Form 4: Chevron & Hess Adjust Hess Midstream Ownership

Chevron Corporation and Hess Corporation reported a change in their beneficial ownership of Hess Midstream LP, involving the cancellation of Class B Shares linked to an Opco Class B Unit repurchase.

Summary

• Chevron Corporation, Hess Corporation, and Hess Investments North Dakota LLC (HINDL) reported changes in their beneficial ownership of Hess Midstream LP (HESM).
• The transaction involved the cancellation of 695,894 Class B Shares for no consideration.
• This cancellation was linked to Hess Midstream Operations LP's repurchase of 695,894 Opco Class B Units from HINDL, followed by the subsequent cancellation of these units.
• Following the transaction, the reporting persons beneficially own 78,283,296 Class B Shares and 449,000 Class A Shares indirectly through HINDL.
• HINDL is an indirect, wholly-owned subsidiary of Hess Corporation, which is a direct, wholly-owned subsidiary of Chevron Corporation.
• Opco Class B Units are convertible into Class A Shares on a one-to-one basis and have no expiration date.

Sentiment

Score: 5

Explanation: The filing reports an internal corporate ownership adjustment involving the cancellation of shares and units for no consideration, reflecting a restructuring within the Chevron-Hess corporate structure. It does not indicate positive or negative financial performance or strategic shifts for the public market.

Future Outlook

NA

Industry Context

This filing details a specific corporate ownership adjustment within the energy sector, reflecting an internal restructuring or strategic alignment between Chevron and Hess entities. It does not indicate broader industry trends.

Related Party Transactions

• The transaction involves Hess Investments North Dakota LLC (HINDL), an indirect wholly-owned subsidiary of Hess Corporation, which is a direct wholly-owned subsidiary of Chevron Corporation. This constitutes an internal transaction between related entities.

Stakeholder Impact

• Shareholders of Hess Midstream LP: The transaction clarifies the ownership structure of major shareholders (Chevron/Hess) but does not directly impact the public float or trading dynamics in a significant way, as it is an internal adjustment.
• Employees, Customers, Suppliers, Creditors: No direct impact indicated by this filing.

Key Dates

Recommendation

The filing details an internal corporate restructuring involving the cancellation of Class B Shares and Opco Class B Units for no consideration between Chevron, Hess, and their subsidiaries. This transaction clarifies beneficial ownership but does not indicate any material operational or financial performance changes that would warrant a change in investment stance. It is a neutral event for public investors.

Keywords

Hess Midstream LP, HESM, Chevron Corporation, Hess Corporation, Beneficial Ownership, SEC Form 4, Class B Shares, Opco Class B Units, Corporate Restructuring, Insider Transaction