(In paragraphs three and five, fixes references to second
quarter; meant third quarter in both instances.)
By Ernest Scheyder
Oct 30 Political and military unrest in Libya
sharply curtailed oil and natural gas producer Hess Corp's
quarterly production and profit, forcing it to temper
expectations for the year, the company said on Wednesday.
Libya's total exports have slumped to around 90,000 barrels
per day, less than 10 percent of capacity, as protests have
halted operations at ports and fields.
Hess, which first began operating in the OPEC nation in
1955, said the tensions dented third-quarter production and that
it now expects full-year output to be at the low end of its
guidance range of 340,000 to 355,000 barrels of oil equivalent
per day (boe/d).
The country's oil production has been sharply down since
uprisings against former leader Muammar Gaddafi began in 2011.
Libya's National Oil Corporation controls production in the
country and partners with Hess and other international
companies, including ConocoPhillips, Marathon Oil
and BASF's Wintershell
Hess' total oil and gas output fell during the third quarter
to 310,000 boe/d from 402,000 boe/d a year earlier.
Hess' asset sales in Russia, the UK and Azerbaijan
contributed to the global output drop. In the year-earlier
quarter, those assets boosted production.
The company's expansion in North Dakota's Bakken shale field
was a bright spot during the quarter. Production in the state,
where Hess spent the lion share of its $1.53 billion capital
budget during the quarter, rose 14 percent to 71,000 boe/d.
The jump in Bakken production was a "silver lining" in the
company's earnings statement, Capital One Securities analyst
Phillips Johnston said in a note to clients.
Hess reported net income of $420 million, or $1.23 per
share, compared with $557 million, or $1.64 per share, a year
Excluding one-time items, Hess earned $1.18 per share in the
third quarter. By that measure, analysts expected $1.44 per
share, according to Thomson Reuters I/B/E/S.
Revenue dropped 23 percent to $2.69 billion. Analysts
expected $2.67 billion.
Shares of New York-based Hess fell 1.7 percent to $82.10 in
premarket trading. As of Tuesday's close, the stock had gained
58 percent this year.
Activist investor Elliot Management took a large stake in
Hess earlier this year and put three new directors on the
(Reporting by Ernest Scheyder; Editing by Lisa Von Ahn, John
Wallace and Alden Bentley)