This offering is a spin-off of the Hess Corp. (NYSE: HES) midstream assets. Specifically, the offering plans to support growth within the Bakken shale play. Hess stated that initial assets of the company will include interests in a natural gas processing plant, a rail loading terminal and a crude oil truck and pipeline terminal.
Hess Midstream is a traditional master limited partnership (MLP) that was formed in January 2014 by Hess to own, operate, develop and acquire a diverse set of midstream assets. The company’s assets are primarily located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota. The Bakken is considered one of the fastest-growing, most prolific producing basins in North America.
Like other MLPs, Hess Midstream generates all of its revenues by charging fees for midstream services provided to its parent and other third-party crude oil and natural gas producers.
ALSO READ: The Best Performing DJIA Stocks of 2014
The company plans to enter into multiple 10-year, fee-based commercial agreements with Hess prior to the closing of this offering. These agreements will include minimum volume commitments based on dedicated production, inflation escalators and fee redetermination mechanisms, which will in turn provide the company with stable and predictable cash flows. Hess Midstream will have minimal direct exposure to commodity prices.
Top Gaining Stocks
Top Losing Stocks