Hess Corp. is considering adding a third rig in the second half of 2021 in the Bakken Shale of North Dakota if oil prices remain strong, executives said during an earnings call.

Hess production

Adding a fourth rig in the future “would get output to 200,000 b/d and make the Bakken a $1 billion/year free cash flow generator” at $60/bbl West Texas Intermediate prices, executives said.

Hess saw an average realized crude oil selling price, including the effect of hedging, of $50.02/bbl in the first quarter compared with $45.94/bbl in 1Q2021.

 “Even as we have seen oil prices recover since the beginning of this year, our priorities continue to be to preserve cash, preserve our operating capability and preserve the long-term value of our assets,” CEO John Hess told investors.

Bakken...