- Increases five-year production growth rate forecast to 6-10% compounded annually from 2013 through 2018 between
$90 and $100Brent
- Increases Bakken peak production guidance by 17% to ~175 MBOED by 2020; confirms successful results from downspacing pilots
- Provides first time
Uticanet peak production guidance of ~40 MBOED by 2020
- Forecasts significant production growth and free cash flow generation from offshore assets including Tubular Bells and Stampede
“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
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
$90 and $100Brent.
- 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
Mexicowith the Stampede field sanctioned in October for first oil in 2018 and production startup underway at Tubular Bells.
Webcast and Presentation Materials
This news release contains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the company’s current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain risk factors. A discussion of these risk factors is included in the company’s periodic reports filed with the Securities and Exchange Commission. .
We use certain terms in this news release relating to reserves other than proved, such as unproved resources. Investors are urged to consider closely the disclosure relating to proved reserves in Hess’ Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.
For Hess Corporation
Jay Wilson, 212-536-8940
Sard Verbinnen & Co
Michael Henson/Patrick Scanlan, 212-687-8080