- Hess (NYSE:HES) agrees to sell a 50% stake in its Bakken pipeline and processing assets to Global Infrastructure Partners for $2.675B, and the two will form a midstream joint venture called Hess Infrastructure Partners.
- HES says the JV will incur $600M of debt on closing through a five-year term loan facility, but it expects to net $3B from the deal; the JV will continue to pursue an IPO of Hess Midstream Partners common units.
- HES says the proceeds from the deal plus cash on hand and an untapped $4B revolving credit facility will provide it with "a highly advantaged liquidity position compared to its peer group."
- HES +1.3% premarket.