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Oil and gas: Hess Corp (HES) (1920)

Hess Corporation (NYSE:HES) was founded in 1920. Its predecessor was Amerada Hess Corp. It was changed to its current name in May 2006. Headquartered in New York, USA, it employs 2,304 full-time employees. , Is an integrated oil company dedicated to the exploration, production, purchase, transportation and sales of crude oil and natural gas, as well as the production and marketing of refined oil and other energy products.

Hess Corporation Logo 1

Hess Corp (HES):

American Hess company Hess is committed to the exploration, production, purchase, transportation, sales and oil refining of oil and natural gas. The scope of exploration business is mainly in the United States, Thailand, Norway, Britain, Denmark and Indonesia. It is the fourth largest oil company in the United States. , Second only to the world’s six largest oil companies in scale .

American Hess Corporation mainly operates in joint development zones in the United States, Denmark, Equatorial Guinea, Malaysia/Thailand, Malaysia and Norway.

As of December 31, 2016, Hess has proven reserves of 1.109 billion barrels of oil equivalent.

History of Hess Corporation:

  • In 1919, British petroleum entrepreneur Lord Cowdray (Lord Cowdray) founded Amerada Corporation (Amerada Corporation) to conduct oil exploration in North America;
  • On February 7, 1920, the company was formally established;
  • In December 1941, Amerada Corporation reorganized and merged its holding subsidiary-Amerada Petroleum Corporation (Amerada Petroleum Corporation) to become a simplified operating company. The new company adopted the name of the former subsidiary;
  • In 1966, the oil refining and marketing company Hess Oil and Chemical (Hess Oil and Chemical) purchased 10% of the Amerada Oil and Gas Group for 100 million US dollars;
  • In December 1968, Amerada and Hess Hess announced their merger. Prior to this (March 1968), the merger plan between Philips Oil and integrated oil firm was rejected by Amerada;
  • In February 2000, Hess acquired the remaining 51% equity of Meadville Corporation and changed its 178 high-performance oil and gas stations to Hess;
  • In 2001, Amerada Hess acquired Triton Energy Limited for US$3.2 billion, which is one of the world’s largest independent oil and gas exploration and production companies in the United States;
  • In May 2006, Amerada Hess was renamed Hess Corp;
  • On January 18, 2012, Hess announced that it would close the Hovensa refinery in St. Croix, U.S. Virgin Islands in mid-February 2012. After the closure, it will continue to be used as an oil and gas storage site;
  • At the end of February 2013, Hess permanently closed the New Jersey refinery;
  • On March 4, 2013, Hess announced that it would withdraw from the energy trading business and the retail and energy markets, and would sell its domestic refinery and retail business. At the same time, it would also sell its Indonesian and Thai refining companies. According to the New York Times at the time : Oil refining and retail business accounted for 4% of Hess’ revenue. After the business is sold, the company will focus on oil production and spin-off its downstream assets, focusing on higher-profit upstream businesses. ConocoPhillips, Marathon Petroleum and Phillips 66 have all recently made similar moves;
  • In April 2013, Hess Corp sold its Russian business to Lukoil for US$2.05 billion;
  • In July 2013, Hess sold its energy marketing unit to the British company Centrica for US$1.03 billion;
  • In October 2013, Hess Corp sold its East Coast and Saint Lucia storage terminal network to Buckeye Partners LP for US$850 million;
  • In December 2013, Hess sold all its Indonesian assets to the Indonesian oil consortium;
  • On January 8, 2014, Hess Corp applied for a tax-free spin-off of its gas station network. The newly spin-off gas station company was named: Hess Retail, which includes 1,200 retail stores (gas stations) in the eastern United States. ;
  • On May 22, 2014, Speedway LLC, a subsidiary of Marathon Petroleum, announced the acquisition of Hess Retail for US$2.87 billion. All Hess stations will be changed to Speedway stations by the end of 2017. This sale reduces the number of Hess’ employees from 12,225. To 3045 people.

Investment of Hess Corp (HES):

It can be seen from the above history that Hess has only sold but not bought since 2013, and has begun to shrink to cope with the decline in oil prices since 2014. Compared with the continuous expansion of a certain oil and a petrochemical company in recent years, it has acquired Canada, the United States, and the Middle East. As far as many oil fields are concerned, I don’t know how many ranks higher. The strange thing is that a certain oil has a market value of several trillion yuan, and its price-earnings ratio can reach 40 times, while none of the world’s six major oil companies exceeds 20 times. Thus, a stock bubble in a certain country is evident.

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