Hess Cuts Budget for Remainder of 2017

Hess Budget Cuts

The Hess Corporation plans to cut $100 million from its 2017 budget, despite increased Bakken production.

Halcón Resources Corporation to sell Bakken Assets

Hess announced its second quarter results last week that included and a net loss was $449 million. Total production dipped and exectutives 

With regard to the Bakken, we have an industry-leading strategic position with more drilling locations in the core of the play than any other operator. We are currently operating four rigs at 60-stage fracs and increased proppant levels should deliver production growth of approximately 10% a year over the next several years. With our productivity and technology improvements, we now forecast virtually the same production growth with four rigs that would’ve taken six rigs a year ago. We will decide whether to add two additional rigs as originally planned based on an improvement in crude oil prices and the results of our enhanced completions.
— John Hess, CEO

For the full year 2017, we forecast Bakken production to average approximately 105,000 barrels of oil equivalent per day at the high end of our previous guidance of 95,000 barrels to 105,000 barrels of oil equivalent per day due to strong performance by our Bakken team and results of our new completions.

Second Quarter Highlights

  • Net production in the Bakken averaged 108,000 boepd, compared to 106,000 boepd for 2016 Q2
  • Overall net production was 294,000 boepd compared to 313,000 boepd for 2016 Q2
  • Announced plan to sell company interests oil recovery assets in the Permian Basin

E&P capital and exploratory expenditures are projected to be $2.15 billion, down from original guidance of $2.25 billion