Hess to sell interest in Bakken midstream assets and form new JV

Hess Corp. (NYSE: HES) has agreed to sell a 50% interest in its Bakken midstream assets to Global Infrastructure Partners for cash consideration of $2.675 billion. Hess and Global Infrastructure Partners will create a midstream joint venture to be named Hess Infrastructure Partners.

Upon closing, the joint venture will incur $600 million of debt through a five-year Term Loan A facility with proceeds distributed equally to both partners, resulting in total after-tax cash proceeds, net to Hess, of $3 billion. In addition the joint venture will have independent access to capital including a $400 million five-year senior revolving credit facility, which is fully committed. The joint venture upon closing plans to continue to pursue a proposed initial public offering (IPO) of Hess Midstream Partners LP common units.

The Hess midstream assets to be included in the joint venture are a natural gas processing plant in Tioga, North Dakota; a rail loading terminal in Tioga and associated rail cars; a crude oil truck and pipeline terminal in Williams County, North Dakota; a propane storage cavern and rail and truck transloading facility in Mentor, Minnesota; and crude oil and natural gas gathering systems in North Dakota.

The transaction is expected to be completed early in the third quarter of 2015.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...