By Dow Jones Business News,
January 23, 2014, 05:08:00 PM EDT
By Tess Stynes
Hess Corp. ( HES ) said it plans capital expenditures of $5.8 billion this year, 15% less than the oil-and-gas company's
initial projections in 2013.
Nearly half of the total is targeted for unconventional shale resources.
The exploration-and-production company has projected a capital and exploratory budget of $6.8 billion for 2013, which
represented a 18% drop from 2012 levels. Of the total 2013 spending plan, $2.7 billion initially was dedicated to
unconventional shale resources.
President and Chief Operating Officer Greg Hill said in a statement Thursday that Hess plans capital expenditures of $
2.2 billion in its Bakken operations, flat with last year's level. However, capital spending in the Utica shale is set
to increase to $550 million from $455 million.
Of the remaining 2014 capital budget plan, about $1.48 billion is earmarked for production projects, $925 million for
developments and $550 million for exploration.
Chief Executive John Hess said a transformation begun in 2010 to focus its portfolio around lower risk, higher growth
assets in regions where the company has a competitive advantage accelerated rapidly in 2013. The company is "committed
to ensuring that our capital and exploratory budget enables our goal of achieving 5% to 8% compound average production
growth through 2017 while generating the highest possible risk adjusted returns," Mr. Hess said.
Write to Tess Stynes at email@example.com
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