Hess 2014 Annual Report Download - page 5

3
John B. Hess
Chief Executive Ofcer
March 4, 2015
Mark R. Williams
Chairman of the Board
With respect to divestitures, we completed asset sales
totaling $5.9 billion during 2014 including the sale of our
Retail business and exploration and production assets in
Indonesia and Thailand. In total, our asset sales program
has generated approximately $13 billion since the
beginning of 2013.
We continue to progress our plans to monetize our
Bakken midstream infrastructure through a master limited
partnership and expect the initial public offering to occur in
2015 subject to market conditions.
Continuing Momentum in 2015
We enter 2015 a fully transformed company. As outlined
at our Investor Day last November, our nancial strategy
is to invest for returns, manage our business to be cash
generative over the long term, use our balance sheet in a
given year to fund a shortfall in operating cash ow, and
maintain our investment grade credit rating.
In keeping with this strategy, we are taking a disciplined
approach to maintain our nancial strength in the current
environment while preserving our long term growth options.
This includes reducing our 2015 capital and exploratory
expenditure budget and signicantly moderating the pace
of our share repurchase program.
In 2015, we forecast production to average between
350,000 and 360,000 barrels of oil equivalent per day,
excluding Libya – an increase of 10 to 13 percent over
2014. In the near term this growth will be underpinned by
the Bakken, Tubular Bells and the Utica Shale play. Longer
term growth will benet from the North Malay Basin project
in Malaysia and from Stampede, both of which are currently
under development.
Safety and Social Responsibility
We believe sound sustainability practices create value and
enhance business performance. Our Company remains
steadfast in its commitment to operational excellence,
protecting the environment and good corporate
citizenship. We are proud to have been recognized
throughout the year for the quality of our environment,
social and governance disclosure and performance.
Overall workforce (employee and contractor) safety
performance improved in 2014 as a result of our
continued focus on leadership engagement, site visits,
behavior based safety programs and improvements
in our contractor management, selection and
onboarding process.
In 2014 the Company engaged in a number of multi-
stakeholder initiatives designed to advance transparency,
environmental protection, human rights and good
governance. Our social investment programs continued
to make good progress in 2014, with a third year of
success in our SUCCEED 2020 program in North Dakota
and initiation of the second phase of our PRODEGE
education initiative in Equatorial Guinea.
Our Commitment to Shareholders
While this coming year presents challenges for the entire
industry, our Company is in a strong nancial position
and has a resilient portfolio that can deliver competitive
growth once oil prices recover. We are well positioned
with top quartile capabilities and some of the best
people in the industry to execute our plans and maximize
shareholder value.
We are proud of the progress our Company made in
2014 and grateful for the support of our Directors and
the dedication of our employees. We thank you, our
shareholders, for your support and continued interest in
our Company.