Hess Provides Update on Strategic Plan
OREANDA-NEWS. Hess Corporation (NYSE:HES) will review its growth strategy and provide a detailed update on its portfolio at an Investor Day in Houston. Chief Executive Officer John Hess, Chief Operating Officer Greg Hill and other members of the leadership team will outline plans and targets that underpin the company's strategy and commitment to deliver value to shareholders.
"Our company is uniquely positioned with our resilient portfolio of high quality assets and strong balance sheet to provide low risk production growth and generate free cash flow under various price scenarios," CEO John Hess said. "We are committed to capital discipline-investing in projects with the highest risk adjusted returns as well as moderating our capital and exploratory expenditures to be cash generative through 2018. Our cash generative growth provides the opportunity to improve shareholder returns."
Highlights of today's meeting will include the following:
The company is increasing its five-year production growth rate forecast to 6-10 percent compounded annually from 2013 through 2018 between USD 90 and USD 100 Brent.
With the success of its 2014 downspacing pilots confirmed, the company is increasing its Bakken net peak production guidance to approximately 175,000 barrels of oil equivalent per day (BOEPD) by 2020; adding an additional 1,000 well locations to a total of more than 4,000; and increasing its net estimated ultimate recovery (EUR) to more than 1.4 BBOE.
Utica's net peak production is forecast to reach approximately 40,000 BOEPD by 2020, with approximately 500 well locations and a net EUR of more than 300 MMBOE. This is the first time the company is providing guidance for this asset.
Significant production growth and free cash generation are forecast from Hess' offshore assets, particularly in the deepwater Gulf of Mexico with the Stampede field sanctioned in October for first oil in 2018 and production startup underway at Tubular Bells.
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