Form 4: Hess Midstream LP: Hess Corporation Adjusts Ownership in Class B Shares and Opco Units

Hess Corporation reports adjustments in its holdings of Hess Midstream LP's Class B shares and Opco Class B Units, including a cancellation and a transfer of shares.

Summary

• Hess Corporation and Hess Investments North Dakota LLC (HINDL) filed a Form 4 detailing changes in their beneficial ownership of Hess Midstream LP securities.
• 1,061,782 Class B Shares were cancelled for no consideration in connection with Hess Midstream Operations LP's repurchase of 1,061,782 Opco Class B Units from HINDL and the subsequent cancellation of such Opco Class B Units.
• 699,698 Class B Shares were transferred from Hess Midstream GP LP to HINDL for no consideration.
• Following these transactions, Hess Corporation's indirect ownership includes 44,591,539 Class B Shares held by Hess Midstream GP LP, 37,394,148 Class B Shares held by HINDL, and 449,000 Class A Shares held by Hess Midstream GP LP.
• Hess Corporation indirectly owns 81,985,687 Opco Class B Units through HINDL.
• The Opco Class B Units can be converted into Class A Shares on a one-to-one basis at any time.

Sentiment

Score: 6

Explanation: The document describes routine ownership adjustments, which are neither particularly positive nor negative. The sentiment is neutral.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Industry Context

This announcement reflects ongoing adjustments in the ownership structure within Hess Midstream LP, which is common in master limited partnerships (MLPs) as parent companies manage their investments and capital structures.

Comparison to Industry Standards

• Ownership adjustments and unit repurchases are common activities among publicly traded partnerships like Hess Midstream LP.
• Similar transactions can be observed in companies such as Enterprise Products Partners L.P. (EPD) and MPLX LP (MPLX), where parent entities actively manage their ownership stakes.
• The scale of the transactions is within the typical range for midstream companies of Hess Midstream's size.

Related Party Transactions

• The cancellation of Class B Shares is related to the repurchase of Opco Class B Units from Hess Investments North Dakota LLC (HINDL), a related party.
• The transfer of Class B Shares from Hess Midstream GP LP to HINDL is also a related party transaction.

Stakeholder Impact

• The adjustments in ownership may have a minor impact on shareholders, primarily reflecting internal restructuring.
• Employees and other stakeholders are unlikely to be directly affected by these transactions.

Key Dates