Hess Corporation (HES) recently announced certain management changes to speed up its global growth. The change includes promotion to the position of Vice President.
Per the announcement, Eric Fishman was elevated to the post of Vice President & Treasurer of Hess Corporation effective Sep 1. Fishman, who earlier was Treasurer, Marketing and Refining, joined Hess in 2007 as Assistant Treasurer, Capital Markets. His earlier stint was with Cendant Corporation and Becton Dickinson and Company (BDX).
Fishman succeeded Robert Biglin who was transferred to become Vice President, Corporate Finance, focusing on finance activities in support of Hess’ corporate transformation to a pure-play E&P company.
New York-based Hess Corporation is an integrated energy company engaged in oil and gas exploration, production and refining as well as marketing.
Hess, however, remains on track with its transition to a pure play E&P company while boosting shareholder value, much like ConocoPhillips (COP) and Marathon Oil Corporation (MRO).
The company has already divested its subsidiary in Russia and its interests in the Beryl area fields in the United Kingdom North Sea, the Azeri-Chirag-Guneshli fields offshore Azerbaijan and the Eagle Ford assets in Texas. In this regard, the company has brought home $3.5 billion through asset sales to date. The downstream businesses yet to be divested consist of terminal, retail and trading operations.
Going forward, we believe that the company’s strong exploration upside in Ghana and continued improvement in Bakken productivity hold a lot of promise. This would help the company to consistently deliver 5–8% annualized production growth in the near future.
The company has also announced that it would resume share repurchases under its pre-existing $4 billion authorization and implement a 150% dividend hike in the third quarter of 2013. All these endeavors would undoubtedly add to shareholder value.
Hess shares currently retain a Zacks Rank #3, which translates into a short-term Hold rating.
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