Hess Corporation (NYSE:HES) announced today 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 monetize 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 optimization program 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; and
- Hess’s propane storage cavern and related rail and truck loading and storage terminal located in Mentor, Minnesota.
Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at http://www.hess.com.Forward-looking Statements The statements in this news release are forward-looking statements that are subject to a number of risks and uncertainties including, among other things, that the master limited partnership will not be formed and will not complete an initial public offering. Furthermore, the structure, nature and purpose of the master limited partnership may change materially from those described herein. No assurance can be given as to the value of the master limited partnership, the price at which its securities may trade, or whether a liquid market for those securities will develop or be maintained. In addition, Hess and the master limited partnership will be subject to the risks normally attendant to businesses in the oil and gas exploration and midstream energy industries. These and other risks are described in Hess’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Any duty to update these statements is hereby disclaimed except as required by law.