Pipeline unit of Hess to start IPO at $23 per share

April 5 (UPI) — The pipeline unit of Hess Corp. said Wednesday it was expecting a share price for the initial public offering at $23 per common unit.

Hess Midstream Partners announced the offering price for more than 14 million shares, or about 22.6 percent of the limited interest in the partnership.

Production was lower during the fourth quarter for Hess Corp., but CEO John Hess said in January that 2017 could be the “start of an exciting new chapter of value-driven growth” for the company.

Hess started last year with an agenda focused on keeping a balanced portfolio through the weakened oil sector. It reported a net loss for the third quarter of $339 million, compared with a net loss of $279 million during the same period last year.

Hess Midstream Partners filed a statement with the Securities and Exchange Commission related to its proposed initial public offering more than two years ago. The company at the time said it intended to use the master limited partnership as the primary vehicle to support its exploration and production programs in North Dakota.

Hess in 2013 said it was working to transform into an exploration and production company after it left the refining business by closing a facility in New Jersey. In 2014, it secured $2.6 billion with the sale of its entire retail sector of gasoline stations and convenience stores to Marathon Petroleum Corp.

The IPO for the pipeline division of Hess comes as the U.S. oil and gas sector rebounds following last year’s slump in crude oil prices. U.S. President Donald Trump, meanwhile, has offered strong support to energy infrastructure, like the Dakota Access pipeline from North Dakota.

Phil Flynn, a senior market analyst for the PRICE Futures Group, told UPI in response to email questions that for a company with the focus of Hess, timing is everything.

“Hess’ release is coming at a great time,” he said. “They did go through some rough years but with Shale money interest on the rise the IPO should be well received.”