Friday, August 21, 2015
Hess Corp. (New York, N.Y.) has completed the sale of a 50% interest in Bakken midstream assets to New York City-based Global Infrastructure Partners for cash consideration of $2.675 billion. As planned, Hess and Global have created a midstream joint venture—Hess Infrastructure Partners.
The joint venture assets include a natural gas processing plant in Tioga, N.D.; a rail loading terminal in Tioga and associated railcars; a crude oil and pipeline terminal in Williams County, N.D.; a propane storage cavern and rail and truck transloading facility in Mentor, Minn.; and crude oil and natural gas gathering systems in North Dakota.
The Hess-Global joint venture has incurred $600 million of debt through a five-year term loan facility with proceeds distributed equally to both partners, resulting in total after-tax cash proceeds to Hess of $3 billion. In addition, the joint venture has independent access to capital, including a fully committed $400 million, five-year revolving credit facility. The joint venture plans to proceed with an initial public offering of Hess Midstream Partners LP common units.
The joint venture assets include a natural gas processing plant in Tioga, N.D.; a rail loading terminal in Tioga and associated railcars; a crude oil and pipeline terminal in Williams County, N.D.; a propane storage cavern and rail and truck transloading facility in Mentor, Minn.; and crude oil and natural gas gathering systems in North Dakota.
The Hess-Global joint venture has incurred $600 million of debt through a five-year term loan facility with proceeds distributed equally to both partners, resulting in total after-tax cash proceeds to Hess of $3 billion. In addition, the joint venture has independent access to capital, including a fully committed $400 million, five-year revolving credit facility. The joint venture plans to proceed with an initial public offering of Hess Midstream Partners LP common units.
