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
More than $34 billion in total assets (at year end 2015)1
1Hess’ 2015 annual report - http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NjE0NTM1fENoaWxkSUQ9MzI4NzUyfFR5cGU9MQ==&t=1
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.
Hess Director of IT
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
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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