Hess Corp. (NYSE: HES) announced a capital and exploratory budget of
$6.8 billion for 2012, nearly all of which is targeted for exploration
and production.
The New York-based energy company said of the $6.8 billion, $2.5
billion will be set aside for unconventionals, $1.6 billion for
production, $1.8 billion for developments and $800 million for
exploration.
"We believe that the investments we are making in unconventionals are
lower risk and will generate long term profitable growth for
shareholders," said chief executive John Hess. "We expect to fund the
majority of our 2012 program from internally generated cash flow and
asset sales."
Unconventional production and development expenditures of around $2.5
billion include development of the Bakken Shale in North Dakota, where
Hess said it plans to continue to operate 16 rigs and progress the
expansion the Tioga Gas Plant.
The company said production expenditures of about $1.6 billion
include drilling production and water injection wells at Shenzi (Hess 28
percent), and drilling production wells at the Llano Field (Hess 50
percent) in the deepwater Gulf of Mexico.
In addition, Hess said development expenditures of about $1.8 billion
include beginning development drilling at the Tubular Bells Field (Hess
57 percent – operator) in the deepwater Gulf of Mexico.
Exploration expenditures of around $800 million include drilling
exploration wells in Ghana, Indonesia, Brunei and the deepwater Gulf of
Mexico, the company said.
The stock ended at $57.94 on Wednesday.