Form 4: Hess Corp Adjusts Ownership in Hess Midstream LP Following Unit Repurchase

Hess Corp reports adjustments to its beneficial ownership in Hess Midstream LP, including the cancellation of Class B shares and transfer of shares between entities.

Summary

• Hess Corp has filed a Form 4 detailing changes in its beneficial ownership of Hess Midstream LP (HESM).
• 1,059,390 Class B Shares were cancelled for no consideration in connection with Hess Midstream Operations LP's repurchase of 1,059,390 Opco Class B Units from Hess Investments North Dakota LLC (HINDL).
• Hess Midstream GP LP transferred 698,121 Class B Shares to HINDL for no consideration.
• Following these transactions, Hess Corp's indirect ownership includes 59,552,600 Class B Shares, 24,519,340 Class B Shares, and 449,000 Class A Shares.
• Hess Corp disclaims beneficial ownership of these securities except to the extent of its pecuniary interest.
• HINDL holds the securities, and Hess Corporation may be deemed to beneficially own the securities held of record by HINDL and Hess Midstream GP LP.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing detailing ownership changes. It doesn't contain overtly positive or negative information, hence a neutral sentiment score.

Industry Context

This filing reflects ongoing adjustments in the ownership structure within Hess Midstream LP, which is common in master limited partnerships (MLPs) as sponsors manage their stakes and optimize capital structures.

Comparison to Industry Standards

• Similar transactions are observed among other publicly traded partnerships such as Enterprise Products Partners (EPD) and MPLX (MPLX), where sponsors periodically adjust their ownership through unit repurchases or transfers.
• These adjustments often aim to streamline operations or optimize tax efficiencies, aligning with industry practices.

Related Party Transactions

• The cancellation of Class B Shares is related to Hess Midstream Operations LP's repurchase of Opco Class B Units from Hess Investments North Dakota LLC (HINDL).
• The transfer of Class B Shares from Hess Midstream GP LP to HINDL is also a related party transaction.

Stakeholder Impact

• The changes in ownership may have a minor impact on shareholders, primarily affecting the distribution of voting rights and potential future distributions.
• The impact on other stakeholders such as employees, customers, and suppliers is likely to be minimal.

Key Dates