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Hess Corp. completes sale of Samara-Nafta to Lukoil for $2.05B

Hess Corporation (HES) has completed the sale of 100% of its Russian subsidiary Samara-Nafta to OAO LUKOIL (LUKOY) for a total consideration of $2.05B. Including working capital and other adjustments, total after tax proceeds to Hess based on its 90% interest in Samara-Nafta were approximately $1.9B. Hess’ total year-to-date proceeds from completed and announced asset sales amount to approximately $3.5B. As previously announced, the company is applying these proceeds to repay outstanding short-term debt and strengthen its balance sheet, providing the financial flexibility to fund future growth. The company is also currently engaged in separate processes to divest its exploration and production assets in Indonesia and Thailand, as well as its remaining downstream businesses, including terminals, retail, energy marketing and trading. Most of the proceeds from these additional sales will be used to return capital directly to shareholders. Hess anticipates that it will begin to repurchase shares under its existing $4B authorization in the second half of this year.