Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segments

Note 14. Segments

Our operations are located in the United States and are organized into three reportable segments: (i) gathering, (ii) processing and storage and (iii) terminaling and export. Our reportable segments comprise the structure used by our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. These segments are strategic business units with differing products and services. The accounting policies of the segments are identical to those described in Note 2, Summary of Significant Accounting Policies and Basis of Presentation. Our CODM evaluates the segments’ operating performance based on multiple measures including Adjusted EBITDA, defined as net income (loss) before interest expense, income tax (benefit), depreciation and amortization, and our proportional share of depreciation of our equity affiliates as further adjusted for other non‑cash, non‑recurring items, if applicable.

Gathering. Our gathering segment consists of the following assets:

•Natural Gas Gathering and Compression. A natural gas gathering and compression system located primarily in McKenzie, Williams and Mountrail Counties, North Dakota connecting Hess and third‑party owned or operated wells to the Tioga Gas Plant, LM4 gas processing plant, and third‑party pipeline facilities. The system also includes the Hawkeye Gas Facility.

•Crude Oil Gathering: A crude oil gathering system located primarily in McKenzie, Williams, and Mountrail Counties, North Dakota, connecting Hess and third‑party owned or operated wells to the Ramberg Terminal Facility and the Johnson’s Corner Header System. The system also includes the Hawkeye Oil Facility.

•Produced Water Gathering and Disposal. A produced water gathering system and disposal facilities located primarily in Williams and Mountrail Counties, North Dakota.

Processing and Storage. Our processing and storage segment consists of the following assets:

•Tioga Gas Plant (TGP). A natural gas processing and fractionation plant located in Tioga, North Dakota.

•Mentor Storage Terminal. A propane storage cavern and rail and truck loading and unloading facility located in Mentor, Minnesota.

•Equity Investment in LM4 Joint Venture. The Partnership’s 50% equity method investment in LM4 joint venture that owns a natural gas processing plant located in McKenzie County, North Dakota, which was placed in service in the third quarter of 2019.

Terminaling and Export. Our terminaling and export segment consists of the following assets:

•Ramberg Terminal Facility. A crude oil pipeline and truck receipt terminal located in Williams County, North Dakota that is capable of delivering crude oil into an interconnecting pipeline for transportation to the Tioga Rail Terminal and to multiple third‑party pipelines and storage facilities.

•Tioga Rail Terminal. A crude oil and NGL rail loading terminal in Tioga, North Dakota that is connected to the Tioga Gas Plant, the Ramberg Terminal Facility and our crude oil gathering system.

•Crude Oil Rail Cars. A total of 550 crude oil rail cars, constructed to the DOT‑117 safety standards, which we operate as unit trains consisting of approximately 100 to 110 crude oil rail cars.

•Johnson’s Corner Header System. An approximately six‑mile crude oil pipeline header system located in McKenzie County, North Dakota that receives crude oil by pipeline from Hess and third parties and delivers crude oil to third‑party interstate pipeline systems.

The following tables reflect certain financial data for each reportable segment:

	Gathering		Processing and Storage		Terminaling and Export		Interest and Other			Consolidated
(in millions)
For the Year Ended December 31, 2021
Revenues and other income	$	630.6	$	435.7	$	137.5	$	-		$	1,203.8
Net income (loss)		377.6		263.8		103.7		(127.3	)		617.8
Net income (loss) attributable to    Hess Midstream LP		36.3		25.5		10.1		(25.5	)		46.4
Depreciation expense		101.0		48.4		16.2		-			165.6
Proportional share of equity affiliates' depreciation		-		5.1		-		-			5.1
Income from equity investments		-		10.6		-		-			10.6
Interest expense, net		-		-		-		105.4			105.4
Income tax expense		-		-		-		14.6			14.6
Adjusted EBITDA		478.6		317.3		119.9		(7.3	)		908.5
Capital expenditures*		154.0		28.8		0.2		-			183.0
	Gathering		Processing and Storage		Terminaling and Export		Interest and Other			Consolidated
(in millions)
For the Year Ended December 31, 2020
Revenues and other income	$	561.9	$	370.6	$	159.4	$	-		$	1,091.9
Net income (loss)		300.7		218.7		73.5		(108.0	)		484.9
Net income (loss) attributable to    Hess Midstream LP		19.2		13.7		4.7		(13.6	)		24.0
Depreciation expense		96.0		44.8		16.1		-			156.9
Proportional share of equity affiliates' depreciation		-		5.1		-		-			5.1
Income from equity investments		-		10.3		-		-			10.3
Interest expense, net		-		-		-		94.7			94.7
Income tax expense (benefit)		-		-		-		7.3			7.3
Gain on sale of property, plant and equipment		0.1		-		-		-			0.1
Adjusted EBITDA		396.6		268.6		89.6		(6.0	)		748.8
Capital expenditures*		96.2		156.2		0.6		-			253.0
	Gathering		Processing and Storage		Terminaling and Export		Interest and Other			Consolidated
(in millions)
For the Year Ended December 31, 2019
Revenues and other income	$	422.9	$	295.3	$	130.1	$	-		$	848.3
Net income (loss)		186.0		176.1		54.8		(99.2	)		317.7
Net income (loss) attributable to    Hess Midstream LP		34.6		34.6		10.5		(9.6	)		70.1
Depreciation expense		81.6		44.7		16.2		-			142.5
Proportional share of equity affiliates' depreciation		-		2.0		-		-			2.0
Income from equity investments		-		3.4		-		-			3.4
Interest expense, net		-		-		-		62.4			62.4
Income tax expense (benefit)		-		-		-		(0.1	)		(0.1	)
Transaction costs		-		-		-		26.2			26.2
Adjusted EBITDA		267.6		222.8		71.0		(10.7	)		550.7
Capital expenditures*		373.6		42.5		0.2		-			416.3

* Includes acquisition, expansion, and maintenance capital expenditures.

Total assets for reportable segments are as follows:

	December 31, 2021		December 31, 2020
(in millions)
Gathering	$	1,927.0	$	1,856.2
Processing and Storage(1)		1,149.5		1,170.3
Terminaling and Export		281.4		292.3
Interest and Other		127.7		55.7
Total assets	$	3,485.6	$	3,374.5

(1)Includes investment in equity investees of $101.6 million as of December 31, 2021 and $108.4 million as of December 31, 2020.