Hess Infrastructure Partners announced that it has closed the previously announced acquisition of Hess’ existing Bakken water services business for a total cash consideration of $225 million, subject to customary adjustments.
Image: Hess’ existing Bakken water services business purchased for a total cash consideration of $225m. Photo: Courtesy of rawpixel on Unsplash.
Hess Infrastructure Partners is a midstream energy joint venture between Hess Corporation and Global Infrastructure Partners and the sponsor of Hess Midstream Partners, a publicly traded master limited partnership.
The partnership has provided Hess Midstream a right of first offer to acquire the water services business in the event the Partnership decides to sell the water services business in the future.
The scope of the water services business includes substantially all of Hess’ Bakken produced water gathering assets and saltwater disposal services in North Dakota, which currently consist of over 150 miles of existing Hess water gathering pipelines capturing approximately 30,000 barrels per day of produced water. The water services business is supported by a long-term contract that includes minimum volume commitments for both produced water gathering and disposal services, and annual tariff rate recalculations for the produced water gathering services.
In addition, on February 26, 2019, HIP announced an agreement to acquire approximately 75 miles of produced water gathering pipelines from Summit Midstream Partners. This acquisition will be incorporated into HIP’s existing long-term water contract and is expected to close in the first quarter of 2019.
Source: Company Press Release.