Hess Corp. (NYSE:HES) made a pair of announcements on Monday that sent the stock up as much as 6.4 percent in afternoon trading. First, the company announced that it would pursue the sale of its terminal network in the United States, and complete the closure of its refinery in Port Reading, New Jersey. Second, Hess reported that hedge fund Elliot Associates notified the company of its intent to purchase as much as $800 million in shares and nominate candidates for election to the board.
“The terminals sale, when complete, should release approximately $1 billion of working capital in addition to the proceeds from the transaction,” said chairman and CEO John Hess in a statement regarding the first announcement.
Hess operates a network of 19 terminals with a combined storage capacity of 28 million barrels. Once upon a time, the terminals were used to supply Hess’s retail and energy marketing business, but the availability of third-party refined products and the closure of the company’s HOVENSA refinery have made the terminal system unnecessary.