Form 4: Global Infrastructure Investors II, LLC Adjusts Stake in Hess Midstream LP Through Share Conversions and Sales

Global Infrastructure Investors II, LLC reports changes in beneficial ownership of Hess Midstream LP shares, involving conversions of Opco Class B Units into Class A Shares and subsequent sales.

Summary

• Global Infrastructure Investors II, LLC, along with affiliated entities, reported changes in their beneficial ownership of Hess Midstream LP (HESM) securities.
• On May 31, 2024, 10,000,000 Class B Shares were cancelled for no consideration due to the conversion of Opco Class B Units into Class A Shares.
• Also on May 31, 2024, 10,000,000 Class A Shares were acquired at $0 and 10,000,000 Class A shares were disposed of at $34.025.
• On June 3, 2024, an additional 1,500,000 Class B Shares were cancelled, and 1,500,000 Class A Shares were acquired at $0 and 1,500,000 Class A shares were disposed of at $34.025.
• These transactions involved the conversion of Opco Class B Units into Class A Shares, followed by sales of Class A Shares.
• After these transactions, Global Infrastructure Investors II, LLC indirectly holds 48,052,600 Class B Shares and 1,500,000 Class A Shares.
• The reporting entities disclaim beneficial ownership of the securities except to the extent of their pecuniary interest therein.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing detailing transactions, with no inherent positive or negative sentiment. It reflects routine investment management activities.

Industry Context

This filing reflects ongoing transactions by major shareholders in Hess Midstream LP, which is common as investment firms manage their positions in publicly traded companies. The conversion of units into shares and subsequent sales are typical activities for investment firms.

Comparison to Industry Standards

• Similar transactions are common among private equity firms like Blackstone or KKR when managing their investments in publicly listed energy infrastructure companies.
• These firms often convert partnership units into common stock to facilitate sales or adjust their ownership positions.
• The reported transactions are consistent with the investment strategies of firms like GIP, which frequently invests in and manages infrastructure assets.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in ownership structure.
• Employees and customers are unlikely to be directly affected by these transactions.
• Suppliers and creditors are unlikely to be directly affected by these transactions.

Key Dates