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.
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Copyright Business Wire 2018
Source: Business Wire
(June 29, 2018 - 7:00 AM EDT)
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