Hess Midstream LP

3 Months Ended

Mar. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Hess Midstream LP

4.  Hess Midstream LP

At March 31, 2025, Hess Midstream LP, a variable interest entity that is fully consolidated by Hess Corporation, had liabilities totaling $3,711 million (December 31, 2024: $3,652 million) that are on a non-recourse basis to Hess Corporation, while Hess Midstream LP assets available to settle the obligations of Hess Midstream LP included cash and cash equivalents totaling $6 million (December 31, 2024: $4 million), property, plant and equipment, net with a carrying value of $3,324 million (December 31, 2024: $3,325 million) and an equity-method investment in the Little Missouri 4 (LM4) gas processing plant with a carrying value of $86 million (December 31, 2024: $87 million). At March 31, 2025, we have an approximate 38% consolidated ownership interest in Hess Midstream LP on an as-exchanged basis, primarily through our ownership of Class B units in Hess Midstream Operations LP (HESM Opco), the operating subsidiary of Hess Midstream LP, which are exchangeable into Class A shares of Hess Midstream LP on a one-for-one basis.

LM4 is a 200 million standard cubic feet per day gas processing plant located south of the Missouri River in McKenzie County, North Dakota, that was constructed as part of a 50/50 joint venture between Hess Midstream LP and Targa Resources Corp. Hess Midstream LP has a natural gas processing agreement with LM4 under which it pays a processing fee and reimburses LM4 for its proportionate share of electricity costs. The processing fees included in Operating costs and expenses in the Statement of Consolidated Income for the three months ended March 31, 2025 were $8 million (2024 Q1: $7 million).

During the first quarter of 2025, Hess Midstream LP completed an underwritten secondary public equity offering of 12.7 million (2024 Q1: 11.5 million) Hess Midstream LP Class A shares held by an affiliate of Global Infrastructure Partners (GIP). Hess Corporation did not receive any proceeds from this public equity offering. As this transaction did not result in a change in Hess Corporation’s ownership interest in Hess Midstream LP on a consolidated basis, there was no adjustment to Noncontrolling interests resulting from changes to ownership interests. However, this transaction resulted in an increase in Noncontrolling interests due to an increase in deferred tax assets of $129 million (2024 Q1: $94 million) resulting from a step-up in the tax basis of Hess Midstream LP’s investment in HESM Opco.

During the first quarter of 2025, HESM Opco repurchased 2.6 million (2024 Q1: 2.8 million) HESM Opco Class B units held by affiliates of Hess Corporation and GIP for $100 million (2024 Q1: $100 million), which was financed using borrowings under HESM Opco’s revolving credit facility. As Hess Corporation participated in this repurchase only to the extent necessary to maintain its current ownership interest in Hess Midstream LP on a consolidated basis, there was no adjustment to Noncontrolling interests resulting from changes to ownership interests. However, the repurchase resulted in an increase in Noncontrolling interests due to an

increase in deferred tax assets of $12 million (2024 Q1: $9 million) resulting from an adjustment in the carrying value of Hess Midstream LP’s investment in HESM Opco without a corresponding adjustment in the tax basis. The proceeds paid to GIP of $62 million (2024 Q1: $62 million) reduced Noncontrolling interests.