SCHEDULE: ALPS Advisors and Alerian MLP ETF Maintain Significant Passive Stakes in Hess Midstream LP

ALPS Advisors, Inc. and Alerian MLP ETF have disclosed continued beneficial ownership of 12.6% and 12.42% respectively, of Hess Midstream LP's common units, held for passive investment purposes.

Summary

• ALPS Advisors, Inc. reported beneficial ownership of 28,956,516 common units of Hess Midstream LP, representing 12.6% of the class.
• Alerian MLP ETF reported beneficial ownership of 28,550,784 common units of Hess Midstream LP, representing 12.42% of the class.
• Both ALPS Advisors, Inc. and Alerian MLP ETF possess shared voting and shared dispositive power over their respective reported holdings.
• ALPS Advisors, Inc. serves as an investment adviser to Alerian MLP ETF and other investment companies, explicitly disclaiming beneficial ownership as the securities are ultimately owned by the Funds.
• The reported holdings are for passive investment purposes, explicitly stating they were not acquired or held with the intent of changing or influencing the control of Hess Midstream LP.

Sentiment

Score: 7

Explanation: The disclosure of significant passive institutional ownership is generally positive, indicating investor confidence and stability, though it provides no new operational or financial performance data for Hess Midstream LP.

Positives

• Significant institutional investment by ALPS Advisors, Inc. and Alerian MLP ETF indicates continued confidence in Hess Midstream LP's common units.
• The passive nature of the investment suggests stability and a long-term holding strategy by these large institutional investors, which can be reassuring to other shareholders.

Negatives

• No specific negative financial or operational details are disclosed in this type of ownership filing.

Risks

• No specific risks related to Hess Midstream LP's operations or financial health are detailed in this ownership disclosure. The filing pertains solely to beneficial ownership.

Future Outlook

The filing does not provide forward-looking statements or guidance regarding Hess Midstream LP's future performance, strategic direction, or operational outlook. It solely reports current beneficial ownership positions.

Management Comments

• Matthew Sutula, Chief Compliance Officer for both ALPS Advisors, Inc. and Alerian MLP ETF, certified that the securities were acquired and are held in the ordinary course of business and were not acquired or held for the purpose of or with the effect of changing or influencing the control of the issuer.

Industry Context

This filing reflects a significant passive investment by a major investment adviser and an MLP-focused exchange-traded fund in a midstream energy company. Such investments are common for entities seeking exposure to the energy infrastructure sector, which typically offers stable cash flows and distributions. The midstream sector, including companies like Hess Midstream LP, plays a crucial role in transporting and processing oil and natural gas, often characterized by long-term contracts and fee-based revenues, making them attractive to income-oriented investors and funds specializing in master limited partnerships.

Comparison to Industry Standards

• A 12%+ stake by institutional investors like ALPS Advisors and Alerian MLP ETF is a substantial position, indicating a strong conviction in the long-term value proposition of Hess Midstream LP within the midstream energy sector.
• Compared to other major MLP ETFs, Alerian MLP ETF's significant holding in Hess Midstream LP aligns with its mandate to track the performance of energy infrastructure MLPs, which often feature prominently in such portfolios.
• The passive investment strategy is standard for large institutional funds that aim for broad market exposure rather than active corporate governance intervention, distinguishing them from activist investors.

Stakeholder Impact

• Shareholders: The disclosure of significant institutional ownership may provide a sense of stability and validation for existing shareholders, potentially attracting new investors.
• Employees, Customers, Suppliers, Creditors: This filing has no direct impact on these stakeholders as it pertains solely to passive ownership and not operational or strategic changes within Hess Midstream LP.

Next Steps

• No specific future actions or milestones for Hess Midstream LP are mentioned in this ownership disclosure. The reporting persons will continue to file updates if their ownership percentage changes significantly (e.g., crossing a 1% threshold).

Key Dates

Recommendation

Keywords

Hess Midstream LP, HESM, ALPS Advisors, Alerian MLP ETF, Schedule 13G, Beneficial Ownership, Common Units, Limited Partner Interests, Institutional Investment, Midstream, Energy Infrastructure, Passive Investment