Hess Selling Terminal Network, Exiting Refining Business
In a press release issued today, Hess announced plans to sell its 19-terminal network along the East Coast, as well as close Hess' last refinery, located in Port Reading, N.J.
The terminal network was used primarily as an outlet for its HOVENSA refinery. However, after Hess closed down the HOVENSA partnership last year, it was determined the U.S. terminal network, with its storage capacity of 28 million barrels, is no longer necessary. The company's Caribbean terminal, with a storage capacity of 10 million barrels, will also be included in the sale. A projected price tag for the terminal network was not announced in the press release.
After incurring losses two of the past three years, Hess also announced it is shutting down its Port Reading, N.J., refinery, which manufactures gas and components for heating oil. The refinery will be closed by the end of February.
Sale of the terminal network is expected to free up $1 billion in capital. According to CEO John Hess, "By closing the Port Reading refinery and selling our terminal network, Hess will complete its transformation from an integrated oil and gas company to one that is predominantly an exploration and production company and be able to redeploy substantial additional capital to fund its future growth opportunities."
The article Hess Selling Terminal Network, Exiting Refining Business originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.