CORPORATE Grow the company long term through Exploration and Production Operate Marketing and Refining for near term returns and cash flow

Transcription

1 INVESTOR RELATIONS HANDOUT DECEMBER 2009

2 Strategy CORPORATE Grow the company long term through Exploration and Production Operate Marketing and Refining for near term returns and cash flow EXPLORATION AND PRODUCTION Leverage global scale to access growth opportunities Create value through exploration, developments and technology MARKETING AND REFINING Strengthen Hess brand on East Coast Maximize free cash flow from marketing and refining assets FINANCIAL Deliver first quartile financial and shareholder returns Ensure capital availability to fund growth 2

3 E&P Goals and Strategy Long-Term Goals Grow Reserves and Production ~3% p.a. Maintain R/P ratio of ~10 Strategy Deliver resources and value from exploration Execute cost effective developments Extract more value from producing fields Build a balanced portfolio to sustain profitable growth 3

4 Global Portfolio Clair Beryl Bakken Schiehallion Valhall South Arne Samara-Nafta ACG Seminole Shenzi Baldpate GEA Waha Sinphuhorm Pailin Okume / Ceiba Natuna A JDA YTD Sep Production, Mboe/d Toucan Pangkah Liquids US 64 Europe 85 Africa 125 Asia/Other 17 Total 291 Gas Total

5 Global Reserves Base Proved Reserves (YE 08) Reserves and Reserve Life MMBOE MMBOE 1,600 1, ,400 1,200 Gas Asia/Other 1,400 1,200 Proved Reserves R/P , Africa 1, Oil Europe US Hydrocarbon Type Region

6 Substantial Resource Base BBOE * SEC Proved Reserves Probable & Possible Resources * Note: 2008 data does not include any resources associated with offshore discoveries in Brazil, Australia and Libya. 6

7 Continuing Stream of Development Activity In Production Under Construction Engineering Appraisal Shenzi Valhall Redevelopment Bakken Australia JDA Phase 2 Valhall Flank Gas Lift Pony Libya Pangkah Liquids Pangkah Offshore Tubular Bells Marcellus ROZ / WBD EG Akom North Cambo Schiehallion Redevelopment Belud 7

8 North Dakota Bakken Shale Tioga Gas Plant Nesson Anticline Avalanche Canada Newburg (east of map) Tioga Gas Plant Tioga Impact Beaver Lodge East Nesson Red Sky Hess ~85% W.I., operator Capa Passport >500,000 net acres Current net production ~10 MBOED Hawkeye Antelope Peak net production ~80 MBOED Blue Buttes Stampede Large captured oil resource Low risk strategic play Lean manufacturing approach Fryburg (south of map) Attractive economics 8

9 Malaysia-Thailand JDA Yetagon Pilok Thailand Bangkok Erawan Pailin Songkhla JDA Cambodia Vietnam Gulf of Thailand JDA Hess 50% W.I. Proved and Probable Resources: 300 MMBOE Net production 250 MMSCFD PSC through 2029 Malaysia Sumatra Kerteh Kuala Lumpur Singapore 9

10 Equatorial Guinea Block G Hess 85% W.I., operator Proved and Probable Resources: 290 MMBOE Okume TLP F Oveng TLP E Okume Complex Sat A Net production averaging ~70 MBOED Ceiba Sendje Ceiba FPSO Sat B Elon Central Processing Facility Sat D Reservoir performance exceeding expectations 10

11 Deepwater Gulf of Mexico - Shenzi Field Green Canyon Area Pony / Knotty Head K2 Area Shenzi Hess 28% W.I. Proved and Probable Resources: 145 MMBOE Oil and gas production commenced March MBOED net peak production Tonga Tahiti Miocene Foldbelt Puma Atlantis Mad Dog Neptune Miocene Fields 11

12 Hess Global Exploration Strategy Pursue a program which delivers value and secures long term growth through an appropriately balanced global portfolio Tactics Focus on the best basins Take material equity positions Focus on high-impact wildcat and appraisal wells BASIN INVENTORY PLAY INVENTORY LEAD INVENTORY NEW FIELD WILDCATS APPRAISAL Prospect Inventory Define & Rank Best Basins Define & Rank & Capture Best Plays Define & Rank & Mature Best Leads Define & Rank & Drill Best Prospects Calibrate, Evaluate, Appraise 12

13 Gulf Of Mexico Activity Texas Louisiana Northwestern Garden Banks Llano Paleogene Play Conger Baldpate Pony Green Canyon Tubular Bells Shenzi Miocene Play Producing Fields Pre-Developments 13

14 US Gulf Of Mexico Pony Prospect Pony Well GC 468 No. 2 Pony Well GC 468 No. 2 ST Salt Pony Well GC 468 No. 1 Knotty Head Well GC 512 No. 1 Pony Well GC 468 No. 1 St 1 Hess 100% W.I. Water Depth: 3,500 ft Drilling thus far has confirmed more than 200 MMBOE net resource Progressing unitization Evaluating development options 3 Miles Knotty Head Well GC 512 No. 1 ST 1 14

15 Australia Exploration Program Scarborough 8 TCF North West Shelf, Australia WA-404-P * WA-404-P * 40 Miles Pluto 4-6 TCF WA-390-P Hess 100% W.I., operator Completed 11 of 16 committed exploration wells 9 gas discoveries, 2 dry holes Exploration wildcat drilling will complete in 2010 Appraisal phase to follow * * * ª WA-390-P Gas Discovery Dry Hole Upcoming Well Greater Gorgon Area 50 TCF WA-404-P Hess 50% W.I. Completed 1 of 9 committed exploration wells 1 gas discovery Drilling to resume December

16 Libya Area 54 Exploration Program MEDITERRANEAN SEA Area 54 Appraisal Discovery 5 miles AROUS AL-BAHAR LIBYA Hess 100% W.I. Significant discovery 500 foot gross hydrocarbon section encountered 3D seismic acquisition completed in 1H09 Appraisal well spud October 31, Miles Waha Concession 16

17 Brazil Santos Basin Exploration Program BRAZIL Paraty Carioca Bem-te-vi Iguaçu Caramba Azulão BM-S-22 RIO DE JANEIRO Iara Iracema Tupi Guara Jupiter Guarani BM-S-22 Hess 40% WI Sub-salt; cretaceous carbonate Notice of Discovery submitted for Azulão; not for Guarani Plan of Evaluation approved by ANP Analysis of seismic, log and core data to plan location of third well 17

18 Ghana Tano Cape Three Points COTE D IVOIRE Tweneboa-1 Jubilee Field 50 Km New 3D Survey Odum-1 Ankobra GHANA Existing 3D Survey Hess 100% W.I. Water Depth: 6,400 ft Significant frontier acreage position Currently processing 3D seismic on western half of block 18

19 Indonesia Deepwater Semai V Block Tangguh LNG LNG Plant Indonesia Banda Sea 60 Km Semai Block V West Papua Hess 100% W. I. Water Depth: 6,000 ft Gross Resource Range 5-15 TCF Large 4-way Structure 19

20 Marketing and Refining Refinery Terminal Marketing PA MD VA DE NY NJ MA Port Reading Strategic Objectives Strengthen Hess brand on East Coast FL GA FL NC NC SC SC 1,475 Miles to New York Maximize free cash flow from marketing and refining assets 3,900 Miles to Los Angeles 500 Miles from Venezuela 20

21 Industry Leading Performance 225 Per Site Averages Volume (Mg/Mo) C-Store Sales ($M/Mo) Typical Major (est) 21

22 Energy Marketing Strong brand and reputation Scale advantage More than 17,000 customers Fuel Oil Sales: 125 MB/D Natural Gas Sales: 1.5 BCF/D Electric Sales: 4,000 MW (RTC) Selective Growth 22

23 Hovensa Refinery 50/50 JV formed in 1998 by Hess and PDVSA Capacity Crude 500 MB/D FCC 150 MB/D Coker 58 MB/D World Class Merchant Refinery Competitive geographic position Economies of scale Long term PDVSA crude supply 23

24 Summary Strategy being executed Delivering performance Balanced portfolio Exciting investment opportunities Sustainable growth Proven management team 24

25 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 These projections and statements reflect the company s 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 company s periodic reports filed with the Securities and Exchange Commission. The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation relating to reserves other than proved, such as unproved resources, that the SEC s guidelines prohibit registrants from including in filings with the SEC. Investors are urged to consider closely the disclosure in Hess Form 10-K, File No , available from Hess Corporation, 1185 Avenue of the Americas, New York, New York c/o Corporate Secretary and on our website at You can also obtain this form from the SEC on the EDGAR system. This presentation contains certain non-gaap financial measures. A reconciliation of the differences between these non-gaap financial measures and the most directly comparable GAAP financial measures can be found in this presentation on our website at 25

26