Hess Midstream Partners to acquire Tioga gathering system

Feb. 26, 2019
Hess Midstream Partners LP subsidiary Hess North Dakota Pipelines LLC agreed to purchase the crude oil and gas gathering assets of Summit Midstream Partners’ Tioga gathering system.

Hess Midstream Partners LP subsidiary Hess North Dakota Pipelines LLC agreed to purchase the crude oil and gas gathering assets of Summit Midstream Partners’ Tioga gathering system.

Separately, Hess Infrastructure Partners LP (HIP) agreed to acquire the water gathering assets of the Tioga System from Summit Midstream Partners. Hess Midstream expects that HIP will offer it a right of first offer to acquire the water assets in the event HIP decides to sell the assets in the future.

The Tioga system, in Williams County in western North Dakota, is currently delivering volumes into Hess Midstream’s gathering system. The crude oil and gas gathering assets include some 73 miles of crude pipelines and 79 miles of gas pipelines. The water assets include about 75 miles of produced water gathering pipelines.

Cash consideration for the deal is about $60 million gross—$12 million net—to Hess Midstream, with the potential for an additional $7 million of gross contingent payments in future periods subject to certain future performance metrics.

The acquisition is expected to close in this year’s first quarter.