Hess Sells Retail Business to Marathon for $2.6B
Hess has agreed to sell its retail business to Marathon Petroleum for a total cash consideration of $2.6 billion. Hess Retail is the largest chain of company operated gas stations and convenience stores along the East Coast with 1,342 locations.
Proceeds from the sale will be used for additional share repurchases, and the company has increased its existing share repurchase authorization from $4 billion to $6.5 billion. Since the commencement of the program in August 2013, the company has repurchased about $2.8 billion in stock.
CEO John Hess said, “The sale of our retail business marks the culmination of our strategic transformation into a pure-play exploration and production (E&P) company.”
The transaction is subject to customary closing conditions and is expected to be completed before year-end 2014.
In March 2013, Hess announced it was transforming into a pure play E&P company by divesting its downstream businesses, including retail, energy marketing and energy trading.
In 2013, Hess sold its Energy Marketing business to Direct Energy. The energy marketing business supplies natural gas and electricity to commercial, industrial and small business customers in the eastern half of the United States.
- Top 3 Reasons to Calculate Your Environmental Footprint
- Six Essential Steps to Drive Effective Energy Management
- Essential Guide to Lighting Retrofits and Upgrades
- Integrating sustainability into your ERM framework
- How to Use Lean Tools to Cash In On Environmental and Energy Savings
- Alarms Management: The Future is Now
- Guide to Energy, Carbon and Environmental Software
- 2014 Environmental Leader Product and Project Awards
- Sustainability Reporting for Commercial Real Estate: GRESB
- Meeting the GHG Challenge: Reporting Solutions
- Energy Efficiency Requires Engineering Efficiency
- Integrated Building Optimization: A Crucial Convergence of Demand-side and Supply-Side Energy Management Strategies
- Driving Productivity and Profit with Industrial Energy Management
- Energy Procurement in 2014: Products & Programs to Optimize Savings
- BUYING STRATEGIES IN A VOLATILE MARKET: What Businesses Need to Know about Retail Electricity Procurement