NEW YORK (TheStreet) -- Hess Corp. (HES) - Get Report stock is falling 1.46% to $56.10 in early afternoon trading on Wednesday after the company announced it will curb production in 2016 to cut costs amid a volatile commodities market.
Next year, the oil and gas company plans to reduce capital and exploratory expenditures by about 27% year-over-year to between $2.9 billion and $3.1 billion.
Production is expected to decline to between 330,000 barrels of oil equivalent a day and 350,000 barrels of oil equivalent a day.
Hess produced 377,000 barrels of oil equivalent a day in the first nine months of 2015.
"We are well positioned in the current low price environment and are taking a disciplined approach to preserve our financial strength, competitively advantaged capabilities and long term growth options," CEO John Hess said in a statement.
Additionally, Hess reported better than expected financial results for the 2015 third quarter this morning before the market open.
The company posted a loss of $1.03 per share on $1.69 billion in revenue, beating estimates of a loss of $1.20 per share on $1.57 billion in revenue.
Separately, TheStreet Ratings team rates HESS CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate HESS CORP (HES) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: HES