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

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Hess Midstream LP (HESM) announced the pricing of an underwritten public offering of 10,000,000 Class A shares, resulting in gross proceeds of $331 million. The Selling Shareholder granted the underwriter a 30-day option to purchase up to 1,500,000 additional Class A shares. HESM will not receive any proceeds from the sale. The offering is expected to close on February 8, 2024. The Class A shares are being offered and will be sold pursuant to an effective shelf registration statement previously filed with the SEC.
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The pricing of Hess Midstream LP's Class A shares by an affiliate of Global Infrastructure Partners represents a substantial liquidity event, with gross proceeds reaching $331 million. This transaction is significant for shareholders and potential investors as it reflects the market's valuation of HESM's assets. The underwriter's option to purchase additional shares could further increase the capital influx, affecting the stock's liquidity and potentially its price volatility. Investors should monitor the stock's performance post-offering, as large offerings can sometimes lead to price depression due to the increased supply of shares.

The secondary offering of HESM's shares by a major shareholder does not directly infuse capital into the company but rather provides an exit or partial exit for the selling shareholder. This event can indicate a shift in the company's ownership structure, which might lead to changes in investor sentiment. It's crucial to analyze the market's reception of such offerings, as it may reflect the confidence of institutional investors in the midstream sector and specifically in HESM's business model and growth prospects. The fact that the offering is managed by Citigroup, a prominent financial institution, could also lend credibility to the transaction and attract attention from a broad range of investors.

It is important to note that the offering is conducted in compliance with the Securities Act of 1933, as amended, highlighting the regulatory framework governing such transactions. The availability of the prospectus supplement and accompanying base prospectus ensures transparency for investors, providing them with essential information to make informed decisions. The legal stipulation that there will be no sale in jurisdictions where it would be unlawful prior to registration or qualification underscores the importance of adhering to diverse securities laws, which can influence the offering's success and the company's compliance posture.

HOUSTON--(BUSINESS WIRE)-- Hess Midstream LP (NYSE: HESM) (“HESM”) today announced the pricing of the previously announced 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 (the “Selling Shareholder”), resulting in gross proceeds of $331 million, exclusive of any proceeds that may be received in connection with the exercise of the underwriter’s option to purchase additional shares. The Selling Shareholder has granted the underwriter 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. The offering is expected to close on February 8, 2024, subject to customary closing conditions.

Citigroup is acting as the bookrunning manager of the offering. The underwriter intends to offer the Class A shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market or through negotiated transactions at market prices or at negotiated prices.

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 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 Citigroup as follows:

Citigroup
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 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 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.

Investor Contact:

Jennifer Gordon

(212) 536-8244



Media Contact:

Lorrie Hecker

(212) 536-8250

Source: Hess Midstream LP

The purpose of the offering is to sell an aggregate of 10,000,000 Class A shares representing limited partner interests in HESM by an affiliate of Global Infrastructure Partners, resulting in gross proceeds of $331 million.

HESM will not receive any proceeds from the sale of Class A shares in the offering.

The offering is expected to close on February 8, 2024, subject to customary closing conditions.

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 Citigroup.

Citigroup is acting as the bookrunning manager of the offering. The underwriter intends to offer the Class A shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market or through negotiated transactions at market prices or at negotiated prices.
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About HESM

hess midstream partners lp focuses on processing natural gas and fractionating natural gas liquids (ngls) in the united states. it also intends to engage in terminaling and loading crude oil and ngls; transporting crude oil through rail cars; and storing and terminaling propane. hess midstream partners gp llc is the general partner of the company. the company was founded in 2014 and is based in houston, texas