Form 4: Hess Midstream LP: Global Infrastructure Investors II, LLC Transfers and Cancels Class B Shares

Global Infrastructure Investors II, LLC reports the transfer and cancellation of Class B Shares and Opco Class B Units of Hess Midstream LP.

Summary

• Global Infrastructure Investors II, LLC, along with related entities, filed a Form 4 detailing changes in beneficial ownership of Hess Midstream LP [HESM] securities.
• On September 11, 2024, 1,761,480 Class B Shares were transferred from Hess Midstream GP LP to GIP II Blue Holding, L.P. for no consideration.
• Simultaneously, 1,761,480 Class B Shares were cancelled in connection with Hess Midstream Operations LP's repurchase of 1,761,480 Opco Class B Units from Blue Holding and a subsequent cancellation of such Opco Class B Units.
• Following these transactions, Global Infrastructure Investors II, LLC indirectly beneficially owns 44,591,539 Class A Shares and 44,591,539 Opco Class B Units.
• The Opco Class B Units are convertible 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 ownership changes. It doesn't contain overtly positive or negative information, hence a neutral sentiment score.

Industry Context

This filing reflects ownership changes within Hess Midstream LP, a company operating in the midstream energy sector. Such changes are common and can be driven by various factors, including internal restructuring, investment decisions, or regulatory requirements.

Comparison to Industry Standards

• Ownership structures and transactions like these are typical in master limited partnerships (MLPs) within the energy sector.
• Similar transactions can be observed in companies like Enterprise Products Partners (EPD) or MPLX LP (MPLX), where large stakeholders adjust their holdings for strategic or financial reasons.
• The reporting requirements under Section 16(a) of the Securities Exchange Act ensure transparency in these ownership changes, aligning with industry best practices for corporate governance.

Related Party Transactions

• The transfer of Class B Shares from Hess Midstream GP LP to GIP II Blue Holding, L.P. is a related party transaction.

Stakeholder Impact

• The transfer and cancellation of shares may have a minor impact on shareholders due to the change in ownership structure, but the overall impact is likely minimal as the underlying business operations remain unchanged.

Key Dates