Shares of Hess Corp. (NYSE:HES) surged more than 6% in Monday afternoon trading after the oil giant announced that it will dispose of it oil terminal business in the U.S. and shutter its New Jersey refinery.
The moves are part of an effort to raise shareholder value by focusing on oil production and exploration. The company’s U.S. terminal business comprises 19 East Coast terminal facilities with a total storage capacity of 28 million barrels, the Associated Press noted.
Hess indicated that it will shutter its Port Reading, N.J., refinery in February. That facility, which has lost money in recent years and faces financial pressure from tougher environmental regulations, produces gasoline and heating oil components.
The company is also selling it oil storage terminal located on the Caribbean island of St. Lucia.
In addition to the asset sales, Hess announced that private equity firm Elliott Associates is preparing to request regulatory approval to acquire up to an $800 million stake in the company.