Hess Corporation (NYSE: HES) disclosed that it has decided to divest its unit Hess Denmark ApS. The firm has inked an agreement to sell the Denmark assets with Ineos E&P AS for a total payment of $150 million. Its subsidiary owns 61.5% interest in the South Arne Field.
It has been revealed that in the Q4 of 2020, the South Arne Field delivered an average of 5,800 barrels of oil equivalent per day net to Hess. The sale is anticipated to execute in the Q3 of 2021, dependent on the administration authorizations and fulfillment of certain traditional execution conditions.
CEO of Hess commented: “The divestiture of our Denmark asset allows us to further concentrate our portfolio and reinforce our cash and liquidity position. Profits will be used to finance our world-class investment opportunity in Guyana."
Shares of Hess (NYSE: HES) went down -0.25% at $70.67 during the pre-market trading session of Thursday. The firm has recorded the 52-week low range of $26.26 and a 52-week high range of $76.24. Its share went up 171.87% from its 52-week low and went down to -7.07% from its 52-week high. Hess has a total market capitalization of $21.96 billion at the time of writing.