Recent headlines announced Hess Corporation is exiting its 1,350 filling stations
to concentrate on oil exploration and production but are they ending Hess toy trucks? Could we lose an American toy icon and significant piece of American culture and gift giving for children? You can relax for now, as for the 2013 Hess toy truck is scheduled to be released as usual in time for Thanksgiving at participating Hess convenience stores. “The toy trucks are still for sale
, and we are offering a great price for gas,” Moynihan of Hess said. “We have no plans to stop doing that.” Collectors are concerned beyond 2013 for their cherished miniature collectibles.
According to recent articles
New Jersey based Hess Corporation
is planning to sell off its filling station across the Northeast so that they can concentrate on exploration and production of crude oil and natural gas. This should transform Hess into a company that provides long term shareholder value. The company is said to concentrate on developing shale oil fields in North Dakota and Ohio, and oil fields in Norway, as well as the Gulf of Mexico, Malaysia and Ghana. In addition Hess plans to further boost shareholder value by buying back nearly $4 billion in stock and more than doubling its annual dividend to $1 a share.
John Rielly, the SVP and CFO of Hess said on a conference call with investors that Hess expects to complete the divestitures by the end of 2014. The strategy is to pay off some $2.5 billion dollars of debt while building a $1 billion in cash reserve and fund planned capital projects. This announcement is consistent with striping away assets from the company formed by Leon Hess in 1933. Mr. Hess’s son John announced in January that it would close its last refinery and seek buyers for the 19 oil storage terminals to facilitate becoming predominantly a crude exploration and production company.