Hess Midstream Partners L.P. filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). There were no terms given for the offering, but it can potentially raise up to #250 million. The company plans to list on the New York Stock Exchange under the symbol HESM. The underwriters for this offering are Goldman Sachs and Morgan Stanley.
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.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
