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  Shows Continued ESG Commitment and Progress in 2018 Sustainability Report

    Hess’ 2018 Sustainability Report provides a comprehensive review of the company’s strategy and performance on environmental, social and governance programs and initiatives.
    Full story
  • Hess Schedules Q2 2019 Earnings Release Conference Call

    Hess will hold a conference call on Wednesday, July 31, 2019 at 10 a.m. ET to discuss its second quarter 2019 earnings release.
    Full story
  • Farm Rescue Receives $50,000 from Hess

    Farm Rescue, a nonprofit organization that provides planting, harvesting, haying and hay hauling assistance free of charge to farm and ranch families who have experienced a major illness, injury or natural disaster, received $50,000 in donated funds from Hess Corporation.
    Full story