Direct Energy has completed its acquisition of Hess Corporation’s Energy Marketing Business (HEM).
According to Hess, the total consideration was $1.2 billion. The company has now raised a total of $4.5 billion this year as it divests itself of non-core business to focus on funding drilling-and-exploration.
HEM supplies natural gas and electricity to 23,000 commercial, industrial, and small-business customers in the eastern half of the US.
The combination of HEM and Direct Energy Business creates an industry leading energy marketing organization serving commercial and industrial customers across, North America. The new Direct Energy Business is now the leading natural gas supplier in the Eastern U.S. and the second largest power supplier in the U.S.
As well as natural gas and electricity supply, services include solar installations, compressed natural gas solutions, bill consolidation and management, oil to gas fuel conversions, and demand response programs.
The new organization, which also now combines Direct Energy’s commercial and industrial retail business with the company’s wholesale supply business, will be led by Maura Clark, who assumes the role of president of Direct Energy Business.
Clark headed Direct Energy’s commercial and industrial business prior to the acquisition. “By bringing together the expertise and capabilities of Hess Energy Marketing and Direct Energy Business we will be uniquely positioned to provide a full suite of energy and energy solutions to our customers,” said Clark.
Badar Khan, president and CEO of Direct Energy, added: “We are building on a strong legacy of success in both organizations and bringing like-minded businesses together to drive value for our customers and shareholders.”
Direct Energy is a North American subsidiary of Centrica plc, one of the world’s leading integrated energy companies, and one of North America’s largest energy and energy-related services providers.