Hess Midstream LP

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Hess Midstream LP

4.  Hess Midstream LP

In March 2021, the Corporation received net proceeds of $70 million from the public offering of 3.45 million Hess-owned Class A shares of Hess Midstream LP. The transaction resulted in an increase in Capital in Excess of Par of $56 million and Noncontrolling Interests of $41 million including $14 million from the change in ownership and $27 million from the recognition of a deferred tax asset due to an increase in tax basis of Hess Midstream LP's investment in Hess Midstream Operations LP (HESM Opco).

In August 2021, HESM Opco, a consolidated subsidiary of Hess Midstream LP, repurchased 31.25 million HESM Opco Class B units held by a subsidiary of Hess Corporation and an affiliate of General Infrastructure Partners (GIP) for $750 million. HESM Opco issued $750 million in aggregate principal amount of 4.250% fixed-rate senior unsecured notes due 2030 in a private offering to finance the repurchase. The transaction resulted in an increase in Capital in Excess of Par and a decrease in Noncontrolling Interests of $28 million, and an increase in deferred tax assets and Noncontrolling Interests of $15 million due to a decrease in the book basis of Hess Midstream LP's investment in HESM Opco. The $375 million paid to GIP reduced Noncontrolling Interests. The Corporation owned an approximate 45% interest in Hess Midstream LP, on a consolidated basis, at September 30, 2021. See Note 14, Subsequent Events.

At September 30, 2021 Hess Midstream LP, a variable interest entity that is fully consolidated by Hess Corporation, had liabilities totaling $2,753 million (December 31, 2020: $2,026 million) that are on a nonrecourse basis to Hess Corporation, while Hess Midstream LP assets available to settle the obligations of Hess Midstream LP include cash and cash equivalents totaling $3 million (December 31, 2020: $3 million), property, plant and equipment with a carrying value of $3,118 million (December 31, 2020: $3,111 million) and an equity-method investment in the Little Missouri 4 gas processing plant of $102 million (December 31, 2020: $108 million).