Gulf Oil and Gas accountACCOUNT

Hess to Sell Half of Bakken Midstream Assets for $2.68 billion

Source: www.gulfoilandgas.com 6/11/2015, Location: North America

Hess Corporation announced that it has agreed to sell a 50 percent interest in its Bakken midstream assets to Global Infrastructure Partners, a leading global infrastructure investor with an extensive midstreamenergy investment track record, for cash consideration of $2.675 billion.

Hess and Global Infrastructure Partners will create a premier midstream joint venture – Hess Infrastructure Partners. Upon closing, the joint venture will incur $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 will have independent access to capital including a $400 million 5-year Senior Revolving Credit Facility, which is fully committed. The joint venture upon closing plans to continue to pursue a proposed initial public offering (IPO) of Hess Midstream Partners LP common units.

John Hess, Chief Executive Officer of Hess Corporation, said, “This transaction delivers significant and immediate value to our shareholders. 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 a strong position to fund future energy infrastructure investments and continue to grow its midstream business.”

With the proceeds from this transaction, plus cash on hand and an untapped $4 billion revolving credit facility, Hess will have a highly advantaged liquidity position compared to its peer group. Consistent with its financial strategy, the company will use proceeds from this transaction to preserve the strength of its balance sheet in the current oil price environment, provide additional financial flexibility for future growth opportunities and continue to repurchase stock on a disciplined basis.

The transaction is subject to customary closing conditions and is expected to be completed early in the third quarter of 2015. The Hess midstream assets to be included in the joint venture are:
? Natural gas processing plant in Tioga, North Dakota;
? Rail loading terminal in Tioga and associated rail cars;
? Crude oil truck and pipeline terminal in Williams County, North Dakota;
? Propane storage cavern and rail and truck transloading facility in Mentor, Minnesota; and
? Crude oil and natural gas gathering systems in North Dakota.

Acquisitions and Divestitures News in United States >>

Argentina >>  11/20/2019 - President Energy (PPC) announces that, further to the announcement dated 21 October 2019, the acquisition of the Angostura exploration contract in Rio...
Egypt >>  11/19/2019 - Nostra Terra (NTOG) is pleased to announce that, further to the Company's announcement of 12 August 2019, Nostra Terra's wholly owned subsidiary, Nost...

Indonesia >>  11/19/2019 - KrisEnergy, and together with its subsidiaries, an upstream oil and gas company, refers to its announcement dated 29 October 2019 regarding its accept...
Russia >>  11/19/2019 - Gazprom Neft has won the license to the Pervormaisky block, and is also expanding the boundaries of fields it is already developing in the Orenburg Ob...

New Zealand >>  11/18/2019 - OMV, the international integrated oil and gas company headquartered in Vienna, has agreed to sell its 69% interest in the Maari Field, located in New ...
Egypt >>  11/15/2019 - Royal Dutch Shell has appointed investment bank Citi to run the sale of its onshore Egyptian oil and gas assets which could fetch around $1 billion, s...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


United States Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 | 73 | 74 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2019 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.