NEW YORK (AP) — Hess Corp. said Wednesday that fourth-quarter net income rose sharply as the oil and gas producer, but adjusted results fell short of expectations as production fell.
Exploration and production fell 22 percent, with a decline in most regions. The company said a third-party operated pipeline in the Gulf of Mexico was shut down on Dec. 18, which reduced our production and sales volumes. Civil unrest in Libya also hurt production.
CEO John Hess said the company will continue to sell off assets and transition from an energy company to a company based purely on exploration and production.
As part of that effort, Hess said Wednesday that it sold 74,000 dry gas acres in the Utica Shale region for $924 million. It did not name the buyer. Hess said it will get most of the proceeds from the sale in the first quarter and said it plans to use the funds for additional share repurchases.
Net income for the three months ended Dec. 31 totaled $1.93 billion, or $5.76 per share. That compares with $374 million, or $1.10 per share a year ago. Excluding one-time items, such as some businesses being classified as discontinued operations and a tax benefit, earnings were 96 cents per share. Analysts expected $1.07 per share.
Revenue fell 6.1 percent to $5.57 billion from $5.93 billion last year.
The shares rose 26 cents to close at $77.06. The stock has gained 13 percent over the past 12 months.