Form 4: Hess Corp Reports Changes in Beneficial Ownership of Hess Midstream LP

Hess Corp reports changes in beneficial ownership of Hess Midstream LP securities, including cancellation and transfer of Class B Shares and Opco Class B Units.

Summary

• Hess Corp has filed a Form 4 detailing changes in its beneficial ownership of Hess Midstream LP securities.
• 2,038,956 Class B Shares were cancelled for no consideration in connection with Hess Midstream Operations LP's repurchase of 2,038,956 Opco Class B Units from Hess Investments North Dakota LLC (HINDL).
• These Opco Class B Units were subsequently cancelled.
• 1,073,930 Class B Shares were transferred from Hess Midstream GP LP to HINDL for no consideration.
• Following these transactions, Hess Midstream GP LP holds 14,573,517 Class B Shares and 449,000 Class A Shares.
• HINDL holds 64,405,673 Class B Shares.
• The Opco Class B Units can be converted into Class A Shares on a one-to-one basis at any time.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing changes in ownership. It doesn't contain overtly positive or negative information, hence a neutral sentiment score.

Industry Context

This filing reflects internal restructuring and adjustments in the ownership of Hess Midstream LP's securities, which is common in master limited partnerships (MLPs) to optimize capital structure and operational efficiency.

Comparison to Industry Standards

• Changes in beneficial ownership are routinely reported by companies like Enterprise Products Partners L.P. and MPLX LP, which also operate in the midstream energy sector.
• Similar to this transaction, these companies often adjust unit holdings between parent entities and subsidiaries to manage financial and operational strategies.
• The reporting requirements and structures are generally consistent across the industry, ensuring transparency in ownership changes.

Related Party Transactions

• The cancellation of Class B Shares and repurchase of Opco Class B Units between Hess Midstream Operations LP and Hess Investments North Dakota LLC (HINDL) are related party transactions.
• The transfer of Class B Shares from Hess Midstream GP LP to HINDL is also a related party transaction.

Stakeholder Impact

• The changes in beneficial ownership may have a minor impact on shareholders, primarily affecting the internal structure of the company.
• The transactions do not appear to directly impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

Hess Midstream LP, Hess Corp, beneficial ownership, Class B Shares, Opco Class B Units, Hess Investments North Dakota LLC, HINDL, securities, Form 4