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Hess to pursue formation of master limited partnership

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Hydrocarbon Engineering,

Hess Corporation has announced its intention to pursue the formation and initial public offering of a master limited partnership (MLP). Hess remains focused on value creation and the pursuit of its previously announced intention to monetise its midstream assets in the Bakken oil shale play in North Dakota. Hess intends to use the MLP as the primary midstream vehicle to support its Bakken production growth, and expects initially to contribute interests in the following midstream assets to the MLP:

  • Hess’s natural gas processing plant located in Tioga, North Dakota, where a large-scale expansion, refurbishment and optimisation programme was recently completed.
  • 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.
  • Hess’s propane storage cavern and related rail and truck loading and storage terminal located in Mentor, Minnesota.

Hess 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. The company expects the MLP to file a registration statement with the Securities and Exchange Commission in Q4 2014 and, subject to market conditions, expects to make an initial public offering of common units representing limited partner interests in the MLP in Q1 2015.

Adapted from press release by Rosalie Starling

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