U.S. oil producer Hess Corp. (NYSE: HES) reported a smaller-than-expected quarterly loss as cost cuts helped offset the impact of lower oil prices.

Hess, like other oil producers, has slashed its capital budget and curtailed production plans after a more-than 60% drop in oil prices eroded profits.

The company's oil and gas production inched slightly lower to 350,000 barrels of oil equivalent per day (boe/d) in the first quarter, from 355 Mboe/d one year earlier.

Hess, which produces oil in North Dakota's Bakken Shale and the U.S. Gulf of Mexico, said the average realized price for crude fell 36.8% to $28.50/bbl in the quarter.

Net loss attributable to Hess widened to $509 million or $1.72 per share in the quarter ended March 31, up from $389 million or $1.37 per share one year earlier.

Analysts on average had expected a loss of $1.83 per share, according to Thomson Reuters I/B/E/S.

Revenue fell about 40% to $993 million.