Hess completes sale, establishes Bakken midstream JV

Hess Corp. (NYSE: HES) has completed the sale of a 50% interest in its Bakken midstream assets to Global Infrastructure Partners for cash consideration of $2.675 billion.

As planned, Hess and Global Infrastructure Partners have created a midstream joint venture -- Hess Infrastructure Partners. The joint venture has incurred $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 has independent access to capital including a fully committed $400 million five-year senior revolving credit facility. The joint venture plans to proceed with an initial public offering of Hess Midstream Partners LP common units.

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

 

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