Hess sells energy marketing business to Direct Energy

30 July 2013 17:34  [Source: ICIS news]

HOUSTON (ICIS)--Hess has sold its energy marketing business to Direct Energy, a North American subsidiary of Centrica, for a total consideration of $1.025bn (€769m), the US oil and natural gas company said on Tuesday.

Hess’ sale of the energy marketing business, which supplies natural gas and electricity to the eastern half of the US, is part of the company’s previously announced plan to exit the downstream business and transition into an exploration and production (E&P) company.

“This transaction will transform our B2B [business-to-business] operations in North America, giving us leading positions in business gas and power supply and creating a unique dual fuel business in the US,” said Badar Khan, president and CEO of Direct Energy in a statement. “It marks a significant step towards delivering on our strategy – substantially increasing the scale of our North American downstream business and integrating along the gas value chain – with the aim of doubling the profitability of our North American downstream business over the next 3-5 years.”

The agreement is expected to close in the fourth quarter of 2013.

($1 = €0.75)

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By: Anna Matherne

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