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Citi Global Energy and Utilities Conference – Hess Corp

Hess Corp · May 15, 2018 · 24 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Citi Global Energy and Utilities Conference – Hess Corp – slide 1
    Hess Corporation CITI GLOBAL ENERGY & UTILITIES CONFERENCE May 15, 2018
  2. Citi Global Energy and Utilities Conference – Hess Corp – slide 2
    Why Hess High graded, more focused portfolio and driving down costs Pro forma 10% annual production growth / 20% annual cash flow growth through 2023 at 50 Brent Prefunded transformative Guyana oil developments, which will…
  3. Citi Global Energy and Utilities Conference – Hess Corp – slide 3
    Why Hess Focusing portfolio on lower cost, higher return assets - Guyana / Bakken (Growth Engines); Malaysia / Gulf of Mexico (Cash Engines) High Graded, Developing world class offshore Guyana oil discoveries Focused - Phase 1 35/bbl…
  4. Citi Global Energy and Utilities Conference – Hess Corp – slide 4
    Sustainability Focus Across Our Company: Committed to developing oil & gas resources in a responsible & sustainable manner Safety Climate Change & Environment Social Responsibility Enterprise-wide focus on Board evaluates Fundamental…
  5. Citi Global Energy and Utilities Conference – Hess Corp – slide 5
    Asset Monetizations: Exceeded Timing and Value Expectations Implied Avoided Value Production Production Sales Price ARO Realized Sold Multiple Completion (MM) (MM) (MM) (MBOED) / BOED Date December Norway 2,000 1,000 3,000 24…
  6. Citi Global Energy and Utilities Conference – Hess Corp – slide 6
    High Graded, Focused Portfolio Lower Higher Cash Engines Growth Growth Growth Engines 70% of Cash Cash Costs Flow from Lower Cost Malaysia…
  7. Citi Global Energy and Utilities Conference – Hess Corp – slide 7
    Step Change Reduction in Unit Costs: Drives Improving Profitability Cash Unit Production Costs (/BOE)1 DD&A (/BOE) 30% Reduction by 2020 35% Reduction by 2020 15 26 10 / BOE / BOE 13 5 0 0 2017 2018 2019 2020…
  8. Citi Global Energy and Utilities Conference – Hess Corp – slide 8
    Accelerating Cash Flows: Outpace Production Growth Production1 (MBOED) EBITDAX2 Margin at 50 Brent3 (/BOE) Accelerating Margins Drive Cash Flow Growth Guyana Grows to 100 Mboed by 2023 30 20% Cash Flow EBITDAX Margin…
  9. Citi Global Energy and Utilities Conference – Hess Corp – slide 9
    Portfolio Delivers Significant Free Cash Flow: Through investment in World Class assets Guyana, Bakken CFFO Cash Flow From Operations 4,500 4,000 CROCE increases to 20% in 2023 at 50 Brent2 3,500 Free Cash 3,000 Flow3 Free Cash…
  10. Citi Global Energy and Utilities Conference – Hess Corp – slide 10
    Offshore Guyana: One of the Industrys Largest Oil Discoveries in the Past Decade Hess 30% interest Water Depth: 5,500 - 11,000 ft Drilling TD: 17,000 - 23,000 ft (Operator: ) 6.6 million acres (equivalent to 1,150 GoM blocks) with…
  11. Citi Global Energy and Utilities Conference – Hess Corp – slide 11
    Offshore Guyana: World Class Investment Opportunity Among industrys major offshore discoveries in the past decade - 3.2 BBOE gross discovered recoverable resource - Multi billion barrels of unrisked exploration upside Exceptional…
  12. Citi Global Energy and Utilities Conference – Hess Corp – slide 12
    Offshore Guyana: Liza Phase I First Production in 2020 With Multiple Future Phases Massive world class resource MBOD gross Exceptional reservoir quality with high production rates and EUR per well Strategic Context Multi phase,…
  13. Citi Global Energy and Utilities Conference – Hess Corp – slide 13
    Offshore Guyana: Low Development Costs and Outstanding Financial Returns Guyana Delaware Basin Liza Phase 1 - Cumulative Cash Flow Liza Illustrative Phase 1 50,000 Net Acre 60 Brent Development1 Development2 Peak Production 120,000…
  14. Citi Global Energy and Utilities Conference – Hess Corp – slide 14
    Breakeven (PV10, 20:1 WTI:HH Ratio) 20 40 60 80 0 100 120 TMS /BBL Stella Kraken Mariner Western Isles Barnett Arkoma Woodford Granite Wash Fayetteville Uinta Basin Mississippi Lime Libra Big Foot Utica…
  15. Citi Global Energy and Utilities Conference – Hess Corp – slide 15
    Malaysia: Generating Stable Production and Free Cash Flow at 50/bbl Brent JDA Strategic / Leverages development capabilities and Thailand Portfolio strong Petronas relationship Context Growing pipeline supply/demand gap North…
  16. Citi Global Energy and Utilities Conference – Hess Corp – slide 16
    Deepwater Gulf of Mexico: Significant Cash Flow from Strong Capabilities / Partnerships Conger T-Bells (Hess) (Hess) Stampede Low cash costs and strong cash flow Llano (Hess) (Shell) Strategic / Leverages proven deepwater…
  17. Citi Global Energy and Utilities Conference – Hess Corp – slide 17
    Bakken: Leading Acreage Position In the Core of the Play Leading acreage position in core Middle Divide Bakken and Three Forks Strategic / Burke Focus on efficiencies via Lean principles Tioga Rail Terminal Portfolio Kenmare…
  18. Citi Global Energy and Utilities Conference – Hess Corp – slide 18
    Bakken: Competitively Advantaged Inventory in the Core of the Play Large-Scale Footprint in the Core of the Bakken More DSUs in Core of Middle Bakken Than Any Other Operator 30+ Stage Wells Drilled Since 2012 400 Hess Acreage Goliath…
  19. Citi Global Energy and Utilities Conference – Hess Corp – slide 19
    Bakken: Strong Returns Even in a Low Oil Price Environment 2018 Bakken Drilling Program Avg. Well Cumulative Oil Forecast by Field MBO 120 Keene (Antelope/Blue Buttes) 100 Stony Creek East Nesson South Goliath 80 Capa Red Sky…
  20. Citi Global Energy and Utilities Conference – Hess Corp – slide 20
    Bakken: Unlocking Midstream Value 2.85 B cash proceeds from Cash proceeds received to date 2.85 B for HESM IPO and HIP joint midstream JV formation and IPO venture transactions Value accretive JV and HESM IPO Implied EBITDA…
  21. Citi Global Energy and Utilities Conference – Hess Corp – slide 21
    Financial Strength and Shareholder Focus Asset monetizations have Net Debt / Capitalization1 exceeded expectations - 3.4 B proceeds in 2017 101% Robust Liquidity 7.7 B of liquidity Position - 3.7 B cash at March 31, 2018 - 4 B…
  22. Citi Global Energy and Utilities Conference – Hess Corp – slide 22
    Why Hess High graded, more focused portfolio and driving down costs Pro forma 10% annual production growth / 20% annual cash flow growth through 2023 at 50 Brent Prefunded transformative Guyana oil developments, which will…
  23. Citi Global Energy and Utilities Conference – Hess Corp – slide 23
    Appendix Reconciliations of Non-GAAP Measures Net Debt to Capitalization Ratio March 31, 2018 Hess (in millions) Consolidated Total debt 6,568 Less: cash and cash equivalents 3,726 Net debt 2,842 Total debt 6,568 Add:…
  24. Citi Global Energy and Utilities Conference – Hess Corp – slide 24

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