Hess Announces Bakken Midstream Joint Venture Valued at $5.35 Billion
06.11.2015
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.
Highlights
-
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
Click here for the press release
Related News
-
Hess Sanctions Whiptail Development Offshore Guyana
Hess Corporation announced it has made a final investment decision to proceed with Whiptail, the sixth development on the Stabroek Block, after receiving government and regulatory approvals.
Full story
-
Guyana Ministry of Health, Mount Sinai Health System and Hess Corporation Unveil New State-of-the-Art Pathology Laboratory to Promote Early Diagnosis and Enhance Patient Care
Renovated laboratory includes new technology to support remote, digital readings of pathology samples.
Full story
-
Hess Achieves CDP Climate Change Leadership Status
Hess Corporation has been recognized for climate change stewardship in CDP’s Climate Change Scores for 2023, significantly outperforming the oil & gas extraction and production sector average, the overall North American regional average and the global average.
Full story