* To form a MLP holding pipeline and other assets
* To file registration statement with regulators in Q4
* Expects to launch an IPO in 1st-quarter of 2015
(Adds details from statement, background)
July 30 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.
Hess said it expected the MLP to file a registration
statement with the U.S. Securities and Exchange Commission in
the fourth quarter.
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.
Hess said the MLP would hold a natural gas processing plant,
a crude oil truck, a pipeline terminal and a rail loading
terminal in Tioga, North Dakota.
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.
Hess, which has been shedding downstream assets to focus on
more profitable shale drilling in the United States, had said in
April that it would retain a majority stake in the pipeline MLP.
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.
(Reporting by Swetha Gopinath in Bangalore; Editing by Savio