HESS CORPORATION

CREDIT SUISSE ENERGY SUMMIT

FEBRUARY 24, 2016

Forward-looking statements and other information

This presentation contains projections and other forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These projections and statements reflect the
companys current views with respect to future events and financial performance.
No assurances can be given, however, that these events will occur or that these
projections will be achieved, and actual results could differ materially from those
projected as a result of certain risk factors. A discussion of these risk factors is
included in the companys periodic reports filed with the Securities and Exchange
Commission.
We use certain terms in this presentation relating to reserves other than proved,
such as unproved resources. Investors are urged to consider closely the disclosure
relating to proved reserves in Hess Form 10-K, File No. 1-1204, available from
Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o
Corporate Secretary and on our website at www.hess.com. You can also obtain
this form from the SEC on the EDGAR system.

Our Strategy in the Low Oil Price Environment

Preserve Balance
Sheet Strength

Preserve Core
Operating
Capabilities

Preserve LongTerm Growth

Options
1 Based

Pro forma year-end 2015 cash balance of $4.3 billion and total
liquidity of ~$9 billion1

Pro forma Net Debt / Cap of ~8%1

Focused, resilient portfolio linked to our top quartile

operating capabilities

Balanced mix of high quality unconventional / conventional,

onshore / offshore and US / International assets

Leveraged to liquids with industry-leading cash margins

Leading positions in the Bakken and Utica shale plays with

significant drilling inventory

North Malay Basin and Stampede add material production and

cash flows in 2017 and 2018, respectively

Liza discovery offshore Guyana and Sicily discovery in Gulf of

Mexico ranked as two largest oil discoveries of 2015

2016 capital and exploratory budget reduced to $2.4 billion 40% below 2015 levels

on year-end 2015 cash and cash equivalents plus cash from February 4, 2016 equity offering

One of the Strongest Balance Sheets

And liquidity positions among E&P Peers
$9 B of Liquidity Post Equity Offering
- $4.3 B Cash
- $4.0 B Unused Revolver
- $0.7 B Unused Committed Lines

Net Debt-to-Capitalization ratio of

approximately 8%

Peer Net Debt-to-Capital Ratio

68%
Q3 2015
60%

70%
60%

52%

50%

45%

40%

Average = 36%
30%

30%
20%

34%

36% 37%

39%

24% 25%
13%*

16%

19%

10%
8%

2016 E&P Capital & Exploratory

0%

Spend of $2.4 B
- 40% reduction in spend from 2015 in
response to low oil prices

HES OXY PXD MRO MUR EOG COP NBL APA DVN APC WLL CLR CHK
*Excludes Hess Infrastructure Partners Note: Hess Net Debt / Capital ratio at 12/31/15, pro forma
for 2/4/16 equity offering, was 8%

1.2

Managed Debt Maturities

$B

1.0

Joint Venture funds future Midstream

capital expenditures
- ~ $340 million in 2016
- ~ $175 - 225 million annually over next
five years

0.8
0.6

1.1

0.4
0.2
-

0.4
0.1

0.1

2015

2016

Source: Company filings

0.0

0.1
2017

2018

2019

2020

Focused Resilient Portfolio

Linked by operating capabilities
Bakken

Utica

30% Prod
28% Res

7% Prod
2% Res

Valhall &
South Arne
13% Prod
25% Res

2016 Production: 330 - 350 MBOED

P1 Reserves:
1.1 BBOE
6P Resources:
~ 7.4 BBOE

North Sea

Onshore USA

Leveraging industry leading chalk

reservoir drilling experience

Industry leading Bakken well

costs and productivity. Lean
manufacturing and advantaged
infrastructure
Utica leveraging Bakken
capability and experience

Equatorial
Guinea

JDA
10% Prod
10% Res

10% Prod
3% Res

Deepwater GoM
Deepwater developments and
strong partner relationships
Industry recognized development
and deepwater drilling capability

Deepwater
GoM

Tubular Bells
& Stampede

16% Prod
8% Res

7% Prod
3% Res

Base

Growth

North Malay
Basin

Ghana

2% Prod
West Africa

SE Asia

Industry leading drilling performance,

building on EG deepwater experience
Optimizing value through seismic
technology and drilling excellence

Top quartile offshore project delivery and

reservoir management
Leverage JDA experience and strong
partner relationship

Located in areas where Hess is competitively advantaged

Net Production: 2016 assumes zero contribution from Libya
Reserves: 2015 Year End Proven, includes Libya

Industry Leading Operating Performance

Unconventionals - Bakken
Reducing Well Costs
Drilling Performance: Spud-to-Spud (Days)

Drilling & Completions Performance: Costs ($MM)

45

Completion Costs

13.4
39

64% Improvement
34 33

31 32

29 28
26 27

11.6
9.5

24

26

Drilling Costs

8.0

23 22 22 22
21
18 17 16

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2011
2012
2013
2014
2015

8.6

8.4

6.0
4.2

5.4

62% Improvement
9.0

5.6

Q1 Q2
2012

5.3

Q3

4.0

5.0

Q4

3.8

4.8

3.3

5.1

Q1 Q2
2013

7.8

7.6

7.5

7.4

7.2

7.1

6.8

3.0

2.8

2.8

2.9

3.0

3.2

2.9

4.8

4.8

Q3

Q4

4.7

4.5

4.2

3.9

Q1 Q2
2014

Q3

Q4

5.6

5.3

5.1

2.1

2.1

1.9

3.5

3.2

3.2

Q1 Q2
2015

Q3

Q4

3.9

While Optimizing Well Productivity

Q
T

10

O
M
P
N
Q
O
R
SP

20

NL

30

K
M

40

Peers

Hess

H
G
I
H
J
I
K
LJ

50

Barrels of Oil Per Day

(bo/d)

60

900
800
700
600
500
400
300
200
100
0

G
F

Peer Wells

E
F

Hess Wells

B
Hess
Hess
B
C
C
D
D
E

70

Operator Average 30-Day IP Rate (since YE 2012)

A
A

Average 90-Day Initial Production (MBO) by Completion Date

Well Count

Low cost + high productivity = enhanced returns

Industry Leading Operating Capabilities

Offshore drilling and project delivery
Industry Project Delivery
(IPA Study 2005 - 2013)

North Malay Basin

Tubular Bells
Equatorial Guinea
South Arne

2nd

3rd

4th

Hess
Under

1st

Others
T Bells

0%

Capex

Ghana

-20%

Hess Avg.
2009 - 2014

20%

Major Project Delivery

Best in Class Zone

40%
40%
(Behind)

Source: Rushmore data 2014

NMB EPS

(Over)

Drilling Performance
Quartile

20%

Schedule

0%

-20%

Ahead

Source: IPA Study (2005 - 13) updated with recent Hess projects

Focused Resilient Portfolio

Leveraged to liquids with industry leading cash margins
2015
Hess Production
Pro Forma

Liquids % of YE 2014
Reserves

US
Gas
12%
Int'l
Gas
14%

74%
Liquids

NGLs
11%

100%
80%
60%

80%

78%

Crude Oil
63%

76%
65%

64%

64%

62%

62%

40%

57%

53%

49%

20%

31%

28%
CHK

0%
MRO

HESS

OXY

PXD

EOG

CLR

MUR

COP

APA

DVN

APC

NBL

$22

$21

$21

$20

$20

$20

$19

$19

$18

$17

Source: Bloomberg

3Q 2015 Cash Margin

$30
$20

$27
$23

$10
$10
$HES

APA

APC

CLR

MRO

MUR

PXD

NBL

OXY

Source: Thomson One (Adjusted Net Income), 3Q 2015 10-Q SEC filings (DD&A, Exploration Expense)
Cash Margin = Adjusted Net Income [excluding special items] + DD&A + Exploration Expense

COP

EOG

DVN

CHK
8

One of the Best Positions in the Bakken

Competitively advantaged with Lean manufacturing process
Strategic / Portfolio Context

Divide
Burke
Tioga Rail Terminal

- Industry leading acreage position in the core

of the Middle Bakken and Three Forks

Kenmare

Tioga Gas Plant

- Top quartile well cost and productivity,

delivering some of the highest returns in play

Williams
Tioga

- Advantaged infrastructure enhances netbacks

Stanley
Williston

Mountrail

Asset Details

New Town
Keene

- 583,000 net acres; Hess ~ 70% WI, operator

Watford
City

Mercer

- 2016 net production 95-105 MBOED

- Net Estimated Ultimate Recovery ~1.6 BBOE

McKenzie

- ~3,200 future operated drilling locations

Dunn
Grassy
Butte

Killdeer

- 30 Day IPs: 800 - 950 BOPD

Buelah

Billings
Hess Acreage
Dickinson

30 Miles

- Plan 2 rig program in 2016 in response to low

oil prices
- 2016 Bakken E&P capex ~ $425 MM

Stark

Major contributor to future resource and production growth

One of the Best Positions in the Bakken

Material position in the core of the Bakken

300

East
Nesson

Goliath

No. of DSUs

Hess Acreage

More DSUs in Core of Middle Bakken

Than Any Other Operator

400

30+ Stage Wells Since 2012

Red Sky

200
100

Stony
Creek

Hess

Keene

CLR

WLL

XTO
COP
Statoil MRO
Bakken
Operators

EOG

OAS

~3,200 Future1 Operated Drilling Locations

Buffalo
Wallow

% of Total Inventory & Implied Rig-Years vs WTI Price

100%
(15% AT IRR Threshold)

Little
Knife

88%
67%
(97 rig-yrs)

Middle Bakken

> 45 MBO
25 - 45 MBO
< 25 MBO

(126 rig-yrs)

Three Forks

Industry MB Wells:
90 Day Cumulative Oil

(144 rig-yrs)

Murphy
Creek

40%
20%

Core Middle Bakken

Core Three Forks

8%

(57 rig-yrs)

(29 rig-yrs)

(12 rig-yrs)

40

DSU: 1,280 acre Drilling Spacing Unit

Source: NDIC and Hess analysis

50

60

70
WTI $/bbl

1PF

Jan 2016, assumes 22 wells/rig-year

80

90-100
10

One of the Best Positions in the Bakken

Advantaged infrastructure maximizing value
Tioga Rail Terminal

Hess sold 50% interest in Bakken Midstream

assets to GIP for $2.675 B
Sardinia

Created new joint venture called Hess

Infrastructure Partners

Total after-tax cash proceeds to Hess of $3.0 B,

including JV debt issuance

Hess retains operational control of Bakken

Midstream assets

Transaction delivered significant and immediate

value to shareholders
Tioga Gas Plant

Joint Venture committed to pursuing MLP IPO

11

Utica: Material Position in the Wet Gas Window

Acreage in play sweet spot with high NRI
JV Acreage
Optimum Mix of Pressure and Liquid Content

Strategic / Portfolio Context

Tier 1 Acreage
Tier 2 Acreage

- Wells highly productive, high liquids content

Cadiz A Pad
Archer A Pad

- Leveraging Bakken capability to maximize

efficiency and reduce costs

Asset Details
- 50% WI; 95% gross NRI
Cadiz B Pad

- 50,000 net acres

Athens A Pad

Oxford A Pad

Kirkwood A Pad

Improving Liquids

- 2016 net production 20 - 25 MBOED

- No drilling planned after 1Q16
- 2016 capex $45 MM

Core position in prolific Utica Shale play

12

Deepwater Gulf of Mexico: Tubular Bells

Low cost production leveraging deepwater capability
Strategic / Portfolio Context
- Material growth asset
- Key contributor to production
and cash flow
- Leverages deepwater capability
Water Depth ~4,400 ft
Drilling TD ~24,000 ft

Asset Details
- 57.1% WI, operator
Oil & Gas
Export
Pipelines

- First oil November 2014

Water Injection
Drill Center 2
Line

- 2016 net production 20-25 MBOED

- 2015 cash margin $21 / BOE
Drill Center 1

Manifold

- 2016 capex ~$140 MM

Dual Flowlines &

Umbilical

Material production and cash flow

13

Deepwater Gulf of Mexico: Stampede

Building on Tubular Bells success
6 Production Wells

Host Platform

GC 468

4 Injection Wells

Strategic / Portfolio Context

- Leverages proven deepwater capability

1 mile

- Material contribution to 2018+ growth

Drill Center A
Drill Center B

- One of the largest undeveloped fields in

GoM (300 - 350 MMBOE gross
recoverable)

Flying Dutchman
Hess 25% / Operator

Asset Details

Water Depth ~3,500 ft

Drilling TD ~31,000 ft
GC 511

GC 512

- Progressing hull and topsides fabrication

TLP
Production
Flowlines

Water
Injection
Tree

- 25% WI, operator

Gas Lift
Manifold

Water Injection
Pipeline

Production
Manifold &
Trees

Subsea Infrastructure

- Plan to commence drilling in 2016; first

oil targeted in 2018
- Gross processing capacity of 80 MBOD
- Mature captured near field exploitation
- 2016 capex ~$325 MM

Adds ~15 MBOED production and becomes material cash generator in 2018
14

West Africa: Equatorial Guinea

Maximizing value through 4D seismic and drilling excellence
Strategic / Portfolio Context
- Material cash flow
- 4D seismic for continuing identification
of high value drilling opportunities to
maintain production plateau
- Leverages deepwater capability
Okume TLP

Water Depth ~150 - 2350 ft

Drilling TD ~13,800 ft

Infill Well:
Present-Day Oil Saturation from 4-D Seismic

Asset Details
- 85% WI, operator
- 2016 net production 30 - 35 MBOED
- Process new 4D seismic / mature
further exploitation opportunities
- No drilling planned in 2016

Oil-bearing
sands

OF-12

- 2015 cash margin $32 / BOE

- 2016 capex ~$40 MM

15

North Sea Chalk: South Arne

Material asset with continuing development potential
Wellhead
Platform
North

Strategic / Portfolio Context

S. Arne
Platform

Wellhead
Platform
East

- Growth asset with material cash flow

- Multi year drilling inventory
- Leveraging expertise in horizontal,
managed pressure drilling in chalk
reservoirs

Water Depth ~200 ft

Drilling TD ~18,000 ft

WHP
North

Asset Details
S. Arne Development Schematic

- 61.5% WI, operator

- 2016 net production 10-15 MBOED

S. Arne
Platform

- No drilling planned after 1Q16

- 2015 cash margin $31 / BOE
- 2016 capex ~$80 MM

1 Mile

16

North Sea Chalk: Valhall

Long life asset with material upside
Strategic / Portfolio Context
- Long life, material asset
- Underdeveloped chalk reservoir;
significant remaining upside
- Working with operator to leverage chalk
expertise from South Arne
Water Depth ~230 ft
Drilling TD ~16,000 ft

Asset Details
- 64% WI, operated by BP
- 2016 net production ~30 MBOED
- Redevelopment completed 1Q13,
extended life by 40 years
- 2015 cash margin $25 / BOE
- 2016 capex ~$60 MM

Valhall Development Schematic

17

Malaysia Gas: Joint Development Area

Long term production and material cash flow
JDA

Strategic / Portfolio Context

Thailand

- Low cost, long life gas reserves with

oil linked pricing
- Material production, free cash flow
- Leverages shallow water offshore
development capabilities

Malaysia

30 Miles

Water Depth ~180 ft

Drilling TD ~10,500 ft

Asset Details
- 50% WI, operated by Carigali-Hess
- 2016 net production ~200 MMSCFED
- PSC through 2029
- 2015 cash margin $31 / BOE
- 2016 capex ~$50 MM

Cakerawala Platform
18

Malaysia Gas: North Malay Basin

Low risk, oil linked gas development
Strategic / Portfolio Context
Thailand

North Malay
Basin
Malaysia

30 Miles

Water Depth ~180 ft

Drilling TD ~10,500 ft

Growing Malaysia supply/demand gap

Low risk development of 9 discoveries
Material production and cash flow 2017+
Oil indexed GSA through 2033
Leverages JDA experience and strong
Petronas relationship
- Near field exploration upside

Asset Details
- 50% WI, operator
- 2016 net production ~40 MMSCFED
- Full Field Development completion 2017;
net production up to ~165 MMSCFED
- 2016 capex ~$375 MM
Early Production System

Adds ~20 MBOED production and becomes long-term cash generator in 2017

19

Competitively Positioned for Growth

Significant captured growth options
Bakken
- 1.6 BBOE net EUR
- ~3,200 future drilling locations
Utica

Evaluate

Capture

Drill /
Appraise

Produce /
Re-Develop

Develop

Utica
- 300 MMBOE net EURBakken
- >500 drilling locations

Bakken
Utica

North Malay Basin

T Bells

- Full field development underway

NMB
S Arne
- Net production to quadruple to
Valhall
165 MMSCFED in 2017

North Malay Basin

Ghana

Strategic
Growth
Pathways

T Bells
Stampede

OFFSHORE
Australia

Nova Scotia
Guyana
Gulf of Mexico

Stampede

S Arne
Valhall

- First oil targeted in 2018

Base
- Net production ~15 MBOED

Exploration
- Recent material discoveries in
Guyana and the Gulf of Mexico

HIGHER

RISK

LOWER

20

Competitively Positioned for Growth

Exploration provides further upside to long term growth

Focused strategy to deliver

Existing Provinces

material long term value

Emerging Provinces
Exploration Focus Areas
Nova
Scotia

US
GoM

Exploration themes:

Offshore
Canada

GoM
Mexico
Guyana
Ghana
Latin America
W. Africa

Yet to Find Volumes

Goals

5 -10 B BOE

10 - 20 B BOE
Gas

- Focused: In basins we understand and

that leverage our capabilities
- Balanced: Between both proven and
emerging areas
- Impactful: Materiality and running room
- Value driven: Through working interest
management, liquids rich areas and
attractive fiscal terms

Atlantic Margin

- Add 600 - 700 MMBOE resources over

5 years
- Achieve <$20 / BOE F&D cost

Liquids

Source: Wood Mackenzie / Hess Analysis

21

Offshore Guyana: Stabroek License

Liza-1 significant 2015 oil discovery
Strategic / Portfolio Context
- 6.6 MM acres; ~1,150 GoM blocks
- Multiple prospects and play types

Forward Plan
- Liza-1 encountered 295 feet of highquality oil bearing sandstone reservoirs
- New 17,000 km2 3-D seismic acquisition
98% complete
- Liza-2 well spud February 2016
- Four wells to appraise and further
explore the Stabroek Block planned 2016

Asset Details
- 30% WI, op. by Esso E&P Guyana Ltd.

Continued exploration of an emerging material deepwater play

22

Deepwater Gulf of Mexico: Sicily Appraisal

Appraisal of significant 2015 Paleogene oil discovery
Industry Oil Discovery
2016 Hess Well
Exploration Block
Production Block

Green
Canyon

Guadalupe

Melmar-1
Perdido

Gila
Keathley
Canyon

Gt White

- Large and well imaged 4-way trap

- Strategic partnership
with proven
Sardinia
operator

Inboard
Paleogene

Garden
Banks

N. Platte
Tiber

Outboard
Paleogene
Leon

Kaskida

Forward Plan

Moccasin

- Sicily-1 well reached TD April 2015

- Sicily-2 spud December 2015; expect
results 2Q16

Sicily - 2
Buckskin

E
Salt

Salt

Strategic / Portfolio Context

Water Depth ~6,574 ft

Drilling TD ~31,390 ft

Asset Details
- 25% WI, operated by Chevron

Miocene

Wilcox Reservoir
Cretaceous

Salt Core

Basement

Balanced access via farm-ins

23

Deepwater Gulf of Mexico: Melmar

Large well-imaged Paleogene four-way
Industry Oil Discovery
2016 Hess Well
Exploration Block
Production Block

Green
Canyon

Guadalupe

Melmar-1
Perdido

Gila
Keathley
Canyon

Gt White

- Largest remaining 4-way in US Perdido

Sardinia to material
- Low cost access
opportunity in high deliverability portion
of the Paleogene trend

Inboard
Paleogene

Garden
Banks

N. Platte
Tiber

Outboard
Paleogene
Leon

Strategic / Portfolio Context

Kaskida
Moccasin

Sicily - 2

Forward Plan

Buckskin

- Melmar-1 spud December 2015

- Expect results 2Q16

Salt

Salt

Water Depth ~6,574 ft

Drilling TD ~31,390 ft
Miocene

Asset Details
- 35% WI, operated by ConocoPhillips

Wilcox Reservoir
Cretaceous

Salt Core

Basement

Balanced access via farm-ins

24

Offshore Nova Scotia

Material position in emerging deepwater play

Strategic / Portfolio Context

- 3.5 MM acres; ~ 600 GoM blocks
- Multiple leads in sub-salt play
- 800 MMBOE pre drill net risked
resource
- GoM analogue trap styles
- Oil prone, Cretaceous reservoirs

Canada

USA

Forward Plan
- Mature the prospect inventory on
newly acquired 3D WAZ Seismic
- Plan first well in 2017
BP / Hess acreage
Shell acreage

Asset Details
100 Miles

Water Depth ~3300-11,500 ft

- 40% WI, operated by BP

Access to a material deepwater Gulf of Mexico analogue

25

Summary
Key messages

Preserve Balance Sheet Strength

Preserve Core Operating Capabilities
Preserve Long-Term Growth Options

26