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Hess Lowers 2020 Capex 27%; Cuts Bakken Rig Fleet from Six to One
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Hess Corp. announced a revised $2.2 billion capital and exploratory budget for 2020, an $800 million reduction from the previous budget of $3.0 billion (a decrease of 27%).
The company also announced a new $1.0 billion three year term loan agreement.
The reductions to the company's 2020 capital budget will be primarily achieved by shifting from a six rig program to one rig in the Bakken, which is expected to be completed by the end of May.
Most discretionary exploration and offshore drilling activities, excluding Guyana, will also be deferred.
CEO John Hess said: "With 80% of our oil production hedged in 2020, our significantly reduced capital and exploratory budget and our new three year loan agreement, our company is well positioned for this low price environment. Our focus is on…
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