Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | 27,295,295 | |
Subordinated Units | ||
Document And Entity Information [Line Items] | ||
Entity Units Outstanding | 27,279,654 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 37.5 | $ 47.2 |
Accounts receivable—affiliate: | ||
From contracts with customers | 66.8 | 58.5 |
Other receivables | 0.9 | 1.3 |
Other current assets | 1.8 | 4.4 |
Total current assets | 107 | 111.4 |
Equity investments | 24.3 | |
Property, plant and equipment, net | 2,527.1 | 2,520.5 |
Other noncurrent assets | 2.9 | 3.2 |
Total assets | 2,661.3 | 2,635.1 |
Liabilities | ||
Accounts payable—trade | 14.8 | 12.2 |
Accounts payable—affiliate | 20.7 | 22.5 |
Accrued liabilities | 33.1 | 32.7 |
Other current liabilities | 1.8 | 7 |
Total current liabilities | 70.4 | 74.4 |
Other noncurrent liabilities | 5.5 | 5.4 |
Total liabilities | 75.9 | 79.8 |
Partners' capital | ||
General partner | 14.7 | 14.8 |
Total Hess Midstream Partners LP partners' capital | 520 | 520.8 |
Noncontrolling interest | 2,065.4 | 2,034.5 |
Total partners' capital | 2,585.4 | 2,555.3 |
Total liabilities and partners' capital | 2,661.3 | 2,635.1 |
Common Unitholders - Public | ||
Partners' capital | ||
Common and subordinated unitholders | 357.6 | 357.7 |
Common Unitholders - Affiliate | ||
Partners' capital | ||
Common and subordinated unitholders | 40.4 | 40.5 |
Subordinated Unitholders - Affiliate | ||
Partners' capital | ||
Common and subordinated unitholders | $ 107.3 | $ 107.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2018 | Dec. 31, 2017 |
Common Unitholders - Public | ||
Common and subordinated units issued | 16,997,000 | 16,997,000 |
Common and subordinated units outstanding | 16,997,000 | 16,997,000 |
Common Unitholders - Affiliate | ||
Common and subordinated units issued | 10,282,654 | 10,282,654 |
Common and subordinated units outstanding | 10,282,654 | 10,282,654 |
Subordinated Unitholders - Affiliate | ||
Common and subordinated units issued | 27,279,654 | 27,279,654 |
Common and subordinated units outstanding | 27,279,654 | 27,279,654 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenues | |||
Affiliate services | $ 156.8 | ||
Other income | 0.2 | ||
Total revenues | 157 | ||
Costs and expenses | |||
Operating and maintenance expenses (exclusive of depreciation shown separately below) | 34.6 | ||
Depreciation expense | 30 | ||
General and administrative expenses | 3.1 | ||
Total costs and expenses | 67.7 | ||
Income from operations | 89.3 | ||
Interest expense, net | 0.3 | ||
Net income | 89 | ||
Less: Net income attributable to noncontrolling interest | 72 | ||
Net income attributable to Hess Midstream Partners LP | 17 | ||
Less: General partner's interest in net income attributable to Hess Midstream Partners LP | 0.3 | ||
Limited partners' interest in net income attributable to Hess Midstream Partners LP | $ 16.7 | ||
Weighted average limited partner units outstanding (basic and diluted): | |||
Cash distributions declared per unit | [1] | $ 0.3333 | |
Predecessor | |||
Revenues | |||
Affiliate services | $ 130.3 | ||
Total revenues | 130.3 | ||
Costs and expenses | |||
Operating and maintenance expenses (exclusive of depreciation shown separately below) | 38.9 | ||
Depreciation expense | 26.8 | ||
General and administrative expenses | 1.5 | ||
Total costs and expenses | 67.2 | ||
Income from operations | 63.1 | ||
Net income | $ 63.1 | ||
Common Units | |||
Net income attributable to Hess Midstream Partners LP per limited partner unit (basic and diluted): | |||
Net income (loss) attributable to Hess Midstream Partners per limited partner unit | $ 0.30 | ||
Weighted average limited partner units outstanding (basic and diluted): | |||
Units outstanding | 27.3 | ||
Subordinated Units | |||
Net income attributable to Hess Midstream Partners LP per limited partner unit (basic and diluted): | |||
Net income (loss) attributable to Hess Midstream Partners per limited partner unit | $ 0.30 | ||
Weighted average limited partner units outstanding (basic and diluted): | |||
Units outstanding | 27.3 | ||
[1] | Represents cash distributions declared during the month following the end of each respective quarterly period. See Note 13, Subsequent Event. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (UNAUDITED) - USD ($) $ in Millions | Total | General Partner | Noncontrolling Interest | Net Parent Investment Predecessor | Common Unitholders - Public | Common Unitholders - Affiliate | Subordinated Unitholders - Affiliate |
Balance, beginning of period (Predecessor) at Dec. 31, 2016 | $ 2,238.4 | $ 2,238.4 | |||||
Net income | Predecessor | 63.1 | 63.1 | |||||
Other contributions from (distributions to) parent, net | Predecessor | (28.2) | (28.2) | |||||
Balance, end of period (Predecessor) at Mar. 31, 2017 | 2,273.3 | $ 2,273.3 | |||||
Balance, beginning of period at Dec. 31, 2017 | 2,555.3 | $ 14.8 | $ 2,034.5 | $ 357.7 | $ 40.5 | $ 107.8 | |
Net income | 89 | 0.3 | 72 | 5.2 | 3.2 | 8.3 | |
Unit-based compensation | 0.1 | 0.1 | |||||
Distributions to unitholders | (17.9) | (0.4) | (5.4) | (3.3) | (8.8) | ||
Distributions to noncontrolling interest | (61.7) | (61.7) | |||||
Contributions from noncontrolling | 20.6 | 20.6 | |||||
Balance, end of period at Mar. 31, 2018 | $ 2,585.4 | $ 14.7 | $ 2,065.4 | $ 357.6 | $ 40.4 | $ 107.3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 89 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation expense | 30 | |
Amortization of deferred financing costs | 0.3 | |
Unit-based compensation expense | 0.1 | |
Changes in assets and liabilities: | ||
Accounts receivable – affiliate | (7.9) | |
Other current and noncurrent assets | 2.6 | |
Accounts payable – trade | 2.6 | |
Accounts payable – affiliate | (1.8) | |
Accrued liabilities | 0.7 | |
Other current and noncurrent liabilities | (5.1) | |
Net cash provided by (used in) operating activities | 110.5 | |
Cash flows from investing activities | ||
Payments for equity investments | (24.3) | |
Additions to property, plant and equipment | (36.9) | |
Net cash provided by (used in) investing activities | (61.2) | |
Cash flows from financing activities | ||
Distribution to unitholders | (17.9) | |
Distributions to noncontrolling interest | (61.7) | |
Contributions from noncontrolling interest | 20.6 | |
Net cash provided by (used in) financing activities | (59) | |
Increase (decrease) in cash and cash equivalents | (9.7) | |
Cash and cash equivalents, beginning of period | 47.2 | |
Cash and cash equivalents, end of period | $ 37.5 | |
Predecessor | ||
Cash flows from operating activities | ||
Net income | $ 63.1 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation expense | 26.8 | |
Changes in assets and liabilities: | ||
Accounts receivable – affiliate | (15.7) | |
Other current and noncurrent assets | (0.8) | |
Accounts payable – trade | (17.6) | |
Accounts payable – affiliate | 26 | |
Accrued liabilities | (3.4) | |
Other current and noncurrent liabilities | (2.8) | |
Net cash provided by (used in) operating activities | 75.6 | |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (47.4) | |
Net cash provided by (used in) investing activities | (47.4) | |
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 | |
Net cash provided by (used in) financing activities | (28.2) | |
Cash and cash equivalents, beginning of period | 0.3 | |
Cash and cash equivalents, end of period | $ 0.3 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2018 | |
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. 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 at a price to the public of $23.00 per common unit. 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. On January 25, 2018, we entered into a 50/50 joint venture with Targa Resources Corp. to construct a new 200 million standard cubic feet per day gas processing plant called Little Missouri Four (“LM4”). Our 50% interest in the joint venture is held through HTGP Opco, in which we own a 20% controlling economic interest and Hess Infrastructure Partners owns the remaining 80% economic interest. Targa Resources Corp. manages the construction of LM4 and will operate the plant. 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 12, Segments). |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 2. Basis of Presentation Presentation. 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 March 31, 2018 and December 31, 2017, the consolidated results of operations for the three months ended March 31, 2018 and 2017, and consolidated cash flows for the three months ended March 31, 2018 and 2017. 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. generally accepted accounting principles (“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 Partnership’s annual report on Form 10‑K for the year ended December 31, 2017. Prior to the Partnership’s IPO on April 10, 2017, our financial position, results of operations and cash flows consisted of the Predecessor, which represented a combined reporting entity. 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. Consolidation. We consolidate the activities of Gathering Opco, HTGP Opco and Logistics Opco, which qualify as variable interest entities (“VIE”) under U.S. 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 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. All financial statement activities associated with VIEs are captured within gathering, processing and storage, and terminaling and export segments (see Note 12, 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. Equity Investments . We account for our investment in LM4 under the equity method of accounting, as we do not control, but have a significant influence over, its operations. As of March 31, 2018, we contributed $24.3 million of cash for our consolidated interest in LM4. We do not have a basis difference between the amount at which the investment is carried and the amount of underlying equity in net assets of the investee. 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. Comprehensive Income. We have not reported comprehensive income, since there were no items of other comprehensive income during the periods presented in this report. Summary of Significant Accounting Policies In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014‑09, Revenue from Contracts with Customers Accounts Receivable. We record affiliate accounts receivable upon performance of services to affiliated companies. There were no doubtful accounts written off, nor have we provided an allowance for doubtful accounts, as of March 31, 2018 and December 31, 2017. Revenue Recognition—Contracts with Customers. We earn substantially all of our revenues by charging fees for gathering, compressing and processing natural gas and fractionating NGLs; gathering, terminaling, loading and transporting crude oil and NGLs, and storing and terminaling propane. We do not own or take title to the volumes that we handle. Effective January 1, 2014, we entered into i) gas gathering, ii) crude oil gathering, iii) gas processing and fractionation, iv) storage services, and v) terminal and export services fee‑based commercial agreements with certain subsidiaries of Hess, each of which has an initial 10‑year term. We have the unilateral right to extend each commercial agreement for one additional 10‑year term. These agreements include dedications covering substantially all of Hess’s existing and future owned or controlled production in the Bakken, minimum volume commitments, inflation escalators, and fee recalculation mechanisms. We recognize revenues for each performance obligation under our commercial agreements over‑time as services are rendered using the output method. The majority of the transaction price, as this term is defined in ASC 606, is variable at inception of each of the commercial agreements. As the variability is resolved prior to the recognition of revenue, we do not apply a constraint to the transaction price at the inception of the commercial agreements. We elected the practical expedient to recognize revenue in the amount to which we have a right to invoice as permitted under ASC 606. Due to this election and as the transaction price allocated to our unsatisfied performance obligations at March 31, 2018 is entirely variable, we have elected the exemption provided by ASC 606 from the disclosure of revenue recognizable in future periods as our unsatisfied performance obligations are fulfilled. Revenues associated with minimum volume shortfall fees are recognized in the period when the shortfall between the actual volumes delivered and the minimum volume commitments for that period is earned and is not subject to future reduction or offset. Under our commercial agreements, as amended and restated on December 31, 2016, volume deficiencies are measured quarterly and recognized as revenue in the same period, as associated shortfall payments are not subject to future reduction or offset. There are no significant financing components in any of our commercial agreements. Our revenues also include pass‑through third‑party rail transportation costs and electricity fees for which we recognize revenues in an amount equal to the costs. Refer to Note 12, Segments, for the presentation of our revenues on a disaggregated basis. All Affiliate services revenue which reflects activity associated with our commercial agreements with Hess, represents revenue from contracts with customers under the scope of ASC 606. New Accounting Pronouncements In February 2016, the FASB issued ASU 2016‑02, Leases |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 3. Related Party Transactions Commercial Agreements Under our commercial agreements with Hess, we provide gathering, compression, processing, fractionation, storage, terminaling, loading and transportation services to Hess, and Hess is obligated to provide us with minimum volumes of crude oil, natural gas and NGLs. During the three months ended March 31, 2018 and 2017, we earned $16.6 million and $21.4 million, respectively, of minimum volume shortfall fee payments. For the three months ended March 31, 2018 and 2017, 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 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, 2018 and 2017, we recognized, as part of affiliate revenues, $4.2 million and $5.5 million, respectively, of reimbursements from Hess related to third‑party rail transportation costs. In addition, during the three months ended March 31, 2018 and 2017, we recognized, as part of affiliate revenues, $6.7 million and $5.7 million, respectively, of reimbursements from Hess related to electricity fees. The related costs were included in Operating and maintenance expenses in the accompanying unaudited consolidated statements of operations. Omnibus and Employee Secondment Agreements Under our omnibus and employee secondment agreements, Hess provides substantial operational and administrative services to us in support of our assets and operations. For the three months ended March 31, 2018 and 2017, 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, 2018 2017 (in millions) Predecessor Operating and maintenance expenses $ 11.4 $ 14.2 General and administrative expenses 1.9 1.5 Total $ 13.3 $ 15.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment, at cost, is as follows: Estimated useful lives March 31, 2018 December 31, 2017 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 903.3 $ 890.8 Compressors, pumping stations and terminals 22 to 25 years 543.9 535.5 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 158.5 158.4 Logistics facilities and railcars 20 to 25 years 371.2 371.1 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 9.2 9.2 Construction-in-progress N/A 85.0 69.5 Total property, plant and equipment, at cost 3,161.1 3,124.5 Accumulated depreciation (634.0 ) (604.0 ) Property, plant and equipment, net $ 2,527.1 $ 2,520.5 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 5. Accrued Liabilities Accrued liabilities are as follows: March 31, 2018 December 31, 2017 (in millions) Accrued capital expenditures $ 22.5 $ 22.8 Other accruals 10.6 9.9 Total $ 33.1 $ 32.7 |
Debt and Interest Expense
Debt and Interest Expense | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Interest Expense | Note 6. Debt and Interest Expense Revolving Credit Facility On March 15, 2017, we entered into a four‑year, $300.0 million senior secured revolving credit facility that became available to us upon the closing of the IPO on April 10, 2017. 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 agreement). 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 March 31, 2018, 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. |
Distributions
Distributions | 3 Months Ended |
Mar. 31, 2018 | |
Distributions Made To Members Or Limited Partners [Abstract] | |
Distributions | Note 7. 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. The following table details the distributions declared and/or paid for the periods presented: Period Record Date Distribution Date Distribution per Common and Subordinated Unit Second Quarter 2017 (1) August 4, 2017 August 14, 2017 $ 0.2703 Third Quarter 2017 November 3, 2017 November 13, 2017 $ 0.3107 Fourth Quarter 2017 February 2, 2018 February 13, 2018 $ 0.3218 First Quarter 2018 (2) May 4, 2018 May 14, 2018 $ 0.3333 (1) (2) |
Unit-Based Compensation
Unit-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unit-Based Compensation | Note 8. Unit‑Based Compensation In 2017, the Partnership 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. Under the LTIP, we granted awards of phantom units with distribution equivalent rights to certain officers, employees and directors. These phantom units and distribution equivalent rights vest ratably over a three‑year period for officers and employees, and vest after one year for directors. Cash distributions on the phantom units accumulate and are 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 March 31, 2018 was as follows: Weighted Average Award Date Number of Units Fair Value Outstanding and unvested units at December 31, 2017 44,127 $ 22.85 Granted 90,594 20.51 Forfeited (1,087 ) 23.00 Outstanding and unvested units at March 31, 2018 133,634 $ 21.26 As of March 31, 2018, $2.4 million of compensation cost related to unvested phantom units awarded under the LTIP remains to be recognized over an expected weighted‑average period of 2.6 years. |
Net Income per Limited Partner
Net Income per Limited Partner Unit | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Limited Partner Unit | Note 9. 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 (in millions, except per unit amounts) March 31, 2018 Net income $ 89.0 Less: Net income attributable to noncontrolling interest 72.0 Net income attributable to Hess Midstream Partners LP 17.0 Less: General partner's interest in net income attributable to Hess Midstream Partners LP 0.3 Limited partners' interest in net income attributable to Hess Midstream Partners LP $ 16.7 Common unitholders' interest in net income attributable to Hess Midstream Partners LP $ 8.4 Subordinated unitholders' interest in net income attributable to Hess Midstream Partners LP $ 8.3 Net income attributable to Hess Midstream Partners LP per limited partner unit: Common (basic and diluted) $ 0.30 Subordinated (basic and diluted) $ 0.30 Weighted average number of limited partner units outstanding: Common (basic and diluted) 27.3 Subordinated (basic and diluted) 27.3 |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2018 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 10. Concentration of Credit Risk Hess represented approximately 100% of our total revenues and accounts receivable for the three months ended March 31, 2018 and 2017. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. 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, 2018, our reserves for estimated remediation liabilities included in Accrued liabilities and Other noncurrent liabilities were $0.9 million and $2.4 million, respectively, compared with $1.0 million and $2.4 million, respectively, as of December 31, 2017. 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, 2018 and December 31, 2017, 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, 2018 | |
Segment Reporting [Abstract] | |
Segments | Note 12. 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 March 31, 2018 Revenues and other income $ 78.5 $ 58.3 $ 20.2 $ - $ 157.0 Net income (loss) 49.2 33.2 8.1 (1.5 ) 89.0 Net income (loss) attributable to Hess Midstream Partners LP 10.0 7.0 1.5 (1.5 ) 17.0 Depreciation expense 15.2 10.9 3.9 - 30.0 Interest expense, net - - - 0.3 0.3 Adjusted EBITDA 64.4 44.1 12.0 (1.2 ) 119.3 Adjusted EBITDA attributable to Hess Midstream Partners LP 13.0 9.2 2.3 (1.2 ) 23.3 Capital expenditures 33.0 3.3 0.3 - 36.6 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated Hess Midstream Partners LP Predecessor (in millions) For the Three Months Ended March 31, 2017 Revenues and other income $ 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 Total assets for the reportable segments are as follows: March 31, 2018 December 31, 2017 (in millions) Gathering $ 1,301.1 $ 1,280.5 Processing and Storage 990.6 972.8 Terminaling and Export 328.7 330.8 Interest and Other 40.9 51.0 Total assets $ 2,661.3 $ 2,635.1 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 13. Subsequent Event On April 24, 2018, the board of directors of our general partner declared a quarterly cash distribution of $0.3333 per common and subordinated unit for the quarter ended March 31, 2018, an increase of 3.6% compared with the prior quarter. The distribution will be payable on May 14, 2018, to unitholders of record as of the close of business on May 4, 2018. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Presentation | Presentation. 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 March 31, 2018 and December 31, 2017, the consolidated results of operations for the three months ended March 31, 2018 and 2017, and consolidated cash flows for the three months ended March 31, 2018 and 2017. 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. generally accepted accounting principles (“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 Partnership’s annual report on Form 10‑K for the year ended December 31, 2017. Prior to the Partnership’s IPO on April 10, 2017, our financial position, results of operations and cash flows consisted of the Predecessor, which represented a combined reporting entity. 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. |
Consolidation | Consolidation. We consolidate the activities of Gathering Opco, HTGP Opco and Logistics Opco, which qualify as variable interest entities (“VIE”) under U.S. 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 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. All financial statement activities associated with VIEs are captured within gathering, processing and storage, and terminaling and export segments (see Note 12, 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. |
Equity Investments | Equity Investments . We account for our investment in LM4 under the equity method of accounting, as we do not control, but have a significant influence over, its operations. As of March 31, 2018, we contributed $24.3 million of cash for our consolidated interest in LM4. We do not have a basis difference between the amount at which the investment is carried and the amount of underlying equity in net assets of the investee. |
Income Taxes | 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. |
Comprehensive Income | Comprehensive Income. We have not reported comprehensive income, since there were no items of other comprehensive income during the periods presented in this report. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014‑09, Revenue from Contracts with Customers |
Accounts Receivable | Accounts Receivable. We record affiliate accounts receivable upon performance of services to affiliated companies. There were no doubtful accounts written off, nor have we provided an allowance for doubtful accounts, as of March 31, 2018 and December 31, 2017. |
Revenue Recognition | Revenue Recognition—Contracts with Customers. We earn substantially all of our revenues by charging fees for gathering, compressing and processing natural gas and fractionating NGLs; gathering, terminaling, loading and transporting crude oil and NGLs, and storing and terminaling propane. We do not own or take title to the volumes that we handle. Effective January 1, 2014, we entered into i) gas gathering, ii) crude oil gathering, iii) gas processing and fractionation, iv) storage services, and v) terminal and export services fee‑based commercial agreements with certain subsidiaries of Hess, each of which has an initial 10‑year term. We have the unilateral right to extend each commercial agreement for one additional 10‑year term. These agreements include dedications covering substantially all of Hess’s existing and future owned or controlled production in the Bakken, minimum volume commitments, inflation escalators, and fee recalculation mechanisms. We recognize revenues for each performance obligation under our commercial agreements over‑time as services are rendered using the output method. The majority of the transaction price, as this term is defined in ASC 606, is variable at inception of each of the commercial agreements. As the variability is resolved prior to the recognition of revenue, we do not apply a constraint to the transaction price at the inception of the commercial agreements. We elected the practical expedient to recognize revenue in the amount to which we have a right to invoice as permitted under ASC 606. Due to this election and as the transaction price allocated to our unsatisfied performance obligations at March 31, 2018 is entirely variable, we have elected the exemption provided by ASC 606 from the disclosure of revenue recognizable in future periods as our unsatisfied performance obligations are fulfilled. Revenues associated with minimum volume shortfall fees are recognized in the period when the shortfall between the actual volumes delivered and the minimum volume commitments for that period is earned and is not subject to future reduction or offset. Under our commercial agreements, as amended and restated on December 31, 2016, volume deficiencies are measured quarterly and recognized as revenue in the same period, as associated shortfall payments are not subject to future reduction or offset. There are no significant financing components in any of our commercial agreements. Our revenues also include pass‑through third‑party rail transportation costs and electricity fees for which we recognize revenues in an amount equal to the costs. Refer to Note 12, Segments, for the presentation of our revenues on a disaggregated basis. All Affiliate services revenue which reflects activity associated with our commercial agreements with Hess, represents revenue from contracts with customers under the scope of ASC 606. |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the FASB issued ASU 2016‑02, Leases |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Classification of Charges between Operating and Maintenance Expenses and General and Administrative Expenses | Under our omnibus and employee secondment agreements, Hess provides substantial operational and administrative services to us in support of our assets and operations. For the three months ended March 31, 2018 and 2017, 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, 2018 2017 (in millions) Predecessor Operating and maintenance expenses $ 11.4 $ 14.2 General and administrative expenses 1.9 1.5 Total $ 13.3 $ 15.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment, at cost, is as follows: Estimated useful lives March 31, 2018 December 31, 2017 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 903.3 $ 890.8 Compressors, pumping stations and terminals 22 to 25 years 543.9 535.5 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 158.5 158.4 Logistics facilities and railcars 20 to 25 years 371.2 371.1 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 9.2 9.2 Construction-in-progress N/A 85.0 69.5 Total property, plant and equipment, at cost 3,161.1 3,124.5 Accumulated depreciation (634.0 ) (604.0 ) Property, plant and equipment, net $ 2,527.1 $ 2,520.5 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities are as follows: March 31, 2018 December 31, 2017 (in millions) Accrued capital expenditures $ 22.5 $ 22.8 Other accruals 10.6 9.9 Total $ 33.1 $ 32.7 |
Distributions - (Tables)
Distributions - (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Distributions Made To Members Or Limited Partners [Abstract] | |
Schedule of Distributions Declared and Paid | The following table details the distributions declared and/or paid for the periods presented: Period Record Date Distribution Date Distribution per Common and Subordinated Unit Second Quarter 2017 (1) August 4, 2017 August 14, 2017 $ 0.2703 Third Quarter 2017 November 3, 2017 November 13, 2017 $ 0.3107 Fourth Quarter 2017 February 2, 2018 February 13, 2018 $ 0.3218 First Quarter 2018 (2) May 4, 2018 May 14, 2018 $ 0.3333 (1) (2) |
Unit-Based Compensation (Tables
Unit-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Unit-based Award Activity | Unit‑based award activity for the three months ended March 31, 2018 was as follows: Weighted Average Award Date Number of Units Fair Value Outstanding and unvested units at December 31, 2017 44,127 $ 22.85 Granted 90,594 20.51 Forfeited (1,087 ) 23.00 Outstanding and unvested units at March 31, 2018 133,634 $ 21.26 |
Net Income per Limited Partne26
Net Income per Limited Partner Unit (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 (in millions, except per unit amounts) March 31, 2018 Net income $ 89.0 Less: Net income attributable to noncontrolling interest 72.0 Net income attributable to Hess Midstream Partners LP 17.0 Less: General partner's interest in net income attributable to Hess Midstream Partners LP 0.3 Limited partners' interest in net income attributable to Hess Midstream Partners LP $ 16.7 Common unitholders' interest in net income attributable to Hess Midstream Partners LP $ 8.4 Subordinated unitholders' interest in net income attributable to Hess Midstream Partners LP $ 8.3 Net income attributable to Hess Midstream Partners LP per limited partner unit: Common (basic and diluted) $ 0.30 Subordinated (basic and diluted) $ 0.30 Weighted average number of limited partner units outstanding: Common (basic and diluted) 27.3 Subordinated (basic and diluted) 27.3 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Revenues and other income $ 78.5 $ 58.3 $ 20.2 $ - $ 157.0 Net income (loss) 49.2 33.2 8.1 (1.5 ) 89.0 Net income (loss) attributable to Hess Midstream Partners LP 10.0 7.0 1.5 (1.5 ) 17.0 Depreciation expense 15.2 10.9 3.9 - 30.0 Interest expense, net - - - 0.3 0.3 Adjusted EBITDA 64.4 44.1 12.0 (1.2 ) 119.3 Adjusted EBITDA attributable to Hess Midstream Partners LP 13.0 9.2 2.3 (1.2 ) 23.3 Capital expenditures 33.0 3.3 0.3 - 36.6 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated Hess Midstream Partners LP Predecessor (in millions) For the Three Months Ended March 31, 2017 Revenues and other income $ 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 |
Total Assets for Reportable Segments | Total assets for the reportable segments are as follows: March 31, 2018 December 31, 2017 (in millions) Gathering $ 1,301.1 $ 1,280.5 Processing and Storage 990.6 972.8 Terminaling and Export 328.7 330.8 Interest and Other 40.9 51.0 Total assets $ 2,661.3 $ 2,635.1 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | Apr. 10, 2017$ / sharesshares | Mar. 31, 2018Segment | Jan. 25, 2018MMcf |
Description Of Business [Line Items] | |||
Initial public offering, common units | 16,997,000 | ||
Number of operating segments | Segment | 3 | ||
LM4 | |||
Description Of Business [Line Items] | |||
Percentage of ownership in joint venture | 50.00% | ||
Gas processing plant capacity | MMcf | 200 | ||
Hess T G P Operations Limited Partnership | |||
Description Of Business [Line Items] | |||
Controlling economic interest percentage | 20.00% | ||
Hess T G P Operations Limited Partnership | LM4 | |||
Description Of Business [Line Items] | |||
Percentage of ownership in joint venture | 50.00% | ||
Targa Resources Corp. | LM4 | |||
Description Of Business [Line Items] | |||
Percentage of ownership in joint venture | 50.00% | ||
Over-Allotment Options | |||
Description Of Business [Line Items] | |||
Initial public offering, common units | 2,217,000 | ||
Percentage of ownership interest | 30.50% | ||
Shares Issued, Price Per Share | $ / shares | $ 23 | ||
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% | ||
Hess Infrastructure Partners LP | Hess T G P Operations Limited Partnership | |||
Description Of Business [Line Items] | |||
Controlling economic interest by the parent percentage | 80.00% |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Jan. 01, 2014 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Line Items] | ||||
Cash contributed to acquire equity method investments | $ 24,300,000 | |||
Doubtful accounts written off | 0 | $ 0 | ||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | |
Subsidiaries | ||||
Accounting Policies [Line Items] | ||||
Commercial agreements initial term | 10 years | |||
Commercial agreement additional extension description | We have the unilateral right to extend each commercial agreement for one additional 10year term. | |||
Commercial agreement additional extension term | 10 years | |||
LM4 | ||||
Accounting Policies [Line Items] | ||||
Cash contributed to acquire equity method investments | $ 24,300,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Credit Concentration Risk | Revenue | ||
Related Party Transaction [Line Items] | ||
Revenues attributable to fee based commercial agreements | 100.00% | |
Hess | ||
Related Party Transaction [Line Items] | ||
Minimum volume shortfall fee payments earned | $ 16,600,000 | $ 21,400,000 |
Hess | Rail Transportation Costs | ||
Related Party Transaction [Line Items] | ||
Reimbursement revenue | 4,200,000 | 5,500,000 |
Hess | Electricity Fees | ||
Related Party Transaction [Line Items] | ||
Reimbursement revenue | $ 6,700,000 | $ 5,700,000 |
Hess | Credit Concentration Risk | Revenue | ||
Related Party Transaction [Line Items] | ||
Revenues attributable to fee based commercial agreements | 100.00% | 100.00% |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Operating and maintenance expenses | $ 11.4 | |
General and administrative expenses | 1.9 | |
Total | $ 13.3 | |
Predecessor | ||
Related Party Transaction [Line Items] | ||
Operating and maintenance expenses | $ 14.2 | |
General and administrative expenses | 1.5 | |
Total | $ 15.7 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 3,161.1 | $ 3,124.5 |
Accumulated depreciation | (634) | (604) |
Property, plant and equipment, net | 2,527.1 | 2,520.5 |
Logistics Facilities and Railcars | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 371.2 | 371.1 |
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 | 9.2 | 9.2 |
Construction-In-Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 85 | 69.5 |
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 | $ 903.3 | 890.8 |
Gathering Assets | Compressors, Pumping Stations and Terminals | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 543.9 | 535.5 |
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 | $ 158.5 | $ 158.4 |
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities Current [Line Items] | ||
Accrued capital expenditures | $ 22.5 | |
Other accruals | 10.6 | |
Total | $ 33.1 | $ 32.7 |
Predecessor | ||
Accrued Liabilities Current [Line Items] | ||
Accrued capital expenditures | 22.8 | |
Other accruals | 9.9 | |
Total | $ 32.7 |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Detail) - Senior Secured Revolving Credit Facility - USD ($) | Mar. 15, 2017 | Mar. 31, 2018 |
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% | |
London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Interest rate, applicable margin | 1.275% |
Distributions - Additional Info
Distributions - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Distributions Made To Members Or Limited Partners [Abstract] | |
Period of cash distribution to unitholders | 45 days |
Distributions - Schedule of Dis
Distributions - Schedule of Distributions Declared and Paid (Detail) | 3 Months Ended | |
Mar. 31, 2018$ / shares | ||
Distribution Made To Limited Partner [Line Items] | ||
Distribution per Common and Subordinated Unit | $ 0.3333 | [1] |
Second Quarter 2017 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Aug. 4, 2017 | [2] |
Distribution Date | Aug. 14, 2017 | [2] |
Distribution per Common and Subordinated Unit | $ 0.2703 | [2] |
Third Quarter 2017 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Nov. 3, 2017 | |
Distribution Date | Nov. 13, 2017 | |
Distribution per Common and Subordinated Unit | $ 0.3107 | |
Fourth Quarter 2017 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Feb. 2, 2018 | |
Distribution Date | Feb. 13, 2018 | |
Distribution per Common and Subordinated Unit | $ 0.3218 | |
First Quarter 2018 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | May 4, 2018 | [3] |
Distribution Date | May 14, 2018 | [3] |
Distribution per Common and Subordinated Unit | $ 0.3333 | [3] |
[1] | Represents cash distributions declared during the month following the end of each respective quarterly period. See Note 13, Subsequent Event. | |
[2] | The distribution for the second quarter 2017 was prorated from the closing of the Partnership’s IPO on April 10, 2017 and equated to a minimum quarterly distribution of $0.3000 per unit on a full quarter basis. | |
[3] | For more information, see Note 13, Subsequent Event. |
Distributions - Schedule of D37
Distributions - Schedule of Distributions Declared and Paid (Parenthetical) (Detail) | 3 Months Ended |
Jun. 30, 2017$ / shares | |
Distributions Made To Members Or Limited Partners [Abstract] | |
Minimum quarterly distribution per unit | $ 0.3000 |
Unit-Based Compensation - Addit
Unit-Based Compensation - Additional Information (Detail) - 2017 Long-Term Incentive Plan $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)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 | $ | $ 2.4 |
Cost related to unvested phantom units to be recognized, over an expected weighted-average period | 2 years 7 months 6 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 |
Mar. 31, 2018$ / 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 | 44,127 |
Granted (in units) | shares | 90,594 |
Forfeited (in units) | shares | (1,087) |
Outstanding and unvested units at the end of the period (in units) | shares | 133,634 |
Outstanding and unvested units at December 31, 2017 | $ / shares | $ 22.85 |
Granted | $ / shares | 20.51 |
Forfeited | $ / shares | 23 |
Outstanding and unvested units at March 31, 2018 | $ / shares | $ 21.26 |
Net Income per Limited Partne40
Net Income per Limited Partner Unit - Partnership's Calculation of Net Income per Limited Partner Unit (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Limited Partners Capital Account [Line Items] | |
Net income | $ 89 |
Less: Net income attributable to noncontrolling interest | 72 |
Net income attributable to Hess Midstream Partners LP | 17 |
Less: General partner's interest in net income attributable to Hess Midstream Partners LP | 0.3 |
Limited partners' interest in net income attributable to Hess Midstream Partners LP | 16.7 |
Common Units | |
Limited Partners Capital Account [Line Items] | |
Common unitholders' interest in net income attributable to Hess Midstream Partners LP | $ 8.4 |
Net income attributable to Hess Midstream Partners LP per limited partner unit: | |
Net income (loss) attributable to Hess Midstream Partners per limited partner unit | $ / shares | $ 0.30 |
Weighted average limited partner units outstanding (basic and diluted): | |
Units outstanding | shares | 27.3 |
Subordinated Units | |
Limited Partners Capital Account [Line Items] | |
Common unitholders' interest in net income attributable to Hess Midstream Partners LP | $ 8.3 |
Net income attributable to Hess Midstream Partners LP per limited partner unit: | |
Net income (loss) attributable to Hess Midstream Partners per limited partner unit | $ / shares | $ 0.30 |
Weighted average limited partner units outstanding (basic and diluted): | |
Units outstanding | shares | 27.3 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) - Credit Concentration Risk | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | |
Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | |
Predecessor | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | |
Predecessor | Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments And Contingencies Disclosure [Abstract] | ||
Estimated remediation liabilities included in accrued liabilities | $ 900,000 | $ 1,000,000 |
Estimated remediation liabilities included in other noncurrent liabilities | 2,400,000 | 2,400,000 |
Accrued liabilities for legal contingencies | $ 0 | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenues and other income | $ 157 | |
Net income (loss) | 89 | |
Net income (loss) attributable to Hess Midstream Partners LP | 17 | |
Depreciation expense | 30 | |
Interest expense, net | 0.3 | |
Adjusted EBITDA | 119.3 | |
Adjusted EBITDA attributable to Hess Midstream Partners LP | 23.3 | |
Capital expenditures | 36.6 | |
Predecessor | ||
Segment Reporting Information [Line Items] | ||
Revenues and other income | $ 130.3 | |
Net income (loss) | 63.1 | |
Depreciation expense | 26.8 | |
Adjusted EBITDA | 89.9 | |
Capital expenditures | 27 | |
Gathering Opco | ||
Segment Reporting Information [Line Items] | ||
Revenues and other income | 78.5 | |
Net income (loss) | 49.2 | |
Net income (loss) attributable to Hess Midstream Partners LP | 10 | |
Depreciation expense | 15.2 | |
Adjusted EBITDA | 64.4 | |
Adjusted EBITDA attributable to Hess Midstream Partners LP | 13 | |
Capital expenditures | 33 | |
Gathering Opco | Predecessor | ||
Segment Reporting Information [Line Items] | ||
Revenues and other income | 60.2 | |
Net income (loss) | 32 | |
Depreciation expense | 12.3 | |
Adjusted EBITDA | 44.3 | |
Capital expenditures | 19.2 | |
Processing and Storage | ||
Segment Reporting Information [Line Items] | ||
Revenues and other income | 58.3 | |
Net income (loss) | 33.2 | |
Net income (loss) attributable to Hess Midstream Partners LP | 7 | |
Depreciation expense | 10.9 | |
Adjusted EBITDA | 44.1 | |
Adjusted EBITDA attributable to Hess Midstream Partners LP | 9.2 | |
Capital expenditures | 3.3 | |
Processing and Storage | Predecessor | ||
Segment Reporting Information [Line Items] | ||
Revenues and other income | 53.2 | |
Net income (loss) | 28.5 | |
Depreciation expense | 10.9 | |
Adjusted EBITDA | 39.4 | |
Capital expenditures | 2.5 | |
Terminaling and Export | ||
Segment Reporting Information [Line Items] | ||
Revenues and other income | 20.2 | |
Net income (loss) | 8.1 | |
Net income (loss) attributable to Hess Midstream Partners LP | 1.5 | |
Depreciation expense | 3.9 | |
Adjusted EBITDA | 12 | |
Adjusted EBITDA attributable to Hess Midstream Partners LP | 2.3 | |
Capital expenditures | 0.3 | |
Terminaling and Export | Predecessor | ||
Segment Reporting Information [Line Items] | ||
Revenues and other income | 16.9 | |
Net income (loss) | 2.6 | |
Depreciation expense | 3.6 | |
Adjusted EBITDA | 6.2 | |
Capital expenditures | $ 5.3 | |
Interest and Other | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | (1.5) | |
Net income (loss) attributable to Hess Midstream Partners LP | (1.5) | |
Interest expense, net | 0.3 | |
Adjusted EBITDA | (1.2) | |
Adjusted EBITDA attributable to Hess Midstream Partners LP | $ (1.2) |
Segments - Total Assets for Rep
Segments - Total Assets for Reportable Segments (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,661.3 | $ 2,635.1 |
Gathering Opco | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,301.1 | 1,280.5 |
Processing and Storage | ||
Segment Reporting Information [Line Items] | ||
Total assets | 990.6 | 972.8 |
Terminaling and Export | ||
Segment Reporting Information [Line Items] | ||
Total assets | 328.7 | 330.8 |
Interest and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 40.9 | $ 51 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - $ / shares | Apr. 24, 2018 | Mar. 31, 2018 | |
Subsequent Event [Line Items] | |||
Quarterly cash distribution declared per common and subordinated unit | [1] | $ 0.3333 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Quarterly cash distribution declared date | Apr. 24, 2018 | ||
Quarterly cash distribution declared per common and subordinated unit | $ 0.3333 | ||
Distribution made to limited partner, increase in percentage than prior quarter declared | 3.60% | ||
Distribution Date | May 14, 2018 | ||
Record Date | May 4, 2018 | ||
[1] | Represents cash distributions declared during the month following the end of each respective quarterly period. See Note 13, Subsequent Event. |