Hess 2014 Annual Report Download - page 130

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DeGolyer and MacNaughton
Exhibit 99.1
DeGolyer and MacNaughton
5001 Spring Valley Road
Suite 800 East
Dallas, Texas 75244
February 4, 2015
Board of Directors
Hess Corporation
1185 Avenue of the Americas
New York, New York 10036
Ladies and Gentlemen:
Pursuant to your request, we have conducted a reserves audit of the net proved crude oil, condensate, natural gas liquids
(NGL), and natural gas reserves, as of December 31, 2014, of certain selected properties in which Hess Corporation (Hess) has
represented that it owns an interest to determine the reasonableness of Hess’ estimates. The audit was completed on February 4, 2015.
Hess has represented to us that these properties account for approximately 80 percent on a net equivalent barrel basis of Hess’ net
proved reserves, as of December 31, 2014. We have reviewed information provided to us by Hess that it represents to be Hess’
estimates of the net reserves, as of December 31, 2014, for the same properties as those which we evaluated. This report was prepared
in accordance with guidelines specified in Item 1202 (a)(8) of Regulation S-K of the United States Securities and Exchange
Commission (SEC) and is to be used for inclusion in certain SEC filings by Hess.
Reserves estimates included herein are expressed as net reserves as represented by Hess. Gross reserves are defined as the
total estimated petroleum to be produced from these properties after December 31, 2014. Net reserves are defined as that portion of
the gross reserves attributable to the interests owned by Hess after deducting all interests owned by others.
Certain properties in which Hess has an interest are subject to the terms of various profit sharing agreements. The terms of
these agreements generally allow for working-interest participants to be reimbursed for portions of capital costs and operating
expenses and to share in the profits. The reimbursements and profit proceeds are converted to a barrel of oil equivalent or standard
cubic feet of gas equivalent by dividing by product prices to determine the “entitlement reserves.” These entitlement reserves are
equivalent in principle to net reserves and are used to calculate an equivalent net share, termed an “entitlement interest.” In this report,
Hess net reserves or interest for certain properties subject to these agreements is the entitlement based on Hess’ working interest.
Estimates of oil, condensate, NGL, and natural gas reserves should be regarded only as estimates. Such estimates are based
upon information that is currently available and may change as further production history and additional information become
available. Such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such
information.
Data used in this audit were obtained from reviews with Hess personnel, from Hess files, from records on file with the
appropriate regulatory agencies, and from public sources. Additionally, this information includes data supplied by IHS Global Inc.;
Copyright 2014 IHS Global Inc. In the preparation of this report we have relied, without independent verification, upon such
information furnished by Hess with respect to property interests, production from such properties, costs of operation and development,
prices for production, agreements relating to current and future operations and sale of production, and various other information and
data that were accepted as represented. A field examination of the properties was not considered necessary for the purposes of this
report. In our opinion, the adequacy and quality of the data provided to us was sufficient for us to conduct this reserves audit.