Hess Announces 2019 E&P Capital and Exploratory Budget
Hess Corporation Logo header
SEARCH

Hess Announces 2019 E&P Capital and Exploratory Budget

  • Nabors_06__1145_cropped
12.10.2018

Hess today announced a 2019 E&P capital and exploratory budget of $2.9 billion. Of this, approximately 75 percent will be allocated to high return growth assets in the Bakken and Guyana.    

Net production is forecast to average between 270,000 and 280,000 barrels of oil equivalent per day in 2019, excluding Libya, compared to approximately 245,000 barrels of oil equivalent per day in 2018 proforma for the sale of the company’s joint venture interests in the Utica shale play. Bakken net production is forecast to average between 135,000 and 145,000 barrels of oil equivalent per day in 2019.

“Our capital and exploratory expenditure program is designed to deliver strong returns, production growth and significant future free cash flow,” CEO John Hess said. “As we focus spending on our high return investment opportunities, we will continue to reduce our unit costs to drive margin expansion and improve profitability.”

Greg Hill, Chief Operating Officer, said: “In 2019, in the Bakken we plan to operate a 6 rig program, up from a 4.8 rig average in 2018; drill 170 wells, up 42 percent from 2018; and complete the transition to higher intensity plug and perf completions, which is expected to generate a significant uplift in net present value and initial production rates while also increasing the estimated ultimate recovery of oil and natural gas.”

“In Guyana, 2019 will be the peak spend year for the Liza phase 1 development, which is on track for first oil by early 2020,” Hill said. “We also will begin Liza phase 2 development spending, complete the plan of development for Payara, and advance front end engineering and design work for future development phases.”

The company will review its long term capital program at its Investor Day in Houston on December 12.

The $2.9 billion capital and exploratory budget is allocated as follows: $1,890 million (65 percent) for production, $570 million (20 percent) for offshore developments and $440 million (15 percent) for exploration and appraisal activities.

Full story

Related News
  • Hess Named to 100 Best Corporate Citizens List for 15th Consecutive Year

    Hess Corporation has once again been named to the 100 Best Corporate Citizens list, ranking No. 38 on the 2022 list for outstanding environmental, social and governance (ESG) transparency and performance.
    Full story
  • Hess Achieves CDP Climate Change Leadership Status

    Hess Corporation has been recognized for climate change stewardship in CDP’s Climate Change Scores for 2021. Hess has earned Leadership status for 13 consecutive years from CDP, an international nonprofit organization that runs a global environmental disclosure system.
    Full story
  • MSCI Upgrades Hess to AAA in Annual ESG Rating Assessment

    Hess has received a AAA rating in the MSCI environmental, social and governance (ESG) ratings for 2021 after earning AA ratings from MSCI ESG for 10 consecutive years. The AAA rating designates Hess as a leader in managing industry specific ESG risks relative to peers.
    Full story