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Disposition
12 Months Ended
Dec. 31, 2019
Disposition Of Businesses [Abstract]  
Dispositions

3.  Dispositions

2019:  We completed the sale of our remaining acreage in the Utica shale play in eastern Ohio for proceeds of $22 million, after normal closing adjustments, and recognized a pre-tax gain of $22 million ($22 million after income taxes).

2018:  We completed the sale of our joint venture interests in the Utica shale play in eastern Ohio in August for proceeds of $396 million, after normal closing adjustments, and recognized a pre-tax gain of $14 million ($14 million after income taxes).  In addition, we completed the sale of our interests in Ghana for total consideration of $100 million, consisting of a $25 million payment that was received at closing and a further payment of $75 million that is payable to us upon the buyer receiving government approval for a Plan of Development on the Deepwater Tano Cape Three Points Block.  The receipt of proceeds at closing resulted in a pre-tax gain of $10 million ($10 million after income taxes).  

2017:  We completed the sale of our enhanced oil recovery assets in the Permian Basin in August for proceeds of $597 million, after normal closing adjustments, and recognized a pre-tax gain of $273 million ($280 million attributable to Hess Corporation after income taxes and noncontrolling interests).  This sale transaction included both upstream and midstream assets resulting in an after-tax gain of $314 million allocated to the E&P segment, and an after-tax loss of $34 million allocated to the Midstream segment.  In November, we completed the sale of our interests in Equatorial Guinea for proceeds of $449 million, after normal closing adjustments, which resulted in a pre-tax gain of $486 million ($486 million after income taxes).  In December, we completed the sale of our interests in the Valhall and Hod assets, offshore Norway for proceeds of $2,056 million, after normal closing adjustments, which resulted in a pre-tax loss of $857 million ($857 million after income taxes).  This loss included the recognition of cumulative translation adjustments totaling $900 million in earnings that were previously reflected within Accumulated Other Comprehensive Income (Loss) in Stockholders’ Equity.  We also sold certain U.S. onshore assets for proceeds totaling approximately $194 million and recognized net pre-tax gains totaling $12 million ($12 million after income taxes).


 

Pre-tax income (loss) associated with our interests in Equatorial Guinea and Norway, excluding the financial statement impacts resulting from the asset sales in 2017, were as follows for the three years ended December 31:

 

 

2019

 

 

2018

 

 

2017

 

 

 

(In millions)

 

Equatorial Guinea (a)

 

$

 

 

$

 

 

$

69

 

Norway (b)

 

 

 

 

 

 

 

 

(55

)

Income (Loss) from Continuing Operations Before Income Taxes

 

$

 

 

$

 

 

$

14

 

(a)

Pre-tax income for 2017 excludes the gain of $486 million related to sale of our assets in November 2017.

(b)

Pre-tax loss for 2017 excludes the loss of $857 million related to sale of our assets in December 2017.  In addition, the 2017 loss excludes a pre-tax impairment charge of $2,503 million associated with the disposition.