Hess Announces Culmination of Transformation Into Pure Play E&P Company

  Hess Announces Culmination of Transformation Into Pure Play E&P Company

        Focusing on Higher Growth, Lower Risk Portfolio of E&P Assets

 Exiting Downstream Businesses, Including Retail, Energy Marketing and Energy
                                   Trading

Returning Capital Directly to Shareholders through Dividend Increase And Share
                 Repurchase Authorization of up to $4 Billion

            Names Six New, Highly Qualified Independent Directors

Business Wire

NEW YORK -- March 4, 2013

Hess Corporation (NYSE: HES) (“Hess”) today announced several initiatives
marking the culmination of its multi-year strategic transformation into a pure
play exploration and production (“E&P”) company. The Company today also
announced a slate of five highly qualified independent director nominees for
election at this year’s Annual Meeting, and appointed an additional
independent director who will stand for election at the 2014 Annual Meeting.

Once complete, the transformed Hess will have a focused portfolio of higher
growth and lower risk E&P assets. With attractive, oil linked reserves, Hess
anticipates achieving a five year compound average annual production growth
rate (“CAGR”) of 5 to 8%, based off of pro forma 2012 production, with
aggregate mid-teens production growth between pro forma 2012 and 2014, while
increasing returns to shareholders. Specific announcements today include:

  *Further focusing Hess’ E&P portfolio by divesting Indonesia and Thailand
  *Pursuing monetization of Bakken midstream assets, expected in 2015
  *Fully exiting the Company’s downstream businesses, including retail,
    energy marketing, and energy trading
  *Returning capital directly to shareholders through an increase in the
    annual dividend to $1.00 per share commencing in the third quarter of
    2013, and a share repurchase authorization of up to $4 billion tied to the
    timing of asset sales
  *Naming six new world class independent directors with the right mix of
    corporate leadership, operational and financial expertise, and top level
    E&P experience

John Hess, Chairman and CEO of Hess, said, “Our Board and management team have
been pursuing a multi-year strategy to transform Hess into a focused E&P
company. The initiatives announced today represent the culmination of this
process. By 2014, Hess will be a pure play E&P company with a tremendous
portfolio comprised of higher growth, lower risk assets. We believe we will
have the financial flexibility to pursue this growth at the same time that we
increase current returns to shareholders and generate significant future
value.”

Further, as part of its governance review, Hess has named six new independent
directors to its Board who bring the right mix of proven corporate leadership,
operational and financial expertise, and top level E&P experience.
Collectively, they will provide additional perspective, experience, and
guidance to management that will benefit all Hess shareholders and complement
the strengths of our existing Board:

John Krenicki Jr.
Former Vice Chairman of GE; President and Chief Executive Officer of GE Energy

Mr. Krenicki recently joined private equity firm Clayton, Dubilier & Rice in
2013 after 29 years in senior leadership roles at GE, including as Vice
Chairman. While leader of GE Energy, the unit doubled in size and
profitability and became GE's largest business – with revenue increasing from
$22 billion in 2005 to over $50 billion in 2012. His responsibilities included
oversight of GE’s Oil & Gas, Power & Water, and Energy management businesses,
which employ more than 100,000 people in over 165 countries. Mr. Krenicki is
one of America's top corporate executives with a strong track record of
success, experience, and leadership in operations, oil and gas, and energy.
His experience leading large scale initiatives and operations across a global
energy portfolio will add important perspective to the Hess Board as the
Company completes its transformation to a pure play E&P company.

Dr. Kevin Meyers
Former Senior Vice President of E&P for the Americas, ConocoPhillips

Dr. Meyers ran Exploration and Production in the Americas for ConocoPhillips,
where he oversaw 6,000 employees and a $6 billion annual capital program, and
was responsible for reorganizing and driving business value in the Americas
E&P portfolio. Dr. Meyers drove the reconfiguration of the company’s upstream
portfolio in North America, divesting $6 billion of low growth, low margin
assets and focusing capital into emerging unconventional plays. He spearheaded
the company's development of the Eagle Ford and increased investment in both
the Permian Basin, and the Bakken. Dr. Meyers has over 30 years of experience
in exploration and production, both domestic and international. Based on this
experience, Dr. Meyers will bring to the Hess Board decades of managing
cost-efficient E&P operations in geographies directly relevant to Hess’
focused E&P portfolio.

James H. Quigley (2014)
Former Chief Executive Officer, Deloitte

Mr. Quigley led Deloitte, one of the world's largest accounting and consulting
firms. During his 38 years at Deloitte, he was a trusted consultant on
strategic leadership and operating matters to senior management teams of
multinational companies across industries. As CEO, he was responsible for the
consulting, tax, audit, and financial advisory practices of Deloitte, and as
an advisor and consultant, helped guide major strategic initiatives at many
companies. In 2012, Mr. Quigley was named Trustee of the International
Financial Reporting Standards (IFRS) Foundation, the oversight body of the
International Accounting Standards Board (IASB). He will bring to the Hess
Board significant global leadership experience and knowledge of financial, tax
and regulatory matters that are relevant to Hess operations.

Fredric Reynolds
Former Executive Vice President and Chief Financial Officer, CBS Corporation

Mr. Reynolds was Executive Vice President and Chief Financial Officer of CBS
Corporation and its predecessors from January 1994 until his retirement in
August 2009. While at CBS, Mr. Reynolds managed the company's transformation,
beginning with the acquisition by Westinghouse of CBS in 1995, followed by the
Viacom-CBS merger of 2000 and the subsequent spin-out of MTV Networks, since
renamed Viacom. During his tenure as CFO of CBS, shareholders experienced
substantial share appreciation and return of capital. Mr. Reynolds is also the
lead independent director at AOL Inc. Mr. Reynolds will bring to the Hess
Board his substantial experience as a CFO with a successful track record of
financial oversight, leading a successful transformation, returning capital,
and delivering long term returns.

William Schrader
Former Chief Operating Officer, TNK-BP Russia

Mr. Schrader was a senior leader of many of BP's most important E&P
businesses, including serving as President of BP Azerbaijan – one of BP’s most
valued assets – and most recently served as COO of TNK-BP, which comprised 27%
of BP’s reserves and 29% of BP’s production. During his tenure as President of
BP Azerbaijan, production increased from 240,000 bpd to over 950,000 bpd while
operating costs were reduced from $7/bbl to $4/bbl. He also was responsible
for all of BP’s E&P business in Indonesia including the Tangguh LNG business.
Mr. Schrader is an outstanding E&P executive responsible for transforming BP’s
best and most valued E&P assets, and will bring to the Board his experience as
a disciplined E&P operator with expertise in production sharing structures,
government relations, and delivering returns.

Dr. Mark Williams
Former Executive Committee Member, Royal Dutch Shell

Dr. Williams worked for over 35 years at Shell, including more than 17 years
in Shell’s E&P and upstream business, serving most recently as a member of the
Executive Committee of Royal Dutch Shell, where he was of the top three
operating executives collectively responsible for all strategic, capital, and
operational matters. Most recently, as Downstream Director, Dr. Williams
oversaw $400 billion in revenues and approximately 55,000 people, generating
$5.3 billion in profit annually, and redirected a $6 billion annual investment
into the higher growth markets of China and Brazil, while strengthening
Shell’s position in key hubs in the U.S. Gulf Coast and Singapore. His
experience as part of an executive group with ultimate strategic
responsibilities for the overall direction of one of the world’s largest oil &
gas companies will add invaluable insight to Hess’ Board.

Importantly, with these changes, 13 of the 14 Board members will be
independent.

Hess continued: “Nicholas F. Brady, Thomas H. Kean, Frank A. Olson, Samuel A.
Nunn, Gregory P. Hill and F. Borden Walker will be leaving our Board. They
have been outstanding directors who have served with distinction, and they
deserve significant credit for helping to transform Hess. The fact that we now
possess some of the most attractive oil assets in our industry is, in large
part, due to their strategic leadership and commitment to our transformation.
They have my most sincere gratitude and respect, and I want to thank them
publicly for their service and many invaluable contributions to Hess over the
years.”

Hess’ 2013 Annual Meeting is scheduled to be held on Thursday, May 16, 2013.
Shareholders of record as of Monday, April 8, 2013 will be entitled to vote at
the meeting.

The Company will host a conference call today, Monday, March 4, at 9 a.m.
Eastern Standard Time to discuss today’s announcements.

To phone into the conference call, parties in the United States should dial
1-877-299-4454 and enter the pass code 17435465 after 8:45 a.m. Outside the
United States, parties should dial 1-617-597-5447 and enter the pass code
17435465. This conference call will also be accessible by webcast.

A replay of the conference call will be available by dialing 1-888-286-8010
and entering the pass code 21025193. Outside the United States, parties should
dial 1-617-801-6888 and enter the pass code 21025193.

For additional information and updates, including today’s investor
presentation, please go to www.transforminghess.com. More information on Hess
Corporation is available at 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.

Important Additional Information

Hess Corporation, its directors and certain of its executive officers may be
deemed to be participants in the solicitation of proxies from Hess
shareholders in connection with the matters to be considered at Hess’ 2013
Annual Meeting. Hess intends to file a proxy statement and WHITE proxy card
with the U.S. Securities and Exchange Commission (the “SEC”) in connection
with any such solicitation of proxies from Hess shareholders. HESS
SHAREHOLDERS ARE STRONGLY ENCOURAGED TO READ ANY SUCH PROXY STATEMENT AND
ACCOMPANYING WHITE PROXY CARD WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN
IMPORTANT INFORMATION. Information regarding the ownership of Hess’ directors
and executive officers in Hess stock, restricted stock and options is included
in their SEC filings on Forms 3, 4, and 5, which can be found through the
Company’s website (www.hess.com) in the section “Investors” or through the
SEC’s website at www.sec.gov. Information can also be found in Hess’ other SEC
filings, including Hess’ definitive proxy statement for the 2012 Annual
Meeting and its Annual Report on Form 10-K for the year ended December 31,
2012. More detailed and updated information regarding the identity of
potential participants, and their direct or indirect interests, by security
holdings or otherwise, will be set forth in the proxy statement and other
materials to be filed with the SEC in connection with Hess’ 2013 Annual
Meeting. Shareholders will be able to obtain any proxy statement, any
amendments or supplements to the proxy statement and other documents filed by
Hess with the SEC for no charge at the SEC’s website at www.sec.gov. Copies
will also be available at no charge at Hess’ website at www.hess.com, by
writing to Hess Corporation at 1185 Avenue of the Americas, New York, NY
10036, or by calling Hess’ proxy solicitor, MacKenzie Partners, toll-free at
(800) 322-2885.

Contact:

Investors:
Jay Wilson, 212-536-8940
or
MacKenzie Partners, Inc.
Dan Burch/Bob Marese, 212-929-5500
or
Media:
Jon Pepper, 212-536-8550
or
Sard Verbinnen & Co
Michael Henson/Patrick Scanlan, 212-687-8080