Hess Midstream LP Launches Upsized Class A Shares Offering

Author: Logan Wright Updated: 02-10-2025 10:13 PM

Hess Midstream LP Launches Significant Class A Shares Offering

Hess Midstream LP (NYSE: HESM) recently made headlines with its announcement regarding the upsizing and pricing of a significant public offering of Class A shares. This initiative represents an aggregate of 11,000,000 Class A shares, which are a form of limited partner interest in Hess Midstream. The shares are being offered by an affiliate of Global Infrastructure Partners, aligned with the overarching goals of BlackRock, a prominent investment management firm.

Details of the Offering

The Class A shares are priced at $39.45 each, indicating a strategic move to attract investors while showcasing the company’s strong positioning in the market. Originally, the offering was set for 10,000,000 shares, but due to market demand and confidence in Hess Midstream’s operations, it was upsized to 11 million shares. A noteworthy aspect of this offering is that the selling shareholder has provided the underwriters with a 30-day option, allowing them to purchase an additional 1,650,000 Class A shares if desired.

Projected Proceeds and Financial Outlook

The gross proceeds from this offering are anticipated to reach a significant $433.95 million. However, it is essential to note that Hess Midstream itself will not receive any of the proceeds from this sale. The anticipated closing date for this offering is set for February 12, 2025, contingent upon customary closing conditions being met.

Management Team Involved

Goldman Sachs & Co. LLC is taking the lead as the bookrunning manager for this public offering. Their expertise in managing offerings of this magnitude underscores the strong financial integrity that Hess Midstream aims to uphold as it continues expanding its reach in the midstream sector.

How to Obtain Offering Details

The terms and conditions related to this public offering can be found in the prospectus supplement and accompanying base prospectus filed with the Securities and Exchange Commission (SEC). Interested investors are encouraged to acquire copies of these documents, which are accessible on the SEC’s website. If needed, copies may also be requested directly from Goldman Sachs & Co. LLC through their Prospectus Department.

About Hess Midstream LP

To understand the relevance of this offering, it’s essential to know more about Hess Midstream LP. The company is a fee-based, growth-oriented midstream organization, recognized for its ownership, operation, development, and acquisition of diverse midstream assets. Hess Midstream actively serves both Hess Corporation and a variety of third-party customers, enhancing its footprint in the oil and gas industry. Its assets include crucial handling facilities for oil, gas, and produced water primarily situated in the Bakken and Three Forks Shale plays within the Williston Basin area.

Frequently Asked Questions

What is the purpose of Hess Midstream LP's offering?

The offering aims to raise capital by upsizing the public offering of Class A shares, allowing for potential growth and continued development of midstream operations.

Who is managing the offering?

Goldman Sachs & Co. LLC is the bookrunning manager overseeing the public offering of shares.

What are the expected gross proceeds from this sale?

Projected gross proceeds are estimated to be around $433.95 million.

Will Hess Midstream LP receive any funds from this offering?

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

When is the expected closing date for the offering?

The offering is expected to close on February 12, 2025, subject to customary conditions being satisfied.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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