SCHEDULE: ALPS Advisors Boosts Hess Midstream LP Stake to 23.42%

ALPS Advisors, Inc. and Alerian MLP ETF report increased beneficial ownership in Hess Midstream LP, now holding 23.42% and 23.11% respectively, reflecting a change in calculation methodology.

Summary

• ALPS Advisors, Inc. (AAI) and Alerian MLP ETF have filed an Amendment No. 5 to their Schedule 13G regarding their beneficial ownership in Hess Midstream LP.
• As of December 31, 2025, ALPS Advisors, Inc. beneficially owns 30,303,091 Class A Shares, representing 23.42% of the class.
• Alerian MLP ETF beneficially owns 29,908,345 Class A Shares, representing 23.11% of the class.
• AAI serves as the investment adviser for Alerian MLP ETF and other funds/accounts holding these shares.
• The percentage of beneficial ownership is calculated based on 129,392,378 Class A Shares outstanding as of October 31, 2025, as reported by Hess Midstream LP in its Form 10-Q.
• This amendment updates the calculation methodology; prior amendments used the total consolidated share and unit count (inclusive of Class B units, approximately 207 million) as the denominator, which resulted in a lower reported percentage. The current filing uses only outstanding Class A Shares as the denominator.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, primarily a compliance update regarding beneficial ownership and a clarification of calculation methodology, with no direct operational or financial impact on the issuer.

Positives

• The reporting persons hold their shares in the ordinary course of business and not for the purpose of changing or influencing control of the issuer, indicating a passive investment stance.
• The clarification of the calculation methodology provides greater transparency regarding the percentage of ownership relative to the publicly traded Class A Shares.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the issuer's future performance or operations.

Management Comments

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

Industry Context

StockSavvy.ai notes that Schedule 13G filings are routine disclosures for institutional investors crossing certain ownership thresholds, providing transparency into significant holdings in the midstream energy sector. The clarification of the percentage calculation methodology in this amendment highlights the importance of understanding the specific denominator used for ownership percentages, especially in complex partnership structures like Hess Midstream LP's Up-C model, which includes both publicly traded Class A Shares and privately held Class B units.

Comparison to Industry Standards

• This Schedule 13G filing adheres to the standard regulatory requirements for reporting beneficial ownership by passive institutional investors exceeding 5% of a class of securities, as mandated by the Securities Exchange Act of 1934.
• The amendment specifically addresses a change in the calculation basis for the percentage of class, moving from a consolidated share and unit count to solely Class A Shares outstanding, which is a common point of clarification in filings for master limited partnerships (MLPs) or entities with complex capital structures.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional ownership and the methodology used to calculate beneficial ownership percentages, which can influence perceptions of institutional interest and liquidity.

Key Dates

Recommendation

This filing is a routine beneficial ownership disclosure and amendment, primarily clarifying the calculation methodology for ownership percentages. It does not contain new operational, financial, or strategic information that would warrant a change in investment recommendation. The reported ownership is passive, indicating no intent to influence control. Therefore, a 'hold' recommendation is appropriate as the filing provides no new catalysts for a 'buy' or 'sell' decision.

Keywords

Hess Midstream LP, HESM, ALPS Advisors, Alerian MLP ETF, Schedule 13G, beneficial ownership, Class A Shares, limited partner interests, investment adviser, investment company, SEC filing