Form 4: Hess Corp and Affiliates Adjust Ownership in Hess Midstream LP

Hess Corporation and its affiliates have adjusted their holdings in Hess Midstream LP through a series of transactions involving Class B shares and Opco Class B Units.

Summary

• Hess Corporation and its affiliates, including Hess Investments North Dakota LLC (HINDL), have reported changes in their beneficial ownership of Hess Midstream LP securities.
• These changes involve the cancellation of 967,541 Class B Shares and Opco Class B Units, as well as the transfer of 637,595 Class B Shares from Hess Midstream GP LP to HINDL.
• The transactions were executed on January 15, 2025, and include the repurchase of Opco Class B Units by Hess Midstream Operations LP.
• Following these transactions, Hess Corp and its affiliates continue to hold significant positions in Hess Midstream LP through various entities.
• Hess Midstream GP LP holds 30,336,403 Class B Shares and 449,000 Class A Shares, while HINDL holds 50,681,743 Class B Shares and 81,018,146 Opco Class B Units.

Sentiment

Score: 7

Explanation: The document reflects routine ownership adjustments, which are neither positive nor negative. The transactions are expected and do not indicate any significant change in the company's outlook.

Management Comments

• Hess Corporation disclaims beneficial ownership of the securities except to the extent of its pecuniary interest.
• Hess Investments North Dakota LLC disclaims beneficial ownership of the securities except to the extent of its pecuniary interest.

Industry Context

This filing reflects routine adjustments in ownership structure within a master limited partnership (MLP) in the energy sector, which is common for companies like Hess Midstream LP.

Comparison to Industry Standards

• Similar transactions are common among publicly traded partnerships and their parent companies, such as Enterprise Products Partners (EPD) and Energy Transfer (ET), where ownership structures are often complex and involve multiple entities.
• The cancellation and transfer of units and shares are typical mechanisms for managing ownership and capital structure within these types of entities.
• The reported transactions are within the normal range of activity for companies in the midstream energy sector.

Related Party Transactions

• The transactions involve Hess Midstream Operations LP, Hess Investments North Dakota LLC, and Hess Midstream GP LP, all related parties.

Stakeholder Impact

• The transactions do not appear to have a significant impact on stakeholders, as they primarily involve internal ownership adjustments.
• Shareholders may see a slight change in the ownership structure, but the overall financial position of the company remains unchanged.

Key Dates

Keywords

Hess Midstream LP, Hess Corporation, Hess Investments North Dakota LLC, Class B Shares, Opco Class B Units, Beneficial Ownership, Securities Transaction, Hess Midstream GP LP