Hess and Global Infrastructure form Bakken Midstream JV worth $5.4 billion

Hess Corporation and Global Infrastructure Partners have announced the formation of a strategic partnership focused on midstream infrastructure assets in the Bakken Shale. This Bakken Midstream JV, Hess Infrastructure Partners, is valued at $5.35 billion and includes the following highlights:

• Hess to sell 50% interest in Bakken midstream assets for $2.68 billion
• Total after-tax cash proceeds to Hess of $3.0 billion including JVdebt issuance
• Hess to retain operational control of Bakken midstream assets

The transaction is expected to be completed early in the third quarter of 2015. The midstream assets to be included in the JV are located primarily in Williams, Mountrail and McKenzie counties, North Dakota, and are comprised of:

• 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
• Crude oil and natural gas gathering systems in North Dakota