After reporting a solid 2009 fourth quarter, Hess set its sights on 2010 growth plans which included a major commitment to ramp up Bakken oil drilling in North Dakota. Fourth-quarter results suggest that Hess remains on track with growth projects underway on several continents to support targeted 3% average annual production growth.

Fourth-quarter 2009 earnings of $358 million were 5% higher than the preceding 2009 third quarter and well above the year-ago fourth-quarter loss of $74 million. Earnings gains at Hess’ E&P unit were more than enough to offset continued weakness on the downstream side. Higher oil prices helped boost fourth-quarter E&P earnings to $494 million, up 24% from the preceding third quarter. The weakened economy continued to dampen refining and marketing margins with fourth-quarter earnings of $17 million, down 56% from the third quarter. We were encouraged by Hess’ ability to grow full-year 2009 oil and gas production by 7% to 408 barrels of oil equivalent per day (boe/d), even after cutting capital spending by 33%. The firm reported proven reserves of 1,437 million barrels at year-end 2009, versus 1,430 million barrels at year-end 2008. Hess owes part of its 2009 production gains to startup of its 28%-owned Shenzi field in deepwater Gulf of Mexico in March.

For the rest of the story visit, Hess Moves Ahead with 2010 Plans