Hess' 2015 Capital And Exploratory Budget Of $4.7 Bln, Down 16% From Last Year

(RTTNews) - Energy company Hess Corp (HES) on Monday announced a capital and exploratory budget of $4.7 billion for 2015, a 16 percent reduction from its 2014 actual spend of $5.6 billion.

Of this, $2.1 billion is budgeted for unconventional shale resources, $1.2 billion for production, $1 billion for developments and $0.4 billion for exploration.

CEO John Hess said: "Our company is well positioned to manage through the current price environment, with a strong balance sheet and resilient portfolio. Our 2015 budget reflects a disciplined approach to maintaining our financial strength and flexibility while preserving our long term growth options."

Greg Hill, President and COO, stated: "We are reducing our 2015 spending in the Bakken to $1.8 billion, compared with $2.2 billion in 2014. In 2015, we plan to operate an average of 9.5 rigs and bring approximately 210 new operated wells online, compared with 17 rigs and 238 operated wells brought online in 2014.

"Hess has some of the best acreage in the Bakken, and we will continue to drill in the core of the play which offers the most attractive returns. Substantially all our core acreage is held by production, which allows us to defer investment in the short term while maintaining the long term value and optionality of this important asset. As oil prices recover we will increase activity and production accordingly.