Hess Corp will be selling off its energy trading arm Hetco to precipitate its exit from the gasoline and marketing industry by the year 2015. This decision was reached after investor pressure came to fast track plans in breaking up the energy interests of the company.
Hess has a current market capitalization of US$23 billion would just focus on oil and gas production from its fields located in the United States, Ghana, Malaysia and Norway. The trading arm was the last part divested while earlier, power plants and gas stations were also sold off.
In another move, Hess also announced it would buy back nearly US$4 billion of its stock and increase dividends from US$0.40 to US$1.00 starting July 2013.
The changes were pushed by Elliot Management, Hess' third largest shareholder to which Hess Chairman and CEO said that the changes were 'the culmination of this long-term strategy that we've had in place.'
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