- Hess (NYSE:HES) -1.7% premarket as Q4 earnings fall short of Wall Street expectations, as lower gas prices dragged down earnings despite increased production.
- Q4 oil and gas production averaged 362K boe/day, up 18% Y/Y, with Bakken output of 102K boe/day representing a ~50% Y/Y increase.
- HES expects overall FY 2015 production to average ~350K boe/day, up ~10% Y/Y, driven by a full year of production from the Tubular Bells field in the Gulf of Mexico following first production in late 2014.
- HES says it plans to reduce its spending in the Bakken oil patch by 18% Y/Y to $1.8B, with technology as well as lower oil prices factoring into the decision; the company expects to drill almost as many wells as it did last year while running only half of the drilling rigs.
- HES announced Monday it was cutting its overall capex budget for 2015 by 16% to $4.7B.