Hess Corporation Provides Interim Update for Fourth Quarter 2013

  Hess Corporation Provides Interim Update for Fourth Quarter 2013

Business Wire

NEW YORK -- December 16, 2013

Hess Corporation (NYSE: HES) updates realized selling prices and operating
data for the first two months of the fourth quarter of 2013 and its guidance
for the fourth quarter. In addition, Hess provides information on its
continuing progress toward becoming a pure play Exploration and Production
company.

Exploration and Production:

Worldwide realized selling prices for crude oil for the first two months of
the fourth quarter of 2013 averaged $98.65 per barrel compared to $104.95 per
barrel in the full third quarter, primarily driven by an $11 decrease in U.S.
crude oil price realizations, reflecting the widening in crude oil spreads
between Brent and West Texas Intermediate (WTI) and Brent and Louisiana Light
Sweet (LLS). This decrease in realized crude oil selling prices is expected to
result in fourth quarter earnings, excluding non-recurring items, being lower
than the third quarter.

Fourth quarter 2013 production is now forecast to average 310,000 barrels of
oil equivalent per day (boepd) versus our previous guidance of 320,000 boepd.
The decrease reflects the earlier than expected close of the sale of our
interest in the Natuna A Field in Indonesia and higher production downtime due
to maintenance activities.

Fourth quarter 2013 total unit costs (cash costs and depletion, depreciation
and amortization expense) are expected to be in line with the previous
guidance of $48 to $50 per barrel. The E&P effective tax rate, excluding
non-recurring items for the fourth quarter, is still expected to be in the
range of 39 to 41 percent.

Returning Capital to Shareholders:

During the first two months of the fourth quarter of 2013, the company
purchased approximately 9.1 million shares of common stock, bringing
cumulative purchases through November 30 to 15.6 million shares at a weighted
average price of $79.37 per share. The weighted average number of shares
(diluted) was approximately 336.2 million for the first two months of the
fourth quarter.

Portfolio reshaping:

Thus far in the fourth quarter, Hess has closed the sale of its U.S. East
Coast and St. Lucia terminal network for $850 million, its Energy Marketing
business for $1.2 billion and its Natuna A asset in Indonesia for $650
million. The company also recently announced the sale of its interest in the
Pangkah asset in Indonesia for $650 million, bringing total after tax proceeds
from announced and completed asset sales to $7.8 billion year-to-date.

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  www.hess.com.

Forward-looking Statements

Certain statements in this release may constitute "forward-looking statements"
within the meaning of Section 21E of the United States Securities Exchange Act
of 1934, as amended, and Section 27A of the United States Securities Act of
1933, as amended. Forward-looking statements are subject to known and unknown
risks and uncertainties and other factors which may cause actual results to
differ materially from those expressed or implied by such statements,
including, without limitation, uncertainties inherent in the measurement and
interpretation of geological, geophysical and other technical data. Estimates
and projections contained in this release are based on the Company’s current
understanding and assessment based on reasonable assumptions. Actual results
may differ materially from these estimates and projections due to certain risk
factors discussed in the Corporation’s periodic filings with the Securities
and Exchange Commission and other factors.

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
                                           Fourth     
                                            Quarter
                                            Through       Third
                                            November      Quarter
                                            2013          2013
Operating Data
Net Production Per Day (in thousands)
Crude oil – barrels
United States                               105           103
Europe                                      38            38
Africa                                      42            57
Asia                                        9             9
Total                                       194           207
                                                          
Natural gas liquids – barrels
United States                               14            15
Europe                                      1             1
Asia                                        1             1
Total                                       16            17
                                                          
Natural gas – mcf
United States                               128           110
Europe                                      32            29
Asia and other                              432           380
Total                                       592           519
                                                          
Barrels of oil equivalent                   309           310
                                                          
                                                          
Sales Volumes Per Day (in thousands)
Crude oil – barrels                         202           194
Natural gas liquids – barrels               17            17
Natural gas – mcf                           593           515
Barrels of oil equivalent                   317           296

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES

EXPLORATION AND PRODUCTION SUPPLEMENTAL OPERATING DATA (UNAUDITED)
                                                       
                                             Fourth
                                             Quarter
                                             Through      Third
                                             November     Quarter
                                             2013         2013
Operating Data
Average Selling Prices
Crude oil - per barrel (including hedging)
United States                                $88.76    $99.80
Europe                                       110.34       113.18
Africa                                       109.02       110.71
Asia                                         105.95       104.27
Worldwide                                    98.65        104.95
                                                          
Crude oil - per barrel (excluding hedging)
United States                                $88.70    $99.75
Europe                                       109.86       112.51
Africa                                       109.33       110.95
Asia                                         105.95       104.27
Worldwide                                    98.57        104.88
                                                          
Natural gas liquids - per barrel
United States                                $40.91    $41.03
Europe                                       54.73        58.67
Asia                                         73.72        70.05
Worldwide                                    44.33        43.67
                                                          
Natural gas - per mcf
United States                                $3.09   $2.78
Europe                                       11.65        12.13
Asia and other                               7.76         7.19
Worldwide                                    6.97         6.52
                                                          
Benchmark Selling Prices
West Texas Intermediate (WTI) - per barrel   $97.47    $105.81
Brent - per barrel                           108.71       109.65
Natural Gas Henry Hub - per mcf              3.65         3.56

Contact:

For Hess Corporation
Investors:
Jay Wilson
212-536-8940
Media:
Sard Verbinnen & Co
Michael Henson/Patrick Scanlan
212-687-8080
 
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