NEW YORK (Yosefardi) – Hess Corporation reported worldwide realized selling prices, for crude oil for the first two months of the fourth quarter of 2013, of averaged $98.65 per barrel compared to $104.95 per barrel in the full third quarter.
This was primarily driven by an $11 decrease in U.S. crude oil price realizations, reflecting the widening in crude oil spreads between Brent and West Texas Intermediate (WTI) and Brent and Louisiana Light Sweet (LLS).
This decrease in realized crude oil selling prices is expected to result in fourth quarter earnings, excluding non-recurring items, being lower than the third quarter.
Fourth quarter 2013 production is now forecast to average 310,000 barrels of oil equivalent per day (boepd) versus our previous guidance of 320,000 boepd. The decrease reflects the earlier than expected close of the sale of our interest in the Natuna A Field in Indonesia and higher production downtime due to maintenance activities.
Thus far in the fourth quarter, Hess has closed the sale of its U.S. East Coast and St. Lucia terminal network for $850 million, its Energy Marketing business for $1.2 billion and its Natuna A asset in Indonesia for $650 million. The company also recently announced the sale of its interest in the Pangkah asset in Indonesia for $650 million, bringing total after tax proceeds from announced and completed asset sales to $7.8 billion year-to-date.