UPDATE 2-Hess to sell half of Bakken midstream assets for $2.68 bln

Thu Jun 11, 2015 11:24am EDT
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* Assets valued at $18.70/shr, 3 times estimates - analyst

* MLP to file for IPO upon closing of deal

* Hess shares rise as much as 6.5 pct (Adds analyst comment, valuation details; updates shares)

By Amrutha Gayathri

June 11 (Reuters) - Oil and natural gas producer Hess Corp said it would sell half of its Bakken midstream assets to private equity firm Global Infrastructure Partners for $2.68 billion and form a joint venture.

Hess' shares, which had fallen about 11 percent this year, rose as much as 6.5 percent in morning trading on Thursday.

The master limited partnership plans to file for an initial public offering of its common units upon closing of the transaction early in the third quarter this year.

"It was a positive surprise, that's why the market likes it better," said Fadel Gheit, an analyst at Oppenheimer & Co.

"Nobody really thought of a joint venture and then make it an MLP and do an IPO."   Continued...