Upon closing, the new joint venture — Hess Infrastructure Partners — will pursue an initial public offering of Hess Midstream Partners LP common units. Hess expects the transaction to close early in the third quarter of 2015.

“By capitalizing on the financial strength and midstream energy experience of Global Infrastructure Partners,” Hess CEO John Hess said in a statement, “the joint venture will be in a strong position to fund future energy infrastructure investments and continue to grow its midstream business.”

Hess characterized the new venture as one of the largest midstream operators in the Bakken formation. Its initial assets will include a natural gas processing plant in Tioga, N.D.; a rail loading terminal and associated railcars in Tioga; a crude oil truck and pipeline terminal in Williams County, N.D.; a propane storage cavern and rail/truck transloading facility in Mentor, Minn.; and crude oil and natural gas gathering systems in North Dakota.

Going forward, Hess will begin reporting its Bakken-related midstream operations as a separate segment in its consolidated financial results. In the first quarter of this year, that segment had net income of $27 million and EBITDA of $64 million. First quarter 2016 EBITDA for the segment is projected at $290 million to $300 million, Hess said Thursday.

Hess also expects capital expenditures to be funded by the joint venture on a 100% basis for the same period to be $325 million to $350 million.

Upon closing, the joint venture will incur $600 million of debt through a five-year Term Loan A facility with proceeds distributed equally to both partners, resulting in total after-tax cash proceeds, net to Hess, of $3 billion. In addition, the joint venture will have independent access to capital including a $400 million five-year senior revolving credit facility, which is fully committed.

The Hess Infrastructure Partners board of directors will be made up of three members elected by Hess and three by Global Infrastructure Partners. Pursuant to the joint venture agreement, Hess, through its elected directors, will retain control of the midstream assets’ operations and annual budgeting process. Other decisions, such as capital structure, debt and equity offerings, and new contracts will require joint approval by both Hess and Global Infrastructure Partners elected directors.

Hess will operate the assets owned by the joint venture as a contract service provider. Employees who work in the assets today will remain Hess employees.