Oil and gas producer Hess, which over the last few years has remade itself into an exploration and production company, shedding millions of dollars in assets, reportedly is seeking buyers for its Utica Shale play assets.
The New York-based explorer is working with Goldman Sachs to solicit bids for the assets, which could bring in up to $500 million, Kallanish Energy understands.
The asset for sale is the company’s 50% stake in its joint venture with Consol Energy. In the Utica, Hess has a 50% working in 45,000 acres, with net production in 2015 between 20,000 and 25,000 barrels of oil-equivalent per day. It reduced its active rigs in the region to one from two.
Representatives for Hess and Goldman Sachs declined to comment.
Hess, once an integrated energy company, has been remaking itself into an E&P since settling a proxy battle in 2013 with activist investor Elliott Management. It sold its gas-station network and is spinning off its pipeline operations.
The company sold some Utica assets last year for more than $1 billion.
Hess’ largest holding in the Lower 48 States is in the Bakken Shale in North Dakota, where it had eight active rigs drilling on 600,000 acres during the second quarter, according to September investor presentation.
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