Hess Names Six New Independent Directors, USA
Hess Corporation announced several initiatives marking the culmination of its multi-year strategic transformation into a pure play exploration and production (E&P) company. The company also announced a slate of five highly qualified independent director nominees for election at this year’s Annual Meeting, and appointed an additional independent director who will stand for election at the 2014 Annual Meeting.
Once complete, the transformed Hess will have a focused portfolio of higher growth and lower risk E&P assets. With attractive, oil linked reserves, Hess anticipates achieving a five year compound average annual production growth rate (CAGR) of 5 to 8%, based off of pro forma 2012 production, with aggregate mid-teens production growth between pro forma 2012 and 2014, while increasing returns to shareholders. Specific announcements today include:
- Further focusing Hess’ E&P portfolio by divesting Indonesia and Thailand
- Pursuing monetization of Bakken midstream assets, expected in 2015
- Fully exiting the Company’s downstream businesses, including retail, energy marketing, and energy trading
- Returning capital directly to shareholders through an increase in the annual dividend to $1.00 per share commencing in the third quarter of 2013, and a share repurchase authorization of up to $4 billion tied to the timing of asset sales
- Naming six new world class independent directors with the right mix of corporate leadership, operational and financial expertise, and top level E&P experience
John Hess, Chairman and CEO of Hess, said, “Our Board and management team have been pursuing a multi-year strategy to transform Hess into a focused E&P company. The initiatives announced today represent the culmination of this process. By 2014, Hess will be a pure play E&P company with a tremendous portfolio comprised of higher growth, lower risk assets. We believe we will have the financial flexibility to pursue this growth at the same time that we increase current returns to shareholders and generate significant future value.”
Further, as part of its governance review, Hess has named six new independent directors to its Board who bring the right mix of proven corporate leadership, operational and financial expertise, and top level E&P experience. Collectively, they will provide additional perspective, experience, and guidance to management that will benefit all Hess shareholders and complement the strengths of existing Board: John Krenicki Jr., Former Vice Chairman of GE, President and Chief Executive Officer of GE Energy; Dr. Kevin Meyers, Former Senior Vice President of E&P for the Americas, ConocoPhillips; James H. Quigley, Former Chief Executive Officer, Deloitte; Fredric Reynolds, Former Executive Vice President and Chief Financial Officer, CBS Corporation; William Schrader, Former Chief Operating Officer, TNK-BP Russia; Dr. Mark Williams, Former Executive Committee Member, Royal Dutch Shell.
With these changes, 13 of the 14 Board members will be independent.
Hess continued: “Nicholas F. Brady, Thomas H. Kean, Frank A. Olson, Samuel A. Nunn, Gregory P. Hill and F. Borden Walker will be leaving our Board. They have been outstanding directors who have served with distinction, and they deserve significant credit for helping to transform Hess. The fact that we now possess some of the most attractive oil assets in our industry is, in large part, due to their strategic leadership and commitment to our transformation. They have my most sincere gratitude and respect, and I want to thank them publicly for their service and many invaluable contributions to Hess over the years.”
LNG World News Staff, March 04, 2013