Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2017shares | |
Document And Entity Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
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 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash | $ 43 | |
Accounts receivable—affiliate | 58.1 | |
Other current assets | 0.5 | |
Total current assets | 101.6 | |
Property, plant and equipment, net | 2,507.4 | |
Other noncurrent assets | 3.7 | |
Total assets | 2,612.7 | |
Liabilities | ||
Accounts payable—trade | 8.2 | |
Accounts payable—affiliate | 14.5 | |
Accrued liabilities | 24.1 | |
Other current liabilities | 2.1 | |
Total current liabilities | 48.9 | |
Other noncurrent liabilities | 4.1 | |
Total liabilities | 53 | |
Partners' capital | ||
General partner | 14.8 | |
Total Hess Midstream Partners LP partners' capital | 523.2 | |
Noncontrolling interest | 2,036.5 | |
Total partners' capital | 2,559.7 | |
Total liabilities and partners' capital | 2,612.7 | |
Predecessor | ||
Assets | ||
Cash | $ 0.3 | |
Accounts receivable—affiliate | 44.6 | |
Other current assets | 2.8 | |
Total current assets | 47.7 | |
Property, plant and equipment, net | 2,518.6 | |
Other noncurrent assets | 8.4 | |
Total assets | 2,574.7 | |
Liabilities | ||
Accounts payable—trade | 28.8 | |
Accounts payable—affiliate | 241.3 | |
Accrued liabilities | 57.8 | |
Other current liabilities | 4.1 | |
Total current liabilities | 332 | |
Other noncurrent liabilities | 4.3 | |
Total liabilities | 336.3 | |
Partners' capital | ||
Net parent investment - Predecessor | 2,238.4 | |
Total partners' capital | 2,238.4 | |
Total liabilities and partners' capital | $ 2,574.7 | |
Common Unitholders - Public | ||
Partners' capital | ||
Common and subordinated unitholders | 358.4 | |
Common Unitholders - Affiliate | ||
Partners' capital | ||
Common and subordinated unitholders | 41 | |
Subordinated Unitholders - Affiliate | ||
Partners' capital | ||
Common and subordinated unitholders | $ 109 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2017 | Dec. 31, 2016 |
Common Unitholders - Public | ||
Common and subordinated units issued | 16,997,000 | |
Common and subordinated units outstanding | 16,997,000 | |
Common Unitholders - Public | Predecessor | ||
Common and subordinated units issued | 0 | |
Common and subordinated units outstanding | 0 | |
Common Unitholders - Affiliate | ||
Common and subordinated units issued | 10,282,654 | |
Common and subordinated units outstanding | 10,282,654 | |
Common Unitholders - Affiliate | Predecessor | ||
Common and subordinated units issued | 0 | |
Common and subordinated units outstanding | 0 | |
Subordinated Unitholders - Affiliate | ||
Common and subordinated units issued | 27,279,654 | |
Common and subordinated units outstanding | 27,279,654 | |
Subordinated Unitholders - Affiliate | Predecessor | ||
Common and subordinated units issued | 0 | |
Common and subordinated units outstanding | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Revenues | |||||
Affiliate | $ 138.3 | $ 268.6 | |||
Total revenues | 138.3 | 268.6 | |||
Costs and expenses | |||||
Operating and maintenance expenses (exclusive of depreciation shown separately below) | 38.8 | 77.7 | |||
Depreciation expense | 28.5 | 55.3 | |||
General and administrative expenses | 2.4 | 3.9 | |||
Total costs and expenses | 69.7 | 136.9 | |||
Income (loss) from operations | 68.6 | 131.7 | |||
Interest expense | 0.5 | 0.5 | |||
Net income (loss) | 68.1 | 131.2 | |||
Less: Net income (loss) prior to the IPO on April 10, 2017 | 5.1 | 68.2 | |||
Less: Net income (loss) attributable to noncontrolling interest subsequent to the IPO on April 10, 2017 | 51.6 | 51.6 | |||
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 11.4 | 11.4 | |||
Less: General partner interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 0.2 | 0.2 | |||
Limited partners' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | $ 11.2 | $ 11.2 | |||
Weighted average limited partner units outstanding (basic and diluted): | |||||
Cash distributions declared per unit | [1] | $ 0.2703 | $ 0.2703 | ||
Predecessor | |||||
Revenues | |||||
Affiliate | $ 119 | $ 237.9 | |||
Total revenues | 119 | 237.9 | |||
Costs and expenses | |||||
Operating and maintenance expenses (exclusive of depreciation shown separately below) | 49 | 96.9 | |||
Depreciation expense | 24.8 | 47.4 | |||
General and administrative expenses | 3.9 | 5.3 | |||
Total costs and expenses | 77.7 | 149.6 | |||
Income (loss) from operations | 41.3 | 88.3 | |||
Interest expense | 1.2 | 1.4 | |||
Net income (loss) | $ 40.1 | $ 86.9 | |||
Less: Net income (loss) prior to the IPO on April 10, 2017 | $ 68.2 | ||||
Common Units | |||||
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 per limited partner unit (basic and diluted): | |||||
Net income (loss) attributable to Hess Midstream Partners per limited partner unit | $ 0.21 | $ 0.21 | |||
Weighted average limited partner units outstanding (basic and diluted): | |||||
Units outstanding | 26.1 | 26.1 | |||
Subordinated Units | |||||
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 per limited partner unit (basic and diluted): | |||||
Net income (loss) attributable to Hess Midstream Partners per limited partner unit | $ 0.21 | $ 0.21 | |||
Weighted average limited partner units outstanding (basic and diluted): | |||||
Units outstanding | 26.1 | 26.1 | |||
[1] | Represents cash distributions declared during the month following the end of each respective quarterly period. See Note 14, Subsequent Event. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (UNAUDITED) - USD ($) $ in Millions | Total | General Partner | Non controlling Interest | Net Parent Investment - Predecessor | Common Unitholders - Public | Common Unitholders - Affiliate | Subordinated Unitholders - Affiliate |
Balance, beginning of period (Predecessor) at Dec. 31, 2015 | $ 2,098.8 | $ 2,098.8 | |||||
Net income (loss) | Predecessor | 86.9 | 86.9 | |||||
Contribution of property, plant and equipment | Predecessor | 58.9 | 58.9 | |||||
Other contributions from (distributions to) parent, net | Predecessor | (55.8) | (55.8) | |||||
Balance, end of period (Predecessor) at Jun. 30, 2016 | 2,188.8 | 2,188.8 | |||||
Balance, beginning of period (Predecessor) at Dec. 31, 2016 | 2,238.4 | 2,238.4 | |||||
Net income (loss) | 131.2 | ||||||
Net income prior to the IPO on April 10, 2017 | Predecessor | 68.2 | 68.2 | |||||
Net income prior to the IPO on April 10, 2017 | 68.2 | ||||||
Other contributions from parent, net, prior to the IPO on April 10, 2017 | Predecessor | 225 | 225 | |||||
Contribution of net assets to Hess Midstream Partners LP | $ 14.6 | $ 2,025.2 | $ (2,531.6) | $ 134.6 | $ 357.2 | ||
IPO proceeds, net of underwriters' discounts | 365.5 | $ 365.5 | |||||
Offering costs | (10.7) | (10.7) | |||||
Distribution of IPO proceeds | (349.5) | (95.7) | (253.8) | ||||
Net income subsequent to the IPO on April 10, 2017 | 63 | 0.2 | 51.6 | 3.5 | 2.1 | 5.6 | |
Unit-based compensation | 0.1 | 0.1 | |||||
Distributions to noncontrolling interest | (81.2) | (81.2) | |||||
Contributions from noncontrolling | 40.9 | 40.9 | |||||
Balance, end of period at Jun. 30, 2017 | $ 2,559.7 | $ 14.8 | $ 2,036.5 | $ 358.4 | $ 41 | $ 109 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ 131.2 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation expense | 55.3 | |
Amortization of deferred financing costs | 0.2 | |
Unit-based compensation expense | 0.1 | |
Changes in assets and liabilities: | ||
Accounts receivable – affiliate | (13.5) | |
Other current and noncurrent assets | 2.1 | |
Accounts payable – trade | (20.6) | |
Accounts payable – affiliate | 26.4 | |
Accrued liabilities | (1.2) | |
Other current and noncurrent liabilities | (2.2) | |
Net cash provided by (used in) operating activities | 177.8 | |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (76.6) | |
Net cash provided by (used in) investing activities | (76.6) | |
Cash flows from financing activities | ||
Cash distributions to parent prior to the IPO on April 10, 2017 | (95.3) | |
Cash contributions from parent prior to the IPO on April 10, 2017 | 67.1 | |
IPO proceeds, net of underwriters' discounts | 365.5 | |
Cash offering costs | (2.1) | |
Distribution of IPO proceeds to Hess and GIP | (349.5) | |
Financing costs | (3.9) | |
Distributions to noncontrolling interest | (81.2) | |
Contributions from noncontrolling interest | 40.9 | |
Net cash provided by (used in) financing activities | (58.5) | |
Increase (decrease) in cash and cash equivalents | 42.7 | |
Cash and cash equivalents, beginning of period | 0.3 | |
Cash and cash equivalents, end of period | 43 | |
Supplemental cash disclosures: | ||
Capital expenditures included in accrued liabilities at period end | 13.5 | |
Contribution to settle accounts payable – affiliate | $ 253.2 | |
Predecessor | ||
Cash flows from operating activities | ||
Net income (loss) | $ 86.9 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation expense | 47.4 | |
Amortization of deferred financing costs | 1.1 | |
Changes in assets and liabilities: | ||
Accounts receivable – affiliate | 3.6 | |
Other current and noncurrent assets | 2.4 | |
Accounts payable – trade | (12.9) | |
Accounts payable – affiliate | 32.9 | |
Accrued liabilities | 16.8 | |
Other current and noncurrent liabilities | (3.5) | |
Net cash provided by (used in) operating activities | 174.7 | |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (118.9) | |
Net cash provided by (used in) investing activities | (118.9) | |
Cash flows from financing activities | ||
Cash distributions to parent prior to the IPO on April 10, 2017 | (119.4) | |
Cash contributions from parent prior to the IPO on April 10, 2017 | 63.6 | |
Net cash provided by (used in) financing activities | (55.8) | |
Cash and cash equivalents, beginning of period | 0.3 | |
Cash and cash equivalents, end of period | 0.3 | |
Supplemental cash disclosures: | ||
Capital expenditures included in accrued liabilities at period end | 26.6 | |
Contribution of property, plant and equipment | $ 58.9 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2017 | |
Description Of Business [Abstract] | |
Description of Business | Note 1. Description of Business Hess Midstream Partners LP (the “Partnership”) is a fee‑based, growth oriented traditional master limited partnership formed 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”), to own, operate, develop and acquire a diverse set of midstream assets to provide services to Hess and third‑party customers. The Partnership was initially formed by Hess on January 17, 2014, as a Delaware limited partnership. On April 10, 2017, the Partnership completed its initial public offering (“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 (see Note 3, Initial Public Offering). In connection with the Partnership’s IPO, Hess Infrastructure Partners contributed a 20% controlling economic interest in each 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, and (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 a 100% ownership interest in 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”) to the Partnership. The terms “we,” “our” and “us” as used in this report for periods prior to the IPO refer collectively to Hess Midstream Partners LP Predecessor, our predecessor for accounting purposes (“the 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 13, Segments). |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 2. Basis of Presentation Consolidation Prior to the IPO on April 10, 2017, our financial position, results of operations and cash flows consisted of the Predecessor, which represented a combined reporting entity. The consolidated financial statements of our Predecessor have been recast to include activities and balances of Hess Midstream Partners LP prior to the IPO. Subsequent to the IPO, our financial position, results of operations and cash flows consist of consolidated Hess Midstream Partners LP activities and balances. The assets and liabilities in our consolidated financial statements have been reflected on a historical cost basis as immediately prior to the IPO all of the assets and liabilities presented were wholly‑owned by Hess Infrastructure Partners and were transferred within the Hess Infrastructure Partners consolidated group. We consolidate the activities of Gathering Opco, HTGP Opco and Logistics Opco, which qualify as variable interest entities (“VIE”) under U.S. generally accepted accounting principles (“GAAP”). We have concluded that we are the primary beneficiary of each VIE, as defined in the accounting standards, since we have the power through our general partner and limited partner interests to direct those activities that most significantly impact the economic performance of the Contributed Businesses and have a right to receive benefits and an obligation to absorb losses that could potentially be significant. The conclusion was based on a qualitative analysis that considered the governance structure, the voting rights established between the members which provide us the ability to control the operations of the Contributed Business, and the absence of substantive kick‑out or substantive participating rights of limited partners over the general partners. All financial statement activities associated with VIEs are captured within gathering, processing and storage, and terminaling and export segments (see Note 13, Segments). We reflect a noncontrolling interest representing the retained limited partner interest owned by Hess Infrastructure Partners in the Contributed Businesses in the consolidated financial statements of the Partnership. All intercompany transactions and balances within the Partnership have been eliminated. The consolidated 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 consolidated financial position at June 30, 2017 and December 31, 2016, the consolidated results of operations for the three and six months ended June 30, 2017 and 2016, and consolidated cash flows for the six months ended June 30, 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. The consolidated financial statements were 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. GAAP have been condensed or omitted from these interim consolidated 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”). Summary of Significant Accounting Policies Unit-based compensation. Unit‑based compensation issued to the officers, directors and employees of our general partner is recorded at grant‑date fair value. Expense is recognized on a straight‑line basis over the vesting period of the award and is included in General and administrative expenses in the accompanying consolidated statements of operations. Net income per limited partner unit. We have identified the general partner interest and the incentive distribution rights ("IDRs") as participating securities and compute income per unit using the two‑class method under which net income per unit is calculated for common units and participating securities considering both distributions declared and participation rights in undistributed earnings as if all such earnings had been distributed during this period. Net income per unit applicable to limited partners, including subordinated unitholders, is computed by dividing limited partners' interest in net income, after deducting the general partner's 2% interest and incentive distributions, by the weighted‑average number of outstanding common and subordinated units. Income taxes . We are not a separate taxable entity for U.S. Federal and state income tax purposes; therefore, we do not provide for income tax benefit or expense. Each partner is subject to income taxes on its share of the Partnership’s earnings. 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. We have developed a project plan for the implementation of ASC 606 in the first quarter of 2018. As of June 30, 2017, our analysis of contracts with customers against the requirements of the standard is largely complete. 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 consolidated 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, if any, 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 consolidated financial statements. |
Initial Public Offering
Initial Public Offering | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Initial Public Offering | Note 3. 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. 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 each of Gathering Opco, HTGP Opco, Logistics Opco, and a 100% interest in Mentor Holdings. In exchange for the Contributed Businesses, Hess Infrastructure Partners became entitled to receive: • 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. Further, pursuant to the contribution, conveyance and assumption agreement, Hess Infrastructure Partners directed the Partnership to issue, and the Partnership issued, 50% of the above mentioned common and subordinated units directly to Hess and 50% directly to GIP, used $1.1 million to pay certain offering costs and distributed $349.5 million to Hess and GIP. As part of the contribution, conveyance and assumption 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 through March 31, 2018, up to a maximum of $10 million on a 100% basis. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
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 unaudited consolidated statements of operations for the three and six months ended June 30, 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. 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 through December 31, 2016, if Hess delivered volumes less than applicable commitments during any quarter, 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, $13.7 million and $35.1 million of minimum volume shortfall fee payments were earned during the three and six months ended June 30, 2017, respectively (2016: $0 and $0.4 million, respectively). For the three and six months ended June 30, 2017 and 2016, approximately 100% of our revenues were attributable to our fee‑based commercial agreements with Hess, including revenues from third‑party volumes contracted with Hess and delivered to us under these agreements. 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 and six months ended June 30, 2017, we recognized, as part of the affiliate revenues, $4.5 million and $10.0 million, respectively (2016: $10.0 million and $17.2 million, respectively), of reimbursements from Hess related to third‑party rail transportation costs. In addition, during the three and six months ended June 30, 2017, we recognized, as part of affiliate revenues, $6.0 million and $11.7 million, respectively (2016: $5.8 million and $11.6 million, respectively), of reimbursements from Hess related to electricity fees. These related costs were included in Operating and maintenance expenses in the accompanying unaudited consolidated statements of operations. Omnibus and Employee Secondment Agreements In connection with the Partnership’s IPO, we entered into an omnibus agreement with Hess and Hess Infrastructure Partners under which we pay Hess on a monthly basis an amount equal to the total allocable costs of Hess’s employees and contractors, subcontractors or other outside personnel engaged by Hess and its subsidiaries to the extent such employees and outside personnel perform operational and administrative services for us in support of our assets, plus a specified percentage markup of such amount depending on the type of service provided, as well as an allocable share of direct costs of providing these services. The omnibus agreement also includes 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. In connection with the Partnership’s IPO, we also entered into an employee secondment agreement with Hess under which certain employees of Hess are seconded to our general partner to provide services with respect to our assets and operations, including executive oversight, business and corporate development, unitholder and investor relations, communications and public relations, routine and emergency maintenance and repair services, routine operational services, routine administrative services, construction services, and such other operational, commercial and business services that are necessary to develop and execute the Partnership’s business strategy. On a monthly basis, we 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. For the three and six months ended June 30, 2017 and 2016, we had the following charges from Hess, including for the services agreements described above and expenses directly charged and allocated to the Predecessor. 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in millions) Predecessor Predecessor Operating and maintenance expenses $ 13.3 $ 14.5 $ 27.5 $ 32.7 General and administrative expenses 1.4 3.9 2.9 5.3 Total $ 14.7 $ 18.4 $ 30.4 $ 38.0 Prior to the IPO, 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 December 31, 2016, Accounts payable—affiliate included $226.2 million 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 balances payable to Hess Infrastructure Partners totaling $253.2 million were settled via capital contributions from Hess Infrastructure Partners. 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 six months ended June 30, 2016, we recognized $54.0 million in Property, plant and equipment and in Contribution of property, plant and equipment. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 5. Property, Plant and Equipment Property, plant and equipment, at cost, is as follows: Estimated June 30, 2017 December 31, 2016 (in millions, except for number of years) Predecessor Gathering assets Pipelines 22 years $ 812.7 $ 802.8 Compressors, pumping stations and terminals 22 to 25 years 504.0 182.0 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 157.1 154.7 Logistics facilities and railcars 20 to 25 years 367.0 346.0 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 7.4 7.2 Construction-in-progress N/A 115.4 426.8 Total property, plant and equipment, at cost 3,053.6 3,009.5 Accumulated depreciation (546.2 ) (490.9 ) Property, plant and equipment, net $ 2,507.4 $ 2,518.6 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 6. Accrued Liabilities Accrued liabilities are as follows: June 30, 2017 December 31, 2016 (in millions) Predecessor Accrued capital expenditures $ 13.5 $ 46.0 Other accruals 10.6 11.8 Total $ 24.1 $ 57.8 |
Debt and Interest Expense
Debt and Interest Expense | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Interest Expense | Note 7. Debt and Interest Expense 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 closing of the IPO on April 10, 2017. The credit facility can be used for borrowings and letters of credit to fund operating activities and capital expenditures of the Partnership. Borrowings on the credit facility 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 accrue at 0.275% per annum and are 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. As of June 30, 2017, the revolving credit facility remained undrawn. 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. 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. 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. |
Distributions
Distributions | 6 Months Ended |
Jun. 30, 2017 | |
Distributions Made To Members Or Limited Partners [Abstract] | |
Distributions | Note 8. Distributions Our partnership agreement requires that, within 45 days after the end of each quarter, we distribute all of our available cash to unitholders of record on the applicable record date. On July 25, 2017, the board of directors of our general partner declared the initial quarterly cash distribution of $0.2703 per common and subordinated unit for the quarter ending June 30, 2017. This amount has been prorated from the closing of the Partnership’s IPO on April 10, 2017 and equates to the minimum quarterly distribution of $0.3000 per unit on a full quarter basis. The distribution will be payable on August 14, 2017, to unitholders of record as of the close of business on August 4, 2017. There were no distributions declared or paid prior to this distribution (see Note 14, Subsequent Event). |
Unit-Based Compensation
Unit-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unit-Based Compensation | Note 9. Unit‑Based Compensation 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 initially limits the number of common units that may be delivered pursuant to vested awards to 3,000,000 common units. In connection with the consummation of our IPO, we granted awards of phantom units with distribution equivalent rights to certain officers, employees and directors. These phantom units and distribution equivalent rights will vest ratably over a three‑year period beginning on the first anniversary of the consummation of the IPO for officers and employees, and over a one‑year period for directors. Cash distributions on the phantom units will accumulate and be paid upon vesting. Fair value of phantom units is based on the fair value of the Partnership’s common units on the grant date. Unit‑based award activity for the three months ended June 30, 2017 was as follows: Weighted Average Award Date Number of Units Fair Value Outstanding and unvested units at March 31, 2017 - $ - Granted 45,214 23.00 Outstanding and unvested units at June 30, 2017 45,214 $ 23.00 As of June 30, 2017, $0.9 million of compensation cost related to all of our unvested phantom units awarded under the LTIP remained to be recognized. The cost is expected to be recognized over a weighted‑average period of 2.7 years. |
Net Income per Limited Partner
Net Income per Limited Partner Unit | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income per Limited Partner Unit | Note 10. Net Income per Limited Partner Unit Net income per limited partner unit is computed by dividing the respective limited partners’ interest in net income attributable to Hess Midstream Partners LP by the weighted average number of common and subordinated units outstanding. Because we have more than one class of participating securities, we use the two‑class method when calculating net income per limited partner unit. The classes of participating securities include common units, subordinated units, general partner units and incentive distribution rights. Net income per limited partner unit is only calculated for the periods subsequent to the IPO as no units were outstanding prior to April 10, 2017. The following table illustrates the Partnership’s calculation of net income per limited partner unit: Three Months Ended Six Months Ended (in millions, except per unit amounts) June 30, 2017 June 30, 2017 Net income (loss) $ 68.1 $ 131.2 Less: Net income (loss) prior to the IPO on April 10, 2017 5.1 68.2 Less: Net income (loss) attributable to noncontrolling interest subsequent to the IPO on April 10, 2017 51.6 51.6 Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 11.4 11.4 Less: General partner interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 0.2 0.2 Limited partners' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 $ 11.2 $ 11.2 Common unitholders' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 $ 5.6 $ 5.6 Subordinated unitholders' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 $ 5.6 $ 5.6 Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 per limited partner unit: Common (basic and diluted) $ 0.21 $ 0.21 Subordinated (basic and diluted) $ 0.21 $ 0.21 Weighted average number of limited partner units outstanding: Common (basic and diluted) 26.1 26.1 Subordinated (basic and diluted) 26.1 26.1 |
Concentration of Credit Risk
Concentration of Credit Risk | 6 Months Ended |
Jun. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 11. Concentration of Credit Risk Hess represented approximately 100% of our total revenues and accounts receivable for the three and six months ended June 30, 2017 and 2016. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Environmental Contingencies The Partnership is subject to federal, state and local laws and regulations relating to the environment. As of June 30, 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 June 30, 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 | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segments | Note 13. 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 Interest and Other Consolidated Hess Midstream Partners LP (in millions) For the Three Months Ended June 30, 2017 Affiliate revenues $ 66.5 $ 55.7 $ 16.1 $ - $ 138.3 Net income (loss) 36.9 30.4 2.3 (1.5 ) 68.1 Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 7.0 5.4 0.5 (1.5 ) 11.4 Depreciation expense 13.8 10.9 3.8 - 28.5 Interest expense - - - 0.5 0.5 Adjusted EBITDA 50.7 41.3 6.1 (1.0 ) 97.1 Adjusted EBITDA attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 9.5 7.3 1.2 (1.0 ) 17.0 Capital expenditures 8.8 2.6 5.7 - 17.1 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated Hess Midstream Partners LP Predecessor (in millions) For the Three Months Ended June 30, 2016 Affiliate revenues $ 48.1 $ 47.4 $ 23.5 $ - $ 119.0 Net income (loss) 20.3 20.1 0.9 (1.2 ) 40.1 Depreciation expense 10.0 11.4 3.4 - 24.8 Interest expense - - - 1.2 1.2 Adjusted EBITDA 30.3 31.5 4.3 - 66.1 Capital expenditures 60.0 3.1 3.1 - 66.2 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated Hess Midstream Partners LP (in millions) For the Six Months Ended June 30, 2017 Affiliate revenues $ 126.7 $ 108.9 $ 33.0 $ - $ 268.6 Net income (loss) 68.9 58.9 4.9 (1.5 ) 131.2 Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 7.0 5.4 0.5 (1.5 ) 11.4 Depreciation expense 26.1 21.8 7.4 - 55.3 Interest expense - - - 0.5 0.5 Adjusted EBITDA 95.0 80.7 12.3 (1.0 ) 187.0 Adjusted EBITDA attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 9.5 7.3 1.2 (1.0 ) 17.0 Capital expenditures 28.0 5.1 11.0 - 44.1 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated Hess Midstream Partners LP Predecessor (in millions) For the Six Months Ended June 30, 2016 Affiliate revenues $ 97.4 $ 96.9 $ 43.6 $ - $ 237.9 Net income (loss) 43.0 44.0 1.3 (1.4 ) 86.9 Depreciation expense 19.1 22.1 6.2 - 47.4 Interest expense - - - 1.4 1.4 Adjusted EBITDA 62.1 66.1 7.5 - 135.7 Capital expenditures 65.8 30.1 4.9 - 100.8 Total assets for the reportable segments are as follows: June 30, 2017 December 31, 2016 (in millions) Predecessor Gathering $ 1,257.2 $ 1,246.7 Processing and Storage 984.4 1,000.0 Terminaling and Export 324.1 327.7 Interest and Other 47.0 0.3 Total assets $ 2,612.7 $ 2,574.7 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 14. Subsequent Event On July 25, 2017, the board of directors of our general partner declared the initial quarterly cash distribution of $0.2703 per common unit for the quarter ended June 30, 2017, (see Note 8, Distributions). |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation Prior to the IPO on April 10, 2017, our financial position, results of operations and cash flows consisted of the Predecessor, which represented a combined reporting entity. The consolidated financial statements of our Predecessor have been recast to include activities and balances of Hess Midstream Partners LP prior to the IPO. Subsequent to the IPO, our financial position, results of operations and cash flows consist of consolidated Hess Midstream Partners LP activities and balances. The assets and liabilities in our consolidated financial statements have been reflected on a historical cost basis as immediately prior to the IPO all of the assets and liabilities presented were wholly‑owned by Hess Infrastructure Partners and were transferred within the Hess Infrastructure Partners consolidated group. We consolidate the activities of Gathering Opco, HTGP Opco and Logistics Opco, which qualify as variable interest entities (“VIE”) under U.S. generally accepted accounting principles (“GAAP”). We have concluded that we are the primary beneficiary of each VIE, as defined in the accounting standards, since we have the power through our general partner and limited partner interests to direct those activities that most significantly impact the economic performance of the Contributed Businesses and have a right to receive benefits and an obligation to absorb losses that could potentially be significant. The conclusion was based on a qualitative analysis that considered the governance structure, the voting rights established between the members which provide us the ability to control the operations of the Contributed Business, and the absence of substantive kick‑out or substantive participating rights of limited partners over the general partners. All financial statement activities associated with VIEs are captured within gathering, processing and storage, and terminaling and export segments (see Note 13, Segments). We reflect a noncontrolling interest representing the retained limited partner interest owned by Hess Infrastructure Partners in the Contributed Businesses in the consolidated financial statements of the Partnership. All intercompany transactions and balances within the Partnership have been eliminated. The consolidated 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 consolidated financial position at June 30, 2017 and December 31, 2016, the consolidated results of operations for the three and six months ended June 30, 2017 and 2016, and consolidated cash flows for the six months ended June 30, 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. The consolidated financial statements were 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. GAAP have been condensed or omitted from these interim consolidated 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”). |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Unit-based compensation. Unit‑based compensation issued to the officers, directors and employees of our general partner is recorded at grant‑date fair value. Expense is recognized on a straight‑line basis over the vesting period of the award and is included in General and administrative expenses in the accompanying consolidated statements of operations. Net income per limited partner unit. We have identified the general partner interest and the incentive distribution rights ("IDRs") as participating securities and compute income per unit using the two‑class method under which net income per unit is calculated for common units and participating securities considering both distributions declared and participation rights in undistributed earnings as if all such earnings had been distributed during this period. Net income per unit applicable to limited partners, including subordinated unitholders, is computed by dividing limited partners' interest in net income, after deducting the general partner's 2% interest and incentive distributions, by the weighted‑average number of outstanding common and subordinated units. Income taxes . We are not a separate taxable entity for U.S. Federal and state income tax purposes; therefore, we do not provide for income tax benefit or expense. Each partner is subject to income taxes on its share of the Partnership’s earnings. |
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. We have developed a project plan for the implementation of ASC 606 in the first quarter of 2018. As of June 30, 2017, our analysis of contracts with customers against the requirements of the standard is largely complete. 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 consolidated 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, if any, 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 consolidated financial statements. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Classification of Charges between Operating and Maintenance Expenses and General and Administrative Expenses | For the three and six months ended June 30, 2017 and 2016, we had the following charges from Hess, including for the services agreements described above and expenses directly charged and allocated to the Predecessor. 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in millions) Predecessor Predecessor Operating and maintenance expenses $ 13.3 $ 14.5 $ 27.5 $ 32.7 General and administrative expenses 1.4 3.9 2.9 5.3 Total $ 14.7 $ 18.4 $ 30.4 $ 38.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment, at cost, is as follows: Estimated June 30, 2017 December 31, 2016 (in millions, except for number of years) Predecessor Gathering assets Pipelines 22 years $ 812.7 $ 802.8 Compressors, pumping stations and terminals 22 to 25 years 504.0 182.0 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 157.1 154.7 Logistics facilities and railcars 20 to 25 years 367.0 346.0 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 7.4 7.2 Construction-in-progress N/A 115.4 426.8 Total property, plant and equipment, at cost 3,053.6 3,009.5 Accumulated depreciation (546.2 ) (490.9 ) Property, plant and equipment, net $ 2,507.4 $ 2,518.6 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities are as follows: June 30, 2017 December 31, 2016 (in millions) Predecessor Accrued capital expenditures $ 13.5 $ 46.0 Other accruals 10.6 11.8 Total $ 24.1 $ 57.8 |
Unit-Based Compensation (Tables
Unit-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Unit-based Award Activity | Unit‑based award activity for the three months ended June 30, 2017 was as follows: Weighted Average Award Date Number of Units Fair Value Outstanding and unvested units at March 31, 2017 - $ - Granted 45,214 23.00 Outstanding and unvested units at June 30, 2017 45,214 $ 23.00 |
Net Income per Limited Partne26
Net Income per Limited Partner Unit (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income per Limited Partner Unit | Net income per limited partner unit is only calculated for the periods subsequent to the IPO as no units were outstanding prior to April 10, 2017. The following table illustrates the Partnership’s calculation of net income per limited partner unit: Three Months Ended Six Months Ended (in millions, except per unit amounts) June 30, 2017 June 30, 2017 Net income (loss) $ 68.1 $ 131.2 Less: Net income (loss) prior to the IPO on April 10, 2017 5.1 68.2 Less: Net income (loss) attributable to noncontrolling interest subsequent to the IPO on April 10, 2017 51.6 51.6 Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 11.4 11.4 Less: General partner interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 0.2 0.2 Limited partners' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 $ 11.2 $ 11.2 Common unitholders' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 $ 5.6 $ 5.6 Subordinated unitholders' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 $ 5.6 $ 5.6 Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 per limited partner unit: Common (basic and diluted) $ 0.21 $ 0.21 Subordinated (basic and diluted) $ 0.21 $ 0.21 Weighted average number of limited partner units outstanding: Common (basic and diluted) 26.1 26.1 Subordinated (basic and diluted) 26.1 26.1 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Financial Data for Each Reportable Segment | The following tables reflect certain financial data for each reportable segment: Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated Hess Midstream Partners LP (in millions) For the Three Months Ended June 30, 2017 Affiliate revenues $ 66.5 $ 55.7 $ 16.1 $ - $ 138.3 Net income (loss) 36.9 30.4 2.3 (1.5 ) 68.1 Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 7.0 5.4 0.5 (1.5 ) 11.4 Depreciation expense 13.8 10.9 3.8 - 28.5 Interest expense - - - 0.5 0.5 Adjusted EBITDA 50.7 41.3 6.1 (1.0 ) 97.1 Adjusted EBITDA attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 9.5 7.3 1.2 (1.0 ) 17.0 Capital expenditures 8.8 2.6 5.7 - 17.1 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated Hess Midstream Partners LP Predecessor (in millions) For the Three Months Ended June 30, 2016 Affiliate revenues $ 48.1 $ 47.4 $ 23.5 $ - $ 119.0 Net income (loss) 20.3 20.1 0.9 (1.2 ) 40.1 Depreciation expense 10.0 11.4 3.4 - 24.8 Interest expense - - - 1.2 1.2 Adjusted EBITDA 30.3 31.5 4.3 - 66.1 Capital expenditures 60.0 3.1 3.1 - 66.2 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated Hess Midstream Partners LP (in millions) For the Six Months Ended June 30, 2017 Affiliate revenues $ 126.7 $ 108.9 $ 33.0 $ - $ 268.6 Net income (loss) 68.9 58.9 4.9 (1.5 ) 131.2 Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 7.0 5.4 0.5 (1.5 ) 11.4 Depreciation expense 26.1 21.8 7.4 - 55.3 Interest expense - - - 0.5 0.5 Adjusted EBITDA 95.0 80.7 12.3 (1.0 ) 187.0 Adjusted EBITDA attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 9.5 7.3 1.2 (1.0 ) 17.0 Capital expenditures 28.0 5.1 11.0 - 44.1 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated Hess Midstream Partners LP Predecessor (in millions) For the Six Months Ended June 30, 2016 Affiliate revenues $ 97.4 $ 96.9 $ 43.6 $ - $ 237.9 Net income (loss) 43.0 44.0 1.3 (1.4 ) 86.9 Depreciation expense 19.1 22.1 6.2 - 47.4 Interest expense - - - 1.4 1.4 Adjusted EBITDA 62.1 66.1 7.5 - 135.7 Capital expenditures 65.8 30.1 4.9 - 100.8 |
Total Assets for Reportable Segments | Total assets for the reportable segments are as follows: June 30, 2017 December 31, 2016 (in millions) Predecessor Gathering $ 1,257.2 $ 1,246.7 Processing and Storage 984.4 1,000.0 Terminaling and Export 324.1 327.7 Interest and Other 47.0 0.3 Total assets $ 2,612.7 $ 2,574.7 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | Apr. 10, 2017shares | Jun. 30, 2017Segment |
Description Of Business [Line Items] | ||
Initial public offering, common units | 16,997,000 | |
Percentage of ownership interest | 2.00% | 2.00% |
Number of operating segments | Segment | 3 | |
Over-Allotment Options | ||
Description Of Business [Line Items] | ||
Initial public offering, common units | 2,217,000 | |
Percentage of ownership interest | 30.50% | |
Hess Infrastructure Partners LP | IPO | Gathering Opco | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Hess Infrastructure Partners LP | IPO | Hess T G P Operations Limited Partnership | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Hess Infrastructure Partners LP | IPO | Hess North Dakota Export Logistics Operations Limited Partnership | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Hess Infrastructure Partners LP | IPO | Hess Mentor Storage Holdings Limited Liability Company | ||
Description Of Business [Line Items] | ||
Percentage of ownership interest | 100.00% | |
Hess Corporation | ||
Description Of Business [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
GIP II Blue Holding Partnership, LP | ||
Description Of Business [Line Items] | ||
Percentage of ownership in joint venture | 50.00% |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | Apr. 10, 2017 | Jun. 30, 2017 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
General partner's interest and incentive distributions percentage | 2.00% | 2.00% |
Initial Public Offering - Addit
Initial Public Offering - Additional Information (Detail) - USD ($) | Apr. 10, 2017 | Jun. 30, 2017 |
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. | |
Initial public offering, common units | 16,997,000 | |
Percentage of ownership interest | 2.00% | 2.00% |
Net proceeds from IPO | $ 365,500,000 | $ 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 | |
Cash distributed | $ 349,500,000 | |
Percentage of contribution to unanticipated maintenance capital projects, costs | 100.00% | |
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 | |
Hess North Dakota Export Logistics Operations Limited Partnership | ||
Subsidiary Sale Of Stock [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Hess T G P Operations Limited Partnership | ||
Subsidiary Sale Of Stock [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Gathering Opco | ||
Subsidiary Sale Of Stock [Line Items] | ||
Percentage of ownership interest | 20.00% | |
Mentor Holdings | ||
Subsidiary Sale Of Stock [Line Items] | ||
Percentage of ownership interest | 100.00% | |
Hess Infrastructure Partners LP | ||
Subsidiary Sale Of Stock [Line Items] | ||
Percentage of ownership interest | 67.50% | |
Hess Infrastructure Partners LP | Common Units | ||
Subsidiary Sale Of Stock [Line Items] | ||
Common and subordinated units issued | 10,282,654 | |
Hess Infrastructure Partners LP | Subordinated Units | ||
Subsidiary Sale Of Stock [Line Items] | ||
Common and subordinated units issued | 27,279,654 | |
Hess Corporation | ||
Subsidiary Sale Of Stock [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
Hess Corporation | Common Units | Hess Infrastructure Partners LP | ||
Subsidiary Sale Of Stock [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
GIP | Subordinated Units | Hess Infrastructure Partners LP | ||
Subsidiary Sale Of Stock [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
Hess and GIP | Hess Infrastructure Partners LP | ||
Subsidiary Sale Of Stock [Line Items] | ||
Cash distributed | $ 349,500,000 | |
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 | |
IPO | Hess and GIP | Hess Infrastructure Partners LP | ||
Subsidiary Sale Of Stock [Line Items] | ||
Payments of certain offering costs | $ 1,100,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Dec. 31, 2015USD ($)Railcars | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Related Party Transaction [Line Items] | ||||||
Accounts payable—affiliate | $ 14,500,000 | $ 14,500,000 | ||||
Contribution to settle accounts payable – affiliate | $ 253,200,000 | |||||
Credit Concentration Risk | Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues attributable to fee based commercial agreements | 100.00% | 100.00% | ||||
Predecessor | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable—affiliate | $ 241,300,000 | |||||
Contribution of property, plant and equipment | $ 58,900,000 | |||||
Predecessor | Credit Concentration Risk | Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues attributable to fee based commercial agreements | 100.00% | 100.00% | ||||
Hess | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue recognition period | 1 year | |||||
Minimum volume shortfall fee payments earned | $ 13,700,000 | $ 35,100,000 | ||||
Hess | Rail Transportation Costs | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursement revenue | 4,500,000 | 10,000,000 | ||||
Hess | Electricity Fees | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursement revenue | $ 6,000,000 | $ 11,700,000 | ||||
Hess | Credit Concentration Risk | Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues attributable to fee based commercial agreements | 100.00% | 100.00% | ||||
Hess | Predecessor | ||||||
Related Party Transaction [Line Items] | ||||||
Minimum volume shortfall fee payments earned | $ 0 | $ 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 | 54,000,000 | |||||
Hess | Predecessor | Rail Transportation Costs | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursement revenue | 10,000,000 | 17,200,000 | ||||
Hess | Predecessor | Electricity Fees | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursement revenue | $ 5,800,000 | $ 11,600,000 | ||||
Hess Infrastructure Partners LP | ||||||
Related Party Transaction [Line Items] | ||||||
Contribution to settle accounts payable – affiliate | $ 253,200,000 | |||||
Hess Infrastructure Partners LP | Predecessor | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable—affiliate | $ 226,200,000 |
Related Party Transactions - Su
Related Party Transactions - Summary of Classification of Charges between Operating and Maintenance Expenses and General and Administrative Expenses (Detail) - Hess - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Operating and maintenance expenses | $ 13.3 | $ 27.5 | ||
General and administrative expenses | 1.4 | 2.9 | ||
Total | $ 14.7 | $ 30.4 | ||
Predecessor | ||||
Related Party Transaction [Line Items] | ||||
Operating and maintenance expenses | $ 14.5 | $ 32.7 | ||
General and administrative expenses | 3.9 | 5.3 | ||
Total | $ 18.4 | $ 38 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 3,053.6 | |
Accumulated depreciation | (546.2) | |
Property, plant and equipment, net | 2,507.4 | |
Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 3,009.5 | |
Accumulated depreciation | (490.9) | |
Property, plant and equipment, net | 2,518.6 | |
Logistics Facilities and Railcars | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 367 | |
Logistics Facilities and Railcars | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 346 | |
Storage Facilities | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 19.5 | |
Storage Facilities | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 19.5 | |
Other | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 7.4 | |
Other | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 7.2 | |
Construction-In-Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 115.4 | |
Construction-In-Progress | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 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 | $ 812.7 | |
Gathering Assets | Pipelines | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 802.8 | |
Gathering Assets | Compressors, Pumping Stations and Terminals | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 504 | |
Gathering Assets | Compressors, Pumping Stations and Terminals | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 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 | |
Gas Plant Assets | Pipelines, Pipes and Valves | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 460 | |
Gas Plant Assets | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 428.2 | |
Gas Plant Assets | Equipment | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 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 | |
Gas Plant Assets | Buildings | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 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 | $ 157.1 | |
Gas Plant Assets | Processing and Fractionation Facilities | Predecessor | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 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) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Accrued Liabilities Current [Line Items] | ||
Accrued capital expenditures | $ 13.5 | |
Other accruals | 10.6 | |
Total | $ 24.1 | |
Predecessor | ||
Accrued Liabilities Current [Line Items] | ||
Accrued capital expenditures | $ 46 | |
Other accruals | 11.8 | |
Total | $ 57.8 |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Detail) - USD ($) | Mar. 15, 2017 | Jul. 31, 2015 | Jun. 30, 2017 |
Predecessor | Hess Infrastructure Partners LP | Unsecured Term Loan A Facility | |||
Debt Instrument [Line Items] | |||
Term loan facility, term | 5 years | ||
Term loan facility, face amount | $ 600,000,000 | ||
Predecessor | Hess Infrastructure Partners LP | Unsecured Syndicated Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility - Term | 5 years | ||
Maximum borrowing capacity | $ 400,000,000 | ||
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% |
Distributions - Additional Info
Distributions - Additional Information (Detail) - USD ($) | Jul. 25, 2017 | Apr. 10, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | |
Distribution Made To Limited Partner [Line Items] | |||||
Period of cash distribution to unitholders | 45 days | ||||
Initial quarterly cash distribution declared per common and subordinated unit | [1] | $ 0.2703 | $ 0.2703 | ||
Minimum quarterly distribution per unit | $ 0.3000 | ||||
Cash distributed | $ 350,600,000 | ||||
Subsequent Event | |||||
Distribution Made To Limited Partner [Line Items] | |||||
Initial quarterly cash distribution declared date | Jul. 25, 2017 | ||||
Initial quarterly cash distribution declared per common and subordinated unit | $ 0.2703 | ||||
Distribution payable date | Aug. 14, 2017 | ||||
Distribution record date | Aug. 4, 2017 | ||||
Cash distributions declared prior to distribution | $ 0 | ||||
Cash distributed | $ 0 | ||||
[1] | Represents cash distributions declared during the month following the end of each respective quarterly period. See Note 14, Subsequent Event. |
Unit-Based Compensation - Addit
Unit-Based Compensation - Additional Information (Detail) - 2017 Long-Term Incentive Plan $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Available common units pursuant to vested awards | shares | 3,000,000 |
Cost related to unvested phantom units to be recognized | $ | $ 0.9 |
Cost related to unvested phantom units to be recognized, weighted-average period | 2 years 8 months 12 days |
Officers and Employees | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Phantom units vesting period | 3 years |
Directors | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Phantom units vesting period | 1 year |
Unit-Based Compensation - Sched
Unit-Based Compensation - Schedule of Unit-based Award Activity (Detail) - Phantom Units | 3 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding and unvested units at the beginning of the period (in units) | shares | 0 |
Granted (in units) | shares | 45,214 |
Outstanding and unvested units at the end of the period (in units) | shares | 45,214 |
Outstanding and unvested units at March 31, 2017 | $ / shares | $ 0 |
Granted | $ / shares | 23 |
Outstanding and unvested units at June 30, 2017 | $ / shares | $ 23 |
Net Income per Limited Partne39
Net Income per Limited Partner Unit - Partnership's Calculation of Net Income per Limited Partner Unit (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Limited Partners Capital Account [Line Items] | ||
Net income (loss) | $ 68.1 | $ 131.2 |
Less: Net income (loss) prior to the IPO on April 10, 2017 | 5.1 | 68.2 |
Less: Net income (loss) attributable to noncontrolling interest subsequent to the IPO on April 10, 2017 | 51.6 | 51.6 |
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 11.4 | 11.4 |
Less: General partner interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 0.2 | 0.2 |
Limited partners' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 11.2 | 11.2 |
Common Units | ||
Limited Partners Capital Account [Line Items] | ||
Common unitholders' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | $ 5.6 | $ 5.6 |
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 per limited partner unit (basic and diluted): | ||
Net income (loss) attributable to Hess Midstream Partners per limited partner unit | $ 0.21 | $ 0.21 |
Weighted average limited partner units outstanding (basic and diluted): | ||
Units outstanding | 26.1 | 26.1 |
Subordinated Units | ||
Limited Partners Capital Account [Line Items] | ||
Common unitholders' interest in net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | $ 5.6 | $ 5.6 |
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 per limited partner unit (basic and diluted): | ||
Net income (loss) attributable to Hess Midstream Partners per limited partner unit | $ 0.21 | $ 0.21 |
Weighted average limited partner units outstanding (basic and diluted): | ||
Units outstanding | 26.1 | 26.1 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) - Credit Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 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% | ||
Predecessor | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | ||
Predecessor | Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Other Commitments [Line Items] | ||
Accrued liabilities for remediation | $ 3,300,000 | |
Accrued liabilities for legal contingencies | $ 0 | |
Predecessor | ||
Other Commitments [Line Items] | ||
Accrued liabilities for remediation | $ 3,300,000 | |
Accrued liabilities for legal contingencies | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segments - Financial Data for E
Segments - Financial Data for Each Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Affiliate revenues | $ 138.3 | $ 268.6 | ||
Net income (loss) | 68.1 | 131.2 | ||
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 11.4 | 11.4 | ||
Depreciation expense | 28.5 | 55.3 | ||
Interest expense | 0.5 | 0.5 | ||
Adjusted EBITDA | 97.1 | 187 | ||
Adjusted EBITDA attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 17 | 17 | ||
Capital expenditures | 17.1 | 44.1 | ||
Predecessor | ||||
Segment Reporting Information [Line Items] | ||||
Affiliate revenues | $ 119 | $ 237.9 | ||
Net income (loss) | 40.1 | 86.9 | ||
Depreciation expense | 24.8 | 47.4 | ||
Interest expense | 1.2 | 1.4 | ||
Adjusted EBITDA | 66.1 | 135.7 | ||
Capital expenditures | 66.2 | 100.8 | ||
Gathering Opco | ||||
Segment Reporting Information [Line Items] | ||||
Affiliate revenues | 66.5 | 126.7 | ||
Net income (loss) | 36.9 | 68.9 | ||
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 7 | 7 | ||
Depreciation expense | 13.8 | 26.1 | ||
Adjusted EBITDA | 50.7 | 95 | ||
Adjusted EBITDA attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 9.5 | 9.5 | ||
Capital expenditures | 8.8 | 28 | ||
Gathering Opco | Predecessor | ||||
Segment Reporting Information [Line Items] | ||||
Affiliate revenues | 48.1 | 97.4 | ||
Net income (loss) | 20.3 | 43 | ||
Depreciation expense | 10 | 19.1 | ||
Adjusted EBITDA | 30.3 | 62.1 | ||
Capital expenditures | 60 | 65.8 | ||
Processing and Storage | ||||
Segment Reporting Information [Line Items] | ||||
Affiliate revenues | 55.7 | 108.9 | ||
Net income (loss) | 30.4 | 58.9 | ||
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 5.4 | 5.4 | ||
Depreciation expense | 10.9 | 21.8 | ||
Adjusted EBITDA | 41.3 | 80.7 | ||
Adjusted EBITDA attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 7.3 | 7.3 | ||
Capital expenditures | 2.6 | 5.1 | ||
Processing and Storage | Predecessor | ||||
Segment Reporting Information [Line Items] | ||||
Affiliate revenues | 47.4 | 96.9 | ||
Net income (loss) | 20.1 | 44 | ||
Depreciation expense | 11.4 | 22.1 | ||
Adjusted EBITDA | 31.5 | 66.1 | ||
Capital expenditures | 3.1 | 30.1 | ||
Terminaling and Export | ||||
Segment Reporting Information [Line Items] | ||||
Affiliate revenues | 16.1 | 33 | ||
Net income (loss) | 2.3 | 4.9 | ||
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 0.5 | 0.5 | ||
Depreciation expense | 3.8 | 7.4 | ||
Adjusted EBITDA | 6.1 | 12.3 | ||
Adjusted EBITDA attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | 1.2 | 1.2 | ||
Capital expenditures | 5.7 | 11 | ||
Terminaling and Export | Predecessor | ||||
Segment Reporting Information [Line Items] | ||||
Affiliate revenues | 23.5 | 43.6 | ||
Net income (loss) | 0.9 | 1.3 | ||
Depreciation expense | 3.4 | 6.2 | ||
Adjusted EBITDA | 4.3 | 7.5 | ||
Capital expenditures | 3.1 | 4.9 | ||
Interest and Other | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (1.5) | (1.5) | ||
Net income (loss) attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | (1.5) | (1.5) | ||
Interest expense | 0.5 | 0.5 | ||
Adjusted EBITDA | (1) | (1) | ||
Adjusted EBITDA attributable to Hess Midstream Partners LP subsequent to the IPO on April 10, 2017 | $ (1) | $ (1) | ||
Interest and Other | Predecessor | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (1.2) | (1.4) | ||
Interest expense | $ 1.2 | $ 1.4 |
Segments - Total Assets for Rep
Segments - Total Assets for Reportable Segments (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,612.7 | |
Predecessor | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,574.7 | |
Gathering Opco | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,257.2 | |
Gathering Opco | Predecessor | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,246.7 | |
Processing and Storage | ||
Segment Reporting Information [Line Items] | ||
Total assets | 984.4 | |
Processing and Storage | Predecessor | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,000 | |
Terminaling and Export | ||
Segment Reporting Information [Line Items] | ||
Total assets | 324.1 | |
Terminaling and Export | Predecessor | ||
Segment Reporting Information [Line Items] | ||
Total assets | 327.7 | |
Interest and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 47 | |
Interest and Other | Predecessor | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 0.3 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - $ / shares | Jul. 25, 2017 | Jun. 30, 2017 | Jun. 30, 2017 | |
Subsequent Event [Line Items] | ||||
Initial quarterly cash distribution declared per common and subordinated unit | [1] | $ 0.2703 | $ 0.2703 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Initial quarterly cash distribution declared date | Jul. 25, 2017 | |||
Initial quarterly cash distribution declared per common and subordinated unit | $ 0.2703 | |||
[1] | Represents cash distributions declared during the month following the end of each respective quarterly period. See Note 14, Subsequent Event. |