Hess 2014 Annual Report Download - page 17

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22
PART I
Items 1 and 2. Business and Properties
Hess Corporation (the Registrant) is a Delaware corporation, incorporated in 1920. The Registrant with its subsidiaries
(collectively referred to as the Corporation or Hess) is a global Exploration and Production (E&P) company that develops,
produces, purchases, transports and sells crude oil, natural gas liquids, and natural gas with its production operations located
primarily in the United States (U.S.), Denmark, Equatorial Guinea, the Joint Development Area of Malaysia/Thailand (JDA),
Malaysia, and Norway.
In the first quarter of 2013, the Corporation announced several initiatives to continue its transformation into a more
focused pure play E&P company. These initiatives represented the culmination of a multi-year strategic transformation
designed to deliver long-term, cash generative growth and increase returns to stockholders by focusing on lower risk, higher
growth unconventional assets, exploiting existing discoveries by leveraging offshore drilling and project development
capabilities, and executing a smaller, more targeted exploratory program.
As part of its transformation, the Corporation sold over the reporting period of 2012 through 2014 mature or lower margin
E&P assets in Azerbaijan, Indonesia, Norway, Russia, Thailand, the United Kingdom (UK) North Sea, and certain interests
onshore in the U.S. In addition, the transformation plan included fully exiting the Corporation’s Marketing and Refining
(M&R) business, including its terminal, retail, energy marketing and energy trading operations, as well as the permanent
shutdown of refining operations at its Port Reading facility. HOVENSA L.L.C. (HOVENSA), a 50/50 joint venture between
the Corporation’s subsidiary, Hess Oil Virgin Islands Corp. (HOVIC), and a subsidiary of Petroleos de Venezuela S.A.
(PDVSA), had previously shut down its U.S. Virgin Islands refinery in January 2012 and continued operating solely as an oil
storage terminal through the first quarter of 2015. See Item 3. Legal Proceedings. As of December 31, 2014, all downstream
businesses were sold or shut down except for the energy trading joint venture, HETCO, which was sold in February 2015,
and HOVENSA, which will be shut down in the first quarter of 2015.
See also the Overview in Management’s Discussion and Analysis of Financial Condition and Results of Operations.