Hess Announces 2018 E&P Capital and Exploratory Budget

Planned Expenditures Flat with 2017; Focus on High Return Projects in
Guyana and the Bakken

NEW YORK–(BUSINESS WIRE)–#baken–Hess Corporation (NYSE:HES) today announced its 2018 E&P capital and
exploratory budget will be $2.1 billion, the same as 2017. The 2018
budget allocates increased capital for continuing exploration and
development activities offshore Guyana and for the Bakken, which
includes growing the rig count from four rigs to six rigs. These
increases are offset by lower capital allocated to the Gulf of Mexico
and Malaysia compared to 2017.

“We are allocating approximately two thirds of our 2018 budget to our
transformative investment opportunity in Guyana that continues to get
bigger and better and to our low cost position in the core of the
Bakken, which together are expected to drive industry leading returns
for Hess shareholders for many years to come,” CEO John Hess said. “Our
2018 budget is consistent with our strategy to grow our resource base in
a capital disciplined manner, move down the cost curve so we are
resilient in a low oil price environment, and be cash generative at a
$50 per barrel Brent oil price post 2020. As a result of our disciplined
portfolio reshaping efforts over the past year, we are extremely well
positioned to fund and execute on our strategy.”

The $2.1 billion budget is allocated as follows: $1,170 million (56
percent) for production, $555 million (26 percent) for offshore
developments and $375 million (18 percent) for exploration and appraisal
activities.

Production

• $900 million primarily to increase from four rigs to six rigs by the
  end of 2018 and to drill approximately 120 new wells and to bring
  online approximately 95 new wells in the Bakken Shale in North Dakota.
  Funds are also included for non-operated wells and pad construction in
  preparation for 2018-2019 drilling.
• $175 million for production activities at North Malay Basin (Hess 50
  percent and operator) and the Malaysia/Thailand Joint Development Area
  (Hess 50 percent) in the Gulf of Thailand.
• $95 million for production operations in the deepwater Gulf of Mexico,
  completion of five previously drilled wells in the Utica Shale in Ohio
  (Hess 50 percent and operator), production operations in Libya (Hess
  8.16 percent), and production operations at the South Arne Field (Hess
  61.5 percent and operator) in Denmark, where a sales process is
  underway that is expected to be completed in 2018.

Developments

• $250 million associated with the Liza Phase 1 development offshore
  Guyana (Hess 30 percent), where development drilling is expected to
  commence in the second quarter of 2018 with first production expected
  by 2020.
• $65 million for front end engineering and design work for future
  development phases and capitalized interest in Guyana.
• $240 million for continued development of the Stampede Field in the
  deepwater Gulf of Mexico (Hess 25 percent and operator), which is on
  track to start up in the first quarter of 2018.

Exploration and Appraisal

• $375 million to drill exploration and appraisal wells on the Stabroek
  Block offshore Guyana (Hess 30 percent), one exploration well on Block
  42 in Suriname (Hess 33 percent) and one exploration well offshore
  Nova Scotia, Canada (Hess 50 percent). Funds are also included for
  seismic acquisition and processing and for license acquisitions.

Note: This budget excludes expenditures associated with the
Midstream segment. The Other category includes: Canada, Libya and
Denmark.

Hess Corporation is a leading global independent energy company engaged
in the exploration and production of crude oil and natural gas. More
information on Hess Corporation is available at http://www.hess.com.

Cautionary Statements

This news release 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.

Contacts

Hess Corporation
Investors:
Jay Wilson,
212-536-8940
[email protected]
or
Media:
Lorrie
Hecker, 212-536-8250
[email protected]