Hess Corporation Announces Capital and Exploratory Budget for 2012

Hess Corporation (NYSE: HES) announced today a 2012 capital and
exploratory budget of $6.8 billion, nearly all of which is targeted for
Exploration and Production: $2.5 billion for unconventionals, $1.6
billion for production, $1.8 billion for developments and $800 million
for exploration.

John B. Hess, Chairman and CEO, stated, 'We believe that the investments
we are making in unconventionals are lower risk and will generate long
term profitable growth for shareholders. We expect to fund the majority
of our 2012 program from internally generated cash flow and asset sales.?

Greg Hill, President of Worldwide Exploration and Production, said, 'Our
focus in 2012 will be on execution. We are committed to creating value
and delivering sustainable growth in production and reserves from both
our unconventional and conventional portfolios.?

Unconventional production and development expenditures of approximately
$2.5 billion include:

• 
  Development of the Bakken Shale in North Dakota, where Hess plans to
  continue to operate 16 rigs and progress the expansion the Tioga Gas
  Plant
  
• 
  Drilling appraisal wells in the Eagle Ford Shale in Texas and the
  Utica Shale in Ohio
  

Production expenditures of approximately $1.6 billion include:

• 
  Drilling production and water injection wells at Shenzi (Hess 28
  percent), and drilling production wells at the Llano Field (Hess 50
  percent) in the deepwater Gulf of Mexico
  
• 
  Drilling production wells on Block G (Hess 85 percent - operator) in
  Equatorial Guinea
  

Development expenditures of approximately $1.8 billion include:

• 
  Commencing development drilling at the Tubular Bells Field (Hess 57
  percent ? operator) in the deepwater Gulf of Mexico
  
• 
  Completion of field redevelopment and gas lift projects at the Valhall
  Field (Hess 64 percent) in Norway
  
• 
  Concluding appraisal activities and progressing front end engineering
  and design work at WA-390-P (Hess 100 percent - operator) offshore
  Western Australia
  
• 
  Progressing development of Block A-18 (Hess 50 percent) in the Joint
  Development Area (JDA) in the Gulf of Thailand, including wellhead
  platform installations and ongoing drilling activities
  

Exploration expenditures of approximately $800 million include:

• 
  Drilling exploration wells in Ghana, Indonesia, Brunei and the
  deepwater Gulf of Mexico
  
• 
  Acquiring seismic at the Dinarta and Shakrok Blocks (Hess 80 percent -
  operator) in Iraqi Kurdistan
  

Hess Corporation, with headquarters in New York, is a global integrated
energy company engaged in the exploration, production, purchase,
transportation and sale of crude oil and natural gas, as well as the
production and sale of refined petroleum products. More information on
Hess Corporation is available at www.hess.com.

Cautionary Statements

This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.These
projections and statements reflect the company′s current views with
respect to future events and financial performance.No assurances
can be given, however, that these events will occur or that these
projections will be achieved, and actual results could differ materially
from those projected as a result of certain risk factors.A
discussion of these risk factors is included in the company′s periodic
reports filed with the Securities and Exchange Commission.

Hess Corporation

Investors:

Jay
Wilson, 212-536-8940

or

Media:

Jon
Pepper, 212-536-8550