Hess sale establishes Bakken midstream joint venture

Hess Corporation is a global independent energy company, engaged in the exploration and production of crude oil and natural gas. The company has recently completed a transaction, selling a 50% interest in its Bakken midstream assets to Global Infrastructure Partners. The deal totals an amount of approximately US$2.675 billion.

Subsequently, Hess and Global Infrastructure Partners have created a midstream joint venture, namely Hess Infrastructure Partners. A five year Term Loan A facility has incurred a US$600 million debt for the joint venture. Once distributed across the companies, after-tax cash proceeds net to Hess of US$3 billion.

Hess midstream assets

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

Initial public offering of common units

In addition, the joint venture has independent access to capital including a US$400 million five year senior revolving credit facility. As previously announced, the joint venture plans to proceed with an initial public offering of Hess Midstream Partners LP common units.

Edited from source by Elizabeth Corner

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