HOUSTON--(BUSINESS WIRE)--Apr. 25, 2019--
Hess Midstream Partners LP (NYSE:HESM) (“Hess Midstream”) announced
today plans to expand natural gas processing capacity at the Tioga Gas
Plant (Tioga) by 150 million cubic feet per day (MMcf/d) creating a
total of 400 MMcf/d processing capacity north of the Missouri river. The
150 MMcf/d Tioga expansion is expected to add residue and y-grade
liquids processing capacity to the existing full fractionation and
ethane extraction capability of the current plant, and product takeaway
has been secured. The expansion is expected to be in service in mid-2021
and cost approximately $150 million gross, or $30 million net to Hess
Midstream.
“Continued Bakken growth from Hess and third parties has created
additional demand for processing capacity north of the Missouri river,”
said John Gatling, Chief Operating Officer of Hess Midstream. “We are
efficiently expanding our service offering across our gathering,
processing and terminaling systems. Following the completion of the
Little Missouri 4 Gas Processing Plant and the Tioga expansion, Hess
Midstream will have 500 MMcf/d of net processing capacity in the Bakken.”
“Consistent with our commitment to deliver stable and growing cash
flows, the expansion will earn a competitive return through inclusion in
our existing contract structure, providing continued visibility to our
growth,” said Jonathan Stein, Chief Financial Officer of Hess Midstream.
“We continue to primarily self-fund both our growing distributions and
our expansion program, including this incremental investment, and have
clear visibility to deliver our targeted 15% annual distribution growth
per unit with at least a 1.1x coverage ratio.”
About Hess Midstream
Hess Midstream Partners LP is a fee-based, growth-oriented, traditional
master limited partnership that was formed to own, operate, develop and
acquire a diverse set of midstream assets to provide services to Hess
and third-party customers. Hess Midstream’s assets are primarily located
in the Bakken and Three Forks Shale plays in the Williston Basin area of
North Dakota. More information is available at www.hessmidstream.com.
Forward Looking Statements
This press release may include forward-looking statements within the
meaning of the federal securities laws. Generally, the words
“anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,”
“may,” “should,” “believe,” “intend,” “project,” “plan,” “predict,”
“will” and similar expressions identify forward-looking statements,
which generally are not historical in nature. Forward-looking statements
are subject to certain risks and uncertainties that could cause actual
results to differ materially from historical results and current
projections or expectations. When considering these forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements in Hess Midstream’s Annual Report on Form 10-K for
the year ended December 31, 2018 and other SEC filings. Hess Midstream
undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances occurring
after this press release. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date of
this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190425005167/en/
Source: Hess Midstream Partners LP
Investors:
Jennifer Gordon
(212)
536-8244
Media:
Robert Young
(713)
496-6076