NEW YORK--(BUSINESS WIRE)--Jul. 1, 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:
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Natural gas processing plant in Tioga, North Dakota
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Rail loading terminal in Tioga and associated rail cars
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Crude oil truck and pipeline terminal in Williams County, North Dakota
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Propane storage cavern and rail and truck transloading facility in
Mentor, Minnesota
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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.
Cautionary Statements
This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. These
projections and statements reflect the company’s current views with
respect to future events and financial performance. No assurances can be
given, however, that these events will occur or that these projections
will be achieved, and actual results could differ materially from those
projected as a result of certain risk factors. A discussion of these
risk factors is included in the company’s periodic reports filed with
the Securities and Exchange Commission.
A registration statement related to Hess Midstream Partners LP common
units has been filed with the Securities and Exchange Commission but has
not yet become effective. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement
becomes effective. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy the securities, nor shall
there be any sale of these securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state or jurisdiction.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150701006237/en/
Source: Hess Corporation
For Hess Corporation
Investors:
Jay Wilson
212-536-8940
or
Media:
Sard
Verbinnen & Co
Michael Henson/Patrick Scanlan
212-687-8080