Discover Your Energy Options James Connolly

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Discover Your Energy OptionsJames Connolly
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NYMEX Natural Gas Prices Are Primarily Driven By
Storage And Weather.
/MMBtu
Pre-Winter Supply Fears
Katrina / Rita
Unprecedented Summer W/D
Ivan
Record High Inventory
SOURCE NYMEX
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Product Offering Firm Gas
Firm Gas Customer Pricing Options

• Fixed Price
• NYMEX and Basis cost are fixed at the City
  Gate for the specified contract term (typically
  12, 18 or 24 months).
• NYMEX Plus
• Basis cost is fixed for the specified contract
  term. Customer has flexibility over the NYMEX
  portion of their gas cost.
• Annual usage over 100,000 Dths
• Dynamic Triggering
• Caps and Collars

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Dynamic Triggering

• A strategy for setting targeted strike prices for
  specified periods and quantities.
• Triggers can be tiered A percentage of the
  total monthly volume can be set at a higher risk
  level leaving open volume to benefit from further
  market downside.

• Guidance provided by intra month reports.
• Trigger recommendations based on current and
  historical market data, proprietary tools, and
  Hess traders.
• Strategy can be customized for a broad range of
  scenarios.

• Benefits
• No Cost
• Complete Control over NYMEX Price
• Tiered Purchases Diversify Risk

• Flexible
• Stop Loss Orders to Protect from Upside Risk

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Dynamic Triggering
Tier 1 8.56
Tier 2 8.09
Tier 3 7.78
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HESS PRiME
Price Risk Management for Energy
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What is HESS PRiME

• Pro-active Program to Manage Volatility
• Structured, Disciplined Documented Plan
• Automates buying decisions

• Fundamental Pillars of the Program
• Risk Profile
• Value Purchases
• Time Purchases
• Minimum 24 month basis contract no volume
  restrictions

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Risk Profiles

• Risk Profiles allow you to customize the program
  to best fit the needs of your company.
• Your purchases under PRiME will match your
  selected Risk Profile.

RISK PROFILES
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Product Offerings
Hess offers products to meet every customers
budget and risk tolerance.
RISK TOLERANCE
LOW
HIGH
MEDIUM
Product Offerings
Fixed
Dynamic Triggering
Floating
Caps / Collars
NYMEX Plus Basis
PRiME
PRiME
PRiME
LOW
HIGH
MEDIUM
PRICE CERTAINTY
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The Hess Advantage
Hess offers several services to help customers
stay engaged in the market.

• Daily, Weekly and Monthly market intelligence
  publications plus Storage and Inventory reports
  and charts to help you react quickly to sudden
  market changes.

HessEnergy.com Your shortcut to the latest
information on energy markets, product offerings,
commodities and customer account information.

• Hess Trigger Desk
• Provides daily market publications and
  commentary.
• Provides specific account information regarding
  your trigger orders.
• Provides customized strategic risk managements
  solutions.
• Executes NYMEX commodity transactions.

Trigger Hotline Fax P [phone] F (866)
421-2451 trigger_at_hess.com
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Questions