Hess Completes Sale, Establishes Bakken Midstream Joint Venture Valued at $5.35 Billion
Hess Corporation Logo header

Hess Completes Sale, Establishes Bakken Midstream Joint Venture Valued at $5.35 Billion

  • Tioga Gas Plant at sunset

Hess Corporation (NYSE: HES) today completed the previously announced sale of a 50 percent 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 premier midstream joint venture -- Hess Infrastructure Partners. The joint venture has incurred $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 has independent access to capital including a fully committed $400 million 5-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.

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
  • Crude oil and natural gas gathering systems in North Dakota
Click here for the press release
Latest Hess News
  • Hess in the Media: Unraveling the Bakken's EOR complexity

    Building on the many years of experience it built in its Permian Basin enhanced oil recovery (EOR) operations, Hess began an EOR R&D project in 2015 in the Bakken Shale. In 2016 the company drilled a gas injection and a production well targeting the Middle Bakken at Ross Field in Mountrail County, N.D., in the company's Red Sky acreage as part of the project.
    Full story
  • Hess Announces $1.0 Billion Share Repurchase Program

    The Hess Board of Directors has authorized the purchase of $1.0 billion of Hess common stock by the end of 2018. The newly authorized program is in addition to the $500 million share repurchase program Hess announced in late 2017.
    Full story
  • Hess Announces Seventh Oil Discovery Offshore Guyana

    Hess announced a seventh oil discovery offshore Guyana, following drilling at the Pacora-1 exploration well. The Pacora-1 well is located approximately four miles west of the Payara-1 well, and follows previous discoveries on the Stabroek block at Liza, Payara, Liza Deep , Snoek, Turbot and Ranger.
    Full story