Hess Midstream LP current report, 15 August 2023

Hess Midstream LP — Form 8-K Summary

Business Context and Reporting Period

Hess Midstream LP filed a Current Report on Form 8-K dated August 15, 2023, reporting entry into an underwriting agreement for a secondary offering of the partnership’s Class A limited partner interests. The report was signed on August 17, 2023. This filing does not report quarterly or annual operating results.

Transaction and Key Financial Metrics

  • GIP II Blue Holding, L.P., the selling shareholder, agreed to sell 10,000,000 Class A shares to Goldman Sachs & Co. LLC at $28.80 per share, before underwriting discounts.
  • The selling shareholder received approximately $285.9 million in net proceeds after underwriting discounts.
  • Hess Midstream LP received no proceeds from the offering.
  • The selling shareholder granted the underwriter a 30-day option to purchase up to an additional 1,500,000 Class A shares at the same price, less underwriting discounts.
  • The filing text does not provide revenue, profit, cash flow, margins, debt, liquidity, or other operating-performance metrics.

Material Changes Versus the Prior Comparable Period

The filing does not provide a prior-period comparison. The material event is a secondary sale by an existing shareholder rather than a primary issuance by Hess Midstream LP; accordingly, the transaction did not provide capital to the partnership or increase its cash balances based on the information provided.

Guidance, Outlook, Risks, and Unusual Items

  • The filing provides no earnings guidance or operating outlook.
  • The underwriting agreement contains customary representations, warranties, covenants, closing conditions, termination provisions, and indemnification obligations.
  • Hess Midstream LP, the selling shareholder, and Hess Investments North Dakota LLC agreed, subject to specified exceptions and the underwriter’s consent, not to sell or otherwise dispose of their Class A shares for 60 days after August 15, 2023.
  • The offering was conducted under the company’s effective Form S-3 shelf registration statement, base prospectus, and August 15, 2023 prospectus supplement.

Investor Verification Items

  • Verify whether the underwriter exercised any portion of the 1,500,000-share option within the 30-day period.
  • Review the final share count sold, underwriting discounts, and any resulting ownership changes in the company’s prospectus filings and closing disclosures.
  • Confirm that no proceeds were received by Hess Midstream LP and assess any effects on share ownership, trading liquidity, or governance.
  • Review the underwriting agreement and related prospectus supplement for the complete representations, lock-up exceptions, indemnification terms, and offering conditions.