Hess Corp. (HES) closed the sale of 50% interest in its Bakken midstream assets to Global Infrastructure Partners for about $2.7 billion in cash, the company said July 1.
The two companies created Hess Infrastructure Partners, a midstream joint venture (JV). It has incurred $600 million in debt through a five-year term loan A. The proceeds will distribute equally to both companies, and Hess’ after-tax proceeds will be $3 billion.
Hess Infrastructure can access capital, including through a $400 million five-year senior revolving credit facility.
Hess Infrastructure will make an IPO of Hess Midstream Partners LP common units.
Midstream assets included in the JV are a natural gas processing plant in Tioga, N.D.; a rail loading terminal and rail cars in Tioga; a crude oil truck and pipeline terminal in Williams County, N.D.; a propane storage cavern and rail and truck transloading facility in Mentor, Minn; and oil and gas gathering systems across North Dakota.
New York-based Hess Corp. produces oil and gas around the world.
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