Hess Corporation (NYSE:HES) announced today a 2014 Exploration and Production capital and exploratory budget of $5.8 billion. Of this, $2.85 billion (49 percent) is dedicated to unconventional shale resources, with $1.475 billion (25 percent) for production, $925 million (16 percent) for developments and $550 million (10 percent) for exploration.
John Hess, CEO, commented, “In 2010, we began focusing our portfolio around lower-risk, higher growth assets in regions where we have a distinct competitive advantage. Our transformation accelerated rapidly in 2013 and we have successfully positioned Hess for long term growth, cash generation and strong, sustainable returns for our shareholders. We are committed to ensuring that our capital and exploratory budget enables our goal of achieving 5-8 percent compound average production growth through 2017 while generating the highest possible risk adjusted returns.”
Greg Hill, President and COO, stated, “Our expenditures in the Bakken are planned to be $2.2 billion in 2014, flat with 2013. However, as a result of lower well costs and decreased investments in infrastructure projects we plan to operate 17 rigs versus 14 last year and to bring 225 new operated wells online in 2014 compared to 168 in 2013. In addition, we plan to increase our expenditures in the emerging Utica shale play to $550 million from $455 million last year, as we focus our activities on the appraisal and development of the wet gas window.”
“In 2014, our budget includes development of the Tubular Bells Field in the deepwater Gulf of Mexico and the North Malay Basin Project in Malaysia, and ongoing drilling at the Valhall Field in Norway, the South Arne Field in Denmark, Block G in Equatorial Guinea, Block A-18 in the Joint Development Area in the Gulf of Thailand and the Shenzi Field in the deepwater Gulf of Mexico. Our exploration program includes wells in Ghana and Kurdistan.”