The Hess Board of Directors has authorized the purchase of $1.0 billion of Hess common stock by the end of 2018. The newly authorized program is in addition to the $500 million share repurchase program Hess announced in late 2017.
Under the new authorization, the Company will purchase $500 million of common stock through an accelerated stock repurchase (“ASR”) program and $500 million of common stock in the open market by the end of 2018. The amount and timing of the open market repurchases are subject to a number of factors, including Hess’ stock price, trading volume, oil prices and general market conditions. The company intends to fund the repurchases from existing cash and proceeds from announced asset sales.
“We are pleased to be in a position to increase cash returns to shareholders, which remains one of our top priorities and is reviewed regularly by the management team and Board,” CEO
said. “With a continued positive outlook for oil prices, a successful asset sale program, and increased visibility on production growth, cash flows and capital requirements for future phases of development on our Guyanaasset, we can expand the buyback authorization without compromising our ability to fund this world-class investment. We believe that repurchasing our shares represents a highly compelling return opportunity for our shareholders.”