This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hess Corporation Issues Letter To Shareholders

Hess Corporation (NYSE: HES) (“Hess”) today issued the following letter to all Hess shareholders in connection with the Company’s multi-year transformation to a pure play exploration and production (“E&P”) company and its 2013 Annual Meeting scheduled to be held on May 16, 2013.

For information about Hess’ transformation and the 2013 Annual Meeting, please visit:

The text of the March 4 letter follows:

Dear Fellow Shareholder:

The 2013 Annual Meeting will be important for Hess and all our shareholders.

Your Board and management have been transforming Hess into a more focused, pure play exploration and production (“E&P”) company. The strategy has been working well, creating near term value and positioning us to drive returns over the long term.

Indeed, now more than halfway through our transformation, the market has been recognizing our progress. Hess shares significantly outperformed the peer index, rising from $43.93 to $58.90 per share, an increase of 34% in the period between our mid-year strategy update on July 25, 2012 and the January 28, 2013 announcement of our planned terminals sale. On Friday, March 1, our shares closed at $66.54 per share. Operating performance has also been strong. 2012 cash flow from operations was the highest in our 80 year history and 2012 net income was our third highest.


This morning we announced actions that represent the culmination of our multi-year transformation into a pure play E&P company. The transformed Hess will have a focused portfolio of higher growth, lower risk, oil linked E&P assets that we anticipate will deliver 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 all shareholders. Specific announcements today include:
  • Fully exiting our downstream businesses, including retail, energy marketing, and energy trading
  • Further focusing our E&P portfolio by divesting Indonesia and Thailand
  • Pursuing monetization of Bakken midstream assets, expected in 2015
  • 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 program authorization of up to $4 billion, with amount and timing tied to proceeds from our asset sale program
  • Adding six new world class independent directors with the right mix of corporate leadership, operational and financial expertise, and top level E&P experience


Starting in 2010, we began taking decisive actions to grow the value of our world class asset base by focusing on the exploration and development of our most promising lower risk, higher growth, oil linked E&P assets.

1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs