — saw production in the country decrease amid civil unrest. It produced an average of 4,000 barrels of oil equivalent per day there during the third quarter, down from 11,000 a year ago.
Overall, the company produced 318,000 barrels of oil equivalent per day during the quarter, a 3 percent increase.
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