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Hess Corp (NYSE: HES) is looking to exit the refining business while simultaneously getting interest from a private equity firm looking to gain more control over management.
Earlier, the company issued a press release stating it was looking to sell its U.S. East Coast terminal network, which has 28 million barrels of storage capacity. Hess expects about $1 billion in working capital to be freed up following the deal. Additionally, Hess will close its Port Reading refinery by the end of February and tapped Goldman Sachs to advise on the matter.
Elliott Associates, L.P., took interest, announcing it would invest over $800 million in Hess and is mulling the potential nomination of directors. Any director nominations would be disclosed ahead of Hess’ annual general meeting.
Hess has transformed “from an integrated oil and gas company to one that is predominantly an exploration and production company,” Chairman and CEO John Hess commented in today’s statement. Hess also said the Company would meet with Elliott, but hadn’t been contacted prior to today’s release.
Shares are up about 5 percent Monday with strong volume.
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