Nineteen (19) New Permits -- The Williston Basin, North Dakota, USA

Active rigs:

	5/30/2014	05/30/2013	05/30/2012	05/30/2011	05/30/2010
Active Rigs	189	186	214	172	119

Nineteen (19) new permits --

• Operators: Whiting (5), KOG (4), Statoil (4), Hunt (3), Emerald (2), Oasis
• Fields: Sand Creek (McKenzie), Truax (Williams), East Fork (Williams), Alexandria (Divide), Green River (Stark), Cottonwood (Burke)
• Comments:

Wells coming off the confidential list were posted earlier; see sidebar at the right.

Two Fidelity Ridl permits were canceled (#27569 and 27570). They were in the Green River oil field.

Operator transfer:

• a page-full of older wells were transferred from Liberty Resources, LLC, to Liberty Resources Management Company, LLC 

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Hess: 2014 Annual Meeting of Stockholders

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here.

 

High points from the PowerPoint presentation; if link is missing and folks have question, I have the presentation saved.

Elsewhere:

• current share price: $92
• BoA/M/L target: $128

Comments:

• Hess, completing switch from natural-gas focus to oil focus
• closing on retail division sale to MRO
• plans to monetize midstream assets with MLP spin-off; to provide additional cash returns
• the Bakken, in general, better than anticipated several years ago
• 640,000 net acres in the Bakken; Hess holds some of the "better" Bakken acreage
• Hess Tioga natural gas processing plant expansion complete; that's behind them
• this past year, increased annual divided 150%; many Bakken operators "unable" to pay any dividend, much less increase existing dividends
• up to $4 billion share repurchase funded by 2013 restructuring; commenced 3Q13
• company expects to be free cash flow positive post 2014

Now, the high points from the slides. Although the slide presentation includes updates regarding all of Hess' operations worldwide, I will concentrate only on the Bakken

Slide 8: unconventional (Bakken)

• free cash flow positive in 2015
• goal of 150,000 boepd by 2018
• leading position in emerging Utica wet gas window
• US unconventional production will equal rest of Hess worldwide production by 2017

Slide 9: Company -- percent liquid

• Hess: 80%
• MRO: 79%
• OXY: 73%
• MUR: 72%
• COP: 62%
• EOG: 60%
• AP: 54%
• DVN: 48%
• APC: 45%

Slide 10:  Industry Leading Cash Margin -- $/BOE -- 2013 --- 2009 - 2013

• Hess: $49 - $37
• MUR: $41 - $35
• OXY: $36 - $32
• EOG: $35 - $28
• APA: $33 - $30
• COP: $32 - $27
• CHK: $18 - $19

Slide 13: Bakken Operations

• single biggest contributor to production growth through 2018
• tighter infill testing program underway ni 2014
• 640,000 net acres; all in the better-to-best Bakken
• 17-rig program in 2014; CAPEX of $2.2 billion
• 2014 net production forecast: 85,000 boepd
• 2016 net production forecast: 125,000 boepd
• 2018 net production forecast: 150,000 boepd
• 2013 30-day IPs: 750 - 900 boepd
• 2013 EURs: 550,000 - 650,000 boe
• > 3,000 total operated drilling locations
• (17 rigs x 9 wells/year = 150 wells/year = 20 years of inventory)

Slide 14: improving performance

• drilling performance, spud-to-spud, days: 45 days (1Q11) down to 23 days (1Q14
• drl/completions costs:  $13.4 million (1Q12); $7.5 million (1Q14)

Slide 15: Tioga Rail Terminal

• Tioga rail terminal: 54,000 bopd; expandable to 120,000
• 9 crude oil train sets; 104 cars each
• entire fleet: Petition 1577 standards
• 240,000 bbls crude oil storage
• 12,000 b/d NGL loading capacity

Slide 15: Tioga Gas Plant

• expansion from 110 million cfpd to 250 million cfpd
• increased NGL fractionation
• ethane sold under under long-term contract