Hess Energy Marketing Business Sale Bumped Up To $1.2 Billion

Purchased the Energy Marketing business that supplies natural gas and electricity in the eastern half of the U.S.

Hess Corp. (NYSE: HES) announced Nov. 1 it has completed the sale of its Energy Marketing business to Direct Energy, a North American subsidiary of Centrica plc, for $1.2 billion.

Hess announced in January that it had agreed to sell the business for $1.025 billion. The proceeds were higher than originally announced due to increased working capital at closing. The Energy Marketing business supplies natural gas and electricity to 23,000 commercial, industrial and small business customers in the eastern half of the United States.

John B. Hess, CEO, said in July that the Energy Marketing business was built on long term relationships with customers.

The transaction is part of Hess’ plan to exit the entirety of its downstream business as it transforms into a pure play E&P company with a portfolio of focused, high growth and lower risk assets.

Hess continued trimming assets in October, agreeing to sell its U.S. East Coast and St. Lucia terminal network for $850 million cash.

The sales bring total year-to-date divestitures to about $5.6 billion.