NEW YORK--(BUSINESS WIRE)--Jan. 29, 2014--
Hess Corporation (NYSE: HES) announced today that it has entered into an
agreement to sell approximately 74,000 acres of its dry gas acreage in
the Utica Shale to an undisclosed third party for a consideration of
$924 million. Approximately two-thirds of these proceeds are expected at
the end of the first quarter of this year, with the balance to be
received in the third quarter.
Proceeds from these sales will be used for additional share repurchases
as they are in excess of those associated with the divestiture program
announced by the Company on March 4 of last year. The Company will
determine whether or not to seek an increase to its existing $4 billion
share repurchase authorization, approved as part of its March 4
announcement, after a final decision is made either to spin or sell Hess
Retail.
John B. Hess, Chief Executive Officer of Hess, said, “The sale of our
Utica dry gas acreage is an example of our continued commitment to grow
shareholder value through ongoing portfolio reshaping. While our wells
in the dry gas portion of the Utica were highly productive, we concluded
that the potential returns from such an investment, at current and
projected natural gas prices, no longer justified retaining this acreage
as a strategic part of our overall liquids-based asset portfolio.”
About Hess:
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.
Source: Hess Corporation
For Hess Corporation
Investor Contact:
Jay Wilson
212-536-8940
or
Media
Contact:
Sard Verbinnen & Co
Michael Henson/Patrick
Scanlan
212-687-8080
