Form 4: Hess Midstream CFO Jonathan C. Stein Reports Share Transactions Following Phantom Share Vesting

Hess Midstream's Chief Financial Officer, Jonathan C. Stein, acquired and disposed of Class A shares following the vesting of phantom shares, with a portion sold to cover tax obligations.

Summary

• Jonathan C. Stein, the Chief Financial Officer of Hess Midstream LP, reported transactions involving Class A shares.
• On November 8, 2024, Mr. Stein acquired 2,486, 5,896, and 7,135 Class A shares respectively, through the settlement of phantom shares granted under the company's 2017 Long Term Incentive Plan.
• These phantom shares were from the 2022, 2023 and 2024 grants and vested on November 8, 2024.
• On November 11, 2024, Mr. Stein sold 7,923 Class A shares at a price of $35.32 per share.
• The sale was to satisfy tax obligations related to the vesting of the phantom shares.
• Following these transactions, Mr. Stein beneficially owns 59,945 Class A shares.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and does not indicate any significant positive or negative events. The transactions are routine and expected.

Positives

• The vesting of phantom shares indicates that performance targets were likely met, triggering the share awards.
• The transactions are part of a standard compensation plan for executives.

Industry Context

This type of transaction is common for executives who receive equity-based compensation as part of their overall package. It is a standard practice for companies to use phantom shares as part of their long-term incentive plans.

Comparison to Industry Standards

• Equity-based compensation, including phantom shares, is a common practice among publicly traded companies, particularly in the energy sector, to align executive interests with shareholder value.
• Companies like Enterprise Products Partners and Kinder Morgan also utilize similar long-term incentive plans for their executives.
• The vesting and subsequent sale of shares to cover tax obligations is a standard procedure in these types of compensation plans.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they are part of the standard executive compensation plan.
• The sale of shares by the CFO may have a slight downward pressure on the stock price, but this is likely to be minimal.

Key Dates

Keywords

Hess Midstream, Jonathan C. Stein, Class A Shares, Phantom Shares, SEC Form 4, Executive Compensation, Share Transactions, Long Term Incentive Plan