Hess Corporation is set to complete its transition into a pure-play exploration and prodution company after agreeing a deal to sell its retail business to Marathon Petroleum Corporation for US$2.6 billion.
Hess says the business unit, Hess Retail, is the largest chain of company operated gas stations and convenience stores along the East Coast with 1,342 locations.
John B. Hess, CEO, said: “The sale of our retail business marks the culmination of our strategic transformation into a pure-play exploration and production company."
The transaction is subject to closing conditions and is expected to be completed before year-end 2014.
Proceeds from the sale will be used for additional share repurchases and the company has increased its existing share repurchase authorization from $4 billion to $6.5 billion. Since the commencement of the program in August 2013, the company has repurchased approximately $2.8 billion in stock.