Hess Announces 2016 E&P Capital and Exploratory Budget
Hess Corporation Logo
SEARCH

Hess Announces 2016 E&P Capital and Exploratory Budget

  • IMG_0598_medium

Hess Corporation (NYSE: HES) announced today a 2016 E&P capital and exploratory budget of $2.4 billion, a 40 percent reduction from its 2015 actual spend of $4.0 billion and approximately 20 percent below preliminary 2016 guidance of $2.9-$3.1 billion provided in October.

The $2.4 billion budget is allocated as follows: $470 million (20 percent) for unconventional shale resources, $610 million (25 percent) for production, $820 million (34 percent) for developments and $500 million (21 percent) for exploration and appraisal activities.

Net production is forecast to average between 330,000 and 350,000 barrels of oil equivalent per day in 2016. Bakken net production is forecast to average between 95,000 and 105,000 barrels of oil equivalent per day in 2016. These production forecasts are unchanged from preliminary guidance provided in October.

“In 2016 Hess will remain focused on preserving the strength of our balance sheet, our top quartile operating capabilities and our long term growth options,” CEO John Hess said. “While we are well positioned to navigate the current low oil price environment with one of the strongest balance sheets and liquidity positions among our E&P peers, we are also well positioned to benefit from a recovery in prices, with a high quality portfolio that is leveraged to oil and offers attractive investment opportunities which will create long term value for our shareholders.”

Greg Hill, President and COO, stated: “We take a long term view to managing our business and we will continue to invest in our growth projects and prospects, including exploration and appraisal activities. However, in response to the current low oil price environment, we have significantly decreased our 2016 capital and exploratory expenditures and we plan to reduce activity at all of our producing assets. Moreover, we will continue to pursue further cost reductions and efficiency gains across our portfolio.”

Click here for the press release
Latest Hess News
  • Hess in the Media: Stampede, North Malay Basin Highlighted as Upcoming Cash Generators in Hess CAPEX Budget

    A Subsea Engineering News article reported that “Stampede stays on track for 2018 first oil” and provided updates on the Stampede and North Malay offshore development projects.
    Full story
  • Hess in the Media: E&P Magazine Features Innovation, Collaboration at Stampede

    E&P Magazine featured Stampede as its February 2017 cover story on “Innovation through Collaboration.” The article examined how Hess and Heerema Marine Contractors collaborated to install 12 piles in 12 days leveraging Lean thinking to create value and improve safety, quality, delivery and cost.
    Full story
  • Hess Reports Estimated Results for the Fourth Quarter of 2016

    “We see 2017 as the start of an exciting new chapter of value-driven growth for our company and our shareholders,” Chief Executive Officer John Hess said. “We are increasing activity in the Bakken, our two offshore developments at North Malay Basin in the Gulf of Thailand and Stampede in the Gulf of Mexico are on track to come online in 2017 and 2018, and the Liza Field in Guyana is one of the industry’s largest oil discoveries in the last 10 years.”
    Full story