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

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

  • Tioga Gas Plant at sunset
07.01.2015

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
Related News
  • Hess Scores First-Place Sweep in Respected Investor Leadership Survey

    Hess Corporation’s leadership earned a first-place clean sweep in the combined rankings of the 2021 All-America Executive Team survey published recently by Institutional Investor magazine.
    Full story
  • Hess Named to Dow Jones Sustainability Index (DJSI) North America for Eleventh Consecutive Year

    Hess has earned a place on the prestigious Dow Jones Sustainability Index (DJSI) North America for the eleventh consecutive year. The index, which recognizes public companies for outstanding performance across economic, environmental and social factors, is used as a reference by shareholders who consider sustainability when making investment decisions.
    Full story
  • Hess Completes Sale of Interests in Shenzi Field, Gulf of Mexico

    Hess announced today that it has completed the previously announced sale of its 28% working interest in the Shenzi Field in the deepwater Gulf of Mexico to BHP, the field’s operator, for a total consideration of $505 million, subject to customary adjustments, with an effective date of July 1, 2020.
    Full story