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 Recognized as Leader in CDP’s Global Climate Change Report

    Hess has been recognized for climate change stewardship in CDP’s Climate Change Report 2019. This is the 11th consecutive year that the company has earned Leadership status from CDP, an international nonprofit seeking to drive sustainable economies.
    Full story
  • Hess Schedules Q4 2019 Earnings Release Conference Call

    Hess will hold a conference call on Wednesday, January 29, 2020 at 10 a.m. Eastern Time to discuss its fourth quarter 2019 earnings release.
    Full story
  • Hess Announces Oil Discovery Offshore Guyana at Mako-1

    Hess today announced another oil discovery on the Stabroek Block offshore Guyana at the Mako-1 well southeast of the Liza Field. The discovery adds to the current gross recoverable resource estimate of more than 6 billion barrels of oil equivalent.
    Full story