Mike Turner - Senior Vice President, Global Production

License to Operate:Socio-economic Impacts andthe Public-Industry Partnership

Hess Corporation is a leading global independent energy company, engaged in the exploration and production of crude oil and natural gas, as well as in refining and marketing refined petroleum products, natural gas, and electricity:

• Ranked No. 74 on the Fortune 100

• More than $34 billion in revenue

• 14,000 employees globally

• Operations in 22 countries

• Member of the North Dakota community since 1950’s

Hess: Who We Are…

Hess: Global Operations…

3ENERGY ON THE MOVE

Hess: Unconventional Strategy…

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Hess: Growing Unconventional Portfolio…

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Eagle Ford Shale• >100,000 net

acres• ~20 wells in

2012

Paris Basin• ~340,000 net acres• Plan 3 conv. wells beginning

4Q12

Utica Shale• ~200,000 net acres• ~22 wells in 2012

China• JSA’s with Sinopec &

PetroChina• ~2 MM gross acres

Beetaloo Basin• >6.2 MM gross

acres• Seismic underway

Bakken Shale• >800,000 net acres• 16 rig program in

2012

Canning Basin• >2 MM net acres• Aeromagnetic survey in

2012

Hess: An Established History in the Bakken…

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Hess: Bakken Operations…

Hess ~67 percent working interest - operator

~900,000 net acres 5 frac crews 16 rig program Expanding advantaged

infrastructure

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North Dakota is in an enviable position:

At 3 percent the unemployment rate is the lowest in the country compared to a national average of 8 percent.

Of the 15 counties in America with the lowest unemployment rates, 11 are in North Dakota.

Hess paid royalties of more than $144 million to State and local residents in 2011 - a 300 percent increase on the $36 million paid in 2006.

State GDP grew 7.1 percent in 2010 - almost three times the nationwide average.

The Future Looks Bright

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2011 Actual Expenditures $7.4 billion

Bakken $2.4 billion

North Dakota: Growth Brings Challenges…

Bakken activity rapidly acceleratingIndustry must manage above-ground risk tominimize impact to host communities:

Ensuring workforce safety

Protecting water quality

Protecting air quality

Minimizing impact on local infrastructure

Living and working in local communities

High activity levels and less experienced workforce are leading to poor safety performance and an increased risk of serious injury or death

Hess workforce has invested heavily in training and leadership development

Industry must join together in setting common standards and expectations around safety

Ensuring Workforce Safety

Industry Challenges:• New/transient workforce• Consistency

State blessed with abundant natural water supply; Industry needs to play its part to preserve it

Our commitment: Protect water quality through precise drilling, appropriate sourcing, storage and disposal of water used in drilling

Continually seeking innovative ways to reduce water required for fracturing

Successfully piloted Reverse Osmosis Plant to utilize brackish water for fracturing if necessary

Protecting Water Quality…

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Well pad at EN-Rehaka, Bakken

Industry Challenges:• Fresh water use• Water disposal

Industry must work together to develop and apply mitigating technologies Our current flaring levels are below the State

average and will decrease even further as new capacity at the Tioga Gas Plant comes online in 2013.

Installation of four compressor stations to reduce flaring across our operations

50 vapor recovery units installed across operations to capture gas that would otherwise release into environment

Industry/government must drive continuous reductions in flaring

Protecting Air Quality…

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Tioga Gas Plant

Industry Challenges:• Flaring• Emissions

Minimizing Impact on Local Infrastructure…

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Industry Challenge:• Roads / truck traffic• Facility construction

Shale energy operations are truck intensive -- particularly in early development, meaning more pressure on local roads

At Hess we invest in mid-stream technology to remove 200 trucks loads per day from North Dakota roads

Lean approach creates efficiency to minimize truck movements

Industry must work together to reduce trucking and overall road traffic

A cooperative public-industry partnership can enhance industry benefits and mitigate the challenges

Hess donated $1 million to aid flood relief efforts

Hess donated $25 million to establish Succeed 2020 – a government education program in North Dakota

Opportunity for state -- Partner with communities to accelerate infrastructure growth

Living and Working in Local Communities…

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Industry Challenge:• Jobs• Growth• Quality of life

Hess employees assisting with flood relief efforts

Hess donating $25 million to Succeed 2020

Ensuring workforce safetyProtecting water qualityProtecting air qualityMinimizing impact on local infrastructureLiving and working in local communities

License to Operate: Socio-economic Impacts andthe Public-Industry Partnership

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