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

Hess Corp reports changes in beneficial ownership of Hess Midstream LP securities following a repurchase of Opco Class B Units and a transfer of Class B Shares.

Summary

• Hess Corp and related entities filed a Form 4 detailing changes in their beneficial ownership of Hess Midstream LP [HESM] securities.
• The changes stem from Hess Midstream Operations LP's repurchase of 1,059,390 Opco Class B Units from Hess Investments North Dakota LLC (HINDL) and the subsequent cancellation of these units.
• Additionally, 698,121 Class B Shares were transferred from Hess Midstream GP LP 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 therein.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing ownership changes. It doesn't contain overtly positive or negative information, but the unit repurchase could be viewed as a moderately positive sign of capital management.

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 MLPs, such as Enterprise Products Partners (EPD) and Magellan Midstream Partners (MMP), where sponsors periodically adjust their ownership through unit repurchases or transfers.
• These adjustments often aim to streamline operations, improve financial flexibility, or optimize tax efficiency, aligning with industry practices for managing MLP structures.

Related Party Transactions

• The repurchase of Opco Class B Units from Hess Investments North Dakota LLC (HINDL) is a related party transaction.

Stakeholder Impact

• The unit repurchase and ownership adjustments may have a minor impact on shareholders by potentially affecting the float and trading dynamics of HESM.

Key Dates