HESS CORPORATION BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE NOVEMBER 11, 2015
Why Hess One of the 3 billion of proceeds from Bakken midstream joint venture strongest 13% Net Debt-to-Capitalization ratio lowest among peer group, balance sheets 8 B of Liquidity among E&P 2015 capital and operating expense…
One of the Strongest Balance Sheets And liquidity positions among E&P Peers Nearly 8 B of Liquidity Peer Net Debt-to-Capital Ratio 59% 60% Q2 2015 - 3.0 B Cash at 9/30/15 50% - 4.0 B Unused Revolver 43% 44% 39% 40% - 0.9 B…
Focused Resilient Portfolio Linked by operating capabilities Valhall & 2015 Production: 370 - 375 MBOED Bakken Utica 30% Prod 6% Prod South Arne P1 Reserves: 1.4 BBOE 33% Res 2% Res 13% Prod 6P Resources: 6 BBOE 23% Res Onshore…
Industry Leading Operating Capabilities Unconventionals - Bakken Reducing Well Costs Drilling Performance: Spud-to-Spud (Days) Drilling Performance: Costs (MM) 45 Completion Costs Drilling Costs 13.4 39 62% Improvement 11.6 34 33…
Industry Leading Operating Capabilities Offshore drilling and project delivery Industry Project Delivery (IPA Study 2005 - 2013) -20% Drilling Performance Quartile 1st 2nd 3rd 4th Hess Under Others Ghana T Bells 0% North…
Focused Resilient Portfolio Leveraged to liquids with industry leading cash margins US 2014 Gas 8% Hess Production Int'l Liquids % of YE 2014 Pro Forma Gas 17% 75% Reserves Liquids NGLs 100% 7% 80% Crude Oil 80% 78% 76% 68%…
One of the Best Positions in the Bakken Competitively advantaged with Lean manufacturing process Divide Strategic / Portfolio Context Burke - Industry leading acreage position in the core Tioga Rail Terminal Kenmare of the Middle…
One of the Best Positions in the Bakken Material position in the core of the Bakken More DSUs in Core of Middle Bakken 30+ Stage Wells Since 2012 400 Than Any Other Operator Hess Acreage East 300 No. of DSUs Goliath Nesson…
One of the Best Positions in the Bakken Advantaged infrastructure maximizing value Tioga Rail Terminal Bakken Midstream JV valued at 5.35 billion Hess sold 50% interestSardinia in Bakken Midstream assets to GIP for 2.675 billion…
Utica: Material Position in the Wet Gas Window Acreage in play sweet spot with high NRI JV Acreage Optimum Mix of Pressure and Liquid Content Tier 1 Acreage Strategic / Portfolio Context Tier 2 Acreage - Wells highly productive…
Deepwater Gulf of Mexico: Tubular Bells Low cost production leveraging deepwater capability Strategic / Portfolio Context - Material growth asset - Key contributor to production and cash flow - Leverages deepwater capability Water…
Deepwater Gulf of Mexico: Stampede Building on Tubular Bells success GC 468 6 Production Wells 4 Injection Wells Host Platform Strategic / Portfolio Context 1 mile - Leverages proven deepwater capability Drill Center B Drill…
West Africa: Equatorial Guinea Maximizing value through 4D seismic and drilling excellence Strategic / Portfolio Context - Material cash flow - 4D seismic for continuing identification of high value drilling opportunities to…
North Sea Chalk: South Arne Material asset with continuing development potential Wellhead Platform S. Arne Platform Strategic / Portfolio Context North Wellhead Platform - Growth asset with material cash flow East - Multi year…
North Sea Chalk: Valhall Long life asset with material upside Strategic / Portfolio Context - Long life, material asset - Underdeveloped chalk reservoir; significant remaining upside - Working with operator to leverage chalk…
Malaysia Gas: Joint Development Area Long term production and material cash flow JDA Strategic / Portfolio Context Thailand - Low cost, long life gas reserves with oil linked pricing - Material production, free cash flow -…
Malaysia Gas: North Malay Basin Low risk, oil linked gas development Strategic / Portfolio Context Thailand - Growing Malaysia supply/demand gap - Low risk development of 9 discoveries - Material production and cash flow 2017+ - Oil…
Competitively Positioned for Growth Significant captured growth options Bakken Evaluate Capture Drill / Develop Produce / Appraise Re-Develop - 1.4 BBOE net EUR - 3,000 future drilling locations Utica Utica - 300 MMBOE net EUR…
Competitively Positioned for Growth Exploration provides further upside to long term growth Existing Provinces Focused strategy to deliver Emerging Provinces material long term value Exploration Focus Areas Exploration themes: Nova…
Offshore Guyana: Stabroek License Liza-1 Significant Oil Discovery Strategic / Portfolio Context - 6.6 MM acres; 1,150 GoM blocks - Multiple prospects and play types - Proven petroleum system Forward Plan - Liza-1 encountered 295…
Deepwater Gulf of Mexico: Sicily Discovery Exposure to prolific Paleogene outboard play Industry Oil Discovery 2015 Well Exploration Block Green Canyon Strategic / Portfolio Context Production Block Garden Inboard - Large and…
Offshore Nova Scotia Material position in emerging deepwater play Strategic / Portfolio Context - 3.5 MM acres; 600 GoM blocks Canada - Multiple leads in sub-salt play - 800 MMBOE pre drill net risked resource USA - GoM analogue…
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