Form 4: Hess Midstream Director Settles Phantom Shares for Class A Shares

Director J Patrick Reddy settles phantom shares for Class A shares in Hess Midstream LP.

Summary

• On March 8, 2024, J Patrick Reddy, a director of Hess Midstream LP, settled 2,299 phantom shares for 2,299 Class A shares.
• These phantom shares were granted in 2023 for service as a director and vested on March 8, 2024.
• Reddy also acquired 1,855 phantom shares on March 8, 2024, which will vest on March 8, 2025.
• Following the transaction, Reddy directly owns 20,970 Class A shares and 1,855 phantom shares.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stable corporate governance and alignment of interests. It's a neutral event with a slightly positive undertone due to the continued equity stake of the director.

Industry Context

This filing reflects routine compensation practices for board members in publicly traded companies, aligning director incentives with shareholder value through equity-based compensation.

Comparison to Industry Standards

• Equity compensation for board members is a common practice across the energy and midstream sectors.
• Companies like Enterprise Products Partners (EPD) and Kinder Morgan (KMI) also utilize similar equity-based compensation plans for their directors.
• The vesting schedules and types of equity awards (phantom shares vs. restricted stock) are generally comparable to industry norms.

Stakeholder Impact

• The transaction has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors.
• It reinforces the director's alignment with shareholder interests through equity ownership.

Key Dates