Hess announced third quarter earnings today (Oct. 26). The Eagle Ford was only mentioned briefly. The question was posed whether or not the Eagle Ford is core to the company.
Analyst:
Paying $3,000 per acre is significant, but is the company ready to call the area "Core".
John Hess:
"Focus is on delineation and what we have now. We've been encouraged to date."
Analyst:
Are you still acquiring acreage?
John Hess:
"(Hess) is being opportunistic. Pricing is pretty high, but as we see opportunity we'll do it. But, only if it will make money."
Hess is a partner with ZaZa Energy across a portion of its acreage. The companies have acreage in less explored areas like Fayette County. Drilling over the next year will most definitely determine whether the Eagle Ford becomes a core development area for Hess. For a company with lots of opportunities, Bakken Shale, Utica Shale, and offshore, you can bet the decision will be driven by the statement "if it will make money".