The Rising Influence of Rising Affluence

[DewDiligence]

HES plans “up to” $500M of stock buybacks and similar amount of debt reduction by end of 2018—while continuing to prioritize Guyana (#msg-135666616):

https://finance.yahoo.com/news/hess-presents-bank-america-merrill-134900353.html

This year, the company has announced sales of mature, lower growth assets that will result in proceeds of $3.4 billion and the release of $1.3 billion of asset retirement obligations (excluding the sale of its interests in Denmark expected in 2018). The company plans to use these proceeds to:

• Prefund a world class oil development in Guyana [see #msg-135666616]

• Increase to a total of six rigs from four rigs currently in the Bakken during 2018, where the company has a robust inventory of high return drilling locations in the core of the play

• Return cash to shareholders through a share repurchase program of up to $500 million of stock to be completed in 2018

• Reduce Hess Corporation debt (excluding midstream) by $500 million in 2018

These goals were announced on the BofA webcast today.