Hess Corp. taking Houston spinoff public

New York’s Hess Corp. said Monday it’s taking its Houston pipeline spinoff public through an initial public offering.

Hess hopes to raise $250 million in the IPO for Houston-based Hess Midstream Partners through the sale of 12.5 million units of stock at about $20 per unit.

While Hess Midstream is based out of Houston, it primarily owns pipeline and storage assets in North Dakota’s Bakken Shale formation.

Hess Midstream will trade on the New York Stock Exchange under the “HESM” ticker symbol.

Nearly 25 percent of the ownership stake is being sold in the IPO. The remainder of the pipeline and storage business will be controlled by Hess Infrastructure Partners, a joint venture between Hess and New York’s Global Infrastructure Partners investment fund.