Partners' Capital and Distributions

12 Months Ended

Dec. 31, 2019

Note 8. Partners’ Capital and Distributions

Prior to the Restructuring, our partners’ capital included common and subordinated units representing limited partner interests in the Partnership. Pursuant to the Restructuring, 17,062,655 public common units of the Partnership outstanding as of December 16, 2019, were converted into Class A Shares of the Company (economic and voting) on a one-for-one basis, the Sponsors received 898,000 Class A Shares of the Company, 266,416,928 Class B Units representing noncontrolling limited partner interests in the Partnership and a cash consideration of $601.8 million. In addition, our general partner purchased 266,416,928 Class B Shares of the Company (non-economic voting only) for a cash amount equal to $0.0001 per Class B Shares. 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.

Our partnership agreement requires that, within 45 days after the end of each quarter, we distribute all of our available cash to shareholders/unitholders of record on the applicable record date. The following table details the distributions declared and/or paid for the periods presented:

Period	Record Date	Distribution Date	Distribution per Common and Subordinated Unit/Class A Share
First Quarter 2018	May 4, 2018	May 14, 2018	$0.3333
Second Quarter 2018	August 2, 2018	August 13, 2018	$0.3452
Third Quarter 2018	November 5, 2018	November 13, 2018	$0.3575
Fourth Quarter 2018	February 4, 2019	February 13, 2019	$0.3701
First Quarter 2019	May 3, 2019	May 14, 2019	$0.3833
Second Quarter 2019	August 5, 2019	August 13, 2019	$0.3970
Third Quarter 2019	November 4, 2019	November 13, 2019	$0.4112
Fourth Quarter 2019⁽¹⁾	February 6, 2020	February 14, 2020	$0.4258

(1)

For more information, see Note 16, Subsequent Events.

The following table details distributions paid by HIP to Hess and GIP prior to the Restructuring (in millions):

Type of Distributions	Period	Distribution to Hess Corporation		Distribution to GIP		Total Distributions
HIP LP Distributions	Second Quarter 2017		27.1		22.9	$	50.0
HIP LP Distributions	Third Quarter 2017		25.0		25.0	$	50.0
HIP LP Distributions	Fourth Quarter 2018		160.0		162.0	$	322.0

In the second quarter of 2017, we also made a special distribution of $349.5 million, distributed 50/50 to Hess and GIP from the proceeds of the Partnership’s initial public offering.