History
Hess Midstream floated in 2017 to run Bakken gas assets for Hess, then in December 2019 merged into a new public company and became its subsidiary.
2017-2018: Going public
Hess Midstream Partners LP began trading after the New York Stock Exchange certified its securities for listing in early April 2017. Its initial public offering closed on April 10, 2017. It sold 14,780,000 common units at $23.00 each, and the underwriters took their full option of 2,217,000 extra units. After underwriting discounts and structuring fees, the partnership received about $365.5 million, before offering expenses. It planned to use the money for a payment to its Hess and GIP sponsors, reimbursing their earlier capital spending, along with credit facility fees and general purposes such as expansion and working capital. At closing it signed agreements with Hess: Hess staff were lent to run the assets, and the partnership reimbursed the costs.
On September 17, 2018, the partnership amended its gas processing and gathering contracts with Hess Trading Corporation. They now also covered the Little Missouri Four (LM4) plant, being built by Targa in a 50/50 joint venture with Hess TGP Operations LP, in which the partnership held a 20% economic interest. The fee formulas would also take account of revenue from third-party production from January 1, 2019, and the gathering contract for the Goliath subsystem was extended five years to December 31, 2028.
2019-2020: Restructuring into a new parent
The record is quiet for the first nine months of 2019. On October 3, 2019, the partnership agreed a restructuring with Hess and GIP. A new corporation-taxed company, New HESM, would replace it as the publicly traded entity, with each public unit converting into one New HESM Class A share. The partnership would acquire Hess Infrastructure Partners (HIP), and share a one-time cash distribution of about $549.3 million with HIP's owners. Public holders would receive a 6.0% voting and 95.0% economic interest in New HESM.
On December 10, 2019, the partnership closed a $550 million offering of 5.125% senior notes due 2028, sold at par, to fund the HIP acquisition, including repaying HIP's credit facility borrowings and part of the distribution.
The restructuring closed on December 16, 2019. The old partnership merged with a new entity, Hess Midstream LP (New HESM), and survived as a subsidiary renamed Hess Midstream Operations LP. The sponsors' units became Class B units. The same day it signed new credit facilities with JPMorgan Chase as agent: a $1,000.0 million five-year revolver and a $400.0 million five-year term loan. An exchange filing on December 17, 2019 sought to remove a class of its securities from listing, and on January 30, 2020 it terminated the registration of a class of securities, ending its reporting obligation for them. As of that date, it was a subsidiary of the new public company.
Written from the 8 story beats below (2017 to 30 Jan 2020), which come from the company's own announcements and filings.