HOUSTON - Hess Midstream LP (NYSE: HESM), a midstream oil and gas company, announced today the launch of a public offering of 10 million Class A shares by an affiliate of Global Infrastructure Partners. The shares are being offered through an underwritten public offering, with J.P. Morgan serving as the bookrunning manager.
The affiliate, referred to as the Selling Shareholder, is also expected to give underwriters a 30-day option to buy up to an additional 1.5 million Class A shares. Hess Midstream will not receive any proceeds from this offering, as the sale is solely by the Selling Shareholder.
The public offering is being conducted on the New York Stock Exchange and other markets, with the potential for transactions at market prices or through negotiated deals. The shares are being offered pursuant to a prospectus supplement and a previously filed shelf registration statement with the Securities and Exchange Commission (SEC).
Hess Midstream LP operates in the energy sector, focusing on the development and acquisition of midstream assets. Their operations primarily include handling oil, gas, and produced water in the Bakken and Three Forks Shale plays in North Dakota, providing services to Hess Corporation (NYSE:HES) and third-party customers.
The company's press release includes forward-looking statements which are based on current expectations and projections about future events. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities described, and there will be no sale of these securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Investors and the public are advised that the offering is made only by means of the prospectus supplement and related prospectus, which are available on the SEC's website or directly from J.P. Morgan.
This news article is based on a press release statement from Hess Midstream LP.
InvestingPro Insights
As Hess Midstream LP (NYSE: HESM) gears up for their public offering of Class A shares, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Hess Midstream currently boasts a robust Market Cap of approximately $8.01 billion USD, reflecting investor confidence and the company's scale in the midstream oil and gas sector.
The company has also demonstrated a strong financial performance with a Revenue Growth of 10.36% over the last twelve months as of Q1 2024, indicating a positive trajectory in its business operations. This is further bolstered by a Gross Profit Margin of an impressive 76.52%, showcasing the company's ability to efficiently manage its cost of goods sold and maintain profitability.
Investors seeking income may find Hess Midstream's Dividend Yield of 7.25% particularly attractive, especially considering the company's history of consistent dividend payments. An InvestingPro Tip highlights that Hess Midstream has raised its dividend for 7 consecutive years, which is a testament to the company's commitment to returning value to shareholders. Moreover, the company is trading near its 52-week high, with a price 97.23% of the peak, which could signal market optimism about its future performance.
For those considering an investment in Hess Midstream, there are additional InvestingPro Tips available, with a total of 12 tips listed on InvestingPro. These insights could provide a more nuanced understanding of the company's financial health and market position. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to valuable market data and expert analysis that could inform investment decisions.
As the offering proceeds, these metrics and insights from InvestingPro may serve as valuable resources for investors looking to evaluate Hess Midstream's growth prospects and financial stability in the dynamic energy sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.