NEW YORK — Hess' second-quarter net income dropped 35 percent in its second quarter as oil and gas production declined.
Its adjusted profit and revenue topped analysts' estimates, and the energy company boosted its stock buyback program to $6.5 billion from $4 billion.
Shares climbed more than 4 percent in Wednesday premarket trading.
Hess Corp.'s earnings declined to $931 million, or $2.96 per share, from $1.43 billion, or $4.16 per share, in the same quarter a year earlier.
Earnings, adjusted for non-recurring items, came to $1.38 per share. The average per-share estimate of analysts surveyed by Zacks Investment Research was for earnings of $1.20.
Oil and gas production fell to 319,000 barrels of oil equivalent per day from 341,000 barrels of oil equivalent per day in the prior-year period.
Revenue for the New York company declined 16 percent to $3.6 billion from $4.16 billion, but it still beat the $2.75 billion Wall Street expected.
Hess also announced Wednesday that it plans to pursue the formation and initial public offering of a master limited partnership.
A master limited partnership can be an attractive option for a company because it provides the tax benefits of a limited partnership and the liquidity of a publicly traded company.
Shares of Hess added $4.73, or 4.8 percent, to $104.15 before the market open.