HESS CORPORATION BARCLAYS CEO ENERGY & POWER CONFERENCE SEPTEMBER 8, 2016
Our Strategy in the Low Oil Price Environment 3.1 billion cash & total liquidity of 7.7 billion at June 30, 2016 Preserve Balance Pro forma Net Debt / Cap of 11%1 Sheet Strength 2016 capital and exploratory budget reduced to 2.1…
One of the Strongest Balance Sheets And liquidity positions among E&P Peers Peer Net Debt-to-Capital Ratio 7.7 B of Liquidity (at June 30, 2016) 98% 100% Q2 2016 - 3.1 B Cash 90% 80% - 4.0 B Unused Revolver 70% 62% - 0.6 B…
Focused Resilient Portfolio Linked by operating capabilities Valhall & 2016 Production: 315 - 325 MBOED Bakken Utica 32% Prod 9% Prod South Arne P1 Reserves: 1.1 BBOE 28% Res 2% Res 13% Prod 6P Resources: 7.4 BBOE 25% Res…
Industry Leading Operating Performance Unconventionals - Bakken Reducing Well Costs Drilling Performance: Spud-to-Spud (Days) Drilling & Completions Performance: Costs (MM) 45 Completion Costs Drilling Costs 13.4 39 64% Improvement…
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 2015 Gas 12% Hess Production Int'l Liquids % of YE 2015 Pro Forma Gas 14% 74% Reserves Liquids NGLs 100% 11% 80% Crude Oil 81% 76% 63% 60%…
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 400 More DSUs in Core of Middle Bakken 30+ Stage Wells Since 2012 Than Any Other Operator Hess Acreage No. of DSUs Goliath East Nesson 300…
One of the Best Positions in the Bakken Advantaged infrastructure maximizing value Tioga Rail Terminal Hess sold 50% interest in Bakken Midstream assets to GIP for 2.675 B Sardinia Created new joint venture called Hess…
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 Stable production with low cash costs and strong cash flow Conger Area (Hess) T-Bells (Hess) 16F 10 MBOED Strategic / Portfolio Context 16F 17 MBOED Stampede (Hess) 2018 First Oil - Leverages proven…
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 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:…
Offshore Guyana: Stabroek License Liza confirmed as world-class oil discovery Liza Water Depth: 5,500-5,700 ft Drilling TD: 18,000-18,800 ft Strategic / Portfolio Context - 6.6 MM acres; 1,150 GoM blocks Future - Multiple prospects…
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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