Hess Files for IPO of Bakken Master Limited Partnership

Hess Midstream Partners, a master limited partnership (MLP), filed for a $250 million initial public offering representing an interest in Hess Corp's North Dakota oil and gas storage facilities and processing plants, according to a regulatory filing on Wednesday.

MLPs are tax-advantaged structures favored by many energy companies that use them as a way to lower the cost of capital and highlight the valuation of certain assets.

The partnerships, which trade in units instead of shares, pass their tax burden to investors who receive nearly all the business' income in the form of hefty distributions.

Hess Midstream Partners will initially hold Hess assets including a 30 percent interest in the New York company's natural gas processing plant in Tioga, North Dakota, and a 50 percent interest in its rail loading terminal and rail cars in Tioga, according to a filing with the U.S. Securities Exchange Commission.

Additionally, other MLP assets will be a 50 percent stake in Hess' crude oil truck and pipeline terminal in Williams County, North Dakota, and all of its interest in a propane storage cavern and transportation facility in Mentor, Minnesota.

The partnership will be traded on the New York Stock Exchange under the symbol "HESM" and the IPO is expected in the first quarter of 2015, according to the filing.

Shares of Hess Corp fell 71 cents, or less than 1 percent, to $95.31 in midday NYSE trading.

(Reporting by Anna Driver; Editing by Phil Berlowitz)