Hess Midstream LP Announces Secondary Public Offering of Class A Shares

Rhea-AI Summary

Hess Midstream LP (NYSE: HESM) announced a secondary public offering of 10,000,000 Class A shares by an affiliate of Global Infrastructure Partners, a part of BlackRock (the Selling Shareholder). The Selling Shareholder is granting underwriters a 30-day option to purchase up to 1,500,000 additional Class A shares.

Goldman Sachs & Co. is serving as the bookrunning manager for the offering. HESM will not receive any proceeds from the sale of Class A shares in this offering. The shares will be offered through a shelf registration statement previously filed with the SEC.

Positive

• None.

Negative

• Company receives no proceeds from the share sale
• Large secondary offering of 10M shares with potential additional 1.5M shares may pressure stock price
• Significant shareholder (BlackRock affiliate) reducing position could signal decreased confidence

Insights

Financial Markets Analyst

This secondary offering marks a significant development for Hess Midstream LP, with 10 million Class A shares being offered by Global Infrastructure Partners (GIP), now part of BlackRock, with an additional 1.5 million share option. The scale of this offering warrants careful investor attention for several reasons:

The offering size represents approximately 10% of HESM's market capitalization, which could create meaningful near-term selling pressure. However, Goldman Sachs's involvement as bookrunner suggests a well-coordinated placement process that should help minimize market disruption.

Three key implications emerge:

• This move by GIP/BlackRock likely represents a portfolio rebalancing rather than a negative view on HESM, as infrastructure funds typically have investment horizon limits
• The increased float should enhance trading liquidity, potentially making the stock more attractive to institutional investors
• The offering could provide an attractive entry point for new investors, as secondary offerings of this size typically come with a modest discount to market price

For existing shareholders, while there may be short-term price pressure, the enhanced liquidity and broader institutional ownership base could benefit long-term price discovery and stability. The timing of this offering, amidst strong midstream sector fundamentals, suggests confidence in market appetite for HESM shares.

HOUSTON--(BUSINESS WIRE)-- Hess Midstream LP (NYSE: HESM) (“HESM”) today announced the commencement of an underwritten public offering of an aggregate of 10,000,000 Class A shares representing limited partner interests in HESM by an affiliate of Global Infrastructure Partners, a part of BlackRock (the “Selling Shareholder”). The Selling Shareholder intends to grant the underwriters a 30-day option to purchase up to 1,500,000 additional Class A shares. HESM will not receive any proceeds from the sale of Class A shares in the offering.

Goldman Sachs & Co. LLC is acting as the bookrunning manager 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 Goldman Sachs & Co. LLC as follows:

Goldman Sachs & Co. LLC
Attn: Prospectus Department
200 West Street
New York, New York 10282
Telephone: 1-866-471-2526
Facsimile: 1-212-902-9316
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 contains “forward-looking statements” within the meaning of U.S. federal 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/20250210424008/en/

Investor Contact:

Jennifer Gordon

(212) 536-8244

Media Contact:

Lorrie Hecker

(212) 536-8250

Source: Hess Midstream LP

FAQ

How many Class A shares is Hess Midstream (HESM) offering in the secondary public offering?

The secondary public offering consists of 10,000,000 Class A shares, with an additional 30-day option for underwriters to purchase up to 1,500,000 more shares.

Will Hess Midstream (HESM) receive any proceeds from the secondary offering?

No, Hess Midstream will not receive any proceeds from the sale of Class A shares in this offering, as the shares are being sold by an affiliate of Global Infrastructure Partners (BlackRock).

Who is the underwriter for HESM's secondary public offering?

Goldman Sachs & Co. is acting as the bookrunning manager for the offering.

Who is selling shares in the HESM secondary offering?

The shares are being sold by an affiliate of Global Infrastructure Partners, which is a part of BlackRock (the Selling Shareholder).