Hess Corporation
CEO ) | |
Products | |
---|---|
Revenue | US$11.3 billion[1] (2022) |
US$3.79 billion[1] (2022) | |
US$2.09 billion[1] (2022) | |
Total assets | US$21.7 billion[1] (2022) |
Total equity | US$7.86 billion[1] (2022) |
Owner | John B. Hess (9.5%)[2] |
Number of employees | 1,623[1] (2022) |
Website | hess |
Hess Corporation (formerly Amerada Hess Corporation) is an American global independent
Headquartered in New York City, the company ranked 394th in the 2016 annual ranking of Fortune 500 corporations.[6] In 2020, Forbes Global 2000 ranked Hess as the 1,253rd largest public company in the world.[7]
The company has exploration and production operations on-shore in the United States (North Dakota) and Libya, and off-shore in the United States (Gulf of Mexico), Canada, South America (Guyana and Suriname), and Southeast Asia (Malaysia and the Joint Development Area of Malaysia and Thailand).[8]
History
In 1919, British oil entrepreneur Lord Cowdray formed the Amerada Corporation to explore oil production in North America.[9] The firm was incorporated on February 7, 1920, in Delaware as a holding company for its principal subsidiary, the Amerada Petroleum Corporation. The oil producer experienced growth during most of the 1920s, hitting a peak in 1926 with a net income of US$4.9 million. However, in the years leading to the Great Depression, weakness in the oil markets contributed to sluggish profits. The aftermath of the market crash aggravated an already unsteady oil industry. In the first quarter of 1930, the company experienced a minor loss. The early years of the Depression were a struggle against wavering demand and overproduction in some regions. Later into the 1930s, financial forecasts for Amerada became more positive.
In December 1941, the company reorganized by merging the holding company and the principal operating subsidiary, Amerada Petroleum Corporation, into a simplified operating company. The new entity also adopted the former subsidiary's name.
In 1955, robust post-war growth grew the company to over US$100 million in annual sales.
In February 2000, Hess acquired the Meadville Corporation and rebranded all 178 Merit gas stations as Hess.[10] The Merit gas station chain was primarily located in the Boston, New York, and Philadelphia markets.
In 2001, Amerada Hess purchased
Similarly in 2001, Amerada Hess entered into a
Following on the heels of the Triton purchase, energy prices fell and global economies weakened. Amerada Hess struggled through the following years, and in 2002 posted a US$218 million loss due primarily to a US$530 million charge relating to its write-down of the Ceiba oil field. In March 2002, TXU Europe bought the UK retail gas and electricity business of Amerada Hess.[14][15] However, from 2003 through 2006, Amerada Hess posted steadily increasing profits as the company reported US$1.920 billion in net income.[16]
In May 2006, Amerada Hess Corp. changed its name to Hess Corp.[17]
On January 18, 2012, the company announced that it would close the
By the end of February 2013, Hess permanently closed its Port Reading, New Jersey petroleum refinery. Gas prices had risen to their highest levels since October 2012 and Hess said it would lay off 170 of 217 employees at the plant, exit the refinery business and look for a buyer for its 19 storage terminals. The company decided that going forward, it would focus on exploration and production.[18] A Hess press release[19] announced the company's plans for "Fully exiting the Company's downstream businesses, including retail, energy marketing, and energy trading."[20] There was no link between the announcement of the closing of the Woodbridge (Port Reading) NJ facility and the rise in gas prices afterwards, as the output of that facility was more geared to the aviation and specialty fuels markets and not automotive grade products.
On March 4, 2013, Hess announced that it would sell its domestic refineries and retail operations. The New York Times reported that Hess retail and refinery operations contributed about 4 percent of the company's revenue. It also noted that Hess would sell its holdings in Indonesia and Thailand.[21] The company would focus exclusively on oil production, following a trend in the oil industry for companies to spin off their downstream assets and focus on their more profitable upstream business; ConocoPhillips and Marathon Oil also made similar spinoffs in recent years with Phillips 66 and Marathon Petroleum, respectively.
In April 2013, Hess Corp announced it would be selling its Russian unit to Lukoil for $2.05 billion.[22] In July 2013, Hess Corp said it would sell its energy marketing unit to UK firm Centrica for around $1.03 billion.[23]
In October 2013, Hess Corp announced plans to sell its East Coast and St. Lucia storage terminal network to Buckeye Partners LP for $850 million.[24]
In December 2013, Hess Corp announced that it was selling its Indonesian assets to an Indonesian petroleum consortium.[25]
On January 8, 2014, Hess filed for a tax-free spin-off of its gas station network. The newly formed company was to be known as Hess Retail and would include over 1,200 stores throughout the Eastern United States. The transaction completed the transformation of Hess into an energy company focused solely on exploration and production, effectively reversing the Amerada merger of almost 50 years prior.
In 2014, Hess completed a multi-year transformation to be recognized as an exploration and production company by exiting all downstream operations, generating approximately $13 billion from assets sales beginning in 2013.
In October 2023, Chevron Corporation announced that it will acquire Hess Corporation in an all-stock deal for $53 billion, or $60 billion including debt.[31][32]
Environmental record
On October 28, 1990, The New York Times reported that a barge containing 31,000 barrels (4,900 m3) of kerosene struck a reef in the Hudson River, spilling 163,000 US gallons (620 m3) of fuel.[33] Immediately, Hess assumed responsibility for the cleanup; the Coast Guard worked alongside the Red Star company to clean and to contain the spill to one area. Coast Guard official Mr. Holmes said "The weather and wind conditions are almost as close to perfect as they could get," and this contributed to a quicker and surer cleanup than would otherwise be the case. According to The New York Times, Mr. Holmes also said that 70 percent of the spill would be gone in three days due to the natural evaporation rate of kerosene. Even though most kerosene evaporates, toxic chemicals such as benzene stay in the water and harm certain fish. Hess claimed that their corporate policy has "long stressed" their "fundamental commitment to comply with applicable environment, health and safety laws and regulations," and they claimed to clean every spill that occurred.[34][35]
Following a New York State Department of Environmental Conservation (DEC) agreement, the Hess Corporation would pay $1.1 million in fines and also "bring 65 gasoline stations and oil storage facilities into compliance with state requirements." The agreement addressed more than 100 violations at 65 gas stations and Hess's Brooklyn major oil storage facility. The agreement was aimed at resolving Hess's violations in the DEC's New York City and lower Hudson Valley regions.[36]
In a recent water contamination case against several major US oil companies, the Hess Corporation was forced to pay part of a $422 million settlement. The case was filed by 153 public water providers in 17 states against the oil companies "over drinking water contamination caused by the gasoline additive Methyl Tertiary Butyl Ether (MTBE)." The settlement also stipulated that the settling parties pay their share of treatment costs of the plaintiff's wells that may become contaminated or require treatment for the next 30 years.[37]
Hess outlined in their 2006 Corporate Sustainability Report a "four-element" strategy to reduce and control greenhouse gas emissions. The strategy's steps included monitoring, measuring, managing, and mitigating the emissions. The company intended to improve its environmental impact through reporting results, increasing energy efficiency and recovery, and participating in carbon capture and trading.[38]
Locations
Before the March 4, 2013 announcement of its withdrawal from refining and retail sales of petroleum products, Hess operated gas stations in Alabama, Arkansas, Connecticut, Delaware, District of Columbia, Florida, Georgia, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, and Virginia.
In May 2014,
In 2021,
As of 2018, Hess locations remain in select states including Connecticut.[42]
See also
- Alaska v. Amerada Hess
- Hess Corporation (toys)
References
- ^ a b c d e f "Hess Corporation 2022 Annual Report". U.S. Securities and Exchange Commission. 24 February 2023.
- ^ "2023 Proxy statement". U.S. Securities and Exchange Commission. 6 April 2023.
- ^ "Hess Corporation – A Leading Energy Company". www.hess.com. Retrieved 2 April 2018.
- ISSN 0362-4331. Retrieved 2021-01-21.
- ^ "Chevron to buy Hess Corp for $53 billion in all-stock deal". Retrieved 2024-02-19.
- ^ "Fortune 500 Companies 2017: Who Made the List". Fortune. Retrieved 2 April 2018.
- ^ "Forbes Global 2000". Forbes. Retrieved 31 October 2020.
- ^ "Hess Corporation – Hess Operations Map". www.hess.com. Retrieved 2 April 2018.
- ISBN 978-1-57311-120-1.
- ^ "Metro Business; Amerada Hess to Expand". Bloomberg News. 15 February 2000 – via The New York Times.
- ^ Mote, Dave. "Triton Energy Corporation". Answers.com. Archived from the original on 2011-08-10. Retrieved 2010-12-28.
- ^ "Amerada Hess To Acquire Triton Energy For $45 Per Share In Cash" (Press release). Amerada Hess. 2001-07-10. Retrieved 2010-12-28.
- ^ Craver, Richard (September 28, 2015). "Speedway conversion of Triad WilcoHess stores under way". Winston-Salem Journal. Retrieved September 28, 2015.
- ^ "TXU buys Amerada Hess' U.K. retail business". Dallas Business Journal. 1 March 2002.
- ^ Harrison. Michael (2 March 2002). "TXU pays £117m for Amerada unit". The Independent.
- ^ "Hess Corporation: Investor Relations Annual Reports". Phx.corporate-ir.net. Retrieved 2010-12-28.
- ^ "Amerada Hess Changes Name to Hess Corporation and Announces Three-for-one Stock Split; Company's Stock to Commence Trading Under Symbol HES on May 9, 2006". Archived from the original on January 11, 2016. Retrieved August 12, 2011.
- ^ "Closure of Hess' Port Reading refinery means layoffs for 170 employees". NJ.com. 29 January 2013.
- ^ Hess Announces Culmination of Transformation Into Pure Play E&P Company http://phx.corporate-ir.net/phoenix.zhtml?c=101801&p=irol-newsArticle&ID=1791659&highlight=
- ^ Announced Closure of Hess Corp.'s Port Reading Refinery Not Seen Having Major Impact On Gasoline Markets "Announced Closure of Hess Corp.'s Port Reading Refinery Not Seen Having Major Impact on Gasoline Markets - Analysis | Eurasia Review". Archived from the original on 2014-05-31. Retrieved 2013-03-06.
- ^ De La Merced, Michael J. New York Times. "Hess to Sell Gas Stations as Part of a Shift in Strategy." March 4, 2013. Retrieved March 6, 2013.[1]
- ^ Michael Erman and Vladimir Soldatkin (1 April 2013). "Hess Corp to sell Russian unit to Lukoil for $2.05 billion". Reuters.
- ^ Swetha Gopinath and Sarah Young (30 July 2013). "Hess to sell Energy Marketing unit to UK's Centrica for $1.03 billion". Reuters.
- ^ Michael Erman and Matthew Robinson (9 October 2013). "Hess to sell storage terminal network to Buckeye for $850 million". Reuters.
- ^ "Hess Corp selling Indonesia assets for 13 billion". Motley Fool. 2 December 2013.
- ^ "Hess Files for Tax-Free Spin-off of Gas-Station Network". Bloomberg. 2014-01-08. Retrieved 2014-05-01.
- ^ "Hess stations to fly 'Speedway' banner after sale to Marathon Petroleum for $2.87 billion". Associated Press. 22 May 2014.
- ^ "Hess Announces Sale of Retail Business to Marathon Petroleum Corporation for $2.6 Billion". Hess Corp. Retrieved 24 May 2014.
- ^ "Hess History – Hess Corporation". www.hess.com. Retrieved 2 April 2018.
- ^ Hartree. "About – Hartree Partners, LP". www.hartreepartners.com. Archived from the original on 4 April 2019. Retrieved 2 April 2018.
- ^ "Chevron to Buy Hess for $53 Billion in Latest Oil Megadeal". Bloomberg. 23 October 2023. Retrieved 23 October 2023.
- ^ "Chevron to buy Hess Corp for $53 billion in all-stock deal". Reuters. October 23, 2023.
- ^ Foderaro, Lisa (28 October 1990). "A Barge Accident Spills Kerosene Into Hudson". The New York Times. Archived from the original on 14 November 2016. Retrieved 17 January 2021.
- ^ Yes on Proposition 89 (2006-09-22). "Big Oil Throws Down Against Proposition 89". Proposition89.blogspot.com. Retrieved 2010-12-28.
{{cite web}}
: CS1 maint: numeric names: authors list (link) - ^ Hess Corporation: 2006 Archived July 17, 2007, at the Wayback Machine
- ^ NYSDEC – New York State Department of Environmental Conservation (2008-03-04). "Hess fined $1.1m for Hudson River estuary pollution". Environmental-Expert. Archived from the original on 2012-07-30. Retrieved 2010-12-28.
- ^ "Dallas law firm Baron & Budd wins $422 million water contamination lawsuit". Pegasus News. 2008-05-11. Archived from the original on 2011-09-30. Retrieved 2010-12-28.
- ^ "2006 Corporate Sustainability Report" Accessed May 12, 2008 Archived July 14, 2007, at the Wayback Machine
- ^ "Latest Pilot, Speedway JV Builds on History". CSP. June 23, 2016. Retrieved November 3, 2016.
- ^ "FTC Confirms 7-Eleven's Divestitures for Speedway Deal".
- ^ "FTC Orders the Divestiture of Hundreds of Retail Stores Following 7-Eleven, Inc.'s Anticompetitive $21 Billion Acquisition of the Speedway Retail Fuel Chain". June 25, 2021.
- ^ "Hess (Southington, Connecticut)". Flickr. 2018-04-08. Retrieved 2018-05-11.
External links
- Official website
- Amerada Petroleum Corporation records are archived at the American Heritage Center, University of Wyoming.
- Business data for Hess Corporation: