Hess Announces Sale of Utica Acreage
June 29 2018 - 7:00AM
Business Wire
Hess Corporation (NYSE:HES) today announced that it has entered
into an agreement to sell its joint venture interests in the Utica
shale play in eastern Ohio to Ascent Resources – Utica, LLC for net
cash consideration of approximately $400 million, effective April
1.
“We continue to focus our portfolio by divesting lower return,
non-core assets as part of our strategy to deliver long term value
to shareholders,” CEO John Hess said. “Proceeds from this
transaction will be used to invest in our higher return growth
opportunities in Guyana and the Bakken and to fund the company’s
previously announced share repurchase program.”
The divestiture consists of approximately 39,000 net acres
including 26,000 net undeveloped acres. For full year 2018, net
production is forecast to average 14,000 barrels of oil equivalent
per day, of which approximately 70 percent is expected to be
residue gas. Hess holds a 50 percent working interest as part of a
joint venture with CNX Resources (NYSE: CNX).
The agreement is subject to customary closing conditions and
adjustments and is expected to close by the end of third quarter
2018.
Denmark Sale Update
Hess also announced that it has decided to retain its interests
in Denmark, where the company holds a 61.5 percent interest in the
South Arne Field and is the operator. The offers received in a
previously announced sale process did not meet the company’s value
expectations. In the normal course of business, the company will
continue to look at strategic options for this asset.
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.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180629005250/en/
Hess CorporationInvestor:Jay Wilson,
212-536-8940jrwilson@hess.comorMedia:Lorrie Hecker,
212-536-8250lhecker@hess.com
Hess (NYSE:HES)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hess (NYSE:HES)
Historical Stock Chart
From Apr 2023 to Apr 2024