Hess Corp plans IPO for Bakken pipeline, storage assets
July 30 (Reuters) - Oil and natural gas producer Hess Corp said it plans to form a publicly traded master limited partnership (MLP) comprising its pipeline and storage assets in North Dakota's Bakken oil shale field.
The company's shares rose nearly 5 percent to $103.99 in light premarket trading on Wednesday.
An initial public offering will likely be launched in the first quarter of 2015, Hess said.
Master limited partnerships (MLPs) have found favor with oil and gas producers as they pay no corporate taxes, lowering the cost of capital.
The MLP will also include a propane storage cavern as well as related rail and truck loading and storage terminals in Mentor, Minnesota, the company said.
The company sold its retail and transport business for $2.87 billion to Marathon Petroleum Corp in May.
Hess has also sold oil, gas and other assets outside its core U.S. exploration and production business, following pressure from activist investor Paul Singer's hedge fund Elliott Management LP. The two settled their proxy fight last year.
Until Tuesday's close of $99.42, Hess's shares have risen nearly 20 percent this year on the New York Stock Exchange.