Hess Midstream LP Upsizes Public Offering to Support Growth Strategy and Infrastructure Expansion
- Hess Midstream LP upsizes public offering to 11 million Class A shares, priced at $39.45 each.
- The offering aims to enhance Hess Midstream's asset portfolio while serving Hess Corporation and third-party customers.
- Proceeds will not benefit Hess Midstream; the transaction solely supports a Selling Shareholder affiliate of Global Infrastructure Partners.
Hess Midstream LP Expands Public Offering Amid Growth Strategy
Hess Midstream LP announces the upsizing of its public offering of Class A shares, now totaling 11,000,000 shares, an increase from the previously planned 10,000,000. The shares are priced at $39.45 each, projecting gross proceeds of approximately $433.95 million for the Selling Shareholder, an affiliate of Global Infrastructure Partners, which is part of BlackRock. In addition, the underwriter has a 30-day option to purchase up to 1,650,000 additional shares. This offering is expected to close on February 12, 2025, pending the standard closing conditions. Importantly, Hess Midstream will not receive any proceeds from this transaction, as the offering is strictly for the Selling Shareholder.
The offering is conducted under an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC). Interested investors can find detailed information in the prospectus supplement and accompanying base prospectus available on the SEC’s website or through Goldman Sachs, which is serving as the bookrunning manager for the transaction. This strategic move aligns with Hess Midstream's focus on enhancing its asset portfolio while providing midstream services that cater to both Hess Corporation and third-party customers.
Hess Midstream LP operates a diverse portfolio of midstream assets in North Dakota’s Bakken and Three Forks Shale plays, emphasizing a fee-based growth model. The company’s operations include oil, gas, and produced water handling facilities, which are vital for the burgeoning energy sector in the region. The latest offering reflects the company’s commitment to bolstering its infrastructure and service capabilities amidst evolving market dynamics.
In conjunction with the offering, Hess Midstream includes cautionary notes regarding forward-looking statements, which highlight potential risks and uncertainties that could impact actual performance. As the midstream sector remains pivotal in the energy supply chain, Hess Midstream’s strategic initiatives will likely play a crucial role in its sustained growth and operational excellence.