US oil producer Hess reported a smaller-than-expected quarterly loss as cost cuts helped offset the impact of lower oil prices.
Like most other oil producers Hess has slashed its capital budget and curtailed production plans after a more-than 60 percent drop in oil prices CLc1 eroded profits.
Its net loss widened to $509 million, or $1.72 per share, in the quarter ended March 31, from $389 million, or $1.37 per share, a year earlier.
Average selling prices for crude fell to $28.50 a barrel from $45.08 in the prior-year quarter. Selling prices for natural gas liquids fell 50% to $7.44 a barrel.
Hess E&P capital and exploratory expenditures were $544 million, down 56% from $1.24billion in the prior-year quarter.
Oil and gas production was 350,000 barrels of oil equivalent per day (boepd) compared to pro forma production, which excludes assets sold, of 355,000 boepd in the first quarter of 2015.
Hess, which produces oil in North Dakota’s Bakken Shale and the U.S. Gulf of Mexico, said average realized price for crude fell 36.8 percent to $28.50 per barrel in the quarter.
First quarter 2016 results also reflected lower operating costs, general and administrative expenses.
Chief executive John Hess, said: “With our balance sheet strength, oil-leveraged portfolio and attractive growth opportunities, we believe the company is well positioned to deliver strong cash flow growth and long term value as oil prices recover.”
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