Hess Corporation announced the sale of its retail business to Marathon Petroleum Corporation for a total cash consideration of US$ 2.6 billion.
Hess Retail is the largest chain of company operated gas stations and convenience stores along the US East Coast with 1342 locations.
Proceeds from the sale will be used for additional share repurchases and the company has increased its existing share repurchase authorization from US$ 4 billion to US$ 6.5 billion. Since the commencement of the program in August 2013, the company has repurchased approximately US$ 2.8 billion in stock.
John B. Hess, CEO, commented: “The sale of our retail business marks the culmination of our strategic transformation into a pure-play exploration and production company. I especially want to express my deepest appreciation to our employees in the retail business for their outstanding work and extraordinary dedication over the years building the Hess brand and serving our loyal customers.”
The transaction is subject to customary closing conditions and is expected to be completed before the end of 2014.
Adapted from press release by Katie Woodward