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ANNUAL MEETING OF STOCKHOLDERS – Hess Corp

Hess Corp · May 2, 2012 · 30 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 1
    ANNUAL MEETING OF STOCKHOLDERS MAY 2, 2012
  2. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 2
    JOHN HESS CHAIRMAN OF THE BOARD CHIEF EXECUTIVE OFFICER 3
  3. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 3
    2011 Highlights Generated net income of 1.7 billion Replaced 147% of production Year end proved reserves 1.57 billion boe Completed strategic acreage acquisitions in the Utica Shale play in Ohio and in Kurdistan Sanctioned…
  4. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 4
    Financial Summary LINE FULL YEAR NO. ( MILLIONS) 2011 2010 2009 (A) (B) (C) OPERATING INCOME (AFTER TAX) 1 EXPLORATION AND PRODUCTION 2,431 2,005 997 2 MARKETING AND REFINING (59) 58 115 3 CORPORATE / INTEREST (388) (374) (369) 4…
  5. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 5
    Strategy CORPORATE Grow the company long term through Exploration and Production Operate Marketing and Refining for near term returns and cash flow EXPLORATION AND PRODUCTION Leverage global scale to access new opportunities Deliver…
  6. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 6
    GREG HILL PRESIDENT WORLDWIDE EXPLORATION & PRODUCTION 7
  7. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 7
    E&P Goals and Strategy LONG-TERM GOALS Grow reserves and production 3-5% per year Maintain R/P ratio of 10 STRATEGY Build a global portfolio for profitable growth Balance: - Geopolitical risk - Oil / gas mix - Lower risk…
  8. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 8
    Build Global Portfolio for Profitable Growth Beryl Schiehallion Valhall Samara-Nafta Bakken South Arne ACG Seminole Shenzi GEA Sinphuhorm Waha Llano Conger Pailin Okume / Ceiba JDA Natuna A Pangkah 2011 Production…
  9. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 9
    Build Global Portfolio for Profitable Growth 2011 Production: 370 Mboe/d Gas 28% US 30% Europe 28% Oil 72% Asia / Other 24% Africa 18% 10
  10. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 10
    Build Global Portfolio for Profitable Growth Cash Margin: 2007-2011* Reserves Growth: 2007-2011** First First 36.4 7.2% Quartile Quartile Hess 33.1 HES 6.6% Second Second 30.7 5.4% Quartile Quartile Third Third 27.0…
  11. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 11
    Growing Unconventional Portfolio Bakken Shale 800,000 net acres Utica Shale Paris Basin 16 rig program in 2012 200,000 net acres 340,000 net acres 22 wells in 2012 Plan 3 conv. wells beginning 4Q12 China JSAs with Sinopec &…
  12. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 12
    North Dakota Bakken Shale Hess 67% W.I., operator Canada Nesson z Anticline Avalanche Tioga Gas Plant 800,000 net acres Tioga East Impact 16 rig program Stony Creek Goliath Expanding advantaged Nesson Red Beaver Sky…
  13. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 13
    Eagle Ford Shale OK NM AR TEXAS AUSTIN TEXAS LA Moulton MEXICO SAN ANTONIO Hess 90% W.I. Crystal City Cotulla Sweethome Hackberry 100,000 net acres focused in gas condensate window Plan to drill 20 wells in 2012 CORPUS…
  14. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 14
    Ohio Utica Shale LAKE ERIE 200,000 net acres CLEVELAND Most land fee or HBP OHIO AKRON 90% net revenue interest Hess Marquette well flowed at peak rate of 11 MMCFD First CONSOL JV well PA PA under evaluation Hess Operated…
  15. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 15
    Norwegian North Sea Valhall/Hod Fields Hess 64% W. I. Net production 22 MBOED in 2012 Hess working with Operator BP to maximize production rates and recovery Valhall Field redevelopment to be completed 3Q12 Goal - reach new…
  16. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 16
    Malaysia-Thailand JDA Hess 50% W.I. Bangkok Net production 250 MMSCFD Low cost, long lived Cambodia natural gas asset PSC through 2029 Vietnam Erawan Gulf of PM 301 and PM 302 Thailand Pailin Songkhla JDA provide…
  17. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 17
    Equatorial Guinea Block G Hess 85% W.I., operator Net production 45 MBOED in 2012 Strong operational and reservoir performance Okume Oveng TLP E Okume Complex Additional drilling TLP F Sat A opportunities to extend Ceiba…
  18. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 18
    Australia WA-390-P Hess 100% W.I., Wheatstone operator 6 TCF Pluto 13 natural gas 5 TCF discoveries Scarborough 10 TCF ( Appraisal program ( ( ( ( ( ( Greater Gorgon Area ongoing 50 TCF Three wells flow- ( ( (…
  19. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 19
    Deepwater Gulf of Mexico - Tubular Bells Mississippi Hess 57% W.I., operator Louisiana Water Depth: 4,300 feet Subsea wells tied back to third party owned Tubular Bells SPAR facility First production targeted 2014 Anticipate…
  20. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 20
    Global Exploration Focus on fewer geographic areas Reduce risk through strategic partnering Strengthen organizational capability Kurdistan Asia Pacific West Africa Gulf of Mexico Focus Area 21
  21. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 21
    Ghana Tano Cape Three Points COTE DIVOIRE GHANA GHANA Jubilee Odum Hess 35% W.I., operator Water depth: 6,000 ft Tweneboa Paradise Paradise encountered 490 of net pay Completed farm-down of Hickory North 25Kms…
  22. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 22
    Brunei Block CA-1 BRUNEI Kikeh MALAYSIA Gumusut Julong East BORNEO Jagus East Hess 13.5% W.I. Total (54% W.I.) is operator Water depth: 4,400 ft Targets are Miocene and Pliocene clastic reservoirs Julong East discovery…
  23. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 23
    Kurdistan Dinarta and Shakrok Turkey Turkey Iran Syria Iran Shireen Iraq Jordan Chinara Saudi Dinarta Arabia Hess 80% W.I., operator Shakrok Major petroleum province Shakrok with low risk geology IRAQI KURDISTAN 70%…
  24. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 24
    BORDEN WALKER PRESIDENT MARKETING & REFINING 25
  25. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 25
    Marketing and Refining Refinery NY Terminal Marketing MA Strategic Objectives PA MD NJ Strengthen Hess brand DE VA VA on East Coast NC NC Generate current returns SC SC and pursue selective GA growth FL FL 26
  26. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 26
    Retail Marketing Per Site Averages Fuel Volume (Mg/Mo) 250 200 215 208 207 201 199 195 150 100 50 0 06 07 08 09 10 11 C-Store Sales (M/Mo) 130 130 128 125 116 118 110 115 90 70 50 06 07 08 09 10 11…
  27. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 27
    Energy Marketing Strong brand and reputation Selective growth 22,000 Commercial / Industrial customers Fuel Oil Sales: 110 MB/D Natural Gas Sales: 1.5 BCF/D Electric Sales: 4,400 MW (RTC) Energy Marketing Volumes: 2006 - 2011…
  28. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 28
    JOHN HESS CHAIRMAN OF THE BOARD CHIEF EXECUTIVE OFFICER 29
  29. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 29
    Key Points 3-5% per year production and reserves growth Global reach and capability High oil leverage Increasing role of unconventionals Impactful exploration prospects 30
  30. ANNUAL MEETING OF STOCKHOLDERS – Hess Corp – slide 30

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