Hess Corporation CITI GLOBAL ENERGY & UTILITIES CONFERENCE May 11, 2021
Our Strategy Invest only in High Return, Low Cost Opportunities Prioritize Debt Build Focused and Reduction and Balanced Portfolio Return of Capital to Robust at Low Prices Shareholders Commitment to Sustainability…
Our Priorities in an Uncertain Environment 1.86 B cash total liquidity of 5.5 B at March 31, 2021 150 MBOD hedged at 55/bbl WTI / 60/bbl Brent in 2021 Preserve Cash 2021 E&P capital and exploratory budget set at 1.9 B - More than…
Maintaining Financial Strength Strong cash position, hedges and industry leading cash flow growth Near Term Debt Maturities 1.86 B cash at March 31, 2021 billions - 3.5 B undrawn revolving credit facility 1.0 1.0 Robust - 5.5 B of…
Global Energy Demand Oil & gas essential to meeting global energy demand Primary Energy Demand Outlook (IEA) BTOE Energy demand led by 2019 2040 Outlook by IEA Scenario1 population and GDP growth Stated Sustainable increases 20%…
Commitment to Sustainability Taking action to reduce emissions Strategy and reporting Outperformed 5-year Set new 5-year aligned with TCFD1 emission reduction emission reduction recommendations targets for 2020 targets for 2025…
Commitment to Sustainability Values drive value for the benefit of all stakeholders Safety Social Responsibility Multidisciplinary team overseeing Hess COVID- Guided by commitments to international voluntary 19 response; safety of…
Production and Costs Capital efficient production growth with significant cost reductions Production1 MBOED 400 Potential for at least 6 11% CAGR FPSOs on Stabroek Block by 2027 200 Bakken 155-160 - 2017 2021 MBOED in 2021…
Guyana: Stabroek Block World class petroleum province with potential for up to 10 FPSOs Hess 30% interest; (Operator: ) Kaieteur Water Depth: 5,500 - 11,000 ft Drilling TD: 17,000 - 23,000 ft 6.6 million acres (equal to 1,150 GoM 2…
Guyana: Stabroek Block World class investment opportunity Among industrys largest offshore oil discoveries in the past decade - 9 BBOE gross discovered recoverable resource - Multi billion barrels of remaining exploration upside…
Guyana: Stabroek Block Guyana resources 9 BBOELiza First Oil December 20, 2019 Discovered Recoverable Resource Guyana Production Capacity Cumulative BBOE1 Gross Production Capacity; Cum. MBOD1 9 1,000 8 6 Yellowtail + 5.5 5 4…
Guyana Developments Third development at Payara sanctioned in September 2020 Liza Phase 1: Destiny Liza Phase 2: Unity Payara: Prosperity Discovered in 2015 Discovered in 2015 Discovered in 2017 First oil achieved 2019 First oil…
South East Asia: JDA and North Malay Basin Stable long term free cash flow generation 2021 net production of 60 MBOED JDA Strategic/ Thailand Portfolio 2021 net capex of 165 MM Context Established operator, strong partnership with…
Gulf of Mexico Significant free cash flow generation, high returns with upside 2021 net production 45 MBOED Strategic/ 2021 net capex of 35 MM Conger T-Bells (Hess) Portfolio (Hess) Context Platform for future growth through…
Bakken Cash engine generating significant free cash flow 2021 onwards Shift from growth engine to cash engine Divide Leading Acreage Position Focus on efficiencies via Lean principles to Burke Strategic/ Tioga Rail Terminal maximize…
Bakken Significant inventory of high return locations Future Locations with IRRs at 15% or Above 2021 Bakken Development Well Plan Gross number of economic locations at various WTI prices 1 Beaver Lodge East 2nd rig Feb 2021 1,600…
Bakken Competitively advantaged infrastructure supports Bakken development Strategic infrastructure supporting Hess development Export flexibility provides access to highest value markets 70% volume currently linked to Brent based…
Portfolio Delivers Industry Leading Cash Flow Growth 38% CFFO CAGR to 2023 leads peers, and competitive with key sectors Consensus CFFO CAGR Consensus CFFO CAGR Peers 2020 to 2023 2020 to 2023 38 % 27 % 26 % 25 % Median 18 % 21 %…
Summary Priorities in current environment are to preserve cash, core capabilities and the long term value of our assets Recognized leader for our ESG performance and disclosures Multi phases of low cost Guyana oil developments to…
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