October 30, 2019 / 11:47 AM / 3 months ago

Hess posts loss as lower oil prices cap production gains

(Reuters) - Hess Corp (HES.N) reported a quarterly loss on Wednesday, as lower oil and gas prices limited gains from higher production, sending its shares down nearly 5%.

FILE PHOTO: Pumpjacks taken out of production temporarily stand idle at a Hess site while new wells are fracked near Williston, North Dakota November 12, 2014. REUTERS/Andrew Cullen

The results come a day after shale player Concho Resources Inc (CXO.N) posted adjusted earnings that more than halved on the back of tumbling prices.

Hess said average prices for crude, including hedging, fell more than 15% in the third quarter, while it dropped 7% for natural gas.

Global oil prices fell in the third quarter on oversupply and demand concerns fueled by the U.S.-China trade war and its impact on the global economy.

Oil and gas net production rose to an average of 290,000 barrels of oil equivalent per day (boepd), excluding Libya, from 279,000 boepd a year earlier.

The increased production was driven by a 38% jump in Bakken output that partially offset the hit from hurricane in the Gulf of Mexico.The higher output at Bakken also prompted the company to raise its full-year net production guidance to about 285,000 boepd, from 275,000 boepd to 280,000 boepd it forecast earlier.

Hess also cut its 2019 capital expenditure by $100 million to $2.7 billion.

The company posted an adjusted net loss of $98 million, or 32 cents per share, in the third quarter ended Sept. 30, compared with a profit of $29 million, or 6 cents per share, a year earlier.

Analyst on average expected a loss of 33 cents, according to IBES data from Refinitiv.

Shares of the company were 4.2% lower at $62.96 amid a broader fall in oil prices that dragged the S&P energy index .SPNY down 1.1%.

Reporting by Shanti S Nair in Bengaluru; Editing by Arun Koyyur and Sriraj Kalluvila

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