Hess looks to form Bakken midstream MLP

July 30, 2014
Hess Corp. reported that it will pursue the formation and initial public offering of a midstream master limited partnership (MLP) that would support the company’s production growth in the Bakken shale.

Hess Corp. reported that it will pursue the formation and initial public offering of a midstream master limited partnership (MLP) that would support the company’s production growth in the Bakken shale.

The MLP will consist of Hess’s natural gas processing plant in Tioga, ND, where a large-scale expansion, refurbishment, and optimization program was recently completed (OGJ Online, May 21, 2014); Hess’s rail loading terminal in Tioga along with the associated rail cars; Hess’s crude oil truck and pipeline terminal in Tioga; and Hess’s propane storage cavern and related rail and truck loading and storage terminal in Mentor, Minn.

Hess says it will own the general partner of the MLP, all of its incentive distribution rights, and a majority of its limited partner interests after completion of the IPO, which is set for first-quarter 2015.

Hess expects the MLP to file a registration statement with the Securities and Exchange Commission in the fourth quarter.