In 2014 our Company made significant progress in our plan to drive cash generative growth and sustainable returns for shareholders. While the year concluded with a dramatic decline in oil prices, the steps we have taken in the last several years have positioned us well to manage in this environment. Our Company is in a strong financial position with $2.4 billion of cash on our balance sheet and a debt to capitalization ratio of 21 percent at year end. In addition, we have a focused and resilient portfolio of world class assets that is balanced between:

• Unconventionals, which offer lower risk growth in a high price environment with the flexibility to moderate investment in a lower price environment, and
• Offshore assets, which generate significant cash flows and provide future growth opportunities.

The Company delivered strong operating results with outstanding execution in 2014, with industry leading performance in our unconventionals and offshore businesses. We earned $1.3 billion in adjusted net income and generated $5 billion of cash flow from operations before changes in working capital. Production averaged 318,000 barrels of oil equivalent per day on a pro forma basis, excluding divestitures and Libya. We replaced 158 percent of production at a finding, development and acquisition cost of approximately $28.75 per barrel of oil equivalent. At year end, our proved reserves stood at 1.4 billion barrels of oil equivalent and our reserve life was 11.7 years.

In our unconventionals business we are a leading operator with premier acreage in the core of two prime U.S. shale plays – the Bakken and the Utica. In the Bakken, our expansion of the Tioga gas processing plant, which came online in late March, increased its gross inlet capacity to 250 million cubic feet per day and more than doubled its natural gas liquids processing capacity. In the fourth quarter our net production in the Bakken reached a new milestone, exceeding 100,000 barrels of oil equivalent per day. Throughout 2014, our Bakken team continued to drive down drilling and completion costs and are delivering some of the highest return wells in the play.

In the Utica, where we are positioned in the heart of the wet gas window, our drilling and completion costs also moved steadily lower in 2014 as we began to apply the same lean manufacturing techniques that we have implemented successfully in the Bakken. Net production increased throughout 2014 to average 13,000 barrels of oil equivalent per day in the fourth quarter, as we continued to transition from appraisal to early development.

Offshore, we continued to employ our top quartile drilling and project delivery capabilities. A major accomplishment in 2014 was the startup of the Tubular Bells field in the Deepwater Gulf of Mexico. Hess has a 57.1 percent interest in the project and is the operator. The field achieved first production approximately three years after project sanction, safely and on budget. Net production is expected to average between 30,000 and 35,000 barrels of oil equivalent per day in 2015.

The Stampede project that Hess operates in the Deepwater Gulf of Mexico received full co-owner sanction for development in October 2014. Total recoverable resources for Stampede are estimated in the range of 300 million to 350 million barrels of oil equivalent, and first production is expected in 2018.

Our Exploration strategy is to deliver long term value by focusing on proven and emerging oil prone plays in basins we understand well and that leverage our capabilities. In 2014, we secured farm-in opportunities in three Deepwater blocks – Sicily in the Gulf of Mexico with Chevron as operator; the Stabroek Block in Guyana with Esso E&P Guyana Limited as operator; and in Nova Scotia with BP as operator.

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.

We enter 2015 a fully transformed company. As outlined at our Investor Day last November, our financial 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 flow, and maintain our investment grade credit rating.

In keeping with this strategy, we are taking a disciplined approach to maintain our financial strength in the current environment while preserving our long term growth options. This includes reducing our 2015 capital and exploratory expenditure budget and significantly 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 benefit from the North Malay Basin project in Malaysia and from Stampede, both of which are currently under development.

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 multistakeholder 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.

While this coming year presents challenges for the entire industry, our Company is in a strong financial 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.