Starting in January 2008 New York-based energy company Hess Corp. will be serving up more than just fuel at gas-convenience stores throughout the Southeast. The company has partnered with Dunkin' Donuts to offer self-service coffee, hot chocolate and donuts at about 175 Hess retail locations in Florida, North Carolina, South Carolina and Virginia.
The move is an opportunity for the company to grow its brand, according to F. Borden Walker, Hess's executive vice president and president of marketing and refining. The self-service model was well-received by customers in retail tests, Walker says.
Hess has 1,362 retail stores along the East Coast from Massachusetts to Florida that are 80% company operated. Company-operated convenience-store revenue increased 3% for the third-quarter ending Oct. 31, 2007 over the year-earlier period.
Profit increased to $395 million compared with $296 million in the previous-year. Exploration and production earnings rose to $414 million from $206 million in third-quarter 2006. The company benefited from increases in crude oil and natural gas prices.
The average worldwide crude oil selling price was $65.26 per barrel during the quarter, an increase of $6.45 from the year-earlier period. The average worldwide natural gas selling price was $5.38 per Mcf compared with $4.94 in third-quarter 2006.
At A Glance
New York, N.Y.
Primary Industry: Petroleum & Coal Products
Number of Employees: 13,700
2006 In Review
Revenue: $28.7 billion
Profit Margin: 6.72%
Sales Turnover: 1.27
Inventory Turnover: 21.41
Revenue Growth: 24.64%
Return On Assets: 10.02%
Return On Equity: 30.48%
Meanwhile, the company is expanding its presence in North Dakota, according to the Associated Press. The company will open new offices in Minot and Tioga and move its North Dakota headquarters from Williston to Minot.
The company is scheduled to move into its new headquarters in 2009.
"It makes sense based on the location of our assets," Hess spokeswoman Mari Pat Sexton told the Associated Press in a Dec. 13 article. "We evaluated our needs and found that we need to expand our offices."
The move comes as the company looks to the state's Bakken geologic formation for growth opportunities, the AP reported. Hess has operated in North Dakota since the early 1950s.
Interested in information related to this topic? Subscribe to our weekly Leadership Insights From The IW 50 eNewsletter.