Hess Corp., New York, purchased two group annuity contracts from insurance companies for a total premium price of $250 million to transfer liabilities from two U.S. pension plans.
The oil and gas exploration and production company disclosed the transactions from the undisclosed insurers in its 10-Q filing with the SEC on Friday.
Both transactions were completed during the quarter ended June 30. The company purchased one contract at a cost of about $170 million using plan assets from the Hess Corp. Employees' Pension Plan and about $80 million using plan assets from the HOVENSA Legacy Employees' Pension Plan. Also for the latter plan, the company distributed lump sums totaling $20 million to "certain participants" to "settle the plan's projected benefit obligation," according to the 10-Q filing.
The 10-Q filing did not provide amounts of assets or liabilities that were transferred.
Hess in 2019 had purchased a group annuity contract from Massachusetts Mutual Life Insurance Co. to transfer $270 million in U.S. pension plan liabilities, all from the Hess Corp. Employees' Pension Plan.
As of Dec. 31, 2020, the Hess Corp. Employees' Pension Plan and HOVENSA Legacy Employees' Pension Plan had $2.2 billion and $150 million, respectively, in assets, according to the plans' most recent Form 5500 filing.
According to the company's latest 10-K filing, as of Dec. 31, global pension plan assets totaled $3.36 billion and projected benefit obligations totaled $2.95 billion, for a funding ratio of 113.9%. The company has both U.S. and U.K. plans and did not provide assets by region.
Spokeswoman Lorrie Hecker could immediately provide further information.
