HESS CORPORATION CREDIT SUISSE ENERGY SUMMIT FEBRUARY 25, 2015
Why Hess Financial strength and flexibility - Strong balance sheet and liquidity offers additional funding support in volatile price environment - 2.4 billion cash and Debt to Capitalization ratio of 21% at YE 2014 Disciplined…
Financial Strength and Flexibility 7.6 B of Liquidity at 12/31/14 1.2 B Managed Debt Maturities - 2.4 B Cash 1.0 - 4.0 B Unused Revolver 0.8 - 1.2 B Unused Committed Lines 0.6 1.1 0.4 Debt-to-Capital: 21% 0.2 0.4 0.1 0.1 0.1…
Global Asset Portfolio Focused and linked by operating capabilities Valhall / Bakken Utica North Sea 26% Prod 2% Prod South Arne Leveraging industry leading chalk 33% Res 2% Res 14% Prod reservoir drilling experience 23% Res…
Industry Leading Operating Performance Unconventionals Reducing Bakken Well Costs Drilling Performance: Spud-to-Spud (Days) Drilling Performance: Costs (MM) 45 Completion Costs Drilling Costs 13.4 39 51% Improvement 11.6 34 33 32…
Industry Leading Operating Performance Offshore drilling & project delivery Industry Project Delivery (IPA Study 2005 - 2013) -20% Drilling Performance Quartile 1st 2nd 3rd 4th Hess Under Others Ghana T Bells 0% North Malay…
Industry Leading Operating Performance Leveraged to liquids, industry leading margins US 2014 Gas 8% Hess Production Int'l Liquids % of YE 2013 Pro Forma Gas 17% 75% Reserves Liquids Hess NGLs 100% 2014 7% 80% Crude Oil 79%…
World Class Position in Bakken Shale Competitively advantaged with Lean manufacturing process Strategic / Portfolio Context Burke Tioga Rail Terminal - Distinctive Lean manufacturing approach Tioga Gas Plant drives lowest cost wells…
World Class Position in Bakken Shale Material position in the core of the Bakken 30+ Stage Wells Since 2012 More DSUs in Core 400 Than Any Other Operator Hess Acreage East Goliath Nesson 300 No. of DSUs Red Sky 200 100…
World Class Position in Bakken Shale Advantaged infrastructure maximizing value Tioga Rail Terminal Tioga Rail Terminal - 9 crude oil train sets (CPC - 1232) - 5 additional train sets purchased for 2015 - Crude oil loading capacity…
Utica: Material Position in the Wet Gas Window Acreage in play sweet spot with high NRI JV Acreage Optimum Mix of Pressure & Liquid Content Strategic / Portfolio Context - Encouraging 2014 appraisal, transitioning to early Tier 1…
Deepwater Gulf of Mexico: Tubular Bells Low cost production leveraging deepwater capability Strategic / Portfolio Context - Material asset - Key contributor to production & cash flow - Leverages deepwater capability Water Depth…
Deepwater Gulf of Mexico: Stampede Building on Tubular Bells success 6 Production Wells GC 468 4 Injection Wells Host Platform Strategic / Portfolio Context - Leverages proven deepwater capability Drill Center A - Material…
West Africa: Equatorial Guinea Maximizing value through seismic & drilling excellence Strategic / Portfolio Context - Material net cash flow - 4D seismic for continuing identification of high value drilling opportunities to maintain…
West Africa: Ghana Potential new growth 2020+ Cote dIvoire Water Depth 5,500 - 8500 ft Hess Operated Drilling TD 15,000 ft Strategic / Portfolio Context Hess Discovery Industry Developments Ghana - Leverages deepwater experience…
North Sea Chalk: South Arne Material asset with continuing development potential Wellhead Platform S. Arne Platform Strategic / Portfolio Context North Wellhead Platform - Growth asset with material cash flow East - Multi year…
North Sea Chalk: Valhall Long life asset with material upside Strategic / Portfolio Context - Long life, material asset - Under exploited chalk reservoir; significant remaining upside - Working with operator to leverage chalk…
Malaysia Gas: Joint Development Area Long term production & material cash flow JDA Strategic / Portfolio Context Thailand - Low cost, long life gas reserves with oil linked pricing - Material production, free cash flow - Leverages…
Malaysia Gas: North Malay Basin Low risk, oil linked gas development Strategic / Portfolio Context Thailand - Growing Malaysia supply/demand gap - Low risk development of 9 discoveries - Material production and cash flow 2017+ - Oil…
Portfolio Positioned for Competitive Growth Low risk, captured growth opportunities MBOED Pro Forma Production 400 10-13% CAGR 2014 to 2015 Evaluate Capture Drill / Develop Produce / Appraise Re-Develop Utica 300 Bakken…
Portfolio Positioned for Competitive Growth Sustaining growth through 2018 & beyond 6 BBOE 6P Resource Base Potential developments Ghana, Australia Current Future Proved Growth Options Reserves (1.4 BBOE) Further Exploitation…
Portfolio Positioned for Competitive Growth Exploration provides further upside to long term growth Existing Provinces Focused strategy to deliver Emerging Provinces material long term value Exploration Focus Areas Exploration…
Deepwater Gulf of Mexico: Sicily Prospect Exposure to prolific Paleogene outboard play Industry Oil Discovery 2015 Well Green Strategic / Portfolio Context Exploration Block Canyon Production Block - Large and well imaged 4-way…
Offshore Guyana: Stabroek License Multiple leads testing several play types Strategic / Portfolio Context - 6.5 MM acres; 1,150 GoM blocks Water Depth 5,700 ft Drilling TD 18,370 ft - Multiple prospects & leads in Ranger several…
Offshore Nova Scotia Material position in emerging deepwater play Strategic / Portfolio Context - 3.5 MM acres; 600 GoM blocks Canada - Multiple leads in sub-salt play - 800 MMBOE net risked resource - GoM analogue trap styles USA…
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