Hess Midstream LP: GIP’s Gone, Hess is Home Alone (And $553 Million Richer… Well, Not HESM)

Welcome back to the ongoing saga of Hess Midstream LP (HESM)! Consider this your definitive, constantly-updated library on all things HESM, straight from the horse’s, uh, SEC filing’s mouth. Today, we’re cracking open the latest 8-K, filed on May 30, 2025, and deciphering the secrets within.

As you may recall from our previous installments (and if you don’t, shame on you – go back and read!), Global Infrastructure Partners (GIP) was making a grand exit, stage left, selling off its stake in HESM. These new documents offer the thrilling conclusion to that story arc. Spoiler alert: the deal is done.

GIP is officially out, walking away with a cool $553.7 million. Hess Corporation now has the reins, though some independent board members remain. Think of it as Hess finally getting their own apartment after years of having a roommate.

The main 8-K filing confirms GIP sold its 15,022,517 Class A shares for $37.25 each. [[GREEN_FLAG]] As expected, HESM itself didn’t see a dime of that sweet, sweet cash, which the 8-K also confirms. With the money changing hands, three GIP-affiliated directors promptly resigned from the board – a predictable, yet significant, shift in governance. So long, farewell, auf wiedersehen, goodbye.

The EX-99.1 press release echoes these points [[GREEN_FLAG]], adding some juicy details like the closing date (May 30th, 2025 – the very same day as the filing! Talk about efficiency) and the underwriters involved (J.P. Morgan and Citigroup, for those keeping score).

We also get a peek behind the legal curtain with the EX-1.1 underwriting agreement and the EX-5.1 legal opinion [[GREEN_FLAG]]. These documents confirm all the i’s were dotted and t’s were crossed, ensuring the deal is squeaky clean legally. Not exactly thrilling reading, but essential for making sure everything’s above board.

This marks the final chapter in GIP’s HESM story. Hess Corporation is now firmly in the driver’s seat, giving them greater control over their midstream destiny.

The Analyst’s Crystal Ball: Hess Midstream LP (HESM) – What Now? (Updated May 30, 2025) 🔮

Overall Outlook & Forecast

With GIP out of the picture, Hess Corporation has a clearer path forward. This could lead to more streamlined decision-making and potentially new strategic directions for HESM. The increased control could be a game-changer.

What Would Make Us Yell “To The Moon!” (Go Long) 🚀

• HESM announces a new growth strategy leveraging Hess Corporation’s full backing.
• Increased distributions or share buybacks now that GIP isn’t sharing the pie.
• Positive developments in the broader energy market that boost HESM’s prospects.

When We’d Hit The Eject Button (Go Short) 📉

• Hess Corporation uses its newfound control to make decisions detrimental to minority shareholders.
• A downturn in the energy market significantly impacts HESM’s performance.
• HESM takes on excessive debt or makes risky investments.

The Mic Drop: So, What’s the Deal with Hess Midstream LP’s Latest Paper Trail?

The latest 8-K confirms what we’ve been anticipating: GIP is officially out, and Hess Corporation is running the show. This potentially sets the stage for a new era for HESM, though what that era looks like remains to be seen. As always, do your own research (DYOR) before making any investment decisions. Consider this your friendly neighborhood SEC decoder, signing off (for now).

Key Questions Answered by This 8-K From Hess Midstream LP (HESM)

• Did Global Infrastructure Partners complete its divestment from Hess Midstream LP?

  Yes, GIP successfully completed the sale of its 15,022,517 Class A shares in HESM for $37.25 per share, netting $553.7 million.

• How much did Hess Midstream LP receive from this transaction?

  HESM did not receive any proceeds from the secondary offering.

• Were there any board changes as a result of the divestment?

  Yes, three GIP-affiliated directors resigned from the board of GP LLC following the close of the offering.

• Who were the underwriters for this secondary offering?

  J.P. Morgan and Citigroup acted as joint bookrunning managers for the offering.

• Was the sale of GIP’s shares legally sound?

  A legal opinion from Latham & Watkins LLP confirmed the valid issuance and sale of the Class A shares, assuring investors of the transaction’s legality.

• When did the transaction officially close?

  The offering officially closed on May 30, 2025.

• What was the final share price for the offering?

  The final public offering price per Class A share was $37.25, with the underwriters purchasing at $36.86.

P.S. The SEC saga never ends! As Hess Midstream LP files more, this analysis will evolve. Current as of May 30, 2025.