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Hess finalizes billion dollar Bakken midstream deal

Hess Corp (NYSE: HES) has announced the completion of its previously announced $2.675 billion sale of a 50 percent interest in its Bakken midstream assets to Global Infrastructure Partners.

The deal between the two companies created a premier midstream joint venture dubbed Hess Infrastructure Partners. The business venture, though, incurred $600 million of debt which, through a five-year term loan a facility, will distribute proceeds equally to both partners. The total after-tax cash proceeds will net Hess $3 billion.

Additionally, the joint venture has independent access to capital including a fully committed $400 million five-year senior revolving credit facility. Also, as previously announced, the combined entity will proceed with an initial public offering of Hess Midstream Partners LP common stock units.

In a statement, Hess CEO John Hess said, “The joint venture with its strategically located assets will be one of the largest midstream operators in the Bakken. By capitalizing on the financial strength and midstream energy experience of Global Infrastructure Partners, the joint venture will be in strong position to fund future energy infrastructure investments and continue to grow its midstream business.”

The joint venture involved numerous Hess midstream assets such as a natural gas processing plant, rail loading terminal and associated rail cars in Tioga, North Dakota, as well as a crude oil truck and pipeline terminal in Williams County, North Dakota. Also included in the deal was a propane storage cavern and rail truck transloading facility in Mentor, Minnesota, and crude oil and natural gas gathering systems in North Dakota.

30 comments

  1. Thomas Vinson, check it out.

  2. Owen Haugen Mark Sunny Sundquist is this what we were talking about last week?

  3. Is frontier energy involved in this?

  4. Brian Colbert, I seen this earlier. Heck looks like yall might get busy

  5. They said before I left 34 new jobs :)))))

  6. Kyle Kappedal I believe this was at least some of what we were talking about!

  7. Daaannnggg get me a job Brian Colbert

  8. Max Kaminski. Think we made a good investment?

  9. Crap more rules and paperwork lol

  10. The question here: Does this bring in capital for new investment or just spread out the debt from the old investments?

  11. Hopefully they will come back and stay with us at the Target Logistics Tioga Lodge!!!

  12. Got to love the bakken

  13. The drilling is ramping up!

  14. Well Andy’s wife works for them. So it’s kinda good ?

  15. No benefits or paid time off, totally worth staying for a extra dollar

  16. Who owns global infrastructure Partners?

  17. Tyler Starn get ready to slide some sleeves

  18. I hear they’re lifting sanctions on Iran. They’re going to flood the market with oil . Price of oil is supposed to really go down?

  19. Ryan Schaan, how is that for timing?

  20. That’s not good right? I have to check the IRA’S because I Global Investment is one of the company’s in one of the funds.

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