US independent Oil producer Hess Corp (HES.N) has reported a smaller-than-expected quarterly loss.
The narrowing of losses comes amid rising crude prices and cost cuts which helped the company offset a drop in production.
The results reflect an increasing optimism in US shale and technology improvements which should help companies pump more for less.
Chief Executive John Hess said: “We are poised to benefit from an increase in oil prices.”
Shares of the New York-based company rose 4.4 percent to $50.78 in morning trading.
Excluding output from Libya, Hess produced 307,000 barrels of oil equivalent per day (boepd) in the first quarter ended March 31, lower than 350,000 boepd a year ago.
The drop was due to investments cuts last year that curtailed output, a decision it is now reversing.
Hess is boosting spending this year, planning to have six drilling rigs in North Dakota’s Bakken shale by the end of the year, helping to boost output well into 2018.
The company also plans to bring online this year its Stampede oil project in the U.S. Gulf of Mexico.