HESS CORPORATION J.P. MORGAN ENERGY EQUITY INVESTOR CONFERENCE JUNE 27, 2017
Positioned for Long Term, Value Driven Growth Bakken set to resume growth trajectory Industry leading position increase rig count from 2 to 6 in 2017 Growth trajectory from 100 to 175 MBOED Significant North Malay Basin and Stampede…
One of the Strongest Balance Sheets And liquidity positions among E&P Peers Peer Net Debt-to-Capital Ratio 120% Q1 2017 112% 7.2 B of Liquidity (at 3/31/17) 110% 100% - 2.7 B Cash 90% 80% - 4.0 B Unused Revolver 70% 60% 60% - 0.5…
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 by approximately 70 million US Gas 12% Int'l Gas Liquids % of YE…
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, utilizing Lean manufacturing process Divide Strategic / Portfolio Context Burke - Industry leading acreage position in the core Tioga Rail Terminal Kenmare of the…
The Hess Bakken Development Journey Maximizing DSU Value via Lean Principles and Innovation LEAN PRINCIPLES: Continuous Improvement Drilling Cycle Time Drilling & Completions Cost 90 Day Initial Production 50 (Spud to Spud) (Standard…
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 No. of DSUs Hess Acreage Goliath 300 East Nesson…
Unlocking Value in the Midstream Segment Successful IPO of HESM with built-in future asset drop-downs Upsized IPO of HESM with proceeds of 175 MM net to Hess Corporation HESM highlights: - Strategically advantaged asset base - 100%…
Utica: Significant Position in 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 content…
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: Stampede Leverages proven deepwater capability 6 Production Wells Host Platform GC 468 Strategic / Portfolio Context 4 Injection Wells 1 mile - Significant contribution to 2018+ growth - One of the largest…
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 - 1.5 BBOE remaining net EUR - 2,850 future drilling locations Utica North Malay Basin Bakken - Full field development…
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: Prolific World Class Oil Play Growing inventory of material oil discoveries on Stabroek Block Liza Water Depth: 5,500 - 6,000 ft Strategic / Portfolio Context Drilling TD: 17,000 -18,000 ft 6.6 million acres 1,150 GoM…
Offshore Guyana: Liza Development First production expected by 2020 Liza Phase 1 - Subsea Development Scheme Strategic Context Massive world class resource Exceptional reservoir quality expected to deliver high production rates and…
Offshore Guyana: World Class Opportunity Outstanding capital efficiency Illustrative Liza Phase 1 - Cumulative Cash Flow Liza Phase 1 50,000 Net Acre Development (1) Delaware Basin 60 Brent Development (2) Peak Production 120,000…
Summary Key messages Significant Value Driven Growth Engines Focused Portfolio, Balanced for Risk and Leveraged to Oil Prices Financial Strength and Flexibility 22
Appendix Reconciliations of Non-GAAP Measures Net Debt to Capitalization Ratio March 31, 2017 Hess Hess (in millions) Consolidated Pro forma* Total debt 6,785 6,054 Less: cash and cash equivalents 2,686 2,684 Net debt 4,099…
Loading...
