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NEW YORK -- Hess Corp. will exit the refining business and pursue the sale of its 20 oil service terminals in the United States and the Caribbean.
According to a Hess news release, selling the 20 terminals will release approximately $1 billion of working capital for redeployment to fund "Hess' future growth opportunities."
Hess will officially exit the refining business when it closes its Port Reading, N.J., refinery at the end of February.
"By closing the Port Reading refinery and selling our terminal network, Hess will complete its transformation from an integrated oil and gas company to one that is predominantly an exploration and production company and be able to redeploy substantial additional capital to fund its future growth opportunities," said John Hess, the company's chairman and CEO.
Despite the large shift in its business portfolio, Hess stressed that it will "continue its long-term commitment" to its convenience store and gas station operations.
Hess retained Goldman Sachs Group Inc. as financial advisor for the divestiture of its terminal network.
Hess is expected to discuss its refinery exit and future terminal network sale more extensively during its 2012 fourth-quarter earnings conference call, scheduled to take place on Jan. 30 at 10 a.m. Eastern Standard Time.