Hess Midstream has announced the pricing of its secondary public offering of approximately 15.02 million Class A shares at $37.25 each.
The shares are being sold by an affiliate of Global Infrastructure Partners, part of BlackRock, with expected gross proceeds of approximately $559.59m.
Hess Midstream will not receive any proceeds from this offering, which is expected to close on 30 May 2025, subject to customary closing conditions.
The offering is managed by J.P. Morgan and Citigroup as joint bookrunning managers.
It is being conducted through a prospectus supplement and accompanying base prospectus, as filed with the Securities and Exchange Commission.
In parallel to this offering, Hess Midstream has also engaged in a $200m accretive repurchase that includes both Class B units from its subsidiary, Hess Midstream Operations LP, and Class A shares from the public.
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By GlobalDataThis month, Hess Midstream executed a definitive agreement for the repurchase of approximately $190m worth of Class B units from its sponsors, affiliates of Hess Corporation and Global Infrastructure Partners.
The board of directors of Hess Midstream’s general partner unanimously approved the terms of the unit repurchase transaction following a unanimous recommendation from its conflicts committee, which is composed solely of independent directors.
Additionally, Hess Midstream entered into an accelerated share repurchase agreement with JPMorgan Chase Bank, National Association, to repurchase $10m of its publicly traded Class A shares.
Hess Midstream chief financial officer Jonathan Stein said: “We continue to execute unit repurchase transactions as part of our unique financial strategy, which highlights our differentiated ability to deliver significant shareholder returns while also maintaining balance sheet strength.
“After significant growth in our public float and trading volume, we have determined to start including publicly traded Class A shares in our repurchase transactions.”
Stein added: “Following these repurchase transactions, which are expected to provide immediate accretion to our shareholders, we expect to continue to have more than $1.25bn of financial flexibility through 2027 that can be used to support potential incremental repurchases, which may include repurchases of additional publicly traded Class A shares as determined by the Board of Directors.”
