SCHEDULE: Hess Midstream LP: Chevron-Hess Affiliate Sells $18M in Units

Hess Midstream LP's operating partnership repurchased 455,811 Opco Class B Units from Hess Investments North Dakota LLC for approximately $18 million.

Summary

• Hess Midstream Operations LP (HESM Opco) repurchased 455,811 Opco Class B Units from Hess Investments North Dakota LLC (HINDL).
• The aggregate purchase price for these units was approximately $18 million, at a price of $39.49 per unit.
• The transaction closed on March 4, 2026, following an agreement made on March 2, 2026.
• Upon closing, HESM Opco cancelled the repurchased units, and Hess Midstream LP cancelled an equal number of Class B Shares held by HINDL for no consideration.
• Following the transaction, the reporting persons (Chevron, Hess, and HINDL) beneficially own 78,276,485 Class A Shares, representing 37.8% of the outstanding Class A Shares.
• There were 129,403,244 Class A Shares outstanding as of March 2, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event, reflecting a routine capital management transaction between related parties without indicating significant operational changes or new strategic directions. The repurchase could be seen as a minor positive for the issuer's capital structure.

Positives

• The repurchase of units by HESM Opco could be seen as a move to optimize the capital structure or return capital to a related party.
• The cancellation of units and corresponding Class B shares simplifies the ownership structure for the repurchased portion.

Negatives

• HINDL (and by extension Hess and Chevron) reduced its direct ownership stake in the operating partnership through the sale of units.

Future Outlook

No explicit forward-looking statements or guidance are provided in this filing.

Industry Context

StockSavvy.ai notes that such unit repurchases by operating partnerships from major shareholders like Hess Investments North Dakota LLC (an affiliate of Chevron and Hess Corporation) are common in the midstream sector. These transactions can be driven by various factors, including capital allocation strategies, optimizing ownership structures, or providing liquidity to a specific shareholder.

Comparison to Industry Standards

• The repurchase price of $39.49 per unit can be compared to recent trading prices of Hess Midstream LP Class A Shares to assess if the transaction was at a premium, discount, or market rate.
• Similar transactions in the midstream sector, such as those involving pipeline or processing assets, often see unit repurchases or buybacks from sponsor entities, for example, Enbridge Inc. or Kinder Morgan, Inc. engaging in similar capital management activities with their respective affiliates or joint ventures.
• The 37.8% beneficial ownership by Chevron and Hess Corporation remains a significant controlling stake, typical for sponsor-backed midstream entities where the sponsor maintains strategic influence.

Related Party Transactions

• Hess Midstream Operations LP repurchased 455,811 Opco Class B Units from Hess Investments North Dakota LLC (HINDL), a direct wholly-owned subsidiary of Hess Corporation, which is itself a direct wholly-owned subsidiary of Chevron Corporation. This constitutes a transaction between related entities.

Stakeholder Impact

• Shareholders: The repurchase and cancellation of units could slightly reduce the number of outstanding units, potentially increasing earnings per unit for existing public shareholders, assuming all else remains equal.
• HINDL (Hess/Chevron): Reduced direct ownership in the operating partnership, receiving $18 million in proceeds.

Key Dates

Recommendation

This filing details a routine, related-party unit repurchase that does not present new information warranting a change in investment thesis. The transaction is a capital management activity rather than an indicator of significant operational shifts or strategic changes. Investors should continue to hold based on the company's underlying fundamentals and broader industry outlook.

Keywords

Hess Midstream LP, Hess Corporation, Chevron Corporation, Unit Repurchase Agreement, Schedule 13D, Beneficial Ownership, Midstream, Energy, Class A Shares, Opco Class B Units