Hess Closes Sale of Its Interest in Russia
NEW YORK -- April 26, 2013
Hess Corporation (NYSE: HES) announced today it has completed the sale of 100
percent of its Russian subsidiary Samara-Nafta to OAO LUKOIL for a total
consideration of $2.05 billion. Including working capital and other
adjustments, total after tax proceeds to Hess based on its 90 percent interest
in Samara-Nafta were approximately $1.9 billion.
Hess’ total year-to-date proceeds from completed and announced asset sales
amount to approximately $3.5 billion. As previously announced, the Company is
applying these proceeds to repay outstanding short-term debt and strengthen
its balance sheet, providing the financial flexibility to fund future growth.
The Company is also currently engaged in separate processes to divest its
exploration and production assets in Indonesia and Thailand, as well as its
remaining downstream businesses, including terminals, retail, energy marketing
and trading. Most of the proceeds from these additional sales will be used to
return capital directly to shareholders. Hess anticipates that it will begin
to repurchase shares under its existing $4 billion authorization in the second
half of this year.
Hess Corporation is a leading global independent energy company primarily
engaged in the exploration and production of crude oil and natural gas. More
information on Hess Corporation is available at http://www.hess.com.
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.
Jay Wilson, 212-536-8940
Jon Pepper, 212-536-8550
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