HESS CORPORATION CREDIT SUISSE ENERGY SUMMIT FEBRUARY 15, 2017
Positioned for Long Term, Value Driven Growth Bakken set to resume growth trajectory Increase in rig count from 2 to 6 in 2017 Potential to grow from 100 to 175 MBOED Significant North Malay Basin and Stampede add 35 MBOED by 2018…
One of the Strongest Balance Sheets And liquidity positions among E&P Peers Peer Net Debt-to-Capital Ratio 120% Q3 2016 111% 7.3 B of Liquidity 110% 100% - 2.7 B Cash 90% 80% - 4.0 B Unused Revolver 70% 61% - 0.6 B Unused…
Focused Resilient Portfolio Strong leverage to recovery in oil prices 2017 Forecast Each 1 change in oil prices Hess Production impacts annual after tax cash flow US Gas by approximately 70 million 12% Int'l Gas 17% Liquids %…
Focused Resilient Portfolio Linked by operating capabilities Valhall & 2017 Production: 300 - 310 MBOED Bakken Utica 33% Prod 6% Prod South Arne P1 Reserves: 1.1 BBOE 31% Res 3% Res 13% Prod 6P Resources: 6.7 BBOE 23% Res…
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 Industry Leading Operating Performance Reducing Well Costs Drilling Performance: Spud-to-Spud (Days) Drilling & Completions Performance: Costs (MM) 45 13.4 Completion Costs Drilling Costs 39 62%…
One of the Best Positions in the Bakken Material position in the core of the play 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…
Unlocking Value in the Midstream Segment Hess sold 50% interest in Bakken Tioga Gas Plant Midstream assets to GIP for 2.65 B Created new joint venture called Hess Infrastructure Partners Hess retains operational control of…
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 Strategic / Portfolio Context Tier 1 Acreage - Wells highly productive, high liquids…
Malaysia Gas: North Malay Basin & JDA Long term production and cash flow JDA Strategic / Portfolio Context Thailand - Low cost, long life gas reserves with oil linked pricing - NMB leverages JDA development capabilities and strong…
Deepwater Gulf of Mexico Stable production with low cash costs and strong cash flow Conger (Hess) T-Bells (Hess) Strategic / Portfolio Context Stampede (Hess) Llano (Shell) 2018 First Oil - Leverages proven deepwater capability -…
West Africa: Equatorial Guinea Maximizing value through 4D seismic and drilling excellence Strategic / Portfolio Context - Strong cash flow generation - 4D seismic for continuing identification of high value drilling opportunities…
North Sea Chalk: Valhall & South Arne Long life oil assets with running room Hess 64% WI Strategic / Portfolio Context Operator: Aker-BP - Underdeveloped chalk reservoirs; significant remaining upside - Multi year drilling…
Significant Value Driven Growth Engines Bakken Drill / Produce / Evaluate Capture Develop Appraise Re-Develop - 1.7 BBOE net EUR - 2,850 future drilling locations Utica North Malay Basin Bakken - Full field development underway…
Exploration Drives Long Term Growth & Value Existing Provinces Focused strategy to deliver Emerging Provinces material long term value Exploration Focus Areas Exploration themes: Nova Newfoundland - Focused: In basins we understand…
Offshore Guyana: Stabroek License Liza confirmed as world class oil discovery Liza Water Depth: 5,500-6,000 ft Drilling TD: 18,000-18,800 ft Strategic / Portfolio Context Ranger - 6.6 MM acres; 1,150 GoM blocks - Multiple…
Offshore Nova Scotia Significant position in emerging deepwater salt basin Strategic / Portfolio Context Canada - 3.5 MM acres; 600 GoM blocks - Multiple leads in sub-salt play - 800 MMBOE pre drill net risked resource USA - GoM…
Summary Key messages Significant Value Driven Growth Engines Focused Portfolio, Balanced for Risk and Leveraged to Oil Prices Financial Strength and Flexibility 21
Appendix Reconciliations of Non-GAAP Measures Net Debt to Capitalization Ratio December 31, 2016 Hess Hess (in millions) Consolidated Pro forma* Total debt 6,806 6,073 Less: cash and cash equivalents 2,732 2,730 Net debt 4,074…
Appendix Reconciliations of Non-GAAP Measures Midstream EBITDA Year Ended December 31, 2016 (Millions) Net income (loss) attributable to Hess Corporation 41 Adjustments Net income attributable to non-controlling interests 56…
Loading...
