Hess Said to Begin Sale Process for Oil-Terminal Network

Hess Corp., the energy company that recently settled a proxy fight with Paul Singer, began the sale of its oil-terminal network and is seeking $1 billion for the asset, said people familiar with the matter.

Hess asked suitors to submit expressions of interest by July 2 for the 19 terminals, said two of the people, who asked not to be named as the process is private. The asset generates about $100 million in annual earnings before interest, taxes, depreciation and amortization, the people said.

Hess decided to pursue the sale this year amid pressure from billionaire Singer’s Elliott Management Corp., one of the New York-based company’s top shareholders. The business may attract interest from private-equity firms ArcLight Capital Holdings LLC and Alinda Capital Partners LLC, as well as energy companies such as Sunoco Logistics Partners LP, Buckeye Partners LP and Marathon Petroleum Corp., the people said.

Jon Pepper, a spokesman for Hess, declined to comment, as did representatives for Marathon and Sunoco Logistics. Spokesmen at ArcLight, Alinda and Buckeye didn’t immediately return calls seeking comment.

Hess rose 3.2 percent to $65.71 at the close in New York. The shares have gained 24 percent this year.

Hess said in January that it would sell the terminal network and that Goldman Sachs Group Inc. was working as its adviser on that process. The company ended a four-month proxy battle with Elliott last month by agreeing to add directors backed by the New York-based activist to its board.

Michael DuVally, a spokesman for Goldman Sachs, declined to comment.

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