Hess Corp agrees to sell a 50 percent stake in its processing and pipeline unit to private equity firm Global Infrastructure Partners for $2.675 billion in cash. A midstream joint venture called Hess Infrastructure Partners will be formed by the companies with a focus on natural gas processing plant as well as crude oil pipelines and trucks (wsj.com). Hess will get a total of $3 billion in cash from the transaction, including $300 million from a debt sale by the joint venture that will help it close a cash flow gap expected this year because of lower oil prices (oilpro.com).

Hess’ shares, which had fallen about 11 percent this year, rose as much as 6.5 percent after the announcement. 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.

Hess, which will retain control of the midstream assets’ operations, expects the MLP’s net income at $145 million to $155 million for the year ending March 31.

The company also expects capital expenditures to be funded by the joint venture for the same period to be $325 million to $350 million (reuters.com).