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Hess Expects Bakken & Guyana Production to Boost Cashflow

Hess Corporation HES recently announced that its production will likely grow more than 10% annually through 2025. The growth in output will help cashflow increase annually by roughly 20% over the same time frame, added the firm.

The company expects its overall production growth to come primarily from activities in Guyana developments and Bakken shale play. The upstream energy firm also said that by 2021, its daily production from Bakken will likely increase to 200 thousand barrels of oil equivalent. Moreover, the company estimates gross resources of 5 billion barrels of oil equivalent from its 10 promising discoveries in the Stabroek Block, off the coast of Guyana.

Owing to the production prospects, Hess expects its yearly free cashflow to improve to more than $1 billion after 2020, assuming West Texas Intermediate (WTI) crude will trade at $60 a barrel.

It is to be noted that by 2025, Hess expects to sustain overall operations at a break-even Brent oil price of lower than $40 per barrel.

Hess Corporation Price

 

Hess Corporation Price | Hess Corporation Quote

Headquartered in New York,Hess is among the leading players engaged in oil and natural gas exploration and production activities. The stock carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include TC PipeLines, LP TCP, Cabot Oil & Gas Corporation COG and Unit Corporation UNT. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

TC PipeLines beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 15.6%.

Cabot will likely post earnings growth of 113.2% and 59.9% through 2018 and 2019, respectively.

Unit Corporation surpassed the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 21.3%.

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