Energy exploration and production company Hess Corp, (NYSE: HES – $39.07) said it is offering 25 million new shares of its common stock and 10 million depository shares, each of which represents a 1/20th interest in a share of its Series A Mandatory Convertible Preferred Stock. Battered by the prolonged slump in energy prices, Hess said that the $1.5 billion worth of its shares would strengthen its balance sheet and be used to bolster its cash position and help fund its longer term capital needs. The underwriters on the offering also have the option to buy as many as 3.75 million shares of Hess’s common stock and 1.5 million depository shares. Prior to the announcement, Hess had over 286 million shares outstanding. The sale of additional shares will dilute the company’s already stretched earnings per share figures and is not good news for investors of the New York-based company. Hess’ share price had made some progress over the past week, but following the announcement has taken a hit, sending the shares down over 10%. Current holdings in HES are not for the faint of heart and price appreciation may now take longer to recover than originally planned.