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StrategyStrategy
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
3
Long-Term GoalsGrow Reserves and Production ~3% p.a.
Maintain R/P ratio of ~10
StrategyDeliver resources and value from exploration
Execute cost effective developments
Extract more value from producing fields
Build a balanced portfolio to sustain profitable growth
Long-Term GoalsGrow Reserves and Production ~3% p.a.
Maintain R/P ratio of ~10
StrategyDeliver resources and value from exploration
Execute cost effective developments
Extract more value from producing fields
Build a balanced portfolio to sustain profitable growth
E&P Goals and StrategyE&P Goals and Strategy
4
Global Portfolio
BakkenBakken
SeminoleSeminole
Okume / CeibaOkume / Ceiba
Toucan Toucan
WahaWahaGEAGEA
Schiehallion Schiehallion ValhallValhall
Beryl Beryl
Samara-NaftaSamara-Nafta
ACGACG
SinphuhormSinphuhorm
JDAJDANatuna ANatuna A
BaldpateBaldpate
South Arne
South Arne
Pangkah Pangkah YTD Sep. 2009 Production, Mboe/d
USEuropeAfricaAsia/OtherTotal
Liquids6485
12517
291
Gas1526-
74115
Total79
11112591
406
Clair Clair
PailinPailin
ShenziShenzi
5
0
200
400
600
800
1,000
1,200
1,400
1,600
Hydrocarbon Type Region
Global Reserves Base
9.39.5
10.1
8.88.2
7.4
0
200
400
600
800
1,000
1,200
1,400
1,600
2003 2004 2005 2006 2007 20080
2
4
6
8
10
12Proved Reserves
R/P
MMBOE
Proved Reserves (YE 08) Reserves and Reserve LifeMMBOE
Gas
Oil
Asia/Other
Africa
US
Europe
6
1.0 1.1 1.2 1.3 1.4
0
1
2
3
4
5
6
2004 2005 2006 2007 2008*
BBOE
Substantial Resource Base
3.13.5
4.54.8
5.5
SEC Proved Reserves
Probable & Possible Resources
* Note: 2008 data does not include any resources associated withoffshore discoveries in Brazil, Australia and Libya.
2.12.4
3.33.5
4.1
77
In Production
Shenzi
JDA Phase 2
Pangkah Liquids
ROZ / WBD
Continuing Stream of Development ActivityContinuing Stream of Development Activity
Under Construction
Valhall Redevelopment
Valhall Flank Gas Lift
Pangkah Offshore
Appraisal
Australia
Libya
Marcellus
Cambo
Belud
Engineering
Bakken
Pony
Tubular Bells
EG – Akom North
SchiehallionRedevelopment
8
North Dakota Bakken Shale
• Hess ~85% W.I., operator
• >500,000 net acres
• Current net production ~10 MBOED
• Peak net production ~80 MBOED
• Large captured oil resource
• Low risk strategic play
• Lean manufacturing approach
• Attractive economics
Tioga Gas Plant
Capa
BeaverLodge
Tioga
Hawkeye
BlueButtes
Antelope
Fryburg(south of map)
Newburg(east of map)Avalanche
Red Sky
Impact
Passport
Stampede
Nesson Anticline
EastNesson
Canada
Tioga GasPlant
9
Malaysia-Thailand JDAMalaysia-Thailand JDA
•Hess 50% W.I.
•Proved and Probable Resources: 300 MMBOE
•Net production ≥250 MMSCFD
•PSC through 2029
•Hess 50% W.I.
•Proved and Probable Resources: 300 MMBOE
•Net production ≥250 MMSCFD
•PSC through 2029Gulf of
Thailand
Thailand
Malaysia
KertehKuala
Lumpur
Songkhla
Pilok
YetagonCambodia
Vietnam
Sumatra
Singapore
Erawan
Pailin
Bangkok
JDAJDA
10
Equatorial Guinea Block G
Central Processing
Facility
Central Processing
Facility
Sat ASat A
Sat BSat B
Sendje CeibaFPSO
Sendje CeibaFPSO
OkumeTLP ‘F’OkumeTLP ‘F’
Oveng TLP ‘E’Oveng TLP ‘E’
ElonElon
CeibaCeiba
Sat DSat D
Hess 85% W.I., operator
Proved and Probable Resources: 290 MMBOE
Net production averaging ~70 MBOED
Reservoir performance exceeding expectations
Hess 85% W.I., operator
Proved and Probable Resources: 290 MMBOE
Net production averaging ~70 MBOED
Reservoir performance exceeding expectations
Okume Complex
11
Deepwater Gulf of Mexico - Shenzi Field
Hess 28% W.I.
Proved and Probable Resources: 145 MMBOE
Oil and gas production commenced March 2009
35 - 40 MBOED net peak production
Hess 28% W.I.
Proved and Probable Resources: 145 MMBOE
Oil and gas production commenced March 2009
35 - 40 MBOED net peak production
Tahiti
Mad DogAtlantis
K2 Area
Puma
Tonga
Neptune
Pony / Knotty Head
Miocene Foldbelt
Miocene Fields
Green Canyon Area Shenzi
12
Hess Global Exploration
StrategyPursue 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
PLAYINVENTORY
BASININVENTORY
LEADINVENTORY
NEW FIELDWILDCATS
APPRAISAL
Define & RankBest Basins
Define & Rank &Capture Best Plays
Define & Rank &Mature Best Leads
Define & Rank &Drill Best Prospects
Calibrate, Evaluate,Appraise
Prospect Inventory
13
Gulf Of Mexico ActivityGulf Of Mexico Activity
Texas Louisiana
Garden Banks
Green Canyon
Tubular Bells
Paleogene Play
Miocene Play
Northwestern
Conger
Llano
Baldpate
Shenzi
Pony
Producing Fields Pre-Developments
14
US Gulf Of Mexico – Pony Prospect
Salt
3 Miles
Pony WellGC 468 No. 2
Knotty Head WellGC 512 No. 1 ST 1
Pony WellGC 468 No. 1
Pony WellGC 468 No. 2 ST
Pony WellGC 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 optionsKnotty Head Well
GC 512 No. 1
15
Australia Exploration Program
* *
*
ª
*
*
WA-390-P
WA-404-P
WA-404-PWA-404-P
Gas Discovery
Dry Hole
Upcoming Well
Pluto4-6 TCF
Scarborough8 TCF
Greater Gorgon Area50 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
WA-404-P•Hess 50% W.I.•Completed 1 of 9 committed
exploration wells•1 gas discovery•Drilling to resume December
2009
North West Shelf, Australia40 Miles
16
MEDITERRANEANSEA
LIBYA
Waha Concession
Area 54
Libya Area 54 Exploration Program
AROUSAL-BAHAR
Discovery
Appraisal
•Hess 100% W.I.
•Significant discovery
•500 foot gross hydrocarbon section encountered
•3D seismic acquisition completed in 1H09
•Appraisal well spud October 31, 2009
5 miles
100 Miles
17
Brazil Santos Basin Exploration Program
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
BRAZILRIO DE JANEIRO
BM-S-22
Iara
Jupiter
Paraty
CariocaBem-te-vi
Caramba
TupiGuara
Azulão
Guarani
Iguaçu
Iracema
18
Ghana – Tano Cape Three Points
• Hess 100% W.I.
• Water Depth: 6,400 ft
• Significant frontier acreage position
• Currently processing 3D seismic on western half of block
GHANACOTE D’IVOIRE
50 KmAnkobra
Jubilee Field
Tweneboa-1
Existing 3D Survey
New 3D Survey
Odum-1
19
•Hess 100% W. I.
•Water Depth: 6,000 ft
•Gross Resource Range 5 - 15 TCF
•Large 4-way Structure
Indonesia Deepwater Semai V Block
Indonesia
Tangguh LNG
West Papua
Semai Block V
LNG Plant
Banda Sea
60 Km
20
DEDE
3,900 Milesto Los Angeles3,900 Milesto Los Angeles
500 Milesfrom Venezuela500 Milesfrom Venezuela
RefineryRefineryTerminalTerminal
MarketingMarketing
1,475 Miles to New York1,475 Miles to New York
• Strengthen Hess brand on East Coast
• Maximize free cash flow from marketing and refining assets
• Strengthen Hess brand on East Coast
• Maximize free cash flow from marketing and refining assets
Strategic Objectives
Marketing and RefiningMarketing and Refining
Strategic Objectives
Port ReadingPort Reading
FL
PAPA
MAMA
VA
NC
SC
NYNY
VAVA
NCNC
GAGA
FLFL
SCSC
MDMDNJNJ
21
104
113 114116 118
115
50
75
100
125
03 04 05 06 07 08
104
113 114116 118
115
50
75
100
125
03 04 05 06 07 08
178
191
204208
215207
100
125
150
175
200
225
03 04 05 06 07 08
178
191
204208
215207
100
125
150
175
200
225
03 04 05 06 07 08
Industry Leading PerformanceIndustry Leading Performance
Typical Major (est)Typical Major (est)
Per Site AveragesPer Site Averages
Volume (Mg/Mo)Volume (Mg/Mo)
C-Store Sales ($M/Mo)C-Store Sales ($M/Mo)
22
•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
•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
Energy MarketingEnergy Marketing
23
Hovensa RefineryHovensa 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
• 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
24
SummarySummary
• Strategy being executed
• Delivering performance
• Balanced portfolio
• Exciting investment opportunities
• Sustainable growth
• Proven management team
• Strategy being executed
• Delivering performance
• Balanced portfolio
• Exciting investment opportunities
• Sustainable growth
• Proven management team
25
Forward-Looking Statements and Other InformationForward-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 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. 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.
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 www.hess.com.
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 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. 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.
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 www.hess.com.