HESS CORPORATION CREDIT SUISSE ENERGY SUMMIT FEBRUARY 11, 2014
Pure Play E&P Driving Shareholder Value Focused World Class Portfolio Visible growth in production of 5%-8% CAGR (2012 Pro Forma - 2017) Long life assets in areas where Hess has proven capability Five key areas represent 80% of…
Transformation to Pure Play E&P Integrated Oil CompanyWhat Weve Promised Focused Pure Play E&P Key Deliverables 2013 Divested more than 50% of E&P assets over 4 years F Focused d Pure P Play Pl E&P Built leading U.S. U S shale…
Progress on Divestitures Announced in 2013 After Tax Proceeds Asset Terms Agreed Date Completion Date (in millions) Beryl Oct-2012 Jan-2013 440 A b ij (ACG) Azerbaijan S 2012 Sep-2012 M 2013 Mar-2013 880 Eagle Ford Mar-2013 May-2013…
E&P Portfolio Focused in Five Areas Located in Areas Where Hess is Competitively Advantaged Valhall / Pro Forma Metrics South Arne 11% Prod. 2013A Production (Mboe/d) 285 Bakken 24% Res. 23% Prod. Utica 31% Res. 2013A Reserves…
Three Pronged Strategy to Drive Growth and Returns Unconventional Pro Forma Production Bakken free cash positive in 2015 Large inventory of high return Bakken well locations goal of 150mbd by 2018 Leading position in emerging…
Leading Oil-Linked Asset Base 76% Liquids Source: SEC filings, company annual reports, and company press releases 8 Note: Percentage of reserves that are liquids based for peers calculated as per 2012 year-end SEC filings;…
Industry Leading Cash Margin 2013: 56* /BOE 2009-13: 38 OE /BO * 2013 Hess pro forma cash margin includes Libya (57 excluding Libya) Note: E&P Cash Margin = E&P Net Income + DD&A + Exploration Expense Hess 2012 cash margin is…
Enhanced Financial Flexibility and Providing Current Returns to Shareholders Financial Flexibility to Fund Future Total Upstream Capital and Exploratory Expenditures Growth Paid down 2.4 billion of short term debt 8.1 bn with…
ASSET OVERVIEW
Unconventional Exploitation Exploration World Class Position in Bakken Shale Strategic / Portfolio Context Burke Single biggest contributor to production growth Tioga Rail Terminal through 2018 Tioga Gas Plant C Competitively…
Unconventional Exploitation Exploration Driving Performance in the Bakken Reducing Well Costs Drilling Performance: Spud-to-Spud Days Drilling & Completion Costs (mm) 42% improvement 43% improvement While Optimizing Well…
Unconventional Exploitation Exploration Significant Value Uplift From Bakken Infrastructure Tioga Rail Terminal Strategic / Portfolio Context Flexibility to access highest value markets Maximize value per boe Intend to monetize…
Unconventional Exploitation Exploration Core Position in Emerging Ohio Utica Shale Play Oil Wet Gas Dry Gas Jefferson Strategic / Portfolio Context A 1H-23 A 1H-6 Material position in wet gas area Harrison Leverages Bakken…
Unconventional Exploitation Exploration Valhall Multi-Year Drilling Opportunities Strategic / Portfolio Context Long life, material asset; 3.2 Bboe originally in place (gross) Key forward contributor to reserves, production and…
Unconventional Exploitation Exploration South Arne High Margin with Exploitation Upside Strategic / Portfolio Context High margin and free cash flow Exploitation upside through infill drilling and near field tie backs Leverages…
Unconventional Exploitation Exploration Equatorial Guinea Block G 4-D Seismic Unlocking Value Strategic / Portfolio Context High margin and strong cash flow Material contributor to production 4D seismic i i h has resulted lt d…
Unconventional Exploitation Exploration JDA Material Production and Free Cash Flow Cakerawala Strategic / Portfolio Context JDA Platform Low cost, long life gas asset Thailand Material production and free cash h flflow PM302…
Unconventional Exploitation Exploration North Malay Basin Low Risk Oil-Linked Gas Development Cakerawala Strategic / Portfolio Context JDA Platform Low risk development of 9 discovered Thailand gas fields Material M t i l…
Unconventional Exploitation Exploration Deepwater Gulf of Mexico Portfolio Strategic / Portfolio Context Asset Details Target to maintain production of Key producing assets: Shenzi, 70 Mboe/d through 2017 Conger and Llano…
Unconventional Exploitation Exploration Tubular Bells High Margin Asset; On Line 3Q14 Strategic / Portfolio Context Louisiana Tubular Bells Material high margin asset Key contributor to production Stampede growth and cash…
Unconventional Exploitation Exploration Ghana Deep Water Tano Cape Three Points Cote dIvoire Ghana Hess 90% W.I., operator Hess Operated 7 discoveries material to resource base Hess Discovery Industry Developments Builds on West…
Unconventional Exploitation Exploration Kurdistan Dinarta and Shakrok Turkey Hess 64% W.I., operator Shireen Iran Spud Shakrok in 3Q13; TD and Bradost production testing 2Q14 Dinarta Expect to spud Shireen in 2Q14 Pelewan…
Pure Play E&P Driving Shareholder Value Focused World Class Portfolio Three Pronged Strategy to Drive Growth and Returns While Managing Risk Financial Flexibility to Fund Future Growth Providing Current Returns to…
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