Hess Sells Stake in Samara-Nafta - Analyst Blog
02 Aprile 2013 - 5:40PM
Zacks
U.S. energy major Hess Corporation (HES) has
inked an agreement with OAO Lukoil to divest its interest in its
Russian subsidiary Samara-Nafta. The transaction value is estimated
at $2.05 billion.
Hess has a 90% interest in
Samara-Nafta, based on which the total after-tax proceeds to the
company will be around $1.8 billion. The Russian subsidiary’s
current yield is 50,000 barrels of oil equivalent per day in the
Volga-Urals region of the country.
The remaining 10% is held by the
chairman of Russia's Yukos Oil Co. Simon Kukes, who will also sell
his 10% stake to Lukoil. Total after-tax proceeds for the entire
company will be $2 billion.
The closure of the deal is
subject to the customary approval process of the state anti-trust
authorities. Hess intends to file its application for the approval
by mid April.
Hess has been on a divestment
spree since 2012 and has raised about $3.4 billion from the sale of
its assets including the latest one. The assets sold so far consist
of its interests in the Beryl field in the U.K. North Sea, the
Eagle Ford play in Texas, as well as the Azeri, Chirag and Guneshli
fields in Azerbaijan and the associated pipeline.
Hess has being selling assets to
raise proceeds for reducing its debt and strengthening its balance
sheet in view of its lackluster profits and a shareholder
revolt.
Hess remains on track with its
strategy of becoming a purely E&P company while boosting its
shareholder value. In this respect, it may be mentioned that Hess
plans to pursue the sale of 20 oil storage terminals in the U.S.
and the Caribbean and exit its refining business. Further, the
latest sale validates its growing presence as a focused, higher
growth, lower risk pure play exploration and production
company.
Hess holds a Zacks Rank #3
(short-term Hold rating). However, there are other stocks in the
sector that appear rewarding. Among these, Stone Energy
Corporation (SGY), Range Resources
Corporation (RRC) and EPL Oil & Gas,
Inc. (EPL), are expected to perform impressively over the
next few months and carry a Zacks Rank #1 (Strong Buy).
EPL OIL&GAS INC (EPL): Free Stock Analysis Report
HESS CORP (HES): Free Stock Analysis Report
RANGE RESOURCES (RRC): Free Stock Analysis Report
STONE ENERGY CP (SGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Grafico Azioni Energy Partners (NYSE:EPL)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni Energy Partners (NYSE:EPL)
Storico
Da Ott 2023 a Ott 2024