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...

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on January 31, 2014 at 2:29pm

Wow Mr. Hess, I guess you didn't see that gas shortage coming huh? 

I thought there would have been more than enough gas for the winter with a glut in wet gas and methane overproduction in WV, PA and OH.

How about an ETHICS LAW from our leadership in Washington.

Investigate and lock up those found guilty of gouging.  Protecting the people from corporate greed would be one way to make more money available for taxes. 

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 1, 2014 at 7:26am

Yeah, more government oversight will fix things.  

Permalink Reply by Jim Litwinowicz on February 1, 2014 at 8:19am

So telling them they can't make too much money will encourage them to drill and produce more.  Makes a lot of sense.

Permalink Reply by bo boboski on February 2, 2014 at 6:52am

Bought by AubreyMcClendon's AEP. co.  All in the DRY gas counties. Does he know something about the natural gas future that others don't???

Permalink Reply by Paul Butler on February 2, 2014 at 7:15am

I think there are 500,000 acres in Michigan you can get a good price on from CHK. 

All over the country, you can get a good price on much of his handiwork. 

What's that mean? 

It has been estimated that an investor disposed to invest with Aubrey is born every minute.

Indeed! 

Permalink Reply by Andy Grafton on February 2, 2014 at 9:56am
Agreed.
Permalink Reply by Jason on February 2, 2014 at 11:14am
That Hess office building near Lovers Lane and Sunset Blvd Wintersville Ohio, although Sunday, still had their fleet of F 150 pickup trucks in the lot.
If they're packing up - you would think those workers would have been transferred already?

Just my observation today driving through.

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