Hess Midstream LP Announces Secondary Public Offering of Class A Shares

Rhea-AI Summary

Hess Midstream LP (NYSE: HESM) has initiated an underwritten public offering of 7,900,000 Class A shares, representing limited partner interests, by subsidiaries of Hess Corporation and Global Infrastructure Partners. The underwriters also have an option to purchase an additional 1,185,000 shares within 30 days. Importantly, HESM will not receive any proceeds from this offering. Citigroup and Goldman Sachs are the joint bookrunning managers for the offering, which is conducted under an effective shelf registration statement. More details are available in the SEC filing.

Positive

• The offering allows existing shareholders to liquidate their holdings.
• Potential for price stabilization through increased market liquidity.

Negative

• HESM will not receive any proceeds from the sale, which could affect future growth funding.
• The public offering may lead to dilution of existing shareholders' equity.

HOUSTON--(BUSINESS WIRE)-- Hess Midstream LP (NYSE: HESM) (“HESM”) today announced the commencement of an underwritten public offering of an aggregate of 7,900,000 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”). The Selling Shareholders intend to grant the underwriters a 30-day option to purchase up to 1,185,000 additional Class A shares. HESM will not receive any proceeds from the sale of Class A shares in the offering.

Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC 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”). Copies of the preliminary 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:

Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Telephone: 800-831-9146
Email: prospectus@citi.com

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

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 is being 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 owns, 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.

Forward Looking Statements

This press release includes 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/20220329006005/en/

Investor Contact:

Jennifer Gordon

(212) 536-8244



Media Contact:

Robert Young

(713) 496-6076

Source: Hess Midstream LP

FAQ

What is the purpose of the Class A share offering by Hess Midstream (HESM)?

The offering allows selling shareholders to liquidate their interests, but HESM will not benefit from any proceeds.

How many shares are being offered in the HESM public offering?

An aggregate of 7,900,000 Class A shares are being offered, with an option for underwriters to purchase an additional 1,185,000 shares.

Who are the underwriters for the HESM share offering?

Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are acting as joint bookrunning managers for the offering.

When was the public offering announced for HESM?

The public offering was announced recently, as detailed in a press release on March 29, 2023.

Will HESM receive any proceeds from the offering of Class A shares?

No, Hess Midstream will not receive any proceeds from the sale of Class A shares in this offering.