The New York-based energy company set its exploration and production capital and exploratory budget at $2.4 billion for 2016, compared with $4 billion that the company reported for 2015.
The final budget is about 20% lower than the preliminary guidance of $2.9 billion to $3.1 billion that Hess provided in October.
Average net production is expected to range between 330,000 and 350,000 barrels of oil equivalent per day in 2016.
"[I]n 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," President and COO Greg Hill said in a statement. "Moreover, we will continue to pursue further cost reductions and efficiency gains across our portfolio."
Additionally, Hess will report its 2015 fourth quarter financial results on Wednesday before the market open.
Wall Street is expecting a steep year-over-year decline in earnings and revenue for the latest quarter as low oil prices persist.
Analysts have estimated for a loss of $1.47 per share on revenue of $1.53 billion, compared with earnings of 18 cents per share on revenue of $2.53 billion that the company posted for the 2014 fourth quarter.
Separately, Hess has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's feeble earnings per share growth, deteriorating net income, disappointing return on equity, weak operating cash flow and disappointing historical stock performance.
You can view the full analysis from the report here: HES
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