AST Ascent Resources Plc

   By Aisha Al-Muslim 
 

Oil-and-gas companies Hess Corp. (HES) and CNX Resources Corp. (CNX) have agreed to sell assets part of their joint venture in the Utica shale play in eastern Ohio to Ascent Resources-Utica LLC for about $800 million.

In separate deal announcements Hess and CNX each said they would sell their 50% interest in the venture for approximately $400 million. The transactions are retroactive to April 1, the companies said Friday.

Oklahoma City-based Ascent Resources LLC, which conducts business through Ascent Resources-Utica LLC, provides oil and gas exploration and production services on the Utica Shale Play in eastern Ohio.

The divestiture consists of about 39,000 net acres, including about 26,000 net undeveloped acres. The divested assets are located in the wet gas Utica Shale areas of Belmont, Guernsey, Harrison and Noble counties.

Hess said the divestiture is part of efforts to shed lower return and noncore assets. The company said proceeds from sale will be used to invest in Hess's "higher return growth opportunities" in Guyana and the Bakken shale formation. It will also be used fund the company's previously announced share repurchase program.

CNX expects to use the proceeds from the transaction to pay down debt, continue its continuing share repurchase program, invest in drilling and completion activities, or make acreage acquisitions. CNX expects to record a noncash gain of about $135 million in the third quarter of 2018 as a result of the transaction.

Shares of Hess rose 0.7% to $66 and while CNX was unchanged at $17.20 in premarket trading Friday.

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

(END) Dow Jones Newswires

June 29, 2018 08:39 ET (12:39 GMT)

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