Hess jumps from ship known as Titanic/Utica

Hess Corporation announced Wednesday 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 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, CEO 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.” -

See more at: http://www.rigzone.com/news/oil_gas/a/131335/Hess_to_Sell_Utica_Dry...

Views: 7351

▶ Reply to This

Replies to This Discussion

Permalink Reply by Busy Bee on January 29, 2014 at 9:42am
Paul you sound like a person with an agenda against anything in the Utica . That's my take from your post here and the Harrison Cty royalty comments . Your reminding me of Nate from a few years back ! Why all the negativity ?
Permalink Reply by Paul Butler on January 29, 2014 at 10:05am

Busy Bee---I like to keep things real.

First, I've been told the Utica needs gas to be north of $7.50 to make even the barest economic sense.

Second, I see many of the players as sketchy people, with imaginary skills, striking illusory deals.

That's what bothers me Busy Bee.

Thanks for asking.

Permalink Reply by Gary on January 29, 2014 at 1:28pm
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on January 29, 2014 at 4:45pm

"First, I've been told the Utica needs gas to be north of $7.50 to make even the barest economic sense."

Whomever told you that couldn't possibly know that information yet.  There just isn't enough data to make that conclusion.  There are numbers for economical wells in other dry shales, but that came after the horse trading was done and hundreds (in some cases thousands) of wells were drilled and the field was better derisked.

Permalink Reply by Sam Moore on January 30, 2014 at 3:43am

If Hess is selling this to AEP I suggest they don't spend that money until the check clears.

Permalink Reply by Corvette on January 30, 2014 at 3:46am

Sam, I agree!

Permalink Reply by Andy Grafton on January 30, 2014 at 5:53am

This sure sounds a lot like the CHK business model when it was under Aubrey.  Buy a ton of acreage with somebody else's money (which is common in the industry, it just seems like there is a never-ending stream of investors waiting to give him money), get your ducks in a row so you can line your pockets with a ridiculous override package, and then duck out before things hit the fan and let somebody else deal with the mess. Same game, different name.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on January 30, 2014 at 7:28am

Just wait until Aubrey opens up the AEP IPO for the public to buy.  That's when you'll see him make real money off the backs of foolish investors.

Permalink Reply by Andy Grafton on January 30, 2014 at 7:32am

You got that right, Mr Grayson.  From what I see with the recent SEC filings, he is close...

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on January 30, 2014 at 6:17pm

Here's a link to a few of the highlights of said filing: http://www.forbes.com/sites/christopherhelman/2013/12/16/youd-be-cr...

This guy is about as slick as a penny stock promoter.

Permalink Reply by Jimmy Wilson on January 30, 2014 at 12:51pm

Same with Eclipse Marcus, guarantee you they IPO this year.....

Pump it.... Dump it

Grip it..... Flip it....

Buy it for 5, sell it for 5000...

Permalink Reply by bo boboski on January 30, 2014 at 11:12pm

Yea,  now today ,they say that in 2014 ,they will be spending millions drilling 35 wells in Ohio!  They just want to stay in the "pickle".

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service