Hess to Rid Itself of Its Retail Gas Station Businesses

The Woodbridge-based oil business will now divest itself of 1,350 gas stations, many of which operate in New Jersey and 17 other Eastern Seaboard states.

The familiar green and white Hess signs that dot the Woodbridge landscape and much of New Jersey may soon be no more.

Hess Corporation announced Monday in a letter to shareholders at their annual meeting that it was divesting itself of its retail gasoline and convenience store operations, in an effort to restructure the company and improve its balance sheet.

The move will affect 1,350 gas stations - many owned by Hess itself - that operate in 18 states on the Eastern Seaboard. The gas stations serve as many as 1.3 million customers a day, according to a report in Supermarket News.

Hess did not say when it would begin either closing or selling off its gas stations, although a press release accompanying the news said that their closure, along with other moves to improve the company's bottom line, would be instituted by 2014.

The divesting of the company's gas station arm is part of a multi-year effort of Hess to "transform" itself into an oil 'exploration and production' firm, as stated in the release.

The changes began in January, when Hess announced it would be permanently shutting its oil refineries, including the one located in the Port Reading section of Woodbridge. Hess said it was leaving the gasoline refining business because of weak demand and the cost of complying with E.P.A. regulations.  

The refinery was closed at the end of February.

The Hess retail marketing division and company headquarters is located in the Hess corporate headquarters building on Route 9 in Woodbridge. The firm has said that the structure, an iconic landmark in the township, will remain open despite the divestiture of its various enterprises. 

unknownauthor March 06, 2013 at 04:35 PM
Does anyone think the changing situation in Venezuela had any influence on Hess' decision to close its refineries and retail outlets?
unknownauthor March 06, 2013 at 04:43 PM
Really. All middle east owners/operators. So who owns CITGO Petroleum? Go to: http://www.citgo.com/Home.jsp to find a station near you!
mrlargejoe March 08, 2013 at 11:19 PM
The main reason Hess is getting out of the retail is because of a hedge fund raider by the name of elliot group Paul Singer the bought up 900 millon dollars of Hess stock worth 5% Mr Hess owns 10% Singer got other stock holders to go along with him he felt the stock should be worth more than 67,00 a share without the retail and other low money investments he could take the company to 126 a share .Also moved in 5 new board members there is more money in finding oil and production this about corperate greed .The Hess stores will be there under another name or they will spin off from the parent co.
john f. nassour sr. March 15, 2013 at 01:02 PM
i own a hess station , for 40 years, the best company ever, mr john hess, will do the right thing, as he and father always does, john hess,will not let this happen,be patient,hess stations will be around a while
Ryan April 14, 2013 at 06:49 AM
So why is it in NYC (specifically Queens and Bklyn), HESS is far and away the cheapest gas using a credit card purchase?


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