LONDON, UK / ACCESSWIRE / December 27, 2017 / Active-Investors.com has just released a free research report on Hess Corp. (NYSE: HES). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HES as the Company's latest news hit the wire. On December 22, 2017, the Company announced that it had completed the sale of Hess Norge to Aker BP ASA. Hess Norge was the Company's Norwegian subsidiary and owned interests in the Valhall and Hod fields in Norway. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hess most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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The sale of the subsidiary was announced in October 2017 in a deal valued approximately $2 billion. The sale will be effective as on January 01, 2017.

Commenting on the completion of the sale, John Hess, CEO of Hess Corp. said:

"We are high grading our portfolio by investing in our highest return assets and divesting mature, higher cost assets. This strategy is enabling us to prefund our world-class opportunity in Guyana, return capital to shareholders and reduce debt, while at the same time significantly lowering our cash unit costs and bolstering our Company's balance sheet."

Details of Sale

Hess had announced the sale of its oil and gas interests in Norway in October 2017 to Aker BP. The Company had simultaneously announced the start of the process to sell its assets and interests in Denmark.

The Company's Norwegian interests include its 64.05% stake in Valhall and 62.5% stake in Hod fields in Norway. The Company's share from the production of both these fields was an average of 26,000 barrels of oil equivalent per day net in first six months of 2017.

Reasons for the assets sale

The Company's decision to divest its assets is in-line with its business strategy of focusing on its core assets and capital allocation to assets which have higher returns. Till the sale announcement in October 2017, the Company had sold off its non-core and underperforming assets including the assets in Norway, Permian Basin, and Equatorial Guinea. The Company has managed to raise approximately $3.25 billion in cash, which will help the Company pay off its future abandonment liabilities up to $3.2 billion. The balance cash plus the funds raised from sale of assets in Denmark will enable the Company to pay off debts up to $500 million in FY18. Additionally, the Company will be able to save $150 million annually via its cost cutting measures, which would help the Company pay reduce its cash unit production costs by approximately 30% to <$10 per BOE by FY20.

The Company's assets in Denmark include 61.5% stake in South Arne Field, which it expects to sell in FY18. The Company's share in the production from this field was 11,000 barrels of oil equivalent per day net in the first six months of 2017.

Facing Heat from Activist Investor Elliott Management

In December 2017, the Company started facing renewed pressure from activist investor Elliott Management Corp., including the bid to ouster its CEO John B. Hess and/or pressuring the Company to sell its complete or part of its business. Elliott Management owns 6.7% stake in the Company and has been pushing for other changes in the Company's functioning as well. Elliott Management wants the Company to increase shareholders' value by going for shares buyback program. The activist investor wants the Company to cut the payment of dividends to fund the shares buyback.

A few years back, in 2013, pressure from Elliott Management had led to John Hess leaving the position of the Chairman and the addition of three representatives from Elliott Management to the Company's Board.

About Hess Corp.

Founded in 1933, New York-based Hess Corp. is a leading global independent energy Company engaged in the exploration and production of crude oil and natural gas. The Company's interests include two key US shale plays - the Bakken in North Dakota and the Utica in Ohio, production in deepwater Gulf of Mexico, production, and supply of natural gas to Peninsular Malaysia and Thailand. The Company is engaged in exploration and appraisal activities offshore Guyana and the first phase of a planned multiphase development of the Liza Field in Guyana is underway.

Stock Performance Snapshot

December 26, 2017 - At Tuesday's closing bell, Hess' stock advanced 3.08%, ending the trading session at $48.46.

Volume traded for the day: 3.59 million shares.

Stock performance in the last month - up 9.14%; previous three-month period - up 4.62%; and past six-month period - up 17.14%

After yesterday's close, Hess' market cap was at $15.18 billion.

The stock has a dividend yield of 2.06%.

The stock is part of the Basic Materials sector, categorized under the Independent Oil & Gas industry. This sector was up 0.9% at the end of the session.

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