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CLIENT CASE STUDY


Achieving upstream growth through downstream divestment

How Hess refocused its strategy on high-growth upstream assets through downstream divestments

Overview

Hess Corporation sought to divest their US$25 billion downstream businesses and become a pure play exploration and production company.

Despite separate timelines and complicated transactional schedules, Hess met all legal obligations—and generated approximately US$6 billion in additional capital for the company.

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Hess Corporation in brief
Headquartered in New York, with global operations

Headquartered in New York, with global operations 

More than $34 billlion in total assets (at year end 2015)

More than $34 billion in total assets (at year end 2015)1

HESS’ JOURNEY

The challenge
Sell three Hess downstream businesses to three different buyers on independent timelines, all leveraging separate transactional structures, highly complex integrated IT systems and business processes.

Separation
Hess and Accenture supported the delivery of separated and stable assets, including systems, infrastructure, data, and people, allowing Hess to meet the obligations to the buyers for each legal close.

Divestment
In total, the scope of Hess’ downstream divestment included:

  • Energy Marketing: US$6.0 billion annual revenue, with 23,000 customers divested for US$1.2 billion.

  • Terminals: US$7.1 billion annual revenue, with 39 million barrels’ capacity across 20 terminals divested for US$1.75 billion.

  • Retail: US$13.0 billion annual revenue across 1,300 sites divested for US$2.87 billion.

Working with Accenture
Together with established methodologies, cross-disciplined teams and deep industry knowledge, the Accenture team was well equipped for delivering results and adding value across Hess´ Divestiture Program.

The result
With the divestment of the three downstream businesses, Hess can now focus on their upstream business, allowing them to center their capital on higher margin assets to drive increased growth with less risk.

Value Creation
Following the successful divestitures, and in alignment with the Divestiture Playbook, Accenture assessed Hess’ remaining corporate IT infrastructure and launched a corporate systems program to consolidate Hess’s IT portfolio and reduce the overall IT cost to serve.

A POWERFUL COLLABORATION

"Our collaboration with Accenture was integral to the success of The Downstream Divestment program… Our strong relationship allowed for open dialogue, leading to better solutions, and was instrumental in completing our objectives."

Hess Director of IT


Why Accenture

With Accenture’s help, Hess achieved its goal of becoming a pure play E&P company by successfully divesting its three downstream businesses. Keys to the success of this engagement included:

Capabilities and experience in downstream divestitures

Large-scale merger and acquisition (M&A) experience

Cross-discipline professionals from Accenture Strategy and Accenture Technology

A focus on knowledge sharing and collaboration

Access to subject matter advisors in SAP, Cloud, SharePoint, Exchange, Lync, Citrix and Active Directory

Support from Accenture Infrastructure Services

SAP systems experts

Data management and change management expertise

A robust post cutover (Hypercare) strategy to ensure a smooth transition

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Capabilities and experience in downstream divestitures

Large-scale merger and acquisition (M&A) experience

Cross-discipline professionals from Accenture Strategy and Accenture Technology

A focus on knowledge sharing and collaboration

Access to subject matter advisors in SAP, Cloud, SharePoint, Exchange, Lync, Citrix and Active Directory

Support from Accenture Infrastructure Services

SAP systems experts

Data management and change management expertise

A robust post cutover (Hypercare) strategy to ensure a smooth transition

Capabilities and experience in downstream divestitures

A robust post cutover (Hypercare) strategy to ensure a smooth transition

Large-scale merger and acquisition (M&A) experience

Data management and change management expertise

Cross-discipline professionals from Accenture Strategy and Accenture Technology

SAP systems experts

A focus on knowledge sharing and collaboration

Support from Accenture Infrastructure Services

Access to subject matter advisors in SAP, Cloud, SharePoint, Exchange, Lync, Citrix and Active Directory




 

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