Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 15, 2017 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HESM | |
Entity Registrant Name | Hess Midstream Partners LP | |
Entity Central Index Key | 1,619,739 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Common Units | ||
Document And Entity Information [Line Items] | ||
Entity Units Outstanding | 27,279,654 | |
Subordinated Units | ||
Document And Entity Information [Line Items] | ||
Entity Units Outstanding | 27,279,654 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash | $ 304 | $ 304 |
Total current assets | 304 | 304 |
Total assets | 304 | 304 |
Partners' capital | ||
Limited partner | 131 | 131 |
General partner | 173 | 173 |
Total partners' capital | 304 | 304 |
Total liabilities and partners' capital | $ 304 | $ 304 |
STATEMENTS OF OPERATIONS (UNAUD
STATEMENTS OF OPERATIONS (UNAUDITED) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Costs and expenses | |
Interest expense | $ 155 |
Total costs and expenses | 155 |
Net income (loss) attributable to Hess Midstream Partners LP | (155) |
General partner's interest in net income (loss) | (88) |
Limited partner's interest in net income (loss) | $ (67) |
STATEMENTS OF CHANGES IN PARTNE
STATEMENTS OF CHANGES IN PARTNER'S CAPITAL (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | ||
Balance, beginning of period | $ 304 | $ 1,308 |
Net income (loss) | (155) | |
Balance, end of period | $ 304 | $ 1,153 |
STATEMENTS OF CASH FLOWS (UNAUD
STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ (155) | |
Changes in assets and liabilities: | ||
Accrued liabilities | 155 | |
Cash and cash equivalents at beginning of period | $ 304 | 270 |
Cash and cash equivalents at end of period | $ 304 | $ 270 |
COMBINED BALANCE SHEETS
COMBINED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Total current assets | $ 304 | $ 304 |
Total assets | 304 | 304 |
Liabilities | ||
Net parent investment | 304 | 304 |
Total liabilities and net parent investment | 304 | 304 |
Predecessor | ||
Assets | ||
Accounts receivable—affiliate | 60,300 | 44,600 |
Other current assets | 1,900 | 2,800 |
Total current assets | 62,200 | 47,400 |
Property, plant and equipment, net | 2,518,800 | 2,518,600 |
Other noncurrent assets | 10,100 | 8,400 |
Total assets | 2,591,100 | 2,574,400 |
Liabilities | ||
Accounts payable—trade | 11,200 | 28,800 |
Accounts payable—affiliate | 267,300 | 241,300 |
Accrued liabilities | 34,000 | 57,800 |
Other current liabilities | 1,100 | 4,100 |
Total current liabilities | 313,600 | 332,000 |
Other noncurrent liabilities | 4,500 | 4,300 |
Total liabilities | 318,100 | 336,300 |
Net parent investment | 2,273,000 | 2,238,100 |
Total liabilities and net parent investment | $ 2,591,100 | $ 2,574,400 |
COMBINED STATEMENTS OF OPERATIO
COMBINED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Costs and expenses | ||
Total costs and expenses | $ 155 | |
Net income (loss) attributable to Hess Midstream Partners LP | (155) | |
Predecessor | ||
Revenues | ||
Affiliate | $ 130,300 | 118,900 |
Total revenues | 130,300 | 118,900 |
Costs and expenses | ||
Operating and maintenance expenses (exclusive of depreciation shown separately below) | 38,900 | 47,900 |
Depreciation expense | 26,800 | 22,600 |
General and administrative expenses | 1,500 | 1,400 |
Total costs and expenses | 67,200 | 71,900 |
Net income (loss) attributable to Hess Midstream Partners LP | $ 63,100 | $ 47,000 |
COMBINED STATEMENTS OF CHANGES
COMBINED STATEMENTS OF CHANGES IN NET PARENT INVESTMENT (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Balance, beginning of period | $ 304 | $ 1,308 |
Net income (loss) | (155) | |
Balance, end of period | 304 | 1,153 |
Predecessor | ||
Balance, beginning of period | 2,238,100 | 2,097,500 |
Net income (loss) | 63,100 | 47,000 |
Contribution of property, plant and equipment | 43,600 | |
Other contributions from (distributions to) parent, net | (28,200) | (15,400) |
Balance, end of period | $ 2,273,000 | $ 2,172,700 |
COMBINED STATEMENTS OF CASH FLO
COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ (155) | |
Changes in assets and liabilities: | ||
Accrued liabilities | 155 | |
Cash flows from financing activities | ||
Cash and cash equivalents at beginning of period | $ 304 | 270 |
Cash and cash equivalents at end of period | 304 | 270 |
Predecessor | ||
Cash flows from operating activities | ||
Net income (loss) | 63,100 | 47,000 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation expense | 26,800 | 22,600 |
Changes in assets and liabilities: | ||
Accounts receivable—affiliate | (15,700) | 2,600 |
Other current and noncurrent assets | (800) | 1,400 |
Accounts payable – trade | (17,600) | (30,300) |
Accounts payable – affiliate | 26,000 | 20,000 |
Accrued liabilities | (3,400) | 6,600 |
Other current and noncurrent liabilities | (2,800) | (2,700) |
Net cash provided by (used in) operating activities | 75,600 | 67,200 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (47,400) | (51,800) |
Net cash provided by (used in) investing activities | (47,400) | (51,800) |
Cash flows from financing activities | ||
Cash distributions to parent | (95,300) | (44,600) |
Other contributions from (distributions to) parent, net | 67,100 | 29,200 |
Net cash provided by (used in) financing activities | (28,200) | (15,400) |
Supplemental cash disclosures: | ||
Capital expenditures included in accrued liabilities at period end | $ 25,600 | 27,500 |
Contribution of property, plant and equipment | $ 43,600 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Note 1. Nature of Operations Hess Midstream Partners LP (“we” or the “Partnership”) is a Delaware limited partnership formed on January 17, 2014 by Hess Corporation. Hess Midstream Partners GP LP (“GP LP”) is a limited partnership formed on May 21, 2015 to serve as the general partner of the Partnership. Hess Midstream Partners GP LLC (“GP LLC”) is a limited liability company formed on January 15, 2014 to serve as the general partner of the Partnership and is currently the general partner of GP LP. On January 17, 2014, in connection with the formation of the Partnership, the Partnership issued to (i) the GP LLC a 50% general partner interest in the Partnership for $10 thousand and (ii) to Hess Corporation, a 50% limited partner interest in the Partnership for $10 thousand. In mid‑2015, Hess Corporation transferred its limited partner interest in the Partnership to Hess Infrastructure Partners LP, a midstream joint venture in which GIP II Blue Holding Partnership, LP purchased a 50% ownership interest. As of March 31, 2017 and December 31, 2016, Hess Infrastructure Partners LP had an ownership interest in the Partnership of 43.1% and the GP LLC had an ownership interest of 56.9%, respectively. On April 7, 2017, GP LP filed an amended and restated certificate of limited partnership of the Partnership to reflect GP LP as the sole general partner of the Partnership and the GP LLC ceased to have a direct ownership interest in the Partnership. On April 10, 2017, the Partnership completed its initial public offering (the “IPO”) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Basis of Presentation | Note 2. Basis of Presentation The financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our financial position at March 31, 2017 and December 31, 2016, the results of operations for the three months ended March 31, 2017 and 2016, and cash flows for the three months ended March 31, 2017 and 2016. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. These financial statements have been prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. generally accepted accounting principles have been condensed or omitted from these financial statements. These financial statements, therefore, should be read in conjunction with the financial statements and related notes included in the prospectus of Hess Midstream Partners LP dated April 4, 2017, as filed with the SEC on April 6, 2017 (the “Prospectus”). |
Predecessor | |
Basis of Presentation | Note 2. Basis of Presentation The accompanying unaudited combined financial statements and related notes present the combined financial position, results of operations, cash flows and net parent investment of the Predecessor. The combined financial statements include 100% of the operations of Gathering Opco, HTGP Opco, Logistics Opco and Mentor Storage Terminal, which are reported based on Hess’s historical cost as entities being under common control. All intercompany transactions and accounts within the Predecessor have been eliminated. The combined financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our combined financial position at March 31, 2017 and December 31, 2016, the combined results of operations for the three months ended March 31, 2017 and 2016, and combined cash flows for the three months ended March 31, 2017 and 2016. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. These combined financial statements have been prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. Generally Accepted Accounting Principles (“GAAP”) have been condensed or omitted from these combined financial statements. These financial statements, therefore, should be read in conjunction with the combined financial statements and related notes included in the prospectus of Hess Midstream Partners LP dated April 4, 2017, as filed with the SEC on April 6, 2017 (the “Prospectus”). No goodwill is included in our accompanying combined financial statements as none of the goodwill held by Hess was associated with the historical basis of the Contributed Businesses. Our parent uses a centralized approach to cash management and financing of its operations. Cash generated by and used in our operations is transferred to the parent on a regular basis; therefore, we do not have a cash balance as of March 31, 2017 and December 31, 2016. We have reflected cash management and financing activities performed by the parent as a component of Net parent investment on the Predecessor’s accompanying combined balance sheets, and as Cash distributions to parent and Other contributions from (distributions to) parent, net on the accompanying combined statements of cash flows. We have not included any interest expense related to this funding activity with our parent, since historically our parent has not allocated interest related to such activity with any of its businesses. New Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014‑09, Revenue from Contracts with Customers , as a new Accounting Standards Codification (ASC) Topic, ASC 606. This ASU is effective for us beginning in the first quarter of 2018, with early adoption permitted from the first quarter of 2017. We have developed a project plan for the implementation of ASC 606 in the first quarter of 2018, and conducted an evaluation of certain revenue contracts with customers against the requirements of the standard. Further analysis is planned in 2017 to complete the implementation plan. Based on our assessment to date, we have not identified any changes to the timing of revenue recognition based on the requirements of ASC 606 that would have a material impact on our combined financial statements. We plan to adopt ASC 606 using the modified retrospective method that requires application of the new standard prospectively from the date of adoption with a cumulative effect adjustment recorded to partners’ capital as of January 1, 2018. In February 2016, the FASB issued ASU 2016‑02, Leases In June 2016, the FASB issued ASU 2016‑13, Financial Instruments—Credit Losses. This ASU makes changes to the impairment model for trade receivables, net investments in leases, debt securities, loans and certain other instruments. The standard requires the use of a forward‑looking “expected loss” model compared to the current “incurred loss” model. This ASU is effective for us beginning in the first quarter of 2020, with early adoption permitted from the first quarter of 2019. We are currently assessing the impact of the ASU on our combined financial statements. |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Note 3. Revolving Credit Facility On March 15, 2017, we entered into a four‑year, $300 million senior secured revolving credit facility that became available to us upon the contribution of the Hess Midstream Partners LP Predecessor entities to the Partnership and the closing of the initial public offering on April 10, 2017. The credit facility can be used for borrowings and letters of credit to fund operating activities and capital expenditures of Hess Midstream Partners LP. Borrowings on the credit facility will generally bear interest at the London Interbank Offered Rate (LIBOR) plus an applicable margin of 1.275%. The interest rate is subject to adjustment based on the Partnership’s leverage ratio, which is calculated as total debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) (as defined in the credit facility). Facility fees will accrue at 0.275% per annum and will be paid quarterly. If the Partnership obtains credit ratings, pricing levels will be based on our credit ratings in effect from time to time. The Partnership is subject to customary covenants in the credit agreement, including a financial covenant that generally requires a leverage ratio of no more than 4.5 to 1.0 for the prior four fiscal quarters. The credit facility is secured by first priority perfected liens on substantially all directly owned assets of the Partnership and its wholly‑owned subsidiaries, including equity interests in subsidiaries, subject to certain customary exclusions. In 2015, the Partnership entered into a five‑year, $350 million senior unsecured revolving credit facility commitment that expired on May 31, 2016. Prior to its expiration, the revolving credit facility accrued fees equal to 0.175% times the actual daily amount of the commitment, which are reflected in interest expense in the accompanying statements of operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events | Note 4. Subsequent Events On April 10, 2017, the Partnership completed its initial public offering (the “IPO”) of 16,997,000 common units, which included 2,217,000 common units issued pursuant to the exercise of the underwriters’ over‑allotment options, representing 30.5% limited partner interests in the Partnership at a price to the public of $23.00 per unit. A registration statement on Form S‑1, as amended through the time of its effectiveness, was filed by the Partnership with the SEC and was declared effective on April 4, 2017. On April 5, 2017, Hess Midstream Partners LP units began trading on the New York Stock Exchange under the symbol “HESM”. On April 10, 2017, in connection with the closing of the IPO, Hess Infrastructure Partners LP contributed a 20% controlling economic interest in each of Hess North Dakota Pipelines Operations LP, Hess TGP Operations LP and Hess North Dakota Export Logistics Operations LP, and a 100% interest in Hess Mentor Storage Holdings LLC to the Partnership. See Note 1, Description of Business to the combined financial statements of Hess Midstream Partners LP Predecessor. We received gross proceeds of $390.9 million from the IPO. Net proceeds totaled $365.5 million, after deducting the underwriters’ discounts and structuring fees of $25.4 million. The net proceeds were used to make a $350.6 million distribution to Hess Infrastructure Partners LP and to pay approximately $4.0 million in origination fees relating to our new revolving credit facility (see Note 3, Revolving Credit Facility) and $0.9 million other offering costs. The Partnership retained and used the remaining $10.0 million for general partnership purposes, including for funding our working capital needs. |
Predecessor | |
Subsequent Events | Note 11. Subsequent Events We have evaluated events that occurred after March 31, 2017 through the issuance of these combined financials statements. As discussed in Note 3, Initial Public Offering, on April 10, 2017, we completed the IPO of 16,997,000 common units, representing a 30.5% limited partner interest in the Partnership. Immediately prior to the closing of the IPO, all accounts payable affiliate balances were settled via capital contributions from Hess Infrastructure Partners. |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Description of Business | Note 1. Description of Business Hess Midstream Partners LP Predecessor (the “Predecessor”) includes all of the assets, liabilities and results of operations of (i) Hess North Dakota Pipelines Operations LP (“Gathering Opco”), which owns crude oil and natural gas gathering pipelines and compressor stations in North Dakota, (ii) Hess TGP Operations LP (“HTGP Opco”), which owns the Tioga Gas Plant (“TGP”), a natural gas processing and fractionation plant, including a residue gas pipeline in North Dakota, (iii) Hess North Dakota Export Logistics Operations LP (“Logistics Opco”), which owns a crude oil and natural gas liquids (“NGL”) rail loading facility, crude oil rail cars and a crude oil pipeline and truck receipt terminal in North Dakota, and (iv) Hess Mentor Storage Holdings LLC (“Mentor Storage Terminal”), which owns a propane storage cavern and related rail and truck loading and unloading and storage terminal in Minnesota, (collectively, the “Contributed Businesses”). Prior to the IPO, the Contributed Businesses were owned by Hess Infrastructure Partners LP (“Hess Infrastructure Partners”), a midstream joint venture with a 50% ownership interest held by affiliates of Hess Corporation (collectively “Hess”) and a 50% ownership interest held by GIP II Blue Holding Partnership LP (“GIP”). Based on Hess Infrastructure Partners’ governance structure, the commercial agreements between Hess and Hess Infrastructure Partners, and the voting rights established between members, Hess controls the operations of Hess Infrastructure Partners, and the Contributed Businesses are under common control of Hess. On April 10, 2017, in connection with the closing of the initial public offering (the “IPO”) of common units representing limited partner interests of Hess Midstream Partners LP (the “Partnership”), Hess Infrastructure Partners contributed a 20% controlling economic interest in Gathering Opco, HTGP Opco, and Logistics Opco, and a 100% ownership interest in Mentor Storage Terminal to the Partnership (see Note 3, Initial Public Offering). The terms “we,” “our” and “us” as used in the footnotes for periods prior to the IPO refer collectively to our Predecessor and for periods after the IPO refer to the Partnership, unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within the Predecessor or the Partnership. The term “parent” refers to Hess Infrastructure Partners. Our assets and operations are organized into the following three segments: (1) gathering, (2) processing and storage and (3) terminaling and export (see Note 10, Segments). |
Initial Public Offering
Initial Public Offering | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Initial Public Offering | Note 3. Initial Public Offering Initial Public Offering On April 5, 2017, the Partnership’s common units began trading on the New York Stock Exchange under the symbol “HESM.” On April 10, 2017, the Partnership closed its IPO of 16,997,000 common units, which included 2,217,000 common units issued pursuant to the exercise of the underwriters’ over‑allotment option, representing 30.5% limited partner interests in the Partnership at a price to the public of $23.00 per unit. The net proceeds from the IPO of approximately $365.5 million, after deducting the underwriters’ discounts and structuring fees of $25.4 million, were used to make a $350.6 million distribution to Hess Infrastructure Partners and pay the origination fees on our new revolver and other offering costs. The Partnership retained and used the remaining proceeds of $10.0 million for general partnership purposes, including for funding our working capital needs. Contribution, Conveyance and Assumption Agreement In connection with the IPO, the Partnership entered into a contribution, conveyance and assumption agreement with Hess Infrastructure Partners pursuant to which Hess Infrastructure Partners contributed to us a 20% controlling economic interest in Gathering Opco, HTGP Opco, Logistics Opco, and a 100% interest in Mentor Holdings. In exchange for the Contributed Businesses, Hess Infrastructure Partners received: • 10,282,654 common units and 27,279,654 subordinated units, representing an aggregate 67.5% limited partner interest in the Partnership; • All of the Partnership’s incentive distribution rights; • A 2% general partner interest in the Partnership, and • An aggregate cash distribution of approximately $350.6 million. As part of this agreement, Hess Infrastructure Partners also agreed to bear the full cost of capital expenditures related to certain identified uncompleted maintenance capital projects associated with the Contributed Businesses to the extent such projects are commenced prior to the second anniversary of the closing of the IPO. Hess Infrastructure Partners also agreed to pay all costs related to certain other identified maintenance capital projects related to the Contributed Businesses that are incurred prior to the second anniversary of the closing of the IPO up to an aggregate maximum of $20 million, and all costs of any unanticipated maintenance capital projects undertaken by the Contributed Businesses during the twelve months ending March 31, 2018, up to a maximum of $10 million on a 100% basis. Omnibus Agreement In connection with the Partnership’s IPO, we entered into an omnibus agreement with Hess and Hess Infrastructure Partners that addresses our reimbursement of Hess for providing certain operational support and administrative services to us in support of our assets; our right of first offer to acquire certain of Hess Infrastructure Partners’ midstream assets, including Hess Infrastructure Partners’ retained interests in the Contributed Businesses; and Hess Infrastructure Partners’ indemnification of us for certain matters, including certain pre‑closing environmental, title and tax matters. Pursuant to the omnibus agreement, we agreed to indemnify Hess Infrastructure Partners for certain post‑closing matters under this agreement, including certain post‑closing environmental liabilities. Employee Secondment Agreement In connection with the Partnership’s IPO, we entered into an employee secondment agreement with Hess under which Hess will second to our general partner certain employees who serve in support of our operations and our general partner will pay a secondment fee to Hess that is intended to cover and reimburse Hess for the total costs actually incurred by Hess and its affiliates in connection with employing the seconded employees to the extent such total costs are attributable to the provision of services with respect to the Partnership’s assets and operations. Long-Term Incentive Plan In connection with the Partnership’s IPO, we adopted the Hess Midstream Partners LP 2017 Long‑Term Incentive Plan (the “LTIP”). Awards under the LTIP are available for officers, directors and employees of our general partner or its affiliates, and any individuals who perform services for the Partnership. The LTIP provides the Partnership with the flexibility to grant unit awards, restricted units, phantom units, unit options, unit appreciation rights, distribution equivalent rights, profits interest units and other unit‑based awards. The LTIP will initially limit the number of common units that may be delivered pursuant to vested awards to 3,000,000 common units. Following the closing of the IPO, we granted a total number of 40,652 phantom units with an aggregate value of approximately $0.9 million to certain officers and employees. These phantom units will vest ratably over a three‑year period beginning on the first anniversary of the consummation of the IPO. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Related Party Transactions | Note 4. Related Party Transactions We are part of the consolidated operations of Hess, and all of our revenues as shown on the accompanying combined statements of operations for the three months ended March 31, 2017 and 2016 were derived from transactions with Hess and its affiliates, although we plan to provide our services to third parties in the future. Hess also provides substantial operational and administrative services to us in support of our assets and operations, including routine and emergency maintenance and repair services, routine operational activities, routine administrative services, construction and related services, treasury, tax, accounting, human resources, legal and such other services. On a monthly basis, we pay Hess an amount equal to the allocable share of the total costs of Hess’s employees and contractors, subcontractors or other outside personnel engaged by Hess to the extent such employees and outside personnel perform operational support and administrative services for our benefit, plus a specified percentage markup of such amount depending on the type of service provided. Such allocable share is determined by Hess’s corporate transfer pricing practices, as generally applied in a non‑discriminatory manner. In addition, Hess charges us on a monthly basis for the direct costs of providing the services. We believe that these allocations are reasonable and reflect the utilization of services provided and benefits received, but may differ from the cost that would have been incurred had we operated as a stand‑alone partnership for the periods presented. For the three months ended March 31, 2017 and 2016, we had the following charges from Hess. The classification of these charges between operating and maintenance expenses and general and administrative expenses is based on the fundamental nature of the services being performed for our operations. Three Months Ended March 31, 2017 2016 (in millions) Operating and maintenance expenses $ 14.2 $ 18.2 General and administrative expenses 1.5 1.4 Total $ 15.7 $ 19.6 During the periods presented, Hess Infrastructure Partners funded certain expansion capital expenditures mainly related to the construction of Hawkeye Gas and Oil Facilities for our gathering business. As of March 31, 2017 and December 31, 2016, Accounts payable — affiliate included $248.0 million and $226.2 million, respectively, payable to Hess Infrastructure Partners related to funding of capital expenditures, with the remaining balances payable to Hess for operating and maintenance and general and administrative charges. Immediately prior to the closing of the IPO, all accounts payable affiliate balances were settled via capital contributions from Hess Infrastructure Partners (see Note 11, Subsequent Events). Commercial Agreements Effective January 1, 2014, we entered into multiple long‑term, fee‑based commercial agreements with certain subsidiaries of Hess that included dedications covering all of Hess’s existing and future owned or controlled production in the Bakken, minimum volume commitments, inflation escalators, and fee recalculation mechanisms. Under those agreements, if Hess delivered volumes less than applicable commitments during any quarter, then Hess would pay us a shortfall fee equal to the volume deficiency multiplied by the related gathering, processing or terminaling fee, which was initially reported in deferred revenue. Shortfall fee payments were available to be credited against future fees for volumes delivered to us in excess of Hess’s nominated volumes up to four quarters after such credit was established. Unused shortfall credits by Hess, which expired after one year, were recognized as revenue. On December 31, 2016, we amended and restated certain of our commercial agreements to remove the shortfall fee credit provision and reset the minimum volume commitments. Under the amended and restated commercial agreements, volume deficiencies are measured quarterly and recognized as revenue in the same period and any associated shortfall payments are not subject to future reduction or offset. As a result, $21.4 million minimum volume shortfall fee payments were earned during the three months ended March 31, 2017 ($0.4 million during the three months ended March 31, 2016). While we currently provide all of our midstream services exclusively to Hess, we are actively marketing our midstream services to, and are pursuing strategic relationships with, third‑party producers and other midstream companies with operations in the Bakken in order to maximize our utilization rates and diversify our customer base. During the three months ended March 31, 2017 and 2016, we recognized, as part of the affiliate revenues, $5.5 million and $7.2 million, respectively, of reimbursements from Hess related to third‑party rail transportation costs. In addition, during the three months ended March 31, 2017 and 2016, we recognized, as part of affiliate revenues, $5.7 million and $5.8 million, respectively, of reimbursements from Hess related to electricity fees. These related costs were included in Operating and maintenance expenses in the accompanying combined statements of operations. Prepaid Forward Purchase and Sales Agreement In 2015, we entered into a Prepaid Forward Purchase and Sales Agreement with Hess to receive 550 crude oil rail cars for an estimated purchase price of $104.1 million, all of which were received in 2016. In connection with this agreement, Hess contributed to us $104.1 million, which was recorded as a capital contribution in Net parent investment and was subsequently used to prepay the purchase of the crude oil rail cars from Hess. During the three months ended March 31, 2016, we recognized $38.7 million in Property, plant and equipment and in Contribution of property, plant and equipment in the accompanying combined statements of changes in net parent investment. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Property, Plant and Equipment | Note 5. Property, Plant and Equipment Property, plant and equipment, at cost, is as follows: Estimated March 31, 2017 December 31, 2016 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 810.7 $ 802.8 Compressors, pumping stations and terminals 22 to 25 years 502.2 182.0 Gas plant assets Pipelines, pipes and valves 22 to 25 years 460.0 460.0 Equipment 12 to 30 years 428.2 428.2 Buildings 35 years 182.3 182.3 Processing and fractionation facilities 25 years 156.5 154.7 Logistics facilities and railcars 20 to 25 years 349.5 346.0 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 7.4 7.2 Construction-in-progress N/A 120.2 426.8 Total property, plant and equipment, at cost 3,036.5 3,009.5 Accumulated depreciation (517.7 ) (490.9 ) Property, plant and equipment, net $ 2,518.8 $ 2,518.6 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Accrued Liabilities | Note 6. Accrued Liabilities Accrued liabilities are as follows: March 31, 2017 December 31, 2016 (in millions) Accrued capital expenditures $ 25.6 $ 46.0 Other accruals 8.4 11.8 Total $ 34.0 $ 57.8 |
Subsidiary Guarantor
Subsidiary Guarantor | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Subsidiary Guarantor | Note 7. Subsidiary Guarantor In July 2015, Hess Infrastructure Partners entered into a five‑year, $600.0 million unsecured Term Loan A facility and a five‑year, $400.0 million unsecured syndicated revolving credit facility, which is available for Hess Infrastructure Partners’ general partnership purposes. Prior to the IPO, Gathering Opco, one of the Contributed Businesses, was an initial subsidiary guarantor under both of these credit facilities. The guaranteed obligations include the principal and interest on both credit facilities and payments under letters of credit, if any, issued for the account of Hess Infrastructure Partners. As of March 31, 2017, borrowings attributable to Hess Infrastructure Partners amounted to $577.5 million on the Term Loan A facility and $158.0 million on the revolving credit facility and there were no outstanding letters of credit. As of March 31, 2017, Hess Infrastructure Partners was in compliance with all financial covenants. In connection with the Partnership’s IPO, Gathering Opco was released from its obligation as a guarantor under the Hess Infrastructure Partners credit facilities on April 10, 2017. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Concentration of Credit Risk | Note 8. Concentration of Credit Risk Hess represented approximately 100% of our total revenues and accounts receivable for the three months ended March 31, 2017 and 2016. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Environmental Contingencies The Partnership is subject to federal, state and local laws and regulations relating to the environment. As of March 31, 2017 and December 31, 2016, accrued liabilities for remediation totaled $3.3 million. Legal Proceedings In the ordinary course of business, the Partnership is from time to time party to various judicial and administrative proceedings. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of a known contingency, we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. As of March 31, 2017 and December 31, 2016, we did not have accrued liabilities for any legal contingencies. Based on currently available information, we believe it is remote that the outcome of known matters would have a material adverse impact on our financial condition, results of operations or cash flows. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Segments | Note 10. Segments Our operations are located in the United States and are organized into three reportable segments: (1) gathering, (2) processing and storage and (3) terminaling and export. Our reportable segments comprise the structure used by our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. These segments are strategic business units with differing products and services. Our CODM evaluates the segments’ operating performance based on multiple measures including Adjusted EBITDA, defined as earnings before interest, income tax, depreciation and amortization, as further adjusted for other non‑cash, non‑recurring items, if applicable. The following tables reflect certain financial data for each reportable segment: Gathering Processing and Storage Terminaling and Export Combined Hess Midstream Partners LP Predecessor (in millions) For the Three Months Ended March 31, 2017 Affiliate revenues $ 60.2 $ 53.2 $ 16.9 $ 130.3 Net income (loss) 32.0 28.5 2.6 63.1 Depreciation expense 12.3 10.9 3.6 26.8 Adjusted EBITDA 44.3 39.4 6.2 89.9 Capital expenditures 19.2 2.5 5.3 27.0 Gathering Processing and Storage Terminaling and Export Combined Hess Midstream Partners LP Predecessor (in millions) For the Three Months Ended March 31, 2016 Affiliate revenues $ 49.3 $ 49.5 $ 20.1 $ 118.9 Net income (loss) 22.7 23.9 0.4 47.0 Depreciation expense 9.1 10.7 2.8 22.6 Adjusted EBITDA 31.8 34.6 3.2 69.6 Capital expenditures 5.8 27.0 1.8 34.6 Total assets for the reportable segments were as follows: March 31, 2017 December 31, 2016 (in millions) Gathering $ 1,261.6 $ 1,246.7 Processing and Storage 1,001.1 1,000.0 Terminaling and Export 328.4 327.7 Total assets $ 2,591.1 $ 2,574.4 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
New Accounting Pronouncements | New Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014 ‑09, Revenue from Contracts with Customers , as a new Accounting Standards Codification (ASC) Topic, ASC 606. This ASU is effective for us beginning in the first quarter of 2018, with early adoption permitted from the first quarter of 2017. We have developed a project plan for the implementation of ASC 606 in the first quarter of 2018, and conducted an evaluation of certain revenue contracts with customers against the requirements of the standard. Further analysis is planned in 2017 to complete the implementation plan. Based on our assessment to date, we have not identified any changes to the timing of revenue recognition based on the requirements of ASC 606 that would have a material impact on our combined financial statements. We plan to adopt ASC 606 using the modified retrospective method that requires application of the new standard prospectively from the date of adoption with a cumulative effect adjustment recorded to partners’ capital as of January 1, 2018. In February 2016, the FASB issued ASU 2016‑02, Leases In June 2016, the FASB issued ASU 2016‑13, Financial Instruments—Credit Losses. This ASU makes changes to the impairment model for trade receivables, net investments in leases, debt securities, loans and certain other instruments. The standard requires the use of a forward‑looking “expected loss” model compared to the current “incurred loss” model. This ASU is effective for us beginning in the first quarter of 2020, with early adoption permitted from the first quarter of 2019. We are currently assessing the impact of the ASU on our combined financial statements. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Summary of Classification of Charges between Operating and Maintenance Expenses and General and Administrative Expenses | For the three months ended March 31, 2017 and 2016, we had the following charges from Hess. The classification of these charges between operating and maintenance expenses and general and administrative expenses is based on the fundamental nature of the services being performed for our operations. Three Months Ended March 31, 2017 2016 (in millions) Operating and maintenance expenses $ 14.2 $ 18.2 General and administrative expenses 1.5 1.4 Total $ 15.7 $ 19.6 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Components of Property, Plant and Equipment | Property, plant and equipment, at cost, is as follows: Estimated March 31, 2017 December 31, 2016 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 810.7 $ 802.8 Compressors, pumping stations and terminals 22 to 25 years 502.2 182.0 Gas plant assets Pipelines, pipes and valves 22 to 25 years 460.0 460.0 Equipment 12 to 30 years 428.2 428.2 Buildings 35 years 182.3 182.3 Processing and fractionation facilities 25 years 156.5 154.7 Logistics facilities and railcars 20 to 25 years 349.5 346.0 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 7.4 7.2 Construction-in-progress N/A 120.2 426.8 Total property, plant and equipment, at cost 3,036.5 3,009.5 Accumulated depreciation (517.7 ) (490.9 ) Property, plant and equipment, net $ 2,518.8 $ 2,518.6 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Predecessor | |
Schedule of Accrued Liabilities | Accrued liabilities are as follows: March 31, 2017 December 31, 2016 (in millions) Accrued capital expenditures $ 25.6 $ 46.0 Other accruals 8.4 11.8 Total $ 34.0 $ 57.8 |
Segments (Tables)
Segments (Tables) - Predecessor | 3 Months Ended |
Mar. 31, 2017 | |
Financial Data for Each Reportable Segment | The following tables reflect certain financial data for each reportable segment: Gathering Processing and Storage Terminaling and Export Combined Hess Midstream Partners LP Predecessor (in millions) For the Three Months Ended March 31, 2017 Affiliate revenues $ 60.2 $ 53.2 $ 16.9 $ 130.3 Net income (loss) 32.0 28.5 2.6 63.1 Depreciation expense 12.3 10.9 3.6 26.8 Adjusted EBITDA 44.3 39.4 6.2 89.9 Capital expenditures 19.2 2.5 5.3 27.0 Gathering Processing and Storage Terminaling and Export Combined Hess Midstream Partners LP Predecessor (in millions) For the Three Months Ended March 31, 2016 Affiliate revenues $ 49.3 $ 49.5 $ 20.1 $ 118.9 Net income (loss) 22.7 23.9 0.4 47.0 Depreciation expense 9.1 10.7 2.8 22.6 Adjusted EBITDA 31.8 34.6 3.2 69.6 Capital expenditures 5.8 27.0 1.8 34.6 |
Total Assets for Reportable Segments | Total assets for the reportable segments were as follows: March 31, 2017 December 31, 2016 (in millions) Gathering $ 1,261.6 $ 1,246.7 Processing and Storage 1,001.1 1,000.0 Terminaling and Export 328.4 327.7 Total assets $ 2,591.1 $ 2,574.4 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Jan. 17, 2014 | Jun. 30, 2015 |
GIP II Blue Holding Partnership, LP | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage of ownership interest purchased in midstream joint venture | 50.00% | |||
Hess Midstream Partners GP LLC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage of ownership interest | 56.90% | 50.00% | ||
Amount contributed in partnership | $ 10 | |||
Hess Corporation | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Amount contributed in partnership | $ 10 | |||
Percentage of ownership interest | 50.00% | |||
Hess Infrastructure Partners LP | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage of ownership interest | 43.10% |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) - USD ($) | Mar. 15, 2017 | Mar. 31, 2017 | Dec. 31, 2015 |
Senior Secured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility - Term | 4 years | ||
Maximum borrowing capacity | $ 300,000,000 | ||
Percentage of facility fees accrued per annum and paid quarterly | 0.275% | ||
Debt covenant, leverage ratio | 450.00% | ||
Senior Secured Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Interest rate, applicable margin | 1.275% | ||
Senior Unsecured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility - Term | 5 years | ||
Maximum borrowing capacity | $ 350,000,000 | ||
Accrued fees as a percentage of daily commitment | 0.175% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event $ / shares in Units, $ in Millions | Apr. 10, 2017USD ($)$ / sharesshares |
Subsequent Event [Line Items] | |
Initial public offering, common units | shares | 16,997,000 |
Common unit representing limited partner interest percentage | 30.50% |
Common units issued price, per share | $ / shares | $ 23 |
Proceeds from Initial Public Offering, gross | $ 390.9 |
Proceeds from Initial Public Offering, net | 365.5 |
Cash distributed | 350.6 |
Underwriting discount and structuring fee | 25.4 |
Revolving credit facility origination fee | 4 |
Other offering costs | 0.9 |
Remaining proceeds of cash retained for general purposes | $ 10 |
Predecessor | |
Subsequent Event [Line Items] | |
Initial public offering, common units | shares | 16,997,000 |
Common unit representing limited partner interest percentage | 2.00% |
Proceeds from Initial Public Offering, net | $ 365.5 |
Cash distributed | 350.6 |
Underwriting discount and structuring fee | 25.4 |
Remaining proceeds of cash retained for general purposes | $ 10 |
Gathering Opco | |
Subsequent Event [Line Items] | |
Common unit representing limited partner interest percentage | 20.00% |
Hess North Dakota Export Logistics Operations Limited Partnership | |
Subsequent Event [Line Items] | |
Common unit representing limited partner interest percentage | 20.00% |
Hess Mentor Storage Holdings Limited Liability Company | |
Subsequent Event [Line Items] | |
Common unit representing limited partner interest percentage | 100.00% |
Hess T G P Operations Limited Partnership | |
Subsequent Event [Line Items] | |
Common unit representing limited partner interest percentage | 20.00% |
Over-Allotment Options | |
Subsequent Event [Line Items] | |
Initial public offering, common units | shares | 2,217,000 |
Over-Allotment Options | Predecessor | |
Subsequent Event [Line Items] | |
Initial public offering, common units | shares | 2,217,000 |
Common unit representing limited partner interest percentage | 30.50% |
Common units issued price, per share | $ / shares | $ 23 |
IPO | Predecessor | |
Subsequent Event [Line Items] | |
Common unit representing limited partner interest percentage | 30.50% |
Description of Business - Addit
Description of Business - Additional Information (Detail) - Segment | Apr. 10, 2017 | Mar. 31, 2017 |
Subsequent Event | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 30.50% | |
Subsequent Event | Gathering Opco | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Subsequent Event | Hess T G P Operations Limited Partnership | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Subsequent Event | Hess North Dakota Export Logistics Operations Limited Partnership | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Subsequent Event | Hess Mentor Storage Holdings Limited Liability Company | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 100.00% | |
Predecessor | ||
Description Of Business [Line Items] | ||
Number of operating segments | 3 | |
Predecessor | Hess Corporation | ||
Description Of Business [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
Predecessor | GIP II Blue Holding Partnership, LP | ||
Description Of Business [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
Predecessor | Subsequent Event | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 2.00% | |
Predecessor | Subsequent Event | IPO | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 30.50% | |
Predecessor | Subsequent Event | Hess Infrastructure Partners LP | IPO | Gathering Opco | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Predecessor | Subsequent Event | Hess Infrastructure Partners LP | IPO | Hess T G P Operations Limited Partnership | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Predecessor | Subsequent Event | Hess Infrastructure Partners LP | IPO | Hess North Dakota Export Logistics Operations Limited Partnership | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Predecessor | Subsequent Event | Hess Infrastructure Partners LP | IPO | Hess Mentor Storage Holdings Limited Liability Company | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 100.00% |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Cash | $ 304,000 | $ 304,000 |
Predecessor | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Goodwill | 0 | |
Cash | $ 0 | $ 0 |
Predecessor | Gathering Opco | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Consolidation percentage | 100.00% | |
Predecessor | Hess T G P Operations Limited Partnership | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Consolidation percentage | 100.00% | |
Predecessor | Hess North Dakota Export Logistics Operations Limited Partnership | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Consolidation percentage | 100.00% | |
Predecessor | Hess Mentor Storage Holdings Limited Liability Company | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Consolidation percentage | 100.00% |
Initial Public Offering - Addit
Initial Public Offering - Additional Information (Detail) - USD ($) | Apr. 10, 2017 | Mar. 31, 2017 | Mar. 31, 2017 |
Hess Infrastructure Partners LP | |||
Subsidiary Sale Of Stock [Line Items] | |||
Percentage of ownership interest | 43.10% | ||
Subsequent Event | |||
Subsidiary Sale Of Stock [Line Items] | |||
Initial public offering, common units | 16,997,000 | ||
Percentage of ownership interest | 30.50% | ||
Initial public offering common units per share | $ 23 | ||
Net proceeds from IPO | $ 365,500,000 | ||
Underwriting discount and structuring fee | 25,400,000 | ||
Cash distributed | 350,600,000 | ||
Remaining proceeds of cash retained for general purposes | $ 10,000,000 | ||
Subsequent Event | Over-Allotment Options | |||
Subsidiary Sale Of Stock [Line Items] | |||
Initial public offering, common units | 2,217,000 | ||
Predecessor | |||
Subsidiary Sale Of Stock [Line Items] | |||
Initial public offering period | On April 5, 2017, the Partnership’s common units began trading on the New York Stock Exchange under the symbol “HESM.” On April 10, 2017, the Partnership closed its IPO of 16,997,000 common units, which included 2,217,000 common units issued pursuant to the exercise of the underwriters’ overallotment option, representing 30.5% limited partner interests in the Partnership at a price to the public of $23.00 per unit. | ||
Predecessor | 2017 Long-Term Incentive Plan | |||
Subsidiary Sale Of Stock [Line Items] | |||
Available common units pursuant to vested awards | 3,000,000 | 3,000,000 | |
Phantom units granted | 40,652 | ||
Phantom units aggregate value | $ 900,000 | ||
Phantom units vesting period | 3 years | ||
Predecessor | Subsequent Event | |||
Subsidiary Sale Of Stock [Line Items] | |||
Initial public offering, common units | 16,997,000 | ||
Percentage of ownership interest | 2.00% | ||
Net proceeds from IPO | $ 365,500,000 | ||
Underwriting discount and structuring fee | 25,400,000 | ||
Cash distributed | 350,600,000 | ||
Remaining proceeds of cash retained for general purposes | $ 10,000,000 | ||
Percentage of contribution to unanticipated maintenance capital projects, costs | 100.00% | ||
Predecessor | Subsequent Event | Maximum | |||
Subsidiary Sale Of Stock [Line Items] | |||
Other identified maintenance capital projects, costs | $ 20,000,000 | ||
Unanticipated maintenance capital projects, estimated costs in March 31, 2018 | $ 10,000,000 | ||
Predecessor | Subsequent Event | Hess North Dakota Export Logistics Operations Limited Partnership | |||
Subsidiary Sale Of Stock [Line Items] | |||
Percentage of ownership interest | 20.00% | ||
Predecessor | Subsequent Event | Hess T G P Operations Limited Partnership | |||
Subsidiary Sale Of Stock [Line Items] | |||
Percentage of ownership interest | 20.00% | ||
Predecessor | Subsequent Event | Gathering Opco | |||
Subsidiary Sale Of Stock [Line Items] | |||
Percentage of ownership interest | 20.00% | ||
Predecessor | Subsequent Event | Mentor Holdings | |||
Subsidiary Sale Of Stock [Line Items] | |||
Percentage of ownership interest contributed | 100.00% | ||
Predecessor | Subsequent Event | Hess Infrastructure Partners LP | |||
Subsidiary Sale Of Stock [Line Items] | |||
Percentage of ownership interest | 67.50% | ||
Predecessor | Subsequent Event | Hess Infrastructure Partners LP | Common Units | |||
Subsidiary Sale Of Stock [Line Items] | |||
Stock issued during period, shares | 10,282,654 | ||
Predecessor | Subsequent Event | Hess Infrastructure Partners LP | Subordinated Units | |||
Subsidiary Sale Of Stock [Line Items] | |||
Stock issued during period, shares | 27,279,654 | ||
Predecessor | Subsequent Event | Over-Allotment Options | |||
Subsidiary Sale Of Stock [Line Items] | |||
Initial public offering, common units | 2,217,000 | ||
Percentage of ownership interest | 30.50% | ||
Initial public offering common units per share | $ 23 |
Related Party Transactions - Su
Related Party Transactions - Summary of Classification of Charges between Operating and Maintenance Expenses and General and Administrative Expenses (Detail) - Hess - Predecessor - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Operating and maintenance expenses | $ 14.2 | $ 18.2 |
General and administrative expenses | 1.5 | 1.4 |
Total | $ 15.7 | $ 19.6 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Predecessor | Dec. 31, 2015USD ($)Railcars | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) |
Related Party Transaction [Line Items] | ||||
Accounts payable—affiliate | $ 267,300,000 | $ 241,300,000 | ||
Contribution of property, plant and equipment | $ 43,600,000 | |||
Hess Infrastructure Partners LP | ||||
Related Party Transaction [Line Items] | ||||
Accounts payable—affiliate | $ 248,000,000 | $ 226,200,000 | ||
Hess | ||||
Related Party Transaction [Line Items] | ||||
Revenue recognition period | 1 year | |||
Minimum volume shortfall fee payments earned | $ 21,400,000 | 400,000 | ||
Number of crude oil rail cars received under contract | Railcars | 550 | |||
Contractual right expected value | $ 104,100,000 | |||
Parent contribution pursuant to prepaid forward purchase and sales agreement | $ 104,100,000 | |||
Contribution of property, plant and equipment | 38,700,000 | |||
Hess | Rail Transportation Costs | ||||
Related Party Transaction [Line Items] | ||||
Reimbursement revenue | 5,500,000 | 7,200,000 | ||
Hess | Electricity Fees | ||||
Related Party Transaction [Line Items] | ||||
Reimbursement revenue | $ 5,700,000 | $ 5,800,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - Predecessor - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 3,036.5 | $ 3,009.5 |
Accumulated depreciation | (517.7) | (490.9) |
Property, plant and equipment, net | 2,518.8 | 2,518.6 |
Logistics Facilities and Railcars | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 349.5 | 346 |
Storage Facilities | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 19.5 | 19.5 |
Other | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 7.4 | 7.2 |
Construction-In-Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 120.2 | 426.8 |
Minimum | Logistics Facilities and Railcars | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 20 years | |
Minimum | Storage Facilities | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 20 years | |
Minimum | Other | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 20 years | |
Maximum | Logistics Facilities and Railcars | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Maximum | Storage Facilities | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Maximum | Other | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Gathering Assets | Pipelines | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 22 years | |
Total property, plant and equipment, at cost | $ 810.7 | 802.8 |
Gathering Assets | Compressors, Pumping Stations and Terminals | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 502.2 | 182 |
Gathering Assets | Minimum | Compressors, Pumping Stations and Terminals | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 22 years | |
Gathering Assets | Maximum | Compressors, Pumping Stations and Terminals | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Gas Plant Assets | Pipelines, Pipes and Valves | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 460 | 460 |
Gas Plant Assets | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 428.2 | 428.2 |
Gas Plant Assets | Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 35 years | |
Total property, plant and equipment, at cost | $ 182.3 | 182.3 |
Gas Plant Assets | Processing and Fractionation Facilities | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Total property, plant and equipment, at cost | $ 156.5 | $ 154.7 |
Gas Plant Assets | Minimum | Pipelines, Pipes and Valves | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 22 years | |
Gas Plant Assets | Minimum | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 12 years | |
Gas Plant Assets | Maximum | Pipelines, Pipes and Valves | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Gas Plant Assets | Maximum | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 30 years |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - Predecessor - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities Current [Line Items] | ||
Accrued capital expenditures | $ 25.6 | $ 46 |
Other accruals | 8.4 | 11.8 |
Total | $ 34 | $ 57.8 |
Subsidiary Guarantor - Addition
Subsidiary Guarantor - Additional Information (Detail) - Predecessor - Hess Infrastructure Partners LP - USD ($) | 1 Months Ended | |
Jul. 31, 2015 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 0 | |
Unsecured Term Loan A Facility | ||
Debt Instrument [Line Items] | ||
Term loan facility, term | 5 years | |
Term loan facility, face amount | $ 600,000,000 | |
Term loan facility, outstanding amount | 577,500,000 | |
Unsecured Syndicated Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit facility, term | 5 years | |
Revolving credit facility, maximum borrowing capacity | $ 400,000,000 | |
Revolving credit facility, outstanding amount | $ 158,000,000 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) - Predecessor - Credit Concentration Risk | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Predecessor - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Other Commitments [Line Items] | ||
Accrued liabilities for remediation | $ 3,300,000 | $ 3,300,000 |
Accrued liabilities for legal contingencies | $ 0 | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017Segment | |
Predecessor | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Segments - Financial Data for E
Segments - Financial Data for Each Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Net income (loss) | $ (155) | |
Predecessor | ||
Segment Reporting Information [Line Items] | ||
Affiliate revenues | $ 130,300 | 118,900 |
Net income (loss) | 63,100 | 47,000 |
Depreciation expense | 26,800 | 22,600 |
Adjusted EBITDA | 89,900 | 69,600 |
Capital expenditures | 27,000 | 34,600 |
Predecessor | Gathering Opco | ||
Segment Reporting Information [Line Items] | ||
Affiliate revenues | 60,200 | 49,300 |
Net income (loss) | 32,000 | 22,700 |
Depreciation expense | 12,300 | 9,100 |
Adjusted EBITDA | 44,300 | 31,800 |
Capital expenditures | 19,200 | 5,800 |
Predecessor | Processing and Storage | ||
Segment Reporting Information [Line Items] | ||
Affiliate revenues | 53,200 | 49,500 |
Net income (loss) | 28,500 | 23,900 |
Depreciation expense | 10,900 | 10,700 |
Adjusted EBITDA | 39,400 | 34,600 |
Capital expenditures | 2,500 | 27,000 |
Predecessor | Terminaling and Export | ||
Segment Reporting Information [Line Items] | ||
Affiliate revenues | 16,900 | 20,100 |
Net income (loss) | 2,600 | 400 |
Depreciation expense | 3,600 | 2,800 |
Adjusted EBITDA | 6,200 | 3,200 |
Capital expenditures | $ 5,300 | $ 1,800 |
Segments - Total Assets for Rep
Segments - Total Assets for Reportable Segments (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 304 | $ 304 |
Predecessor | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,591,100 | 2,574,400 |
Predecessor | Gathering Opco | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,261,600 | 1,246,700 |
Predecessor | Processing and Storage | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,001,100 | 1,000,000 |
Predecessor | Terminaling and Export | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 328,400 | $ 327,700 |