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Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp

Hess Corp · Nov 15, 2018 · 22 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. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 1
    Hess Corporation BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE November 15, 2018
  2. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 2
    Why Hess Focusing portfolio on lower cost, higher return assets High Graded, - Guyana / Bakken (Growth Engines); Malaysia / Gulf of Mexico (Cash Engines) Focused Capital efficient production growth (pro forma 10% CAGR 2017-2023)2…
  3. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 3
    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…
  4. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 4
    High Graded, Focused Portfolio Lower Higher Cash Engines Growth Growth Growth Engines 70% of Cash Cash Costs Flow from Malaysia Guyana Lower…
  5. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 5
    Step Change Reduction in Unit Costs Cash Unit Production Costs (/BOE)1, 2 DD&A (/BOE)2 30% Reduction by 2023 35% Reduction by 2023 15 26 10 / BOE / BOE 13 5 0 0 2017 2018 2019 2020 2023 2017 2018 2019 2020…
  6. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 6
    Accelerating Cash Flows: Outpace Production Growth Production1 (MBOED) EBITDAX2 Margin at 60 Brent (/BOE) Accelerating Margins Drive Cash Flow Growth Guyana Grows to 100 MBOED by 2023 35 EBITDAX Margin (/Boe) 300 0 0 2017…
  7. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 7
    Portfolio Delivers Significant Free Cash Flow: Through investment in World Class assets Guyana, Bakken CFFO Cash Flow From Operations 5,000 CROCE increases to 25% in 2023 at 60 Brent2 4,500 4,000 Free Cash Flow3 3,500 3,000…
  8. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 8
    Offshore Guyana: 15% of Conventional Oil Discovered Globally Since 2015 Water Depth: 5,500 - 11,000 ft Hess 30% interest; Drilling TD: 17,000 - 23,000 ft (Operator: ) 6.6 million acres (equal to 1,150 GoM blocks) and low entry cost…
  9. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 9
    Offshore Guyana: World Class Investment Opportunity Among industrys major offshore discoveries in the past decade - 4 BBOE gross discovered recoverable resource - Multi billion barrels of unrisked exploration upside Exceptional…
  10. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 10
    Offshore Guyana: Liza Phase I First Oil by Early 2020 With Multiple Future Phases Massive world class resource Exceptional reservoir quality with high production rates and EUR per well Strategic Multi phase, low cost development in…
  11. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 11
    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…
  12. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 12
    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…
  13. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 13
    Malaysia: Generating Stable Production and Free Cash Flow JDA Strategic / Leverages development capabilities and Thailand Portfolio strong Petronas relationship Context Growing pipeline supply/demand gap North Malay Basin…
  14. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 14
    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…
  15. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 15
    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 Portfolio Tioga Rail Terminal Kenmare…
  16. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 16
    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…
  17. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 17
    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…
  18. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 18
    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…
  19. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 19
    Financial Strength and Shareholder Focus Asset monetizations have Net Debt / Capitalization1 exceeded expectations Robust - 3.8 B proceeds in 2017/18 100% Liquidity 6.6 B of liquidity Position - 2.6 B cash at September 30, 2018…
  20. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 20
    Why Hess High graded, focused portfolio delivers pro forma 10% annual production growth / 25% annual cash flow growth through 2023 at 60 Brent World class Guyana oil development positioned to generate industry leading financial…
  21. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 21
    Appendix Reconciliations of Non-GAAP Measures Net Debt to Capitalization Ratio September 30, 2018 Hess (in millions) Consolidated Total debt 6,694 Less: cash and cash equivalents 3,004 Net debt 3,690 Total debt 6,694 Add:…
  22. Bank of America Merrill Lynch Global Energy Conference 2018 – Hess Corp – slide 22

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