Hess (NYSE:HES) unveiled Tuesday a FY 2023 exploration and production capital and exploratory budget of $3.7B, with more than 80% allocated to Guyana and the Bakken shale.

The company forecasts full-year production will average 355K-365K boe/day, including Bakken net production of 165K-170K boe/day and Guyana net output of ~100K bbl/day of oil.

Of the $3.7B capex budget, $1.45B, or 39%, is allocated for production, including $1.1B to fund a four rig program in the Bakken; $1.7B, or 46%, for offshore Guyana developments; and $550M, or 15%, for exploration and appraisal activities.

In Guyana, the company allotted $1.21B for developments on the Stabroek Block at Payara, Yellowtail and Uaru: Payara is on track to come online by year-end of 2023 with 220K boe/day gross production capacity, Yellowtail is expected to come online in 2025 with 250K boe/day gross production capacity, and Uaru is seen coming online at year-end 2026 with a gross production capacity of 250K boe/day.

Hess (HES) “remains expensive in a market where the company needs sustained high-double-digit oil prices to drive returns,” The Value Portfolio writes in an analysis published recently on Seeking Alpha.