The Rising Influence of Rising Affluence

[DewDiligence]

HES lowers 4Q13 guidance:

http://finance.yahoo.com/news/hess-corporation-provides-interim-fourth-133000866.html

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.

Worldwide realized selling prices for crude oil for the first two months of the fourth quarter of 2013 averaged $98.65 per barrel compared to $104.95 per barrel in the full third quarter, 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.

There’s not much HES can do about the benchmark oil price, and the shortfall in expected 4Q13 production is insignificant in the overall scheme of things.