Hess Announces Bakken Midstream Joint Venture Valued at $5.35 Billion
Hess Corporation has agreed to sell a 50 percent interest in its Bakken midstream assets to Global Infrastructure Partners, a leading global infrastructure investor with an extensive midstream energy investment track record, for cash consideration of $2.675 billion. Hess and Global Infrastructure Partners will create a premier midstream joint venture – Hess Infrastructure Partners. Upon closing, the joint venture will incur $600 million of debt through a 5-year Term Loan A facility with proceeds distributed equally to both partners, resulting in total after-tax cash proceeds, net to Hess, of $3.0 billion. In addition the joint venture will have independent access to capital including a $400 million 5-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.
Hess to Sell 50% Interest in Bakken Midstream Assets for $2.675 Billion
Total After-Tax Cash Proceeds to Hess of $3.0 Billion Including JV Debt Issuance
Hess to Retain Operational Control of Bakken Midstream Assets
Transaction to Deliver Significant and Immediate Value to Shareholders
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