Read as much as you want on BostonGlobe.com, anywhere and anytime, for just 99¢.

Hess, under pressure, to exit retail business

NEW YORK — Hess is getting out of the gas station business and ridding itself of its energy trading and marketing businesses, as it shifts its focus further into exploration and production.

The company will also nominate a slate of six independent directors to its board, replacing six that already hold seats.

Continue reading below

The announcement arrives about a month after the hedge fund Elliott Management, one of the company’s largest shareholders, accused the board of ‘‘poor oversight,’’ and said that the company’s management was responsible for more than a ‘‘decade of failures.’’

Elliott, which holds a 4 percent stake in Hess Corp., is pushing to seat five outsiders on the board.

But Hess rejected Elliott’s nominees in a letter to shareholders Monday, accusing the firm of trying to disrupt progress it has already made in reshaping itself. It said that Elliott has not taken into account how much company shares have risen since it began to shed previous business models.

Hess said the nominees chosen by Elliott would effectively dismantle the company.

Elliott released a statement later Monday saying that while Hess’s moves incorporate parts of its suggestions, they ‘‘fall dramatically short of what’s needed.’’ It touted its own slate of five board nominees, which include four with energy industry experience, and questioned the independence of Hess’ slate, noting that one of the nominees has ties to the Hess family.

Hess shares fell sharply after the recession, as did shares of most energy companies, but the stock began to rebound last summer and on Monday, they hit their highest level almost two years.

Shedding the green and white gas stations that stretch from New Hampshire to Florida, the vast majority of which are owned by Hess rather than franchisees, will allow the company to broaden exploration and production capabilities.

Spokesman Jon Pepper would not elaborate further on the sale.

Hess has 118 gas stations in Massachusetts, a company spokesman said, and though Hess is divesting its retail presence, the brand is strong and it remains “business as usual” at the stores.

Joe Petrowski, chief executive of the Cumberland Farms Gulf Oil Group, a major Northeast fuel distributor, expressed some interest in the Hess businesses, but would not go into specifics.

“I don’t think they’re going to lack for buyers, whether it’s ourselves or another buyer,” Petrowski said. “When a collection of assets like that comes up you’ve almost got to look.”

Gulf took over a number of Exxon stations in 2003 after they were divested during the merger of Exxon and Mobil, and began rebranding them as Gulf stations.

Hess shares rose $2.30, or 3.5 percent, to close at $68.84 Monday, after earlier changing hands as high as $70.

Erin Ailworth of the Globe staff contributed to this report.
Loading comments...

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week