Hess Announces Sale of Its Energy Marketing Business
NEW YORK -- July 30, 2013
Hess Corporation announced today it has entered into an agreement with Direct
Energy, a North American subsidiary of Centrica plc, to sell its Energy
Marketing business for a total consideration of $1.025 billion. The Energy
Marketing business supplies natural gas and electricity to 23,000 commercial,
industrial and small business customers in the eastern half of the United
The transaction is part of the previously announced plan for Hess to exit the
entirety of its downstream business as it transforms into a pure play E&P
company with a portfolio of focused, high growth and lower risk assets. The
sale of Energy Marketing, along with the sales of four producing assets
earlier this year, brings total year-to-date divestitures to $4.5 billion.
Hess has used the proceeds from its previously completed asset sales to repay
$2.4 billion of debt and further strengthen the Company’s balance sheet for
future growth. The sale of Energy Marketing now puts the Company in a position
to begin repurchasing shares under its existing $4 billion share repurchase
John B. Hess, Chief Executive Officer, said, “Our Energy Marketing business
has had a proud history and has been built upon long term relationships with
our customers. We are grateful to all of our customers for their trust and
support of our company over many years. We also want to recognize and thank
our dedicated employees for their tireless efforts as well as their invaluable
contributions in providing outstanding service to meet our customers’ energy
The agreement is subject to regulatory approvals and other customary closing
conditions and is expected to close in the fourth quarter of 2013.
Hess Corporation is a leading global independent energy company 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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