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
  • Upstream: Hess Checks Off Stampede Installation

    Hess has ticked off another milestone in its progress to first oil at the Stampede development in the US Gulf of Mexico, having completed installation of its tension-leg platform offshore. The US independent also said hookup activities had begun for the development in Green Canyon Blocks 468, 511 and 512.
    Full story
  • Hess’ 2016 Sustainability Report Shows Continued Progress in Safe, Responsible Business Practices

    Hess published its 2016 Sustainability Report, providing a comprehensive review of the company’s strategy and performance on safety, environmental, social and governance programs and initiatives.
    Full story
  • Hess Reports Estimated Results for the 2nd Quarter of 2017

    Hess Corporation reported a net loss of $449 million, or $1.46 per common share, in the second quarter of 2017 compared with a net loss of $392 million, or $1.29 per common share, in the second quarter of 2016, reflecting a lower effective tax rate in 2017 from the required change in deferred tax accounting.
    Full story