Key Highlights:

• Estimate of gross discovered recoverable resources on the Stabroek Block, offshore Guyana(Hess 30 percent), increased to more than 4 billion barrels of oil equivalent; total discoveries todate have established the potential for up to five FPSOs to produce over 750,000 barrels of oil perday, gross by 2025
• Announced an eighth oil discovery on the Stabroek Block, offshore Guyana at the Longtail-1 exploration well located approximately five miles to the west of the Turbot-1 well
• Announced an agreement to sell our joint venture interests in the Utica shale play in eastern Ohiofor net cash consideration of approximately $400 million, with closing expected by the end of thethird quarter
• Completed the purchase of $500 million in common stock, as part of our previously announced$1.5 billion share repurchase program, bringing total purchases to $1 billion; the remaining $500 million is expected to be completed during 2018
• Completed $500 million of total debt repurchases as of quarter-end, including purchases ofapproximately $110 million of public notes during the second quarter
• Restarted production at the Conger Field in the Gulf of Mexico in mid-July following repair of thethird-party operated Enchilada platform

Second Quarter Financial and Operating Highlights:

• Net loss was $130 million, or $0.48 per common share, compared with a net loss of $449 million,or $1.46 per common share, in the prior-year quarter
• Adjusted net loss was $56 million, or $0.23 per common share, in the second quarter of 2018
• Oil and gas production exceeded guidance: net production averaged 247,000 barrels of oilequivalent per day (boepd), excluding Libya; Bakken production was 114,000 boepd
• Exploration & Production capital and exploratory expenditures were $525 million in the quarter,compared to $528 million in the prior-year quarter
• Cash and cash equivalents, excluding Midstream, were $2.5 billion at June 30, 2018

Hess Corporation this week reported a net loss of $130 million, or $0.48 per common share, in the second quarter of 2018, compared to a net loss of $449 million, or $1.46 per common share, in the second quarter of 2017. On an adjusted basis, the Corporation reported an after-tax net loss of $56 million, or $0.23 per common share, in the second quarter of 2018. The improved after-tax adjusted results reflect higher realized crude oil selling prices, lower operating costs and depreciation, depletion and amortization expense, partially offset by lower production volumes, primarily due to asset sales.

“We delivered strong operational performance in the quarter – exceeding our production guidance –and further focused our portfolio with the sale of our joint venture interests in the Utica,” ChiefExecutive Officer John Hess said. “In June, we announced another significant oil discovery at Longtail, offshore Guyana, and in July we increased the estimate of gross discovered recoverable resources for the Stabroek Block to more than 4 billion barrels of oil equivalent.”

Exploration and Production:

Exploration and Production (E&P) net income in the second quarter of 2018 was $31 million, compared to a net loss of $354 million in the second quarter of 2017. On an adjusted basis, second quarter 2018 net income was $21 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $62.65 per barrel in the second quarter of 2018, up from $45.95 per barrel in the year-ago quarter. Noncash losses on crude oil hedging contracts reduced second quarter 2018 after-tax results by $47 million. The average realized natural gas liquids selling price in the second quarter of 2018 was $20.51 per barrel, versus $14.85 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.12 per mcf, compared to $3.19 per mcf in the second quarter of 2017.

Net production, excluding Libya, was 247,000 boepd in the second quarter of 2018, compared to 294,000 boepd in the prior-year quarter. Excluding assets sold and Libya, second quarter 2017 net production was 237,000 boepd. Libya net production was 18,000 boepd in the second quarter of 2018, compared with 6,000 boepd in the year-ago quarter. Our full year production guidance, excluding Libya, continues to be 245,000 boepd to 255,000 boepd, even with the loss of volumes from the sale of our Utica joint venture interests.

Excluding items affecting comparability of earnings between periods and including Libya, cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $13.37 per barrel of oil equivalent (boe) in the second quarter, down eight percent from $14.60 per boe in the prior-year quarter due to increased low-cost production from North Malay Basin, cost savings initiatives, and sales of higher cost assets. Second quarter 2018 cash costs per boe were negatively impacted by deferred production related to downtime at the third-party operated Enchilada platform in the Gulf of Mexico. E&P income tax expense increased in the second quarter of 2018, compared to the prior-year quarter, primarily due to higher Libya sales volumes.

Operational Highlights for the Second Quarter of 2018:

Bakken (Onshore U.S.): Net production from the Bakken increased six percent to 114,000 boepd from 108,000 boepd in the year-ago quarter due to ongoing drilling activity and improved well performance. Production in the second quarter of 2018 was impacted by weather-related downtime in June. The Corporation operated an average of four rigs in the second quarter, drilling 28 wells and bringing 27 new wells online. The Corporation has added a fifth rig and plans to add a sixth rig early in the fourth quarter of this year. Full year production guidance for the Bakken remains 115,000 boepd to 120,000 boepd.

Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 47,000 boepd, compared to 51,000 boepd in the prior-year quarter. Production from the Conger Field, which has been shut-in since the fourth quarter of 2017 due to the Enchilada platform shutdown, resumed in mid-July. At the Stampede Field (Hess operated - 25 percent), four production wells are currently online, and two additional wells are expected to be brought online before the end of this year.

North Malay Basin (Offshore Malaysia): Net production from North Malay Basin (Hess operated - 50 percent) was 26,000 boepd, compared to 1,500 boepd in the prior-year quarter. Production from the full field development commenced in July 2017.

Guyana (Offshore): At the Stabroek Block (Hess - 30 percent), operated by Esso Exploration and Production Guyana Limited, the Longtail-1 exploration well encountered approximately 256 feet of high-quality, oil-bearing sandstone reservoir and is the eighth significant oil discovery on the Block. The well is located approximately five miles west of the Turbot-1 well and the operator estimates combined gross recoverable resources of Turbot and Longtail to exceed 500 million boe. Additional prospects to be drilled in this area could increase this estimate. The Stena Carron drillship will next drill the Hammerhead-1 well located approximately nine miles southwest of the Liza discovery. The operator plans to add a third drillship in the fourth quarter that will operate in parallel to the Stena Carron to explore and appraise the Block’s numerous high value prospects.

The Liza phase 1 development sanctioned in June 2017 is progressing rapidly. Development drilling began in May and construction of the floating production, storage and offloading vessel (FPSO) and subsea equipment is under way, laying the foundation for first production of gross 120,000 barrels of oil per day (bopd) by early 2020. Phase 2 of the Liza development, which is targeted for sanction by the end of this year, will use a second FPSO with gross production capacity of approximately 220,000 bopd – start up for Phase 2 is expected by mid-2022. Planning is underway for a third phase of development, which is targeted to be sanctioned in 2019 and will use an FPSO designed to produce approximately 180,000 bopd gross, with first production as early as 2023. The collective discoveries on the Stabroek Block to date are estimated to contain gross recoverable resources of more than 4 billion boe and have established the potential for up to five FPSOs producing over 750,000 bopd, gross by 2025.