Hess Midstream LP Announces Pricing of Secondary Public Offering of Class A Shares

Rhea-AI Summary

Hess Midstream LP (NYSE: HESM) announced the pricing of a public offering of 6,000,000 Class A shares at $21.00 each, aiming for gross proceeds of approximately $126 million. The offering, set to close on March 15, 2021, is conducted by a subsidiary of Hess Corporation and an affiliate of Global Infrastructure Partners. HESM will not receive proceeds from this sale. Additionally, underwriters have a 30-day option to purchase 900,000 more shares. The company specializes in midstream services, focusing on oil and gas assets in North Dakota's Bakken and Three Forks Shale plays.

Positive

• Expected gross proceeds of approximately $126 million from the offering.
• Strategic move aimed at enhancing HESM's financial flexibility.

Negative

• HESM will not receive any proceeds from the offering, limiting its direct financial benefit.
• Possible dilution of shares for existing shareholders if the underwriters exercise their option.

Hess Midstream LP (NYSE: HESM) (“HESM”) today announced the pricing of an underwritten public offering of an aggregate of 6,000,000 Class A shares representing limited partner interests in HESM by a subsidiary of Hess Corporation and an affiliate of Global Infrastructure Partners (the “Selling Shareholders”), at a public offering price of $21.00 per Class A share. The Selling Shareholders have granted the underwriters a 30-day option to purchase up to 900,000 additional Class A shares at the public offering price less underwriting discounts and commissions.

The gross proceeds from the sale of Class A shares by the Selling Shareholders are expected to be approximately $126,000,000. HESM will not receive any proceeds from the sale of Class A shares in the offering. The offering is scheduled to close on March 15, 2021, subject to customary closing conditions.

Goldman Sachs & Co. LLC and Citigroup are acting as joint bookrunning managers of the offering.

The offering of these securities is being made only by means of the prospectus supplement and accompanying base prospectus as filed with the Securities and Exchange Commission (the “SEC”). When available, copies of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained free of charge on the SEC’s website at www.sec.gov under HESM’s name or from the underwriters of the offering as follows:

Goldman Sachs & Co. LLC
Attn: Prospectus Department
200 West Street
New York, New York 10282
Telephone: 866-471-2526
Facsimile: 212-902-9316
Email: prospectus-ny@ny.email.gs.com

Citigroup
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Telephone: 800-831-9146

The Class A shares are being offered and will be sold pursuant to an effective shelf registration statement that was previously filed with the SEC. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

About Hess Midstream LP

HESM is a fee-based, growth-oriented midstream company that operates, develops and acquires a diverse set of midstream assets to provide services to Hess Corporation and third-party customers. HESM owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota.

Cautionary Statement Relevant to Forward-Looking Information

This press release may include forward-looking statements within the meaning of U.S. securities laws. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. You should keep in mind the risk factors and other cautionary statements in the filings made by HESM with the SEC, which are available to the public. HESM undertakes no obligation to, and does not intend to, update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210310006065/en/

FAQ

What are the details of the HESM stock offering?

Hess Midstream is offering 6,000,000 Class A shares at $21.00 per share, with gross proceeds expected to be $126 million.

When is the HESM share offering scheduled to close?

The offering is scheduled to close on March 15, 2021, subject to customary closing conditions.

Will Hess Midstream receive proceeds from the stock offering?

No, HESM will not receive any proceeds from this stock offering.

What is the purpose of the HESM stock offering?

The offering is conducted to provide liquidity for the Selling Shareholders.

What is the potential impact of the HESM offering on shareholders?

There may be dilution of shares for existing shareholders if the underwriters opt to purchase additional shares.