Hess Plans To Pursue Formation And IPO Of Master Limited Partnership

(RTTNews) - Hess Corp. (HES) announced that it plans to pursue the formation and initial public offering of a master limited partnership or MLP. Hess remains focused on value creation and the pursuit of its previously announced intention to monetize its midstream assets in the Bakken oil shale play in North Dakota.

Hess stated that it plans to use the MLP as the primary midstream vehicle to support its Bakken production growth.

It expects initially to contribute interests in the following midstream assets to the MLP: Hess's natural gas processing plant located in Tioga, North Dakota; Hess's rail loading terminal in Tioga, North Dakota, along with the associated rail cars; Hess's crude oil truck and pipeline terminal located in Tioga, North Dakota; and Hess's propane storage cavern and related rail and truck loading and storage terminal located in Mentor, Minnesota.

Hess noted that it will own the general partner of the MLP, all of its incentive distribution rights, and a majority of its limited partner interests following completion of the initial public offering.

Hess stated that it expects the MLP to file a registration statement with the Securities and Exchange Commission in the fourth quarter of 2014 and, expects to make an initial public offering of common units representing limited partner interests in the MLP in the first quarter of 2015.