HOUSTON--(BUSINESS WIRE)--Feb. 26, 2019--
Hess Midstream Partners LP (NYSE:HESM) (“Hess Midstream”), today
announced that its subsidiary, Hess North Dakota Pipelines LLC entered
into an agreement to purchase the crude oil and gas gathering assets of
Summit Midstream Partners’ Tioga Gathering System (the “Tioga System”)
for cash consideration of approximately $60 million gross, or
approximately $12 million net to Hess Midstream, with the potential for
an additional $7 million of gross contingent payments in future periods
subject to certain future performance metrics.
In addition, Hess Midstream’s sponsor, Hess Infrastructure Partners LP
(“HIP”), separately agreed to acquire the water gathering assets of the
Tioga System from Summit Midstream Partners. Hess Midstream expects that
HIP will offer it a right of first offer to acquire the water assets in
the event HIP decides to sell the assets in the future. The acquisition
is expected to close in the first quarter of 2019, subject to customary
closing conditions.
“We are excited to extend our infrastructure footprint with the
agreement to purchase the Tioga System’s crude oil and gas gathering
assets,” said John Gatling, Chief Operating Officer. “This bolt-on
acquisition leverages our leading contract structure to create value
through a competitive acquisition multiple over time for the investment
and provides opportunity to expand our midstream services offering.”
The Tioga System, located in Williams County in western North Dakota, is
complementary to Hess Midstream’s infrastructure, and is currently
delivering volumes into Hess Midstream’s gathering system. The crude oil
and gas gathering assets include approximately 73 miles of crude
pipelines and 79 miles of gas pipelines. The water assets to be acquired
by HIP include approximately 75 miles of produced water gathering
pipelines.
About Hess Midstream
Hess Midstream Partners LP is a fee-based, growth-oriented, traditional
master limited partnership that was formed to own, operate, develop and
acquire a diverse set of midstream assets to provide services to Hess
Corporation and third-party customers. Hess Midstream’s assets are
primarily located in the Bakken and Three Forks Shale plays in the
Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.
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Source: Hess Midstream Partners LP
Investor:
Jennifer Gordon
(212)
536-8244
Media:
Robert Young
(346)
319-8783