Salem Radio Network News Tuesday, July 5, 2022

Business

Hess expects higher capital spending, production in 2022

(Reuters) -Hess Corp said on Tuesday it expected its 2022 capital budget for production to rise by 37% as the U.S. oil company looks to focus on its operations in Guyana and the U.S. Bakken shale basin.

A more than 50% rise in global crude prices in the past year to above $86 a barrel is expected to encourage producers to spend more on exploration and drilling activity after years of prioritizing shareholder return over business investments.

Still, the companies are expected to maintain attractive shareholder returns, with Hess Chief Executive John Hess saying earlier this month the company would announce “meaningful” dividend growth this year and accelerate buyback plans.

The company expects to spend a total of $2.6 billion on production in 2022, of which about 80% will be allocated to Guyana and the Bakken, compared with $1.9 billion in 2021.

Net production is forecast to average between 330,000 and 340,000 barrels of oil equivalent per day (boepd) in 2022, excluding Libya, compared with the 295,000 boepd it expects in 2021.

(Reporting by Arathy Somasekhar in Bengaluru; Editing by Aditya Soni)

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