UPDATE 2-Hess slashes 2017 capital budget after quarterly loss

(Adds stock movement, earnings comparison, details)

July 26 (Reuters) - U.S. oil producer Hess Corp slashed its 2017 capital budget by 4 percent on Wednesday after posting a worse-than-expected quarterly loss on low crude prices and a dip in production.

Hess, which now plans to spend $2.15 billion this year, becomes the second major U.S. oil producer to cut its capex after rival Anadarko Petroleum Corp did so earlier this week.

Shares of New York-based Hess fell 4 percent to $43.57 in morning trading.

Like many of its peers, Hess is struggling to adapt to the dip in oil prices this year, which was not expected when 2017 capital budgets were crafted.

Hess, which operates in North Dakota's Bakken shale formation and the U.S. Gulf of Mexico, posted a net loss of $449 million, or $1.46 per share, in the reported quarter, compared with a loss of $392 million, or $1.29 per share, a year earlier.

Excluding one-time items, Hess lost $1.41 per share. By that measure, analysts expected a loss of $1.34 per share, according to Thomson Reuters I/B/E/S.

"We continue to take steps to reinforce our outstanding value-driven growth outlook and drive improving returns and lower capital and operating costs across our portfolio," Chief Executive John Hess said in a statement.

The company said losses in the exploration and production (E&P) unit - its biggest - climbed to $354 million in the second quarter ended June 30, from $328 million a year earlier.

Net production fell to 294,000 barrels of oil equivalent per day (boepd) from 313,000 boepd.

Hess's revenue fell to $1.23 billion from $1.27 billion.

(Reporting by Ernest Scheyder in Houston and Yashaswini Swamynathan in Bengaluru; Editing by Amrutha Gayathri and Nick Zieminski)