Form 4: Hess Midstream LP Executive John A. Gatling Reports Acquisition of Class A Shares Through Phantom Share Settlement

John A. Gatling, President and COO of Hess Midstream LP, reports the acquisition of Class A shares through the settlement of phantom shares, increasing his direct holdings.

Summary

• On March 8, 2024, John A. Gatling, President and COO of Hess Midstream LP, acquired Class A shares through the settlement of phantom shares under the company's 2017 Long Term Incentive Plan.
• The transactions involved the settlement of 3,721 phantom shares from the 2021 grant, 2,486 phantom shares from the 2022 grant, and 2,947 phantom shares from the 2023 grant, all at a price of $0.
• Following these transactions, Gatling's direct ownership of Class A shares increased to 58,963.
• He also holds 2,486 remaining 2022 phantom shares, 5,896 remaining 2023 phantom shares, and 7,135 2024 phantom shares, which will vest in future years.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine filing related to executive compensation. The acquisition of shares by an executive is generally viewed as a positive, but it's part of a pre-existing compensation plan.

Positives

• The acquisition of shares by a company executive can be seen as a positive sign, indicating confidence in the company's future performance.

Future Outlook

The reporting person holds additional phantom shares that will vest in future years, indicating continued alignment with the company's long-term performance.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. This filing indicates the vesting of previously granted compensation in the form of phantom shares.

Comparison to Industry Standards

• Executive compensation packages often include phantom shares or restricted stock units that vest over time, aligning executive interests with shareholder value.
• The vesting schedules and terms of Hess Midstream's 2017 Long Term Incentive Plan are likely comparable to those of other companies in the midstream energy sector, such as Enterprise Products Partners, Magellan Midstream Partners, and Kinder Morgan.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns executive interests with the company's performance.

Key Dates