Integrated oil and gas company Hess Corp. (HES) Monday revealed a $3.9 billion capital and exploratory budget for full year 2010. The company targets a 3% year-over-year rise in reserves, as well as production.
John Hess, Chairman and Chief Executive Officer said, "We will invest in a disciplined manner to sustain long-term profitable growth for shareholders and expect to fund our 2010 program from internally generated cash flow."
The company indicated a balanced Exploration and Production plan, consistent with its long-term target of achieving both reserves and production growth of 3% per year.
On segment basis, the company targets to invest most of its capital expenditure for exploration and production.
Hess expects production expenditures of approximately $2.4 billion in 2010. The company plans to rise its rig count to eight by year-end 2010 from three in Bakken Shale in North Dakota, and is also planning to expand its production facilities, including the Tioga gas plant.
In 2010, the company intends to drill production wells at Okume Complex in Equatorial Guinea, Shenzi in the deep-water of Gulf of Mexico, Beryl in the United Kingdom and Valhall in Norway. Hess currently has 85% interest in Okume Complex, 28% in Shenzi and Valhall, and a 22% interest in Beryl.
Exploration expenditures are forecast at $850 million for the full year 2010, with plans for five exploration wells on Permit WA-390-P and eight wells on Permit WA-404-P in the Northwest Shelf of Australia. In the Santos Basin of Brazil, Hess has plans for one exploration well.
On region basis, in 2010, the company to expected to spend $1.7 billion on capital expenditure in the U.S. and $850 million in Europe.
HES is currently trading at $56.22, up $0.59 or 1.06%, on a volume of 1.70 million shares on the NYSE.
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