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.
In 2014 the company agreed to sell its gasoline stations Marathon Petroleum for $2.6 billion.
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. It also sold its energy marketing business to Direct Energy for a $1.2 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. It also sold its Indonesian oil and gas assets for $1.3 billion.
That year it also sold 20 liquid petroleum products terminals along the US East Coast with total storage capacity of 39 million barrels to Buckeye Partners for $850 million.
The Utica Shale in Ohio was a growth area. However, in 2014 low gas prices prompted Hess agreed to sell 74,000 acres of dry gas acreage in the Utica Shale for $924 million, in order to focus on more lucrative oil plays.
That year it also sold its oil and gas assets in Thailand to PTT Exploration and Production for $1 billion.