GIP Sells Final Stake in Hess Midstream, Ending Long-Term Partnership
(P&GJ) — Hess Midstream LP has updated its board structure and corporate governance following Global Infrastructure Partners’ (GIP) full exit from its ownership stake. The move came after GIP, now part of BlackRock, closed a registered underwritten public offering on May 30.
Following the transaction, Hess Midstream's ownership structure now stands at approximately 62.2% public and 37.8% Hess Corporation.
“Today’s announcement is a milestone in our public journey,” said Jonathan Stein, Chief Financial Officer of Hess Midstream. “We are thankful for the prosperous partnership with GIP, which allowed us to build a leading midstream platform together, and we are excited to continue executing on our track record of operational and financial excellence.”
Stein added that the company expects to maintain more than $1.25 billion in financial flexibility through 2027, which could support further share repurchases.
Three GIP-designated directors — William J. Brilliant, James K. Lee, and Scott E. Telesz — resigned from the Board following the offering. The Board now consists of a maximum of eight directors, with no more than four affiliated with Hess Corporation and the remainder being independent.
Continuing on the Board are John B. Hess, Greg Hill, John P. Rielly, and Gerbert Schoonman of Hess Corporation, as well as independent directors Stephen J.J. Letwin, David W. Niemiec, and John P. Reddy. A fourth independent seat has been added but is yet to be filled.
The governance update also includes a new requirement: key decisions such as related-party agreements, capital allocation, and leverage must be approved by at least one Hess-affiliated and one independent director. This change became effective immediately with the GIP exit and does not depend on filling the new independent seat.
No changes were made to the existing commercial agreements between Hess Midstream and Hess Corporation.
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