HESS CORPORATION BARCLAYS CEO ENERGY-POWER CONFERENCE SEPTEMBER 11, 2013
Pure Play E&P Driving Shareholder Value Focused World Class Portfolio Visible growth in production of 5%-8% CAGR (2012 Pro Forma 2017) Long life assets in areas where Hess has proven capability Five key areas represent 78% of…
Transformation to Pure Play E&P Integrated Oil CompanyWhat Weve Promised Focused Pure Play E&P Key Deliverables 2013 Divested 50% of E&P assets, raising 5.2 billion F Focused d Pure P Play Pl E&P Built leading U.S. U S shale…
Progress on 2013 Asset Sales After Tax Proceeds Asset Terms Agreed Date Completion Date (in millions) Beryl Oct-2012 Jan-2013 440 Azerbaijan (ACG) Sep-2012 Mar-2013 880 Eagle Ford Mar-2013 May-2013 280 Russia (Samara-Nafta) Apr-2013…
E&P Portfolio Focused in Five Areas Located in Areas Where Hess is Competitively Advantaged Valhall / Pro Forma Metrics South Arne 8% Prod. 2012A Production (Mboe/d) 289 Bakken 28% Res. 19% Prod. Utica 23% Res. 2012A Reserves…
Three Pronged Strategy to Drive Growth and Returns 450 Pro Forma Production Unconventional (Mboe/d) Bakken free cash positive in 2015 400 Large inventory of high return Bakken well locations 350 Leading position in emerging Utica…
Leading Oil-Linked Asset Base 2013E Hess Production Pro Forma 79% 77% U.S. Gas 6% 72% Int'l Gas 69% 18% Crude ds Based 76% Oil 69% (85% NGLs Liquids Brent 62% 7% linked) es that are Liquid 56% 51% 47%…
Industry Leading Cash Margin 2012 Pro Forma 44.8 36.8 34 3 34.3 33.4 32.1 30.2 28.8 28.8 28.0 /BOE 21.8 20.3 14.8 HES PF MUR OXY NBL APA APC MRO COP EOG BG TLM DVN 2007 to 2012 35.5 35.4 33.0 29.7 29.4 28.5 28.5…
Enhanced Financial Flexibility and Increased Cash Returns to Shareholders Financial Flexibility to Fund Future Total Upstream Capital and Exploratory Expenditures Growth Paid down 2.4 billion of short term debt with initial…
ASSET OVERVIEW
Unconventional Exploitation Exploration World Class Position in Bakken Shale Strategic / Portfolio Context Single biggest contributor to 2013-2017 Burke Tioga Rail Terminal production growth Tioga Gas Plant Competitively…
Unconventional Exploitation Exploration Driving Performance in the Bakken Reducing Well Costs Drilling Performance: Spud-to-Spud Days Drilling & Completion Costs (mm) 45 13.4 39 40% improvement 37% improvement 11.6 34 33 31 32…
Unconventional Exploitation Exploration Significant Value Uplift From Bakken Infrastructure Strategic / Portfolio Context Tioga Rail Terminal Flexibility to access highest value markets Maximize value per boe Intend to monetize by…
Unconventional Exploitation Exploration Core Position in Emerging Ohio Utica Shale Play Dry Gas Oil Wet Gas Strategic / Portfolio Context 1H-6 Jefferson 3H-3 Offers material growth potential Harrison 2015+ 1H-23 1H-24 JV…
Unconventional Exploitation Exploration Valhall Multi-Year Drilling Opportunities Strategic / Portfolio Context Long life, material asset; 3.2 Bboe originally in place (gross) Key forward contributor to reserves, production and…
Unconventional Exploitation Exploration South Arne High Margin Exploitation Upside Strategic / Portfolio Context High margin and free cash flow Exploitation upside through infill drilling and near field tie backs Leverages chalk…
Unconventional Exploitation Exploration Equatorial Guinea Block G 4-D Seismic Unlocking Value Strategic / Portfolio Context High margin and strong cash flow Material contributor to production 4D seismic has resulted in additional…
Unconventional Exploitation Exploration JDA Material Production and Free Cash Flow JDA Cakerawala Strategic / Portfolio Context Platform Low cost, long life gas asset Thailand Material production and free PM302 cash flow…
Unconventional Exploitation Exploration North Malay Basin Low Risk Oil-Linked Gas Development JDA Cakerawala Strategic / Portfolio Context Low risk development of 9 Platform discovered gas fields Thailand Material…
Unconventional Exploitation Exploration Deepwater Gulf of Mexico Portfolio Strategic / Portfolio Context Asset Details Target to maintain production of Key producing assets: Shenzi, 70 Mboe/d through 2017 Conger and Llano…
Unconventional Exploitation Exploration Tubular Bells High Margin Asset; On Line 3Q14 Strategic / Portfolio Context Louisiana Tubular Bells Material high margin asset Key contributor to production Stampede growth and cash…
Unconventional Exploitation Exploration Ghana Deep Water Tano Cape Three Points Cote dIvoire Ghana Hess 90% W.I., operator Hess Operated 7 discoveries material to resource base Hess Discovery Industry Developments Builds on West…
Unconventional Exploitation Exploration Kurdistan Dinarta and Shakrok Shireen Turkey Hess 64% W.I., operator Iran Bradoost Spud first of 2 wells 3Q13 (Shakrok) Surface anticlines with oil seeps p Chinara Dinarta 8 recent…
Pure Play E&P Driving Shareholder Value Focused World Class Portfolio Three Pronged Strategy to Drive Growth and Returns While Managing Risk Financial Flexibility to Fund Future Growth Portfolio Reshaping Allows for Increased…
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