Sign in to comment!

Menu
Home

Energy

Hess Doubles 3Q Profit on Bakken Shale, Libya Drilling

Days after Sandy barreled through the East Coast and left millions without power and two-hour lines at gas stations, Hess (HES) on Friday said earnings doubled in the third quarter.

The gains were led by a ramp up in oil exploration and production in Libya and the Bakken shale as well as stronger oil and gas prices. 

Shares of Hess were up more than 3% to $54.28 Friday. 

The New York-based gas station operator posted net income of $557 million, or $1.64 a share, compared with a year-earlier profit of $298 million, or 88 cents.

Excluding one-time items, Hess earned $495 million. Analysts in a Thomson Reuters poll were looking for non-GAAP earnings of $1.19 a share.

Revenue for the three-month period climbed 6% to $9.19 billion, missing the Street’s view of $9.25 billion, while exploration and production income grew to $608 million from $422 million a year ago.

Oil and gas production during the quarter climbed to 402,000 barrels of oil equivalent a day from 344,000 in the same 2011 period.

Bakken shale production in North Dakota doubled to 62,000 barrels of oil equivalent a day and the company resumed operations in Libya.

Average worldwide crude oil selling prices were $86.69 a barrel compared with $85.81 a year ago, while natural gas selling prices averaged $5.88 mcf compared with $5.74 in 2011.

Follow Jennifer Booton on Twitter at @Jbooton