Hess To Net $3 Billion In Bakken Midstream Joint Venture Deal

Shares of energy giant Hess Corp. rose 1.3% in premarket trade Thursday, after it said it's selling a 50% stake in its Bakken midstream assets to Global Infrastructure Partners for $2.675 billion. Hess said it will form a joint venture with the infrastructure investor called Hess Infrastructure Partners, which will incur $600 million of debt on closing via a five-year term loan facility. Hess is expecting to net $3 billion from the deal. The joint venture will continue to plan for an initial public offering of Hess Midstream Partners LP common units. With the proceeds of the deal and cash on hand and a $4 billion revolving credit facility, "Hess will have a highly advantaged liquidity position compared to its peer group," the company said in a statement. Shares are down 11.3% in the year so far, while the S&P 500 has gained 2.3%.