Hess Cites Profits; North Dakota Gas Plant Expansion
On the heels of a first quarter net income of $32 million, Hess Corporation cited a 17% jump in Bakken production to 130,000 BOEPD, compared to 111,000 BOEPD in the same quarter a year ago. It is also planning expansion of its gas processing plant at Tioga, ND.
Operating six drilling rigs, the company brought 25 new wells on line after drilling 38.
Total net income from all exploration activities in the Bakken, Gulf of Mexico, and Guyana was $109 million, with the average selling price for all crude oil in the first quarter (including the effect of hedging) was $55.91 a barrel.
“Our company is successfully executing our strategy to deliver industry leading cash flow growth and improving financial returns well into the next decade,” said CEO John Hess.
At the same time, net income from Hess Midstream Partners was $95.3 million after buying Summit Midstream Partners’ Tioga oil and gas gathering system.
“We continue to capitalize on opportunities to create optionality throughout our system,” said COO John Gaitling. “We are well positioned for significant growth in the second half of 2019 and in the long-term.”
Hess Midstream plans to spend $150 million on the expansion of the Tioga gas processing plant, increasing capacity from 250 Mmcf a day to 400 Mmcf a day by mid-2021.