Hess Announces Sale of Non Strategic Interests in Bakken Acreage
Hess Corporation (NYSE: HES) has agreed to sell its Little Knife and Murphy Creek acreage interests in North Dakota's Bakken for $312 million, effective March 1, 2021. The sale involves approximately 78,700 net acres, with net production averaging 4,500 barrels of oil equivalent per day. CEO John Hess stated that this transaction brings substantial value forward and enhances the company's liquidity. The deal is expected to close in May 2021, pending customary conditions.
- The sale will generate $312 million, improving cash and liquidity.
- Approximately 78,700 net acres will be divested, reducing non-core asset holdings.
- Net production from the sold acreage averaged 4,500 barrels of oil equivalent daily, allowing focus on more productive assets.
- The divested acreage was not planned for drilling before 2026, indicating limited immediate future productivity.
Hess Corporation (NYSE: HES) announced today that it has entered into an agreement to sell its Little Knife and Murphy Creek acreage interests in the Bakken in North Dakota to Enerplus Corporation for a total consideration of
The sale consists of approximately 78,700 net acres, which are located in the southernmost portion of Hess’ Bakken position and not connected to Hess Midstream infrastructure. Net production from this acreage averaged 4,500 barrels of oil equivalent per day net to Hess in the first quarter of 2021.
“The Bakken is a core asset in our company’s portfolio,” CEO John Hess said. “Sale of the Little Knife and Murphy Creek acreage – the majority of which we were not planning to drill before 2026 – brings material value forward and further strengthens our cash and liquidity position.”
The sale is expected to close in May 2021, subject to customary closing conditions.
Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information is available at www.hess.com.
Cautionary Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. These forward-looking statements may include, without limitation, the expected timing and completion of the proposed sale and use of proceeds. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: the ability of our contractual counterparties to satisfy their obligations to us, the ability to satisfy the conditions to the proposed sale; contract and other laws, regulations and governmental actions applicable to our business; and other factors described in the Risk Factor section in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission. As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210408005483/en/
FAQ
What is the significance of Hess Corporation's sale of acreage in North Dakota?
What are the key details of Hess Corporation's agreement with Enerplus?
How much production was averaged from Hess Corporation's divested acreage?
When is the expected closing date for Hess Corporation's sale of acreage?
