Oil and gas company Hess has exploration and production operations worldwide. In 2012 Hess reported proved reserves totaling more than 1.5 billion barrels of oil equivalent. It also markets gasoline through more than 1,360 HESS gas stations in 16 US states and operates a 50%-owned oil storage terminal (HOVENSA) in the US Virgin Islands and a refinery in New Jersey. Hess also provides power to Northeast and Mid-Atlantic customers. In a major shift in strategy, in 2013 Hess announced it would exit its downstream businesses in order to focus on its higher margin exploration and production activities.
Hess has operations in Algeria, Australia, Azerbaijan, Brunei, China, Denmark, Equatorial Guinea, France, Gabon, Ghana, Indonesia, Kurdistan(Iraq), Libya, Malaysia, Norway, Russia, Thailand, the UK, and the US.
Hess' revenues were essentially flat in 2012. The company saw a 16% increase in the Exploration and Production segment revenues as the result of higher crude oil prices and an increase in natural gas liquids and natural gas production (primarily due to new wells in the Bakken oil shale play production shut in well at the Llano Field coming back on line.
Crude oil production in Africa increased in 2012 thanks to the resumption of production in Libya, partly offset by lower production in Equatorial Guinea. New wells helped to lift gas production revenues in Indonesia.
The company reported more than $2 trillion in net income in 2012 (19% up on 2011) thanks to a decrease in operating expenses.
The company is exiting its retail, energy marketing, and energy trading businesses in order to focus on a higher growth, lower-risk portfolio of exploration and production assets.
Hess' refinery in the US Virgin Islands was operated as a joint venture with Venezuela's state oil company Petróleos de Venezuela S.A (PDVSA). However, the loss-making HOVENSA refinery was shut down in 2012 and converted to an oil storage terminal. In 2013 Hess announced that it will complete its exit from the refining business by closing its Port Reading, New Jersey refinery.
As part of its strategy of unwinding its refining and marketing assets, in 2013 Hess sold Russian subsidiary Samara-Nafta to LUKOIL for $2.05 billion.
To raise cash it also sold its 2.7% interest in in India's Azeri, Chirag and Guneshli Fields and its 2.4% stake in the associated BTC pipeline to ONGC Videsh for $1 billion.
The Utica Shale in Ohio is a growth area. In 2011 Hess paid $593 million for joint exploration and development rights to CONSOL Energy's nearly 200,000 Utica Shale acres in Ohio. It subsequently acquired acquired Marquette Exploration LLC and other Utica Shale leases for $750 million, boosting its acreage position by 85,000 net acres. (To help pay for this it sold noncore UK North Sea assets that year to generate $359 million in cash.)