Hess Corporation says its exploration and production expenditure hit US$701 million in the third quarter of 2022 compared with US$498 million in the prior-year quarter.
This was primarily due to higher drilling and development activities in the Bakken, the Malaysia-Thailand Joint Development Area (MTJDA), Gulf of Mexico, and Guyana, where it has a 30% interest in the ExxonMobil-operated Stabroek Block.
On its exploration and production net income, Hess said this stood at US$572 million in the third quarter of 2022, compared with US$178 million in the third quarter of 2021. On an adjusted basis, third quarter 2022 exploration and production net income was at US$626 million, compared with US$149 million in the prior-year quarter.
The corporation was keen to note that its average realised crude oil selling price, including the effect of hedging, was US$85.32 per barrel in the third quarter of 2022, compared with US$63.17 per barrel in the prior-year quarter. This price increase paired favourably with its bump in net production across its assets excluding Libya. Hess said production totalled 351,000 barrels of oil equivalent per day (boepd) in the third quarter of 2022, compared with 265,000 boepd in the third quarter of 2021. Hess said higher production in Guyana and the Bakken were primarily responsible for this.
Significantly, the American energy conglomerate said total cash returned to stockholders in the third quarter through common stock repurchases and dividends amounted to US$265 million.
The Corporation said too that it repurchased approximately 1.4 million shares of common stock for US$150 million during the third quarter. It intends to acquire the remaining available Board-authorised amount of US$310 million in the fourth quarter.