Earnings per Share

12 Months Ended

Dec. 31, 2024

Note 9. Earnings per Share

We calculate earnings per Class A Share as we do not have any other participating securities. Substantially all of income tax expense is attributed to earnings of Class A Shares reflective of our organizational structure. Class B Units of the Partnership together with the equal number of Class B Shares of the Company are convertible to Class A Shares of the Company on a one-for-one basis. In addition, our restricted equity-based awards may have a dilutive effect on our earnings per share. Diluted earnings per Class A Share are calculated using the “treasury stock method” or “if-converted method”, whichever is more dilutive.


	Year Ended December 31,
(in millions, except per share amounts)	2024		2023		2022
Net income		659.0		607.7		620.6
Less: Net income attributable to noncontrolling interest		435.9		489.1		536.7
Net income attributable to Hess Midstream LP		223.1		118.6		83.9
Net income attributable to Hess Midstream LP per Class A share:
Basic:	$	2.51	$	2.11	$	2.03
Diluted:	$	2.49	$	2.08	$	2.01
Weighted average Class A shares outstanding:
Basic:		89.0		56.2		41.3
Diluted:		89.0		56.3		41.4

For the year ended December 31, 2024, the weighted average number of Class A Shares outstanding included 31,426 dilutive restricted shares (2023: 40,210 shares; 2022: 70,795 shares).

In computing the dilutive effect, if any, of an exchange of Class B Units of the Partnership together with the equal number of Class B Shares of the Company to Class A Shares of the Company, net income attributable to Class A shareholders is adjusted, including for additional income tax expense, due to elimination of the noncontrolling interest associated with Class B Units of the Partnership. For the years ended December 31, 2024 and 2023, the “if-converted” method was more dilutive. A reconciliation of the numerator and the denominator of the diluted earnings per Class A Share calculation under the “if-converted” method, is presented below:


	Year Ended December 31,
	2024			2023			2022
(in millions, except per share data)
Diluted net income per share
Numerator:
Net income attributable to Hess Midstream LP	$	223.1		$	118.6		$	83.9
Effect of exchange of Class B Units of the Partnership and the equal number of Class B Shares of the Company to Class A Shares of the Company		435.9			489.1			536.7
Effect of income tax expense on additional income attributable to Hess Midstream LP(1)		(106.3	)		(119.3	)		(130.9	)
Diluted net income attributable to Hess Midstream LP	$	552.7		$	488.4		$	489.7
Denominator:
Basic weighted average Class A Shares outstanding		89.0			56.2			41.3
Effect of dilutive securities:
Weighted average Class B Units/Shares		132.8			177.9			202.0
Restricted equity-based awards		-			0.1			0.1
Diluted weighted average shares outstanding		221.8			234.2			243.4
Diluted net income attributable to Hess Midstream LP per Class A Share	$	2.49		$	2.08		$	2.01

(1)

Income tax effect is calculated assuming 24.39% blended U.S. federal and state income tax rate.