Radical Improvement in Project Delivery:A Call to Action

November 30th, 2016

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.

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.

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Forward-looking statements & other information…

One of the Best Portfolios in the BakkenMaterial position in the core of the Bakken

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DSU: 1,280 acre Drilling Spacing UnitSource: NDIC and Hess analysis

0

100

200

300

400

Hess CLR WLL XTO MRO Statoil COP EOG OAS

More DSUs in Core of Middle BakkenThan Any Other Operator

No.

of D

SUs

Bakken Operators

Three ForksMiddle Bakken

WTI $/bbl

~2,900 Future1 Operated Drilling Locations% of Total Inventory* & Implied Rig-Years vs WTI Price

(15% AT IRR Threshold)

$40 $50 $60 $70 $80 $ 90-100

100%(130 rig-yrs)

30+ Stage Wells Since 2012

East Nesson

Stony Creek

Goliath

Keene

Little Knife

Murphy Creek

Buffalo Wallow

Hess Acreage

Core Middle BakkenCore Three Forks

Industry MB Wells: 90 Day Cumulative Oil

> 45 MBO

< 25 MBO25 - 45 MBO

Red Sky

86%(112 rig-yrs)73%

(95 rig-yrs)53%

(69 rig-yrs)32%

(42 rig-yrs)17%(23 rig-yrs)

1PF July 2016, assumes 22 wells/rig-year

Better well planning & higher returns = Large inventory of economic wells at current prices

The “American Shale Revolution”…

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…resulting in collapsing prices…

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“After garnering total earnings of $116 billion in 2014, the energy companies on this year’s list had combined losses of $44 billion, after a stunning $660 billion drop in sales, or 33%, year over year.”

(From “Here Are The Big Trengs Shaping The 2016 FORTUNE 500”, Fortune Magaizine. June 16, 2016, Tully and Rapp)

Industry spends more for every barrel…

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But the manufacturing sector provides lessons

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The “Hess Well Factory” Taking a different approach to Shale

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Well ‘Factory’ Value Stream

Principles of Last Planner System of Production Control• Plan in greater detail as you get closer to doing the work• Produce plans collaboratively with those who will do the work• Reveal and remove constraints on planned tasks as a team• Make commitments using the 4 quality assignment criteria

(soundness, sequence, sizing, deIinition)• When you don’t keep your promises, find root-causes and

preventions—learn from those breakdowns

<7 days<1

Month

1-3 Month

s

3-18 Month

s

TI-Blikre-158-95-1324H-2EN-Nelson-155-94-3328H-4

EN-Weyrauch A-154-93-1720H-9

LK- A Qtr Cir 147-96-0718H-2

EN-Jeffrey A-155-94-2734H-5SC-Berner-157-99-1918H-1

BB-Budahn-150-95-0506H-2EN-Jeffrey-155-94-2215H-1BB-Budahn-150-95-0506H-3BW-Sharon-150-100-2536-

3031H-1

BL-Iverson-155-95-1819H-2EN-Frandson-154-93-2116H-4BW-Sharon-150-100-2536H-4HA-Chapin 152-95-3229H-3

EN-Chamley-156-93-0508H-3EN-Cvancara A-155-93-3231H-4

AN-Evenson-152-95-1003H-3BB-Budahn-150-95-0506H-5BL-Iverson-155-95-1819H-3

EN-Frandson-154-93-2116H-5

BL-Iverson-155-95-1819H-4EN-Frandson-154-93-2116H-6AN-Evenson-152-95-1003H-5EN-Chamley-156-93-0508H-5

EN-Cvancara A-155-93-3231H-6EN-State C-156-93-1615H-7

HA-Chapin 2560-152-95-3229BL-Iverson-155-95-1819H-5

AN-Evenson-152-95-1003H-4EN-Cvancara A-155-93-3231H-5

EN-State C-156-93-1615H-6HA-Chapin 152-95-3229H-5BL-Iverson-155-95-1819H-4

EN-Frandson-154-93-2116H-6HA-Chapin 152-95-3229H-5SC-Bennie-157-99-2017H-1

EN-Jeffrey A-155-94-2734H-3TI-Blikre-158-95-1324H-2

EN-Nelson-155-94-3328H-4EN-Weyrauch A-154-93-1720H-

9 LK- A Qtr Cir 147-96-0718H-2EN-Jeffrey A-155-94-2734H-4EN-Nelson-155-94-3328H-5

LK- A Qtr Cir 147-96-0718H-3Depletion Planning: 30+ Years

Integrated Capacity Model

Weekly

Monthly

Quarterly

DailyWell schedule

Incr

easi

ng D

etai

l

Bottom Line: Extending to all parts of the Value Stream• Application of Production Control and has been the major factor resulting in 58%

improvement in Drilling and Construction from 2011 to 2016 YTD• Over the next 3-5 years, we must make similar gains across the entire Value Stream,

even into our Maintenance and Producing Operations.

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$0

$2

$4

$6

$8

$10

$12

$14

2016 2017 2018 2019 2020 2021Unit Opex Production

$/boeNet

mboepd

ND Controllable Unit Opex vs. Production

Reducing Opex while increasing Production

HydraulicFracturing

Radical? Really?

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The Challenge:• Do your people know what they should be doing today?

(and how do you know that they know?)• Can they do it and do it correctly?• Are they engaged and committed to do it?• Did they do it, and if not, why not and how do we prevent

that from happening again?