Hess Energy Trading Company LLC, a leading global marketer and trader of energy commodities including power and natural gas, announced that an affiliate of funds managed by Oaktree Capital Management L.P., a global alternative investment management firm, is acquiring the interest in the firm held by Hess Corporation.

HETCO, which will be renamed in due course, is led by Stephen Hendel and Stephen Semlitz, founding partners, and Guy Merison, partner, all of whom will remain in their current positions. Following the close of the transaction, Oaktree will be the only outside investor in HETCO.

Under the terms of the transaction, Oaktree will provide initial working capital to HETCO. In addition, Oaktree has committed up to $500 million of additional capital for HETCO to make potential new investments in the commodity space. Other financial terms of the transaction were not disclosed. The transaction is expected to close in the first quarter of 2015.

Stephen Semlitz said, "Oaktree’s investment in HETCO will allow us to build on our existing successful activities in the energy space and expand our business across various commodities markets. In particular, access to additional investment capital will provide us an incremental capability to strategically expand our reach and portfolio."

Tags:
Hess Energy Trading   Oaktree Capital Management   M&A  

Comment on this story


ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com
Energy-Regulatory-Specialist -- Other -- Other
More Stories on RetailEnergyX.com:
FT: Mitsubishi-Backed Retail Supplier 'Prepares Bid' For International Retail Supplier With U.S. Arm
Shell Acquiring 250,000 Customers From U.K. Supplier;' Octopus Acquiring 580,000 Customers
UK Retail Supplier With US Affiliate In Talks To Secure 'New Funding'; Wholesale Prices Challenge
NRG To Trim Costs, Reviews Retail Pricing Structure After Direct Energy Acquisition '
PSEG to Acquire 25% Ownership Interest in Ocean Wind