Hess, the oil-and-gas production company, experienced a decline in sales and earnings for the second quarter due to falling energy prices compared to the previous year.
The company reported a profit of $119 million, or 39 cents a share, which is a decrease from $667 million, or $2.15 a share, in the same quarter last year. However, the adjusted earnings came in at 65 cents per share, surpassing analysts' expectation of 52 cents per share, according to FactSet.
Sales also took a hit, falling by 22% to $2.32 billion, in line with analysts' estimates.
Despite the overall decrease in financial performance, the company witnessed a surge in output. Oil and natural gas net production saw a significant increase of about 28%, reaching 387,000 barrels of oil equivalent per day. This growth was primarily driven by higher production in the Bakken shale oilfields and off the shore of Guyana.
Hess' average realized crude oil selling price, taking hedging into account, declined to $71.13 per barrel in the quarter, down from $99.16 per barrel a year ago. Similarly, the average realized prices for natural gas liquids and natural gas also experienced declines compared to the second quarter of 2022.
These results reflect the challenging market conditions faced by energy companies amidst fluctuating energy prices.
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