Hess sells Utica dry gas acreage for $924M, part of portfolio reshape


Hess' (HES +0.8%) Q4 income was raised by recent asset sales as the E&P company tries to reshape its portfolio, and Hess announced another sale after the open, agreeing to sell ~74K acres of dry gas acreage in the Utica Shale to an unidentified third party for ~$924M.

Hess says that while its wells in the acreage were productive, the potential returns from such an investment at current and projected natural gas prices no longer justified retaining the acreage as a strategic part of its overall liquids-based asset portfolio.

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Comments (4)
  • Mike Maher
    , contributor
    Comments (2851) | Send Message
     
    That comes to about $12,400/acre. Good news for Antero, Gulfport, CHK, which are all close to that region. The real question is who is the buyer? Im guessing McClendon
    29 Jan 2014, 12:30 PM Reply Like
  • davidjweaver
    , contributor
    Comment (1) | Send Message
     
    any idea who purchased the Utica acreage?
    29 Jan 2014, 01:34 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2851) | Send Message
     
    Nothing yet. Like I said, I'm guessing its McClendon's new venture. Pretty sure any publicly traded company would have disclosed a purchase of that size.
    29 Jan 2014, 04:12 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2851) | Send Message
     
    Wall Street Journal reporting it was McClendon.

     

    http://on.wsj.com/1ey73nL
    29 Jan 2014, 07:26 PM Reply Like
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