Hess, GIP complete shale JV formation

Hess Corporation said it has completed the previously revealed 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 company revealed in a statement.

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 revealed, the joint venture plans to proceed with an initial public offering of Hess Midstream Partners common units.

 

Image: Hess Corporation