Hess Corporation (NYSE: HES) 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 on July 1, 2015.
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 five-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
About Hess Corporation
Hess Corporation is a global independent energy company engaged in the exploration and production of crude oil and natural gas and a leading operator in the Bakken. More information on Hess Corporation is available at http://www.hess.com.by