Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 10, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HESM | ||
Entity Registrant Name | Hess Midstream LP | ||
Entity Central Index Key | 0001789832 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 33,672,068 | ||
Entity Public Float | $ 590.6 | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Title of 12(b) Security | Class A shares representing limited partner interests | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-39163 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-3211812 | ||
Entity Address, Address Line One | 1501 McKinney Street | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77010 | ||
City Area Code | 713 | ||
Local Phone Number | 496-4200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Houston, Texas | ||
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 2.2 | $ 2.6 |
Accounts receivable—affiliate: | ||
From contracts with customers | 120.3 | 93.2 |
Other current assets | 10.6 | 5.6 |
Total current assets | 133.1 | 101.4 |
Equity investments | 101.6 | 108.4 |
Property, plant and equipment, net | 3,125 | 3,111.3 |
Long-term receivable—affiliate | 0.8 | 0.9 |
Deferred tax asset | 117.3 | 42.5 |
Other noncurrent assets | 7.8 | 10 |
Total assets | 3,485.6 | 3,374.5 |
Liabilities | ||
Accounts payable—trade | 26.9 | 30 |
Accounts payable—affiliate | 37.6 | 21 |
Accrued liabilities | 76.2 | 54.1 |
Current maturities of long-term debt | 20 | 10 |
Other current liabilities | 10.2 | 9.9 |
Total current liabilities | 170.9 | 125 |
Long-term debt | 2,543.5 | 1,900.1 |
Deferred tax liability | 0.4 | |
Other noncurrent liabilities | 17.7 | 23.4 |
Total liabilities | 2,732.5 | 2,048.5 |
Partners' capital | ||
Total partners' capital | 204.1 | 125 |
Noncontrolling interest | 549 | 1,201 |
Total partners' capital | 753.1 | 1,326 |
Total liabilities and partners' capital | 3,485.6 | 3,374.5 |
Class A Shares | ||
Partners' capital | ||
Common unitholders | $ 204.1 | $ 125 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Common units outstanding | 253,313,996 | 284,445,236 | 284,377,583 |
Class A Shares | |||
Common units issued | 33,672,068 | 18,028,308 | |
Common units outstanding | 33,672,068 | 18,028,308 | 17,960,655 |
Class B Shares | |||
Common units issued | 219,641,928 | 266,416,928 | |
Common units outstanding | 219,641,928 | 266,416,928 | 266,416,928 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues | ||||
Affiliate services | $ 1,203.8 | $ 1,091.6 | $ 847.6 | |
Type of Revenue [Extensible List] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | |
Other income | $ 0.3 | $ 0.7 | ||
Total revenues | $ 1,203.8 | 1,091.9 | 848.3 | |
Costs and expenses | ||||
Operating and maintenance expenses (exclusive of depreciation shown separately below) | 288.3 | 337.4 | 276.8 | |
Depreciation expense | 165.6 | 156.9 | 142.5 | |
General and administrative expenses | 22.7 | 21.1 | 52.4 | |
Total costs and expenses | 476.6 | 515.4 | 471.7 | |
Income from operations | 727.2 | 576.5 | 376.6 | |
Income from equity investments | 10.6 | 10.3 | 3.4 | |
Interest expense, net | 105.4 | 94.7 | 62.4 | |
Gain on sale of property, plant and equipment | 0.1 | |||
Income before income tax expense | 632.4 | 492.2 | 317.6 | |
Income tax expense | 14.6 | 7.3 | (0.1) | |
Net income | 617.8 | 484.9 | 317.7 | |
Less: Net income attributable to noncontrolling interest | (55) | |||
Less: Net income attributable to noncontrolling interest | 571.4 | 460.9 | 302.6 | |
Net income attributable to Hess Midstream LP | 46.4 | 24 | 70.1 | |
Less: General partners' interest in net income prior to the Restructuring | 3.4 | |||
Limited partners' interest in net income | $ 46.4 | $ 24 | $ 66.7 | |
Common Units | ||||
Weighted average limited partner units outstanding prior to the Restructuring, Basic: | ||||
Units outstanding prior to the Restructuring, Basic | 27.3 | |||
Weighted average limited partner units outstanding prior to the Restructuring, Diluted: | ||||
Units outstanding prior to the Restructuring, Diluted | 27.5 | |||
Subordinated Units | ||||
Weighted average limited partner units outstanding prior to the Restructuring, Basic: | ||||
Units outstanding prior to the Restructuring, Basic | 27.3 | |||
Weighted average limited partner units outstanding prior to the Restructuring, Diluted: | ||||
Units outstanding prior to the Restructuring, Diluted | 27.3 | |||
Class A Shares | ||||
Net income attributable to Hess Midstream LP per Class A share: | ||||
Net income attributable to Hess Midstream LP per Class A share, Basic | [1] | $ 1.81 | $ 1.33 | $ 1.21 |
Net income attributable to Hess Midstream LP per Class A share, Diluted | [1] | $ 1.76 | $ 1.31 | $ 1.20 |
Weighted average Class A shares outstanding | ||||
Weighted average Class A shares outstanding, Basic | 25.6 | 18 | 18 | |
Weighted average Class A shares outstanding, Diluted | 25.7 | 18.1 | 18 | |
[1] | *Net income attributable to Hess Midstream LP per Class A Share/limited partner unit for 2019 was calculated by combining net income per limited partner unit (common and subordinated) for the period prior to the Restructuring on December 16, 2019, and net income per Class A Share for the period subsequent to the Restructuring. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 617.8 | $ 484.9 | $ 317.7 |
Effect of hedge (gains) losses reclassified to income | (0.4) | (0.8) | |
Total other comprehensive income | (0.4) | (0.8) | |
Comprehensive income | 617.8 | 484.5 | 316.9 |
Less: Comprehensive income (loss) attributable to net parent investment | (55.6) | ||
Less: Comprehensive income (loss) attributable to noncontrolling interest | 571.4 | 460.5 | 302.6 |
Comprehensive income attributable to Hess Midstream LP | $ 46.4 | $ 24 | $ 69.9 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Millions | Total | Prior To Restructuring | After Restructuring | Limited PartnerClass A Shares | Limited PartnerCommon Unitholders Public | Limited PartnerCommon Unitholders Affiliate | Limited PartnerSubordinated Unitholders Affiliate | Limited PartnerPrior To RestructuringCommon Unitholders Public | Limited PartnerPrior To RestructuringCommon Unitholders Affiliate | Limited PartnerPrior To RestructuringSubordinated Unitholders Affiliate | Limited PartnerAfter RestructuringClass A Shares | General Partner | General PartnerPrior To Restructuring | Noncontrolling Interest | Noncontrolling InterestPrior To Restructuring | Noncontrolling InterestAfter Restructuring | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomePrior To Restructuring | Net Parent Investment | Net Parent InvestmentPrior To Restructuring |
Balance, beginning of period at Dec. 31, 2018 | $ 1,876.1 | $ 357.1 | $ 39.5 | $ 105.3 | $ 14.9 | $ 2,194.1 | $ 1.2 | $ (836) | ||||||||||||
Net income | 317.7 | $ 325 | $ 20.8 | $ 12.9 | $ 33.5 | $ 3.4 | $ 309.4 | $ (55) | ||||||||||||
Equity-based compensation | 1.3 | $ 0.2 | 1.3 | $ 0.2 | ||||||||||||||||
Distributions to unitholders | $ (85.4) | $ (26.8) | $ (16) | $ (42.6) | ||||||||||||||||
Distributions to general partner | $ 3.8 | (3.8) | ||||||||||||||||||
Distributions to noncontrolling interest | 200.6 | (200.6) | ||||||||||||||||||
Contributions from noncontrolling interest | $ 76.3 | $ (76.3) | ||||||||||||||||||
Acquisition of Hess Water Services | (225) | (225) | ||||||||||||||||||
Equity exchange related to Restructuring | $ 81.4 | $ (352.4) | $ (36.4) | $ (96.2) | $ (14.5) | (569.8) | $ 987.9 | |||||||||||||
Cash consideration related to Restructuring | (601.8) | (601.8) | ||||||||||||||||||
Recognition of Deferred Tax Asset | 49.8 | 50 | (0.2) | |||||||||||||||||
Other comprehensive income (loss) | (0.8) | $ (7.3) | $ (0.5) | $ (6.8) | (0.8) | |||||||||||||||
Balance, end of period at Dec. 31, 2019 | 1,332.1 | 131.1 | 1,200.6 | 0.4 | ||||||||||||||||
Net income | 484.9 | 24 | 460.9 | |||||||||||||||||
Equity-based compensation | 1.5 | 1.5 | ||||||||||||||||||
Distributions to unitholders | (493.7) | (31.6) | (462.1) | |||||||||||||||||
Acquisition of Hess Water Services | 1.6 | 1.6 | ||||||||||||||||||
Other comprehensive income (loss) | (0.4) | $ (0.4) | ||||||||||||||||||
Balance, end of period at Dec. 31, 2020 | 1,326 | 125 | 1,201 | |||||||||||||||||
Net income | 617.8 | 46.4 | 571.4 | |||||||||||||||||
Equity-based compensation | 1.4 | 1.4 | ||||||||||||||||||
Distributions to unitholders | (529) | (49.4) | (479.6) | |||||||||||||||||
Recognition of Deferred Tax Asset | 89 | 89 | ||||||||||||||||||
Sale of shares held by Sponsors | 52.4 | (52.4) | ||||||||||||||||||
Class B unit repurchase | (750) | (60.4) | (689.6) | |||||||||||||||||
Transaction costs | (2.1) | (0.3) | (1.8) | |||||||||||||||||
Balance, end of period at Dec. 31, 2021 | $ 753.1 | $ 204.1 | $ 549 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (Parenthetical) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Prior To Restructuring | |
Distributions to unitholders - per unit/share | $ 1.5616 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 617.8 | $ 484.9 | $ 317.7 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation expense | 165.6 | 156.9 | 142.5 |
(Gain) loss on sale of property, plant and equipment | (0.1) | ||
(Gain) loss on interest rate swaps | (0.4) | (0.8) | |
(Income) loss from equity investments | (10.6) | (10.3) | (3.4) |
Distributions from equity investments | 17.4 | 9.7 | |
(Increase) decrease in capitalized interest | (4.1) | ||
Amortization of deferred financing costs | 7.3 | 6.5 | 5.1 |
Equity-based compensation expense | 1.4 | 1.5 | 1.5 |
Deferred income tax expense (benefit) | 14.6 | 7.3 | (0.1) |
Changes in assets and liabilities: | |||
Accounts receivable – affiliate | (27) | (5) | (19.5) |
Other current and noncurrent assets | (5.1) | (0.7) | (1.4) |
Accounts payable – trade | (3.1) | (0.6) | 11.5 |
Accounts payable – affiliate | 9.7 | 0.1 | 3.7 |
Accrued liabilities | 9.2 | (11.4) | 18.6 |
Other current and noncurrent liabilities | (1.7) | 3.3 | (0.6) |
Net cash provided by (used in) operating activities | 795.5 | 641.7 | 470.7 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (163.2) | (301.1) | (306.4) |
Acquisitions | (89.2) | ||
Payments for equity investments | (33) | ||
Proceeds from sale of property, plant and equipment | 0.1 | ||
Net cash provided by (used in) investing activities | (163.2) | (301) | (497.5) |
Cash flows from financing activities | |||
Net proceeds from (repayments of) bank borrowings with maturities of 90 days or less | (80) | 152 | 32 |
Bank borrowings with maturities of greater than 90 days | |||
Borrowings | 210 | ||
Repayments | (10) | (7.5) | |
Proceeds from issuance of senior notes | 750 | 550 | |
Financing costs | (11.6) | (1.3) | (20.4) |
Transaction costs | (2.1) | ||
Class B unit repurchase | (750) | ||
Distributions to shareholders/unitholders | (49.4) | (31.6) | (85.4) |
Distributions to noncontrolling interest | (479.6) | (462.1) | |
Cash consideration paid related to Restructuring | (601.8) | ||
Capital contributions (distributions) to Hess associated with acquisitions | 1.6 | (156.1) | |
Net cash provided by (used in) financing activities | (632.7) | (341.4) | (79.2) |
Increase (decrease) in cash and cash equivalents | (0.4) | (0.7) | (106) |
Cash and cash equivalents, beginning of period | 2.6 | 3.3 | 109.3 |
Cash and cash equivalents, end of period | 2.2 | 2.6 | 3.3 |
Supplemental disclosure of non-cash investing and financing activities: | |||
(Increase) decrease in accrued capital expenditures and related liabilities | (19.8) | 48.1 | (10.7) |
Recognition of deferred tax asset | 89 | 49.7 | |
Tioga System Acquisition contingent liability adjustment | $ (4.1) | $ (3) | |
Hess | |||
Cash flows from investing activities | |||
Acquisitions | $ (68.9) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Description Of Business [Abstract] | |
Description of Business | Note 1. Descr iption of Business Description of Business. We are a fee-based, growth-oriented, Delaware limited partnership formed by Hess Infrastructure Partners GP LLC (“HIP GP LLC”) and our general partner in 2019 to own, operate, develop and acquire a diverse set of midstream assets and provide fee-based services to Hess and third-party customers. We are managed and controlled by Hess Midstream GP LLC, the general partner of our general partner. Our assets are primarily located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota, which we collectively refer to as the Bakken. Our assets and operations are organized into the following three segments: (i) gathering, (ii) processing and storage and (iii) terminaling and export (see Note 14 , Segments ). Significant 2021 Activities. In 2020, we completed construction of a 150 MMcf/d natural gas processing capacity expansion at our Tioga Gas Plant (“TGP”). In the third quarter of 2021, we safely and successfully completed the planned maintenance turnaround at TGP, during which a series of plant tie-ins for the TGP expansion were also completed. The expansion was placed in service in October 2021. Total processing capacity of 400 MMcf/d became available concurrent with the completion of a third-party residue export expansion in February 2022. 2019 Restructuring. On December 16, 2019, the Company and the Partnership completed the transactions (the “Restructuring”) contemplated by the partnership restructuring agreement, dated October 3, 2019, by and among the Company, the Partnership and the other parties thereto. As a result of the Restructuring, the Company was delegated control of the Partnership and replaced the Partnership as its publicly traded successor. Prior to the Restructuring, the Company and the Partnership were indirectly controlled by HIP GP LLC, the general partner of Hess Infrastructure Partners LP (“HIP”). HIP was originally formed in 2015 as a joint venture between Hess and GIP II Blue Holding, L.P. (formerly GIP II Blue Holding Partnership, L.P., or “GIP” and, together with Hess, the “Sponsors”). Prior to the Restructuring: • HIP owned an 80 % noncontrolling 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, 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 crude oil pipeline and truck receipt terminal in North Dakota (the “Joint Interest Assets”), a 100 % interest in a produced water gathering and disposal business owned by Hess Water Services Holdings LLC (“Hess Water Services”) and a 100 % interest in Hess Midstream Partners GP LP (“MLP GP LP”), which held all of the Partnership’s outstanding incentive distribution rights (the “IDRs”) and the general partner interest in the Partnership (the “GP Interest”), and controlled the Partnership; • the Partnership, in connection with its initial public offering (“IPO”) on April 10, 2017, owned a 20 % controlling interest in the Joint Interest Assets and a 100 % interest in Hess Mentor Storage Holdings LLC (“Mentor Holdings”), which owns a propane storage cavern and related rail and truck loading and unloading and storage terminal in Minnesota; and • the Sponsors directly owned HIP and an aggregate of 10,282,654 common units representing limited partner interests in the Partnership and 27,279,654 subordinated units representing limited partner interests in the Partnership. Pursuant to the Restructuring, which was consummated on December 16, 2019, the Partnership acquired HIP, including HIP’s 80 % interest in the Joint Interest Assets, 100 % interest in Hess Water Services and the outstanding economic general partner interest and IDRs. The Partnership’s organizational structure converted from a master limited partnership into an “Up-C” structure in which the Partnership’s public unitholders received newly issued Class A shares (“Class A Shares”) representing limited partner interest in Hess Midstream LP in a one -for-one exchange. The Partnership changed its name to “Hess Midstream Operations LP” and became a consolidated subsidiary of the Company. After giving effect to the Restructuring and the 2021 equity transactions described in Note 3: • the Partnership owns 100 % of the Joint Interest Assets, Hess Water Services and MLP GP LP, which continues to hold all of the IDRs and the GP Interest; • the Sponsors (i) directly hold all of the Class B units (“Class B Units”) representing limited partner interests in the Partnership, (ii) indirectly own 100 % of the ownership interests in our general partner, which holds 898,000 Class A Shares (economic and voting) and all of the Class B shares (non-economic, voting only) representing limited partner interests in the Company (“Class B Shares”) and (iii) received $ 601.8 million in cash; • Class B Units of the Partnership together with the same number of Class B Shares of the Company are convertible to Class A Shares of the Company on a one -for-one basis; • the Class A Shares commenced trading on the New York Stock Exchange under the symbol “HESM” on December 17, 2019; • at December 31, 2021, the Company held a 13.3 % controlling interest in the Partnership and the Sponsors held a 86.7 % noncontrolling economic interest in the Partnership ( 2020: the Company held a 6.3 % controlling interest in the Partnership and the Sponsors held a 93.7 % noncontrolling economic interest in the Partnership); • at December 31, 2021, public limited partners held a 12.9 % voting interest and a 97.3 % economic interest in the Company, which represents an indirect 12.9 % economic interest in the Partnership (2020: public limited partners held a 6.0 % voting interest and a 95.0 % economic interest in the Company, which represented an indirect 6.0 % economic interest in the Partnership) ; • at December 31, 2021, the Sponsors and their respective affiliates held an 87.1 % voting interest and a 2.7 % economic interest in the Company, which, taken with their direct limited partnership interest in the Partnership, represents an indirect 87.1 % economic interest in the Partnership ( 2020: the Sponsors and their respective affiliates held a 94.0 % voting interest and a 5.0 % economic interest in the Company, which represented an indirect 94.0 % economic interest in the Partnership) ; and • the Sponsors own 100 % interest in the general partner of the Company and, through their ownership of the general partner, continue to have the right to elect the entire board of directors. The acquisition of HIP by the Partnership, including its 80 % economic interest in the Joint Interest Assets and 100 % interest in Hess Water Services, was accounted for as an acquisition of a business under common control. Accordingly, our consolidated financial statements for the year ended December 31, 2019 are presented as if the acquisition occurred at the beginning of the year. See Note 4 , Acquisitions . LM4 Joint Venture. On January 25, 2018, we entered into a 50 / 50 joint venture with Targa Resources Corp. (“Targa”) to construct a new 200 MMcf/d gas processing plant called Little Missouri 4 (“LM4”). LM4 was placed in service in the third quarter of 2019. Targa is the operator of the plant. See Note 5 , Related Party Transactions . |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | Note 2. Summary of Sign ificant Accounting Policies and Basis of Presentation Consolidation . The consolidated financial statements include our accounts and the accounts of entities over which we have a controlling financial interest through our ownership or the majority voting interests of the entity. We consolidate the activities of the Partnership, and prior to the Restructuring the activities of Gathering Opco, HTGP Opco and Logistics Opco, each as a variable interest entity (“VIE”) under U.S. Generally Accepted Accounting Principles (“GAAP”). We have concluded that we are the primary beneficiary of the VIE, as defined in the accounting standards, since we have the power, through our ownership, to direct those activities that most significantly impact the economic performance of the Partnership. This conclusion was based on a qualitative analysis that considered the Partnership’s governance structure and the delegation of control provisions, which provide us the ability to control the operations of the Partnership. All financial statement activities associated with the VIE are captured within gathering, processing and storage, and terminaling and export segments (see Note 14 , Segments ). At December 31, 2021, our noncontrolling interest represents the 86.7 % interest in the Partnership retained by Hess and GIP (2020: 93.7 %) . Prior to the Restructuring, our noncontrolling interest represented the 80 % interest in the Joint Interest Assets retained by HIP. All intercompany transactions and balances have been eliminated. Use of Estimates. We prepare our consolidated financial statements in conformity with the U.S. GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the years presented. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. Common Control Transactions. Assets and businesses acquired from Hess and its subsidiaries are accounted for as common control transactions whereby the net assets acquired are combined with net assets of the Company at Hess’ historical carrying value. If any recognized consideration transferred in such a transaction exceeds the carrying value of the net assets acquired, the excess is treated as a capital distribution to Hess, similar to a dividend. To the extent that such transactions require prior periods to be retrospectively adjusted, historical net equity amounts prior to the transaction date are reflected in “Net Parent Investment.” Cash consideration up to the carrying value of net assets acquired is presented as an investing activity in our consolidated statement of cash flows. Cash consideration in excess of the carrying value of net assets acquired is presented as a financing activity in our consolidated statement of cash flows. Cash and Cash Equivalents. Cash equivalents consist of highly liquid investments, which are readily convertible into cash and have maturities of three months or less when acquired. Accounts Receivable. We record affiliate accounts receivable upon performance of services to affiliated companies. Generally, we receive payments from affiliated companies on a monthly basis, shortly after performance of services. There were no doubtful accounts written off, nor have we provided an allowance for doubtful accounts, as of December 31, 2021 and 2020. Property, Plant and Equipment. Property, plant and equipment are stated at the lower of historical cost less accumulated depreciation subject to the results of impairment testing. We capitalize all construction-related direct labor and material costs, as well as indirect construction costs. Indirect construction costs include general engineering, taxes and the cost of funds used during construction. Costs, including complete asset replacements and enhancements or upgrades that increase the original efficiency, productivity or capacity of property, plant and equipment, are also capitalized. The costs of repairs, minor replacements and other projects, which do not increase the original efficiency, productivity or capacity of property, plant and equipment, are expensed as incurred. Capitalization of Interest. Interest charges from borrowings are capitalized on material projects using the weighted average cost of outstanding borrowings until the project is substantially complete and ready for its intended use. Capitalized interest is depreciated over the useful lives of the assets in the same manner as the depreciation of the underlying assets. Impairment of Long‑Lived Assets. We review long-lived assets for impairment whenever events or changes in business circumstances indicate the net book values of the assets may not be recoverable. Factors that indicate potential impairment include a significant decrease in the market value of the asset, operating or cash flow losses associated with the use of the asset, and a significant change in the asset’s physical condition or use. Impairment is indicated when the undiscounted cash flows estimated to be generated by those assets are less than the assets’ net book value. Undiscounted cash flows are based on identifiable cash flows that are largely independent of the cash flows of other assets and liabilities. If impairment occurs, a loss is recognized for the difference between the fair value and net book value. Such fair value is generally determined by discounting anticipated future net cash flows, an income valuation approach, or by a market-based valuation approach, which are Level 3 fair value measurements. No impairments of long‑lived assets were recorded during the years ended December 31, 2021, 2020 and 2019. Leases . We determine if an arrangement is a lease at inception. Operating lease right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease right-of-use asset includes any initial direct costs and excludes lease incentives received. The lease term used in measurement of our lease obligations may include periods covered by an option to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to recognize lease assets and lease liabilities for leases with a term of 12 months or less for all classes of underlying assets. Our lease agreements may include lease and non-lease components, which are generally accounted for separately. 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. During the year ended December 31, 2019, we capitalized $ 4.1 million of interest expense associated with our investment in LM4. Difference in the basis of the investment and the underlying net asset value of the equity investee is amortized into net income over the remaining useful lives of the underlying assets. Earnings from equity investments represent our proportionate share of net income generated by the equity investee. We classify distributions received from equity method investees on the basis of the nature of the activity of the investee that generated the distribution as either a return on investment classified as cash inflows from operating activities or a return of investment classified as cash inflows from investing activities when such information is available to us. Deferred Financing Costs. We capitalize debt issuance costs and fees incurred related to the procurement of our credit facilities. We amortize such costs as additional interest expense over the life of the credit agreement using the straight-line method, which approximates the effective interest method. Unamortized deferred financing costs related to our revolving credit facility are presented in Other noncurrent assets (2021: $ 6.9 million, 2020: $ 9.3 million) and unamortized deferred financing costs and discounts related to our fixed-rate senior notes and our term loan are presented as a direct reduction to the Long-term debt (2021: $ 30.5 million, 2020: $ 23.9 million) in the accompanying consolidated balance sheets. Asset Retirement Obligations. We record legal obligations to remove and dismantle long-lived assets. We recognize a liability for the fair value of legally required asset retirement obligations associated with long-lived assets in the period in which the retirement obligations are incurred if the liability can be reasonably estimated. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived assets. Accretion expense is included in Depreciation expense in the consolidated statement of operations. At December 31, 2021, the asset retirement obligation balance included in Other noncurrent liabilities was $ 11.0 million and the current portion included in Accrued liabilities was $ 3.0 million (2020: $ 12.8 million and $ 1.7 million, respectively). Net Parent Investment. Net parent investment represents HIP’s historical activity as well as Hess’ historical investment in Hess Water Services prior to its acquisition by HIP, the accumulated net operating results through the date when we obtained control of HIP, and the net effect of transactions between HIP and the Sponsors, and between Hess and Hess Water Services. Retrospectively adjusted financial information from prior to the acquisition of HIP is included in Net parent investment. 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, gathering and disposing produced water, 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, and effective January 1, 2019, we entered into water gathering and disposal services fee-based agreements with a subsidiary of Hess. Our responsibilities to provide each of the above services for each year under each of the commercial agreements are considered separate, distinct performance obligations. We recognize revenues for each performance obligation under our commercial agreements over‑time as services are rendered using the output method, measured using the amount of volumes serviced during the period. The minimum volume commitments are subject to fluctuation based on nominations covering substantially all of Hess’ production and projected third-party volumes that will be purchased in the Bakken. As the minimum volume commitments are subject to fluctuation, and these commercial agreements contain fee inflation escalators and fee recalculation mechanisms, substantially all of the transaction price, as this term is defined in Accounting Standards Codification (“ASC”) Topic, 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 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. There are no significant financing components in any of our commercial agreements. The minimum volumes that Hess provides to our assets under our commercial agreements include dedicated production covering substantially all of Hess’ existing and future owned or controlled production in the Bakken and projected third-party volumes owned or controlled by Hess through dedicated third-party contracts. If Hess delivers volumes less than the applicable minimum volume commitments under our commercial agreements during any quarter, Hess is obligated to pay us a shortfall fee equal to the volume deficiency multiplied by the related gathering, processing and/or terminaling fee, as applicable. Our responsibility to stand-ready to service a minimum volume over each quarterly commitment period represents a separate, distinct performance obligation. Currently, and for the remainder of the Initial Term of each commercial agreement as described in Note 5, volume deficiencies are measured quarterly and recognized as revenue in the same period, as any associated shortfall payments are not subject to future reduction or offset. During the Secondary Term of each commercial agreement as described in Note 5, Hess will be entitled to receive a credit, calculated in barrels or Mcf, as applicable, with respect to the amount of any shortfall fee paid by Hess, which will initially be reported in deferred revenue. Hess may apply such credit against the fees payable for any volumes delivered to us under the applicable agreement in excess of Hess’ nominated volumes up to four quarters after such credit is earned. Unused credits by Hess will be recognized as revenue when they expire after four quarters. However, Hess will not be entitled to receive any such credit with respect to crude oil terminaling services under our terminal and export services agreement. Our revenues also include pass‑through third‑party rail transportation costs, third-party produced water trucking and disposal costs, electricity fees and certain other fees for which we recognize revenues in an amount equal to the costs. Depreciation Expense. We calculate depreciation using the straight-line method based on the estimated useful lives after considering salvage values of our assets. Depreciation lives range from 12 to 35 years . However, factors such as maintenance levels, economic conditions impacting the demand for these assets, and regulatory or environmental requirements could cause us to change our estimates, thus impacting the future calculation of depreciation. Equity‑Based Compensation . Equity‑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. Forfeitures are recognized as they occur. Income Taxes . Deferred income taxes are determined using the liability method and reflect temporary differences between the financial statement carrying amount and income tax basis of assets and liabilities recorded using the statutory income tax rate. Regular assessments are made of the likelihood of those deferred tax assets being realized. If it is more likely than not that some or all of the deferred tax assets will not be realized, a valuation allowance is recorded to reduce the deferred tax assets to the amount expected to be realized. Prior to the Restructuring on December 16, 2019, we were not a separate taxable entity for U.S. federal and state income tax purposes; therefore, we did not provide for income tax benefit or expense. Each partner was subject to income taxes on its share of the Partnership’s earnings. On March 1, 2019, HIP acquired Hess Water Services (see Note 4 , Acquisitions ). For the periods prior to March 1, 2019, Hess Water Services was included in the consolidated income tax returns of Hess. The provision for Hess Water Services’ income taxes and income tax assets and liabilities were determined as if it were a standalone taxpayer for all periods presented. For the period from March 1, 2019 through the Restructuring date of December 16, 2019, Hess Water Services was not taxable itself and was not part of a separate taxable entity; therefore, no income tax provision was recognized. Net Income Per Limited Partner Unit. Prior to the Restructuring, we identified the general partner interest and IDRs as participating securities and computed income per unit using the two‑class method under which net income per unit was 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 that period. Net income per unit applicable to limited partners, including subordinated unitholders, was computed by dividing limited partners' interest in net income, after deducting the general partner's 2 % interest and IDRs, by the weighted‑average number of outstanding common and subordinated units. Environmental and Legal Contingencies. We accrue and expense environmental costs on an undiscounted basis to remediate existing conditions related to past operations when the future costs are probable and reasonably estimable. In the ordinary course of business, the Company 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. Fair Value Measurements. We measure assets and liabilities requiring fair value presentation using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability) and disclose such amounts according to the level of valuation inputs under the following hierarchy: Level 1: Quoted prices in an active market for identical assets or liabilities. Level 2: Inputs other than quoted prices that are directly or indirectly observable. Level 3: Unobservable inputs that are significant to the fair value of assets or liabilities. The classification of an asset or liability within the fair value measurement hierarchy is based on the lowest level of input significant to its fair value. There were no nonrecurring fair value measurements during the years ended December 31, 2021 and 2020. We had other short‑term financial instruments, primarily cash and cash equivalents, accounts receivable and accounts payable, for which the carrying value approximated their fair value as of December 31, 2021 and 2020. Derivatives. We may utilize derivative instruments for financial risk management activities. In these activities, we may use futures, forwards, options and swaps, individually or in combination, to mitigate our exposure to fluctuations in interest rates. All derivative instruments are recorded at fair value in our consolidated balance sheet. Our policy for recognizing the changes in fair value of derivatives varies based on the designation of the derivative. The changes in fair value of derivatives that are not designated as hedges are recognized in earnings. Derivatives may be designated as hedges of expected future cash flows or forecasted transactions (cash flow hedges). Changes in fair value of derivatives that are designated as cash flow hedges are recorded as a component of other comprehensive income (loss). Amounts included in Accumulated other comprehensive income (loss) for cash flow hedges are reclassified into earnings in the same period that the hedged item is recognized in earnings. New Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform , as a new ASC Topic, ASC 848 and also issued subsequent amendments to the initial guidance (collectively, “ASC 848”). The purpose of ASC 848 is to provide optional guidance to ease the potential effects on financial reporting of the market-wide migration away from Interbank Offered Rates, such as London Interbank Offered Rate (“LIBOR”) to alternative reference rates. ASC 848 applies only to contracts, hedging relationships, debt arrangements and other transactions that reference a benchmark reference rate expected to be discontinued because of reference rate reform. ASC 848 contains optional expedients and exceptions for applying U.S. GAAP to transactions affected by this reform. The amendments in the ASU are effective for all entities through December 31, 2022. Borrowing under our Credit Facilities bear interest at LIBOR plus an applicable margin (see Note 8, Debt and Interest Expense ). Although our Credit Facilities mature in 2024, they include provisions for transition to an alternative reference rate without interruption in our ability to borrow under these Credit Facilities. We do not expect our adoption of ASC 848 or transition to an alternative reference rate will have a material impact on our consolidated financial statements. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity Transactions | Note 3. Equity Transactions Equity Offering Transactions On March 15, 2021, Hess Investments North Dakota LLC (“HINDL”) and GIP II Blue Holding, L.P. ( “GIP” and, together with HINDL, the “Sponsors”) sold an aggregate of 6,900,000 of our Class A shares representing limited partner interests (“Class A Shares”), inclusive of the underwriters’ option to purchase up to 900,000 of additional shares, which was fully exercised, in an underwritten public offering at a price of $ 21.00 per Class A share, less underwriting discounts. On October 8, 2021, the Sponsors sold an aggregate of 8,625,000 of our Class A Shares, inclusive of the underwriters’ option to purchase up to 1,125,000 of additional shares, which was fully exercised, in an underwritten public offering at a price of $ 26.00 per Class A share, less underwriting discounts. The Sponsors received net proceeds from the two offerings of approximately $ 356.5 million in total, after deducting underwriting discounts. The Company did no t receive any proceeds in the offerings. The above equity offering transactions were conducted pursuant to a registration rights agreement among us and the Sponsors. The Class A Shares sold in the offerings were obtained by the Sponsors by exchanging to us the respective number of their Class B Units in the Partnership, together with an equal number of our Class B Shares and, a s a result, the total number of Class A and Class B shares did not change. The Company retained control in the Partnership based on the delegation of control provisions, as described in Note 2, Summary of Significant Accounting Policies and Basis of Presentation . As a result of the equity offering transactions, we recognized an adjustment to the carrying amount of noncontrolling interest and Class A shareholders’ capital balance of $ 52.4 million to reflect the change in ownership interest. We also recognized an additional deferred tax asset of $ 74.2 million related to the change in the temporary difference between carrying amount and tax basis of our investment in the Partnership. The effect of recognizing the additional deferred tax asset was included in Class A shareholders’ equity balance in the accompanying consolidated statement of changes in partners’ capital due to the transaction being characterized as a transaction among or with shareholders. Class B Unit Repurchase On July 27, 2021, the Company, the Partnership and our Sponsors entered into a unit repurchase agreement pursuant to which the Partnership purchased from each Sponsor 15,625,000 Class B Units representing limited partner interests in the Partnership for an aggregate purchase price of $ 750.0 million (the “Repurchase Transaction”). The purchase price per Class B Unit was $ 24.00 , representing an approximate 4 % discount to the 30-day volume weighted average trading price of Class A Shares representing limited partner interests in the Company through July 27, 2021. Pursuant to the terms of the repurchase agreement, immediately following the purchase of the Class B Units from the Sponsors, the Partnership cancelled those units, and the Company cancelled, for no consideration, an equal number of Class B Shares representing limited partner interests in the Company held by the Company’s general partner. The Repurchase Transaction closed on August 10, 2021 and was funded through issuance of new $ 750.0 million senior unsecured notes (see Note 8, Debt and Interest Expense ). The Repurchase Transaction was accounted for in accordance with ASC 810 whereby changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary are accounted for as equity transactions. The carrying amount of the noncontrolling interest was adjusted to reflect the change in the ownership interest with the difference between the amount of consideration paid and the amount by which the noncontrolling interest was adjusted recognized in equity attributable to Class A shareholders. We incurred approximately $ 2.1 million of costs directly attributable to the Repurchase Transaction that were charged to equity. We also recognized an additional deferred tax asset of approximately $ 14.8 million related to the change in the temporary difference between carrying amount and tax basis of our investment in the Partnership, the effect of which was included in Class A shareholders’ equity balance in the accompanying consolidated statement of changes in partners’ capital. As a result of the equity offering transactions and the Repurchase Transaction described above, the Company’s consolidated ownership in the Partnership increased from 6.3 % at December 31, 2020 to 13.3 % at December 31, 2021. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Note 4. Acquisitions Hess Water Services Acquisition On March 1, 2019, HIP acquired 100 % of the membership interest in Hess Water Services that owns Hess’ existing Bakken water services business for $ 225.0 million in cash. HIP funded the purchase price through a combination of cash on hand and borrowings under its revolving credit facility. In connection with the Hess Water Services acquisition, HIP acquired the following: (in millions) Property, plant and equipment, net $ 70.8 Working capital ( 1.2 ) Asset retirement obligations ( 0.7 ) Net assets acquired $ 68.9 The transaction was accounted for as an acquisition of a business between entities under common control, and therefore, the related acquired assets and liabilities were transferred at Hess’ historical carrying value. In 2019, we recognized $ 156.1 million of consideration in excess of the book value of net assets acquired as a capital distribution to Hess, which is reflected within Net parent investment in the accompanying consolidated statements of changes in partners’ capital. In 2020, we received $ 1.6 million from Hess as part of the final settlement. Hess Water Services is included in our gathering segment (see Note 14, Segments ). Tioga System Acquisition On March 22, 2019, we acquired 100 % of the membership interest in Tioga Midstream Partners LLC from Summit Midstream Partners, LP that owns oil, gas, and water gathering assets (the “Tioga System Acquisition”). The transaction was accounted for as an asset acquisition. The Tioga System, located in Williams County in western North Dakota, is complementary to our infrastructure, and is currently delivering volumes into our gathering system. We paid $ 89.2 million in cash at closing, net of cash acquired, and recognized a contingent liability for additional potential payments in future periods subject to certain performance metrics. The contingent liability is included in Other noncurrent liabilities on our accompanying consolidated balance sheet (202 1: $ 2.9 million , 2020: $ 7.0 million). The contingent liability was partially reduced in 2021 due to no planned drilling in the dedicated acreage. We funded the purchase price through a combination of cash on hand and borrowings under our revolving credit facility. The acquired Tioga System is included in our gathering segment (see Note 14, Segments ). Hess Infrastructure Partners LP Acquisition On December 16, 2019, the Company and the Partnership completed the Restructuring, pursuant to which the Partnership acquired all of the partnership interests in HIP from the Sponsors, including HIP’s retained 80 % economic interest in the Joint Interest Assets, 100 % interest in Hess Water Services and the outstanding economic general partner and incentive distribution rights in the Partnership. The Partnership’s organizational structure converted from a master limited partnership into an “Up-C” structure in which the Partnership’s public unitholders received newly issued Class A Shares in Hess Midstream LP in a one-for-one exchange. The Partnership changed its name to “Hess Midstream Operations LP” and became a consolidated subsidiary of the Company. As a consideration for the Restructuring, the Sponsors received 898,000 Class A Shares in the Company, 266,416,928 Class B Units representing noncontrolling limited partner interests in the Partnership and cash consideration of $ 601.8 million. Class B Units of the Partnership together with the same number of Class B Shares of the Company are convertible to Class A Shares of the Company on a one -for-one basis (see Note 9, Partners’ Capital and Distributions ). Our 2019 consolidated statement of operations includes $ 26.2 million of costs associated with the Restructuring reflected in general and administrative expenses. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5. Related Party Transactions We are part of the consolidated operations of Hess, and substantially all of our revenues as shown on the accompanying consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019 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 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. Effective January 1, 2019, in connection with the Hess Water Services Acquisition, we entered into long-term fee-based water services agreements with a subsidiary of Hess. For the services performed under these commercial agreements, we receive a fee per barrel of crude oil, barrel of water, Mcf of natural gas, or Mcf equivalent of NGLs, as applicable, delivered during each month, and Hess is obligated to provide us with minimum volumes of crude oil, water, natural gas and NGLs. MVCs are equal to 80 % of Hess' nominations in each development plan that apply on a three-year rolling basis such that MVCs are set for the three years following the most recent nomination. Without our consent, the MVCs resulting from the nominated volumes for any quarter or year contained in any prior development plan cannot be reduced by any updated development plan unless dedicated production is released by us. The applicable MVCs may, however, be increased as a result of the nominations contained in any such updated development plan. Except for the water services agreements and except for a certain gathering sub-system as described below, each of our commercial agreements with Hess has an initial 10 -year term effective January 1, 2014 (“Initial Term”). For this gathering sub-system, the Initial Term is 15 years effective January 1, 2014 and for the water services agreements the Initial Term is 14 years effective January 1, 2019. Each of our commercial agreements other than our storage services agreement includes an inflation escalator and a fee recalculation mechanism that allows fees to be adjusted annually during the Initial Term for updated estimates of cumulative throughput volumes and our capital and operating expenditures in order to target a return on capital deployed over the Initial Term of the applicable commercial agreement (or, with respect to the crude oil services fee under our terminal and export services agreement, the 20 -year period commencing on the effective date of the agreement). We have the unilateral right, exercisable by the delivery of a written notice on or before the date that is three years prior to the expiration of the Initial Term, to extend each commercial agreement for one additional 10 -year term (“Secondary Term”). For a certain gathering sub-system, the Secondary Term is 5 -years and for the water services agreements the Secondary Term is 10 years. On December 30, 2020, we exercised our renewal options to extend the terms of certain crude oil gathering, terminaling, storage, gas processing and gas gathering commercial agreements with Hess for the Secondary Term through December 31, 2033. There were no changes to any provisions of the existing commercial agreements as a result of the exercise of the renewal options. For the remaining water gathering and disposal agreements as well as the remaining gas gathering agreement, we have the sole option to renew these agreements for an additional term that is exercisable at a later date. During the Secondary Term of each of our commercial agreements other than our storage services agreement and terminal and export services agreement (with respect to crude oil terminaling services), the fee recalculation model under each applicable agreement will be replaced by an inflation-based fee structure. The initial fee for the first year of the Secondary Term will be determined based on the average fees paid by Hess under the applicable agreement during the last three years of the Initial Term (with such fees adjusted for inflation through the first year of the Secondary Term). For each year following the first year of the Secondary Term, the applicable fee will be adjusted annually based on the percentage change in the consumer price index, provided that we may not increase any fee by more than 3 % in any calendar year solely by reason of an increase in the consumer price index, and no fee will ever be reduced below the amount of the applicable fee payable by Hess in the prior year as a result of a decrease in the consumer price index. During the Secondary Term of our commercial agreements, Hess will continue to have MVCs equal to 80 % of Hess' nominations in each development plan that apply on a three-year rolling basis through the Secondary Term. For the years ended December 31, 2021, 2020 and 2019, 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. Together with Hess, 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. Revenues from contracts with customers on a disaggregated basis were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Oil and gas gathering services $ 540.4 $ 469.3 $ 345.6 Processing and storage services 435.7 370.3 294.7 Terminaling and export services 137.5 159.4 130.0 Water gathering and disposal services 90.2 92.6 77.3 Total revenues from contracts with customers $ 1,203.8 $ 1,091.6 $ 847.6 Other income - 0.3 0.7 Total revenues $ 1,203.8 $ 1,091.9 $ 848.3 The following table presents MVC shortfall fees earned during each period: Year Ended December 31, 2021 2020 2019 (in millions) Oil and gas gathering services $ 43.0 $ 12.5 $ 5.0 Terminaling and export services 32.8 4.8 2.2 Water gathering and disposal services 6.8 1.4 1.1 Processing and storage services 4.4 - - Total $ 87.0 $ 18.7 $ 8.3 The following table presents third-party pass-through costs for which we recognize revenues in an amount equal to the costs. These third-party costs are included in Operating and maintenance expenses in the accompanying consolidated statements of operations. Year Ended December 31, 2021 2020 2019 (in millions) Electricity and other related fees $ 50.3 $ 40.0 $ 32.2 Produced water trucking and disposal costs 37.0 55.9 57.7 Rail transportation costs 0.1 50.7 40.2 Total $ 87.4 $ 146.6 $ 130.1 Omnibus and Employee Secondment Agreements We entered into an omnibus agreement with Hess under which we pay Hess on a monthly basis an amount equal to the total allocable costs of Hess’ 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. 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 Company’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 Company’s assets and operations. For the years ended December 31, 2021, 2020 and 2019, 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. Year Ended December 31, 2021 2020 2019 (in millions) Operating and maintenance expenses $ 63.6 $ 62.8 $ 53.1 General and administrative expenses 15.4 15.1 15.5 Total $ 79.0 $ 77.9 $ 68.6 LM4 Agreements Separately from our commercial agreements with Hess, effective January 24, 2018, we entered into a gas processing agreement with LM4, a 50 / 50 joint venture with Targa, under which we deliver natural gas to LM4, and LM4 processes and redelivers certain volumes of residue gas and NGLs resulting from such processing services. The agreement has a 16 -year initial term, after which it is automatically renewed for subsequent one-year terms unless terminated by either party . Under this agreement, we pay a processing fee per Mcf of natural gas and reimburse LM4 for our proportionate share of electricity costs. These processing fees are included in Operating and maintenance expenses in the accompanying consolidated statements of operations. We are entitled to 50 % of the available processing capacity of the LM4 gas processing plant. Should Targa not use all of the remaining processing capacity at the plant on any day, such unutilized portion of the available capacity will be available for our use. Regardless of the actual portion of the plant available capacity utilized by each joint venture member during a given period, under the LM4 amended and restated limited liability company agreement, profits and losses and cash distributions of the LM4 joint venture are allocated 50 / 50 between Targa and us. LM4 was placed in service in the third quarter of 2019. For the years ended December 31, 2021, 2020 and 2019, we had the following activity related to our agreements with LM4: Year Ended December 31, 2021 2020 2019 (in millions) Processing fee incurred $ 27.7 $ 25.6 $ 6.3 Earnings from equity investments $ 10.6 $ 10.3 $ 3.4 Distributions received from equity investments $ 17.4 $ 9.7 $ - |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 6. Property, Plant and Equipment Property, plant and equipment, at cost, is as follows: Estimated useful lives December 31, 2021 December 31, 2020 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 1,489.7 $ 1,470.6 Compressors, pumping stations and terminals 22 to 25 years 809.0 778.6 Gas plant assets Pipelines, pipes and valves 22 to 25 years 460.0 460.0 Equipment 12 to 30 years 428.3 428.3 Processing and fractionation facilities 25 years 408.7 189.0 Buildings 35 years 182.3 182.3 Logistics facilities and railcars 20 to 25 years 386.5 386.2 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 25.8 20.9 Construction-in-progress N/A 131.6 227.3 Total property, plant and equipment, at cost 4,341.4 4,162.7 Accumulated depreciation ( 1,216.4 ) ( 1,051.4 ) Property, plant and equipment, net $ 3,125.0 $ 3,111.3 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities and Other Current Liabilities | Note 7. Accrued Liabilities and Other Current Liabilities Accrued liabilities are as follows: December 31, 2021 December 31, 2020 (in millions) Accrued interest $ 30.9 $ 18.0 Accrued capital expenditures 26.5 13.6 Other accruals 18.8 22.5 Total $ 76.2 $ 54.1 Other current liabilities at December 31, 2021, of $ 10.2 million (2020: $ 9.9 million) represent payables for property and sales and use taxes. |
Debt and Interest Expense
Debt and Interest Expense | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Interest Expense | Note 8. Debt and Interest Expense Total long-term debt is as follows: December 31, 2021 December 31, 2020 (in millions) Fixed-rate senior notes: 5.625 % due 2026 $ 800.0 $ 800.0 5.125 % due 2028 550.0 550.0 4.250 % due 2030 750.0 - Total fixed-rate senior notes 2,100.0 1,350.0 Term Loan A facility 390.0 400.0 Revolving credit facility 104.0 184.0 Total Borrowings 2,594.0 1,934.0 Unamortized deferred financing costs and discounts ( 30.5 ) ( 23.9 ) Total debt 2,563.5 1,910.1 Less: current maturities of long-term debt 20.0 10.0 Total long-term debt $ 2,543.5 $ 1,900.1 As of December 31, 2021, the maturity profile of total debt, excluding deferred financing costs and discounts, is as follows: (in millions) Total 2022 2023 2024 2025 2026 2027 and thereafter Fixed-rate senior notes $ 2,100.0 $ - $ - $ - $ - $ 800.0 $ 1,300.0 Term Loan facility 390.0 20.0 30.0 340.0 - - - Revolving credit facility 104.0 - - 104.0 - - - Total debt (excluding interest) $ 2,594.0 $ 20.0 $ 30.0 $ 444.0 $ - $ 800.0 $ 1,300.0 Fixed‑Rate Senior Notes In August 2021, the Partnership issued $ 750.0 million aggregate principal amount of 4.250 % fixed‑rate senior notes due 2030 to qualified institutional investors. The notes are guaranteed by certain subsidiaries of the Partnership. Interest is payable semi‑annually on February 15 and August 15 . The Partnership used the proceeds to fund the Repurchase Transaction (see Note 3 , Equity Transactions ). In December 2019, the Partnership issued $ 550.0 million aggregate principal amount of 5.125 % fixed‑rate senior notes due 2028 to qualified institutional investors. The notes are guaranteed by certain subsidiaries of the Partnership. Interest is payable semi‑annually on June 15 and December 15. The Partnership used the net proceeds to finance the acquisition of HIP, including to repay borrowings under HIP’s credit facilities, and pay related fees and expenses (see Note 4 , Acquisitions ). In December 2019, in connection with the Restructuring, the Partnership, assumed $ 800.0 million aggregate principal amount of 5.625 % outstanding fixed-rate senior notes of HIP in a par-for-par exchange for newly issued 5.625 % senior notes due 2026 of the Partnership and paid approximately $ 2.0 million of exchange consent fees. The notes are guaranteed by certain subsidiaries of the Partnership. Interest is payable semi‑annually on February 15 and August 15. Each of the indentures for the senior notes described above contains customary covenants that restrict our ability and the ability of our restricted subsidiaries to (i) declare or pay any dividend or make any other restricted payments; (ii) transfer or sell assets or subsidiary stock; (iii) incur additional debt; or (iv) make restricted investments, unless, at the time of and immediately after giving pro forma effect to such restricted payments and any related incurrence of indebtedness or other transactions, no default has occurred and is continuing or would occur as a consequence of such restricted payment and if the leverage ratio does not exceed 4.25 to 1.00. As of December 31, 2021, we were in compliance with all debt covenants under the indentures. In addition, the covenants included in the indentures governing the senior notes contain provisions that allow the Company to satisfy the Partnership’s reporting obligations under the indentures, as long as any such financial information of the Company contains information reasonably sufficient to identify the material differences, if any, between the financial information of the Company, on the one hand, and the Partnership and its subsidiaries on a stand-alone basis, on the other hand and the Company does not directly own capital stock of any person other than the Partnership and its subsidiaries, or material business operations that would not be consolidated with the financial results of the Partnership and its subsidiaries. The Company is a holding company and has no independent assets or operations. Other than the interest in the Partnership and the effect of federal and state income taxes that are recognized at the Company level, there are no material differences between the consolidated financial statements of the Partnership and the consolidated financial statements of the Company. Credit Facilities In December 2019, in connection with the Restructuring, both HIP and the Partnership retired their existing senior secured revolving credit facilities, HIP retired its senior secured Term Loan A facility and the Partnership entered into new senior secured credit facilities (the “Credit Facilities”) consisting of a $ 1,000.0 million 5 -year revolving credit facility and a fully drawn $ 400.0 million 5 -year Term Loan A facility, receiving cash of $ 210.0 million at closing. Facility fees accrue on the total capacity of the revolving credit facility. Borrowings under the 5 -year Term Loan A facility generally bear interest at LIBOR plus the applicable margin ranging from 1.55 % to 2.50 %, while the applicable margin for the 5 -year syndicated revolving credit facility ranges from 1.275 % to 2.000 %. Pricing levels for the facility fee and interest-rate margins are based on the Partnership’s ratio of total debt to EBITDA (as defined in the Credit Facilities). If the Partnership obtains an investment grade credit rating, the pricing levels will be based on the Partnership’s credit ratings in effect from time to time. At December 31, 2021, borrowings of $ 104.0 million were drawn and outstanding under the Partnership’s revolving credit facility, and borrowings of $ 390.0 million, excluding deferred issuance costs, were drawn and outstanding under the Partnership’s Term Loan A facility. The Credit Facilities can be used for borrowings and letters of credit for general corporate purposes. The Credit Facilities are guaranteed by each direct and indirect wholly owned material domestic subsidiary of the Partnership, and are secured by first priority perfected liens on substantially all of the assets of the Partnership and its direct and indirect wholly owned material domestic subsidiaries, including equity interests directly owned by such entities, subject to certain customary exclusions. The Credit Facilities contain representations and warranties, affirmative and negative covenants and events of default that the Partnership considers to be customary for an agreement of this type, including a covenant that requires the Partnership to maintain a ratio of total debt to EBITDA (as defined in the Credit Facilities) for the prior four fiscal quarters of not greater than 5.00 to 1.00 as of the last day of each fiscal quarter ( 5.50 to 1.00 during the specified period following certain acquisitions) and, prior to the Partnership obtaining an investment grade credit rating, a ratio of secured debt to EBITDA for the prior four fiscal quarters of not greater than 4.00 to 1.00 as of the last day of each fiscal quarter. As of December 31, 2021, the Partnership was in compliance with these financial covenants. Fair Value Measurement At December 31, 2021, our total debt had a carrying value of $ 2,563.5 million and had a fair value of approximately $ 2,648.5 million, based on Level 2 inputs in the fair value measurement hierarchy. The carrying value of the amounts under the Term Loan A facility and revolving credit facility at December 31, 2021, approximated their fair value. Any changes in interest rates do not impact cash outflows associated with fixed rate interest payments or settlement of debt principal, unless a debt instrument is repurchased prior to maturity. Interest Paid The total amount of interest paid on all fixed-rate senior notes and credit facilities, including facility fees, during the years ended December 31, 2021, 2020 and 2019 was $84.5 million, $ 88.9 million and $ 60.8 million, respectively. |
Partners' Capital and Distribut
Partners' Capital and Distributions | 12 Months Ended |
Dec. 31, 2021 | |
Partners Capital Notes [Abstract] | |
Partners' Capital and Distributions | Note 9. Partners’ Capital and Distributions Shares Outstanding Prior to the Restructuring, our partners’ capital included common and subordinated units representing limited partner interests in the Partnership. Pursuant to the Restructuring, 17,062,655 public common units of the Partnership outstanding as of December 16, 2019, were converted into Class A Shares of the Company (economic and voting) on a one -for-one basis, the Sponsors received 898,000 Class A Shares of the Company, 266,416,928 Class B Units representing noncontrolling limited partner interests in the Partnership and cash consideration of $ 601.8 million. In addition, our general partner purchased 266,416,928 Class B Shares of the Company (non-economic voting only) for a cash amount equal to $ 0.0001 per Class B Share. Class B Units of the Partnership together with the equal number of Class B Shares of the Company are convertible to Class A Shares of the Company on a one -for-one basis. The changes in the number of shares outstanding from December 31, 2019 through December 31, 2021 are as follows: Class A Shares Public Sponsors Total Class A Shares Class B Shares Total Class A and Class B Shares Balance, December 31, 2019 17,062,655 898,000 17,960,655 266,416,928 284,377,583 Equity-based compensation 67,653 - 67,653 - 67,653 Balance, December 31, 2020 17,130,308 898,000 18,028,308 266,416,928 284,445,236 Equity-based compensation 118,760 - 118,760 - 118,760 Equity offering transaction - 6,900,000 - 6,900,000 ( 6,900,000 ) - Equity offering transaction - 8,625,000 - 8,625,000 ( 8,625,000 ) - Repurchase Transaction - - - ( 31,250,000 ) ( 31,250,000 ) Balance, December 31, 2021 32,774,068 898,000 33,672,068 219,641,928 253,313,996 Distributions Our partnership agreement requires that, within 45 days after the end of each quarter, we distribute all of our available cash to shareholders 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 Class A share First Quarter 2019 May 3, 2019 May 14, 2019 $ 0.3833 Second Quarter 2019 August 5, 2019 August 13, 2019 $ 0.3970 Third Quarter 2019 November 4, 2019 November 13, 2019 $ 0.4112 Fourth Quarter 2019 February 6, 2020 February 14, 2020 $ 0.4258 First Quarter 2020 May 4, 2020 May 14, 2020 $ 0.4310 Second Quarter 2020 August 6, 2020 August 14, 2020 $ 0.4363 Third Quarter 2020 November 5, 2020 November 13, 2020 $ 0.4417 Fourth Quarter 2020 February 4, 2021 February 12, 2021 $ 0.4471 First Quarter 2021 May 3, 2021 May 13, 2021 $ 0.4526 Second Quarter 2021 August 9, 2021 August 13, 2021 $ 0.5042 Third Quarter 2021 November 4, 2021 November 12, 2021 $ 0.5104 Fourth Quarter 2021 (1) February 3, 2022 February 14, 2022 $ 0.5167 (1) For more information, see Note 16 , Subsequent Events . |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | Note 10. Equity-Bas ed Compensation We adopted the Hess Midstream 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 Company. The LTIP provides the Company with the flexibility to grant restricted share awards, restricted shares, phantom units, share options, share appreciation rights, distribution equivalent rights, profits interest shares and other equity‑based awards. The LTIP limits the number of shares that may be delivered pursuant to vested awards to 3,000,000 Class A Shares. Under the LTIP, we granted phantom unit awards 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. Each phantom unit represents the right to receive one Class A Share upon vesting (or an equivalent amount of cash). Cash distributions on the phantom units accumulate and are paid upon vesting. Fair value of phantom units is based on the fair value of Class A Shares on the grant date. Equity‑based award activity for the year ended December 31, 2021 was as follows: Weighted Average Award Date Number of Shares Fair Value Outstanding and unvested shares at December 31, 2020 228,344 $ 13.78 Granted 78,347 22.40 Vested ( 118,760 ) 14.77 Outstanding and unvested shares at December 31, 2021 187,931 $ 16.75 (in millions) 2021 2020 2019 Fair value of shares granted $ 1.8 $ 1.9 $ 1.7 Fair value of shares vested $ 1.8 $ 1.5 $ 1.0 During the year ended December 31, 2021, we recognized compensation expense related to the outstanding awards of $ 1.4 million (2020: $ 1.5 million, 2019: $ 1.5 million). As of December 31, 2021, $ 1.8 million of compensation cost related to our unvested restricted shares awarded under the LTIP remains to be recognized over an expected weighted‑average period of 1.8 years. |
Earnings per Share_Limited Part
Earnings per Share/Limited Partner Unit | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share/Limited Partner Unit | Note 11. Earnings per Share/Limited Partner Unit Earnings per limited partner unit prior to the Restructuring on December 16, 2019, were 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 had more than one class of participating securities, we used the two‑class method when calculating earnings per limited partner unit. The classes of participating securities included common units, subordinated units, general partner interest and incentive distribution rights. Our net income includes earnings related to businesses acquired through transactions between entities under common control for periods prior to their acquisition by us. We have allocated these pre-acquisition earnings to Net income attributable to net parent investment. Subsequent to the Restructuring, we calculate earnings per Class A Share as we do not have any other participating securities. Substantially all of income tax expense is attributed to earnings of Class A Shares reflective of our organizational structure. Class B Units of the Partnership together with the equal number of Class B Shares of the Company are convertible to Class A Shares of the Company on a one -for-one basis. In addition, our restricted equity-based awards may have a dilutive effect on our earnings per share. Diluted earnings per Class A Share are calculated using the “treasury stock method” or “if-converted method”, whichever is more dilutive. Year Ended December 31, (in millions, except per share amounts) 2021 2020 2019 Net income 617.8 484.9 317.7 Less: Net income attributable to net parent investment - - ( 55.0 ) Less: Net income attributable to noncontrolling interest 571.4 460.9 302.6 Net income attributable to Hess Midstream LP 46.4 24.0 70.1 Less: General partners' interest in net income - - 3.4 Limited partners' interest in net income $ 46.4 $ 24.0 $ 66.7 Net income attributable to Hess Midstream LP Basic: $ 1.81 $ 1.33 $ 1.21 Diluted: $ 1.76 $ 1.31 $ 1.20 Weighted average Class A shares outstanding: Basic: 25.6 18.0 18.0 Diluted: 25.7 18.1 18.0 Weighted average limited partner units outstanding Basic: Common 27.3 Subordinated 27.3 Diluted: Common 27.5 Subordinated 27.3 *Net income attributable to Hess Midstream LP per Class A Share/limited partner unit for 2019 was calculated by combining net income per limited partner unit (common and subordinated) for the period prior to the Restructuring on December 16, 2019, and net income per Class A Share for the period subsequent to the Restructuring. For the year ended December 31, 2021, the weighted average number of Class A Shares outstanding included 103,672 dilutive restricted shares (2020: 88,013 shares). For the year ended December 31, 2019, the weighted average number of common units outstanding included 135,712 dilutive restricted units. In computing the dilutive effect, if any, of an exchange of Class B Units of the Partnership together with the equal number of Class B Shares of the Company to Class A Shares of the Company, net income attributable to Class A shareholders is adjusted, including for additional income tax expense, due to elimination of the noncontrolling interest associated with Class B Units of the Partnership. For the year ended December 31, 2021, the “if-converted” method was more dilutive. A reconciliation of the numerator and the denominator of the diluted earnings per Class A Share calculation under the “if-converted” method for the year ended December 31, 2021, is presented below: Year Ended December 31, 2021 (in millions, except per share data) Diluted net income per share Numerator: Net income attributable to Hess Midstream LP $ 46.4 Effect of exchange of Class B Units of the Partnership and 571.4 Effect of income tax expense on additional income attributable (1) ( 139.4 ) Diluted net income attributable to Hess Midstream LP $ 478.4 Denominator: Basic weighted average Class A Shares outstanding 25.6 Effect of dilutive securities: Weighted average Class B Units/Shares 246.7 Restricted equity-based awards 0.1 Diluted weighted average shares outstanding 272.4 Diluted net income attributable to Hess Midstream LP $ 1.76 (1) Income tax effect is calculated assuming 24.39 % blended U.S. federal and state income tax rate. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2021 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 12. Concen tration of Credit Risk Hess represented approximately 100 % of our total revenues and accounts receivable from contracts with customers for the years ended December 31, 2021, 2020 and 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies Environmental Contingencies The Company is subject to federal, state and local laws and regulations relating to the environment. As of December 31, 2021, our reserve for estimated remediation liabilities included in Accrued liabilities and Other noncurrent liabilities was $ 0.8 million and $ 3.1 million, respectively, compared with $ 0.9 million and $ 3.1 million, respectively, as of December 31, 2020. Legal Proceedings As of December 31, 2021 and 2020, we did no t have material 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. Lease and Purchase Obligations As of December 31, 2021 and 2020, we did no t have material lease obligations. As of December 31 2021, we had unconditional purchase commitments of $ 11.9 million for the year ending December 31, 2022 and none for the years thereafter. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Note 14. Segm ents Our operations are located in the United States and are organized into three reportable segments: (i) gathering, (ii) processing and storage and (iii) 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. The accounting policies of the segments are identical to those described in Note 2 , Summary of Significant Accounting Policies and Basis of Presentation . Our CODM evaluates the segments’ operating performance based on multiple measures including Adjusted EBITDA, defined as net income (loss) before interest expense, income tax (benefit), depreciation and amortization, and our proportional share of depreciation of our equity affiliates as further adjusted for other non‑cash, non‑recurring items, if applicable. Gathering . Our gathering segment consists of the following assets: • Natural Gas Gathering and Compression . A natural gas gathering and compression system located primarily in McKenzie, Williams and Mountrail Counties, North Dakota connecting Hess and third‑party owned or operated wells to the Tioga Gas Plant, LM4 gas processing plant, and third‑party pipeline facilities. The system also includes the Hawkeye Gas Facility. • Crude Oil Gathering : A crude oil gathering system located primarily in McKenzie, Williams, and Mountrail Counties, North Dakota, connecting Hess and third‑party owned or operated wells to the Ramberg Terminal Facility and the Johnson’s Corner Header System. The system also includes the Hawkeye Oil Facility. • Produced Water Gathering and Disposal. A produced water gathering system and disposal facilities located primarily in Williams and Mountrail Counties, North Dakota. Processing and Storage . Our processing and storage segment consists of the following assets: • Tioga Gas Plant (TGP) . A natural gas processing and fractionation plant located in Tioga, North Dakota. • Mentor Storage Terminal . A propane storage cavern and rail and truck loading and unloading facility located in Mentor, Minnesota. • Equity Investment in LM4 Joint Venture. The Partnership’s 50 % equity method investment in LM4 joint venture that owns a natural gas processing plant located in McKenzie County, North Dakota, which was placed in service in the third quarter of 2019. Terminaling and Export . Our terminaling and export segment consists of the following assets: • Ramberg Terminal Facility . A crude oil pipeline and truck receipt terminal located in Williams County, North Dakota that is capable of delivering crude oil into an interconnecting pipeline for transportation to the Tioga Rail Terminal and to multiple third‑party pipelines and storage facilities. • Tioga Rail Terminal. A crude oil and NGL rail loading terminal in Tioga, North Dakota that is connected to the Tioga Gas Plant, the Ramberg Terminal Facility and our crude oil gathering system. • Crude Oil Rail Cars. A total of 550 crude oil rail cars, constructed to the DOT‑117 safety standards, which we operate as unit trains consisting of approximately 100 to 110 crude oil rail cars. • Johnson’s Corner Header System. An approximately six ‑mile crude oil pipeline header system located in McKenzie County, North Dakota that receives crude oil by pipeline from Hess and third parties and delivers crude oil to third‑party interstate pipeline systems. The following tables reflect certain financial data for each reportable segment: Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated (in millions) For the Year Ended December 31, 2021 Revenues and other income $ 630.6 $ 435.7 $ 137.5 $ - $ 1,203.8 Net income (loss) 377.6 263.8 103.7 ( 127.3 ) 617.8 Net income (loss) attributable to 36.3 25.5 10.1 ( 25.5 ) 46.4 Depreciation expense 101.0 48.4 16.2 - 165.6 Proportional share of equity affiliates' depreciation - 5.1 - - 5.1 Income from equity investments - 10.6 - - 10.6 Interest expense, net - - - 105.4 105.4 Income tax expense - - - 14.6 14.6 Adjusted EBITDA 478.6 317.3 119.9 ( 7.3 ) 908.5 Capital expenditures* 154.0 28.8 0.2 - 183.0 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated (in millions) For the Year Ended December 31, 2020 Revenues and other income $ 561.9 $ 370.6 $ 159.4 $ - $ 1,091.9 Net income (loss) 300.7 218.7 73.5 ( 108.0 ) 484.9 Net income (loss) attributable to 19.2 13.7 4.7 ( 13.6 ) 24.0 Depreciation expense 96.0 44.8 16.1 - 156.9 Proportional share of equity affiliates' depreciation - 5.1 - - 5.1 Income from equity investments - 10.3 - - 10.3 Interest expense, net - - - 94.7 94.7 Income tax expense (benefit) - - - 7.3 7.3 Gain on sale of property, plant and equipment 0.1 - - - 0.1 Adjusted EBITDA 396.6 268.6 89.6 ( 6.0 ) 748.8 Capital expenditures* 96.2 156.2 0.6 - 253.0 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated (in millions) For the Year Ended December 31, 2019 Revenues and other income $ 422.9 $ 295.3 $ 130.1 $ - $ 848.3 Net income (loss) 186.0 176.1 54.8 ( 99.2 ) 317.7 Net income (loss) attributable to 34.6 34.6 10.5 ( 9.6 ) 70.1 Depreciation expense 81.6 44.7 16.2 - 142.5 Proportional share of equity affiliates' depreciation - 2.0 - - 2.0 Income from equity investments - 3.4 - - 3.4 Interest expense, net - - - 62.4 62.4 Income tax expense (benefit) - - - ( 0.1 ) ( 0.1 ) Transaction costs - - - 26.2 26.2 Adjusted EBITDA 267.6 222.8 71.0 ( 10.7 ) 550.7 Capital expenditures* 373.6 42.5 0.2 - 416.3 * Includes acquisition, expansion, and maintenance capital expenditures. Total assets for reportable segments are as follows: December 31, 2021 December 31, 2020 (in millions) Gathering $ 1,927.0 $ 1,856.2 Processing and Storage (1) 1,149.5 1,170.3 Terminaling and Export 281.4 292.3 Interest and Other 127.7 55.7 Total assets $ 3,485.6 $ 3,374.5 (1) Includes investment in equity investees of $ 101.6 million as of December 31, 2021 and $ 108.4 million as of December 31, 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Inc ome Taxes Although the Company is a Delaware limited partnership, we are subject to corporate income tax on our share of the Partnership’s earnings because of our election to be treated as a corporation for U.S. federal and state income tax purposes. The provision (benefit) for income taxes consisted of: Year Ended December 31, (in millions) 2021 2020 2019 Federal Current $ 0.1 $ - $ - Deferred taxes and other accruals 12.5 6.2 ( 0.1 ) State 2.0 1.1 - Total provision (benefit) for income taxes $ 14.6 $ 7.3 $ ( 0.1 ) The difference between the effective income tax rate and the U.S. statutory rate is reconciled below: Year Ended December 31, 2021 2020 2019 U.S. statutory rate 21.0 % 21.0 % 21.0 % Non-taxable income from pre-Restructuring period - - ( 21.4 ) Noncontrolling interest in partnership ( 19.0 ) ( 19.7 ) 0.4 State tax 0.3 0.2 - Effective rate 2.3 % 1.5 % - % On March 1, 2019, HIP acquired Hess Water Services (see Note 4, Acquisitions ). For the periods prior to March 1, 2019, Hess Water Services was included in the consolidated income tax returns of Hess. The provision for Hess Water Services’ income taxes and income tax assets and liabilities were determined as if it were a standalone taxpayer for all periods presented. Prior to the Restructuring on December 16, 2019, the Partnership was not a separate taxable entity for U.S. federal and state income tax purposes; therefore, we did not recognize income tax expense or benefit in those periods. Each partner was subject to income taxes on its share of the Partnership’s earnings. In connection with the Restructuring, we became a partial owner of the Partnership and recognize income tax expense or benefit on our allocable share of the Partnership’s income or loss subsequent to the Restructuring. As part of the Restructuring, we recognized a deferred tax asset of $ 49.8 million for the temporary differences related to our investment in the Partnership. The effect of recognizing the deferred tax asset was included in Class A shareholders’ equity balance in the accompanying consolidated statement of changes in partners’ capital due to the Restructuring being characterized as a transaction among or with shareholders. In addition, as a result of the equity offering transactions on March 15, 2021 and October 8, 2021, as well as the Repurchase Transaction on August 10, 2021 (see Note 3, Equity Transactions ), we recognized an additional deferred tax asset in the total amount of $ 89.0 million related to the change in the temporary difference between carrying amount and tax basis of our investment in the Partnership. The effect of recognizing the additional deferred tax asset was included in Class A shareholders’ equity balance in the accompanying consolidated statement of changes in partners’ capital due to the transactions being characterized as transactions among or with shareholders. The components of deferred tax assets and liabilities are as follows: December 31, 2021 2020 (in millions) Deferred tax liabilities Investments $ ( 0.4 ) $ ( 0.3 ) Total deferred tax liabilities ( 0.4 ) ( 0.3 ) Deferred tax assets Investments 102.3 39.0 Net operating loss carryforwards 15.0 3.8 Total deferred tax assets 117.3 42.8 Net deferred tax assets (liabilities) $ 116.9 $ 42.5 At December 31, 2021, we have recognized a deferred tax asset of $ 12.4 million related to U.S. federal net operating loss carryforwards which do not expire and $ 2.6 million related to U.S. state net operating loss carryforwards which begin to expire in 2040 . We have no unrecognized tax benefits or interest and penalties related to tax liabilities recorded in the financial statements. For the years presented, we earned all net income before taxes in the United States. We file income tax returns in the U.S. and various states. We are not subject to corporate income tax examination for years prior to 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | N ote 16. Sub sequent Events On January 24, 2022 the board of directors of our general partner declared a quarterly cash distribution of $ 0.5167 per Class A Share for the quarter ended December 31, 2021, an increase of approximately 15.6 % compared with the quarter ended December 31, 2020. The distribution was paid on February 14, 2022 to shareholders of record as of the close of business on February 3, 2022 . On February 14, 2022 , the Partnership also made a distribution of $ 0.5167 per Class B Unit of the Partnership to the Sponsors as holders of an aggregate of 219,641,928 Class B Units of the Partnership. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation . The consolidated financial statements include our accounts and the accounts of entities over which we have a controlling financial interest through our ownership or the majority voting interests of the entity. We consolidate the activities of the Partnership, and prior to the Restructuring the activities of Gathering Opco, HTGP Opco and Logistics Opco, each as a variable interest entity (“VIE”) under U.S. Generally Accepted Accounting Principles (“GAAP”). We have concluded that we are the primary beneficiary of the VIE, as defined in the accounting standards, since we have the power, through our ownership, to direct those activities that most significantly impact the economic performance of the Partnership. This conclusion was based on a qualitative analysis that considered the Partnership’s governance structure and the delegation of control provisions, which provide us the ability to control the operations of the Partnership. All financial statement activities associated with the VIE are captured within gathering, processing and storage, and terminaling and export segments (see Note 14 , Segments ). At December 31, 2021, our noncontrolling interest represents the 86.7 % interest in the Partnership retained by Hess and GIP (2020: 93.7 %) . Prior to the Restructuring, our noncontrolling interest represented the 80 % interest in the Joint Interest Assets retained by HIP. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates. We prepare our consolidated financial statements in conformity with the U.S. GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the years presented. Changes in facts and circumstances may result in revised estimates and actual results could differ from those estimates. |
Common Control Transactions | Common Control Transactions. Assets and businesses acquired from Hess and its subsidiaries are accounted for as common control transactions whereby the net assets acquired are combined with net assets of the Company at Hess’ historical carrying value. If any recognized consideration transferred in such a transaction exceeds the carrying value of the net assets acquired, the excess is treated as a capital distribution to Hess, similar to a dividend. To the extent that such transactions require prior periods to be retrospectively adjusted, historical net equity amounts prior to the transaction date are reflected in “Net Parent Investment.” Cash consideration up to the carrying value of net assets acquired is presented as an investing activity in our consolidated statement of cash flows. Cash consideration in excess of the carrying value of net assets acquired is presented as a financing activity in our consolidated statement of cash flows. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash equivalents consist of highly liquid investments, which are readily convertible into cash and have maturities of three months or less when acquired. |
Accounts Receivable | Accounts Receivable. We record affiliate accounts receivable upon performance of services to affiliated companies. Generally, we receive payments from affiliated companies on a monthly basis, shortly after performance of services. There were no doubtful accounts written off, nor have we provided an allowance for doubtful accounts, as of December 31, 2021 and 2020. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment are stated at the lower of historical cost less accumulated depreciation subject to the results of impairment testing. We capitalize all construction-related direct labor and material costs, as well as indirect construction costs. Indirect construction costs include general engineering, taxes and the cost of funds used during construction. Costs, including complete asset replacements and enhancements or upgrades that increase the original efficiency, productivity or capacity of property, plant and equipment, are also capitalized. The costs of repairs, minor replacements and other projects, which do not increase the original efficiency, productivity or capacity of property, plant and equipment, are expensed as incurred. |
Capitalization of Interest | Capitalization of Interest. Interest charges from borrowings are capitalized on material projects using the weighted average cost of outstanding borrowings until the project is substantially complete and ready for its intended use. Capitalized interest is depreciated over the useful lives of the assets in the same manner as the depreciation of the underlying assets. |
Impairment of Long-Lived Assets | Impairment of Long‑Lived Assets. We review long-lived assets for impairment whenever events or changes in business circumstances indicate the net book values of the assets may not be recoverable. Factors that indicate potential impairment include a significant decrease in the market value of the asset, operating or cash flow losses associated with the use of the asset, and a significant change in the asset’s physical condition or use. Impairment is indicated when the undiscounted cash flows estimated to be generated by those assets are less than the assets’ net book value. Undiscounted cash flows are based on identifiable cash flows that are largely independent of the cash flows of other assets and liabilities. If impairment occurs, a loss is recognized for the difference between the fair value and net book value. Such fair value is generally determined by discounting anticipated future net cash flows, an income valuation approach, or by a market-based valuation approach, which are Level 3 fair value measurements. No impairments of long‑lived assets were recorded during the years ended December 31, 2021, 2020 and 2019. |
Leases | Leases . We determine if an arrangement is a lease at inception. Operating lease right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease right-of-use asset includes any initial direct costs and excludes lease incentives received. The lease term used in measurement of our lease obligations may include periods covered by an option to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to recognize lease assets and lease liabilities for leases with a term of 12 months or less for all classes of underlying assets. Our lease agreements may include lease and non-lease components, which are generally accounted for separately. |
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. During the year ended December 31, 2019, we capitalized $ 4.1 million of interest expense associated with our investment in LM4. Difference in the basis of the investment and the underlying net asset value of the equity investee is amortized into net income over the remaining useful lives of the underlying assets. Earnings from equity investments represent our proportionate share of net income generated by the equity investee. We classify distributions received from equity method investees on the basis of the nature of the activity of the investee that generated the distribution as either a return on investment classified as cash inflows from operating activities or a return of investment classified as cash inflows from investing activities when such information is available to us. |
Deferred Financing Costs | Deferred Financing Costs. We capitalize debt issuance costs and fees incurred related to the procurement of our credit facilities. We amortize such costs as additional interest expense over the life of the credit agreement using the straight-line method, which approximates the effective interest method. Unamortized deferred financing costs related to our revolving credit facility are presented in Other noncurrent assets (2021: $ 6.9 million, 2020: $ 9.3 million) and unamortized deferred financing costs and discounts related to our fixed-rate senior notes and our term loan are presented as a direct reduction to the Long-term debt (2021: $ 30.5 million, 2020: $ 23.9 million) in the accompanying consolidated balance sheets. |
Asset Retirement Obligations | Asset Retirement Obligations. We record legal obligations to remove and dismantle long-lived assets. We recognize a liability for the fair value of legally required asset retirement obligations associated with long-lived assets in the period in which the retirement obligations are incurred if the liability can be reasonably estimated. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived assets. Accretion expense is included in Depreciation expense in the consolidated statement of operations. At December 31, 2021, the asset retirement obligation balance included in Other noncurrent liabilities was $ 11.0 million and the current portion included in Accrued liabilities was $ 3.0 million (2020: $ 12.8 million and $ 1.7 million, respectively). |
Net Parent Investment | Net Parent Investment. Net parent investment represents HIP’s historical activity as well as Hess’ historical investment in Hess Water Services prior to its acquisition by HIP, the accumulated net operating results through the date when we obtained control of HIP, and the net effect of transactions between HIP and the Sponsors, and between Hess and Hess Water Services. Retrospectively adjusted financial information from prior to the acquisition of HIP is included in Net parent investment. |
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, gathering and disposing produced water, 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, and effective January 1, 2019, we entered into water gathering and disposal services fee-based agreements with a subsidiary of Hess. Our responsibilities to provide each of the above services for each year under each of the commercial agreements are considered separate, distinct performance obligations. We recognize revenues for each performance obligation under our commercial agreements over‑time as services are rendered using the output method, measured using the amount of volumes serviced during the period. The minimum volume commitments are subject to fluctuation based on nominations covering substantially all of Hess’ production and projected third-party volumes that will be purchased in the Bakken. As the minimum volume commitments are subject to fluctuation, and these commercial agreements contain fee inflation escalators and fee recalculation mechanisms, substantially all of the transaction price, as this term is defined in Accounting Standards Codification (“ASC”) Topic, 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 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. There are no significant financing components in any of our commercial agreements. The minimum volumes that Hess provides to our assets under our commercial agreements include dedicated production covering substantially all of Hess’ existing and future owned or controlled production in the Bakken and projected third-party volumes owned or controlled by Hess through dedicated third-party contracts. If Hess delivers volumes less than the applicable minimum volume commitments under our commercial agreements during any quarter, Hess is obligated to pay us a shortfall fee equal to the volume deficiency multiplied by the related gathering, processing and/or terminaling fee, as applicable. Our responsibility to stand-ready to service a minimum volume over each quarterly commitment period represents a separate, distinct performance obligation. Currently, and for the remainder of the Initial Term of each commercial agreement as described in Note 5, volume deficiencies are measured quarterly and recognized as revenue in the same period, as any associated shortfall payments are not subject to future reduction or offset. During the Secondary Term of each commercial agreement as described in Note 5, Hess will be entitled to receive a credit, calculated in barrels or Mcf, as applicable, with respect to the amount of any shortfall fee paid by Hess, which will initially be reported in deferred revenue. Hess may apply such credit against the fees payable for any volumes delivered to us under the applicable agreement in excess of Hess’ nominated volumes up to four quarters after such credit is earned. Unused credits by Hess will be recognized as revenue when they expire after four quarters. However, Hess will not be entitled to receive any such credit with respect to crude oil terminaling services under our terminal and export services agreement. Our revenues also include pass‑through third‑party rail transportation costs, third-party produced water trucking and disposal costs, electricity fees and certain other fees for which we recognize revenues in an amount equal to the costs. |
Depreciation Expense | Depreciation Expense. We calculate depreciation using the straight-line method based on the estimated useful lives after considering salvage values of our assets. Depreciation lives range from 12 to 35 years . However, factors such as maintenance levels, economic conditions impacting the demand for these assets, and regulatory or environmental requirements could cause us to change our estimates, thus impacting the future calculation of depreciation. |
Equity-Based Compensation | Equity‑Based Compensation . Equity‑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. Forfeitures are recognized as they occur. |
Income Taxes | Income Taxes . Deferred income taxes are determined using the liability method and reflect temporary differences between the financial statement carrying amount and income tax basis of assets and liabilities recorded using the statutory income tax rate. Regular assessments are made of the likelihood of those deferred tax assets being realized. If it is more likely than not that some or all of the deferred tax assets will not be realized, a valuation allowance is recorded to reduce the deferred tax assets to the amount expected to be realized. Prior to the Restructuring on December 16, 2019, we were not a separate taxable entity for U.S. federal and state income tax purposes; therefore, we did not provide for income tax benefit or expense. Each partner was subject to income taxes on its share of the Partnership’s earnings. On March 1, 2019, HIP acquired Hess Water Services (see Note 4 , Acquisitions ). For the periods prior to March 1, 2019, Hess Water Services was included in the consolidated income tax returns of Hess. The provision for Hess Water Services’ income taxes and income tax assets and liabilities were determined as if it were a standalone taxpayer for all periods presented. For the period from March 1, 2019 through the Restructuring date of December 16, 2019, Hess Water Services was not taxable itself and was not part of a separate taxable entity; therefore, no income tax provision was recognized. |
Net Income per Limited Partner Unit | Net Income Per Limited Partner Unit. Prior to the Restructuring, we identified the general partner interest and IDRs as participating securities and computed income per unit using the two‑class method under which net income per unit was 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 that period. Net income per unit applicable to limited partners, including subordinated unitholders, was computed by dividing limited partners' interest in net income, after deducting the general partner's 2 % interest and IDRs, by the weighted‑average number of outstanding common and subordinated units. |
Environmental and Legal Contingencies | Environmental and Legal Contingencies. We accrue and expense environmental costs on an undiscounted basis to remediate existing conditions related to past operations when the future costs are probable and reasonably estimable. In the ordinary course of business, the Company 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. |
Fair Value Measurements | Fair Value Measurements. We measure assets and liabilities requiring fair value presentation using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability) and disclose such amounts according to the level of valuation inputs under the following hierarchy: Level 1: Quoted prices in an active market for identical assets or liabilities. Level 2: Inputs other than quoted prices that are directly or indirectly observable. Level 3: Unobservable inputs that are significant to the fair value of assets or liabilities. The classification of an asset or liability within the fair value measurement hierarchy is based on the lowest level of input significant to its fair value. There were no nonrecurring fair value measurements during the years ended December 31, 2021 and 2020. We had other short‑term financial instruments, primarily cash and cash equivalents, accounts receivable and accounts payable, for which the carrying value approximated their fair value as of December 31, 2021 and 2020. |
Derivatives | Derivatives. We may utilize derivative instruments for financial risk management activities. In these activities, we may use futures, forwards, options and swaps, individually or in combination, to mitigate our exposure to fluctuations in interest rates. All derivative instruments are recorded at fair value in our consolidated balance sheet. Our policy for recognizing the changes in fair value of derivatives varies based on the designation of the derivative. The changes in fair value of derivatives that are not designated as hedges are recognized in earnings. Derivatives may be designated as hedges of expected future cash flows or forecasted transactions (cash flow hedges). Changes in fair value of derivatives that are designated as cash flow hedges are recorded as a component of other comprehensive income (loss). Amounts included in Accumulated other comprehensive income (loss) for cash flow hedges are reclassified into earnings in the same period that the hedged item is recognized in earnings. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform , as a new ASC Topic, ASC 848 and also issued subsequent amendments to the initial guidance (collectively, “ASC 848”). The purpose of ASC 848 is to provide optional guidance to ease the potential effects on financial reporting of the market-wide migration away from Interbank Offered Rates, such as London Interbank Offered Rate (“LIBOR”) to alternative reference rates. ASC 848 applies only to contracts, hedging relationships, debt arrangements and other transactions that reference a benchmark reference rate expected to be discontinued because of reference rate reform. ASC 848 contains optional expedients and exceptions for applying U.S. GAAP to transactions affected by this reform. The amendments in the ASU are effective for all entities through December 31, 2022. Borrowing under our Credit Facilities bear interest at LIBOR plus an applicable margin (see Note 8, Debt and Interest Expense ). Although our Credit Facilities mature in 2024, they include provisions for transition to an alternative reference rate without interruption in our ability to borrow under these Credit Facilities. We do not expect our adoption of ASC 848 or transition to an alternative reference rate will have a material impact on our consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of Hess Water Services Acquisition | In connection with the Hess Water Services acquisition, HIP acquired the following: (in millions) Property, plant and equipment, net $ 70.8 Working capital ( 1.2 ) Asset retirement obligations ( 0.7 ) Net assets acquired $ 68.9 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Revenues From Contracts With Customers on Disaggregated Basis | Revenues from contracts with customers on a disaggregated basis were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Oil and gas gathering services $ 540.4 $ 469.3 $ 345.6 Processing and storage services 435.7 370.3 294.7 Terminaling and export services 137.5 159.4 130.0 Water gathering and disposal services 90.2 92.6 77.3 Total revenues from contracts with customers $ 1,203.8 $ 1,091.6 $ 847.6 Other income - 0.3 0.7 Total revenues $ 1,203.8 $ 1,091.9 $ 848.3 |
Summary of MVC Shortfall Fees Earned | The following table presents MVC shortfall fees earned during each period: Year Ended December 31, 2021 2020 2019 (in millions) Oil and gas gathering services $ 43.0 $ 12.5 $ 5.0 Terminaling and export services 32.8 4.8 2.2 Water gathering and disposal services 6.8 1.4 1.1 Processing and storage services 4.4 - - Total $ 87.0 $ 18.7 $ 8.3 |
Summary of Third-party Pass-through Costs for Which Revenues in Amount Equal to Costs are Recognized and Classification of Charges between Operating and Maintenance Expenses and General and Administrative Expenses | The following table presents third-party pass-through costs for which we recognize revenues in an amount equal to the costs. These third-party costs are included in Operating and maintenance expenses in the accompanying consolidated statements of operations. Year Ended December 31, 2021 2020 2019 (in millions) Electricity and other related fees $ 50.3 $ 40.0 $ 32.2 Produced water trucking and disposal costs 37.0 55.9 57.7 Rail transportation costs 0.1 50.7 40.2 Total $ 87.4 $ 146.6 $ 130.1 For the years ended December 31, 2021, 2020 and 2019, 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. Year Ended December 31, 2021 2020 2019 (in millions) Operating and maintenance expenses $ 63.6 $ 62.8 $ 53.1 General and administrative expenses 15.4 15.1 15.5 Total $ 79.0 $ 77.9 $ 68.6 |
Summary of Activity Related to Agreements with Related Party | For the years ended December 31, 2021, 2020 and 2019, we had the following activity related to our agreements with LM4: Year Ended December 31, 2021 2020 2019 (in millions) Processing fee incurred $ 27.7 $ 25.6 $ 6.3 Earnings from equity investments $ 10.6 $ 10.3 $ 3.4 Distributions received from equity investments $ 17.4 $ 9.7 $ - |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment, at cost, is as follows: Estimated useful lives December 31, 2021 December 31, 2020 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 1,489.7 $ 1,470.6 Compressors, pumping stations and terminals 22 to 25 years 809.0 778.6 Gas plant assets Pipelines, pipes and valves 22 to 25 years 460.0 460.0 Equipment 12 to 30 years 428.3 428.3 Processing and fractionation facilities 25 years 408.7 189.0 Buildings 35 years 182.3 182.3 Logistics facilities and railcars 20 to 25 years 386.5 386.2 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 25.8 20.9 Construction-in-progress N/A 131.6 227.3 Total property, plant and equipment, at cost 4,341.4 4,162.7 Accumulated depreciation ( 1,216.4 ) ( 1,051.4 ) Property, plant and equipment, net $ 3,125.0 $ 3,111.3 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities are as follows: December 31, 2021 December 31, 2020 (in millions) Accrued interest $ 30.9 $ 18.0 Accrued capital expenditures 26.5 13.6 Other accruals 18.8 22.5 Total $ 76.2 $ 54.1 |
Debt and Interest Expense (Tabl
Debt and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Total Long-term Debt | Total long-term debt is as follows: December 31, 2021 December 31, 2020 (in millions) Fixed-rate senior notes: 5.625 % due 2026 $ 800.0 $ 800.0 5.125 % due 2028 550.0 550.0 4.250 % due 2030 750.0 - Total fixed-rate senior notes 2,100.0 1,350.0 Term Loan A facility 390.0 400.0 Revolving credit facility 104.0 184.0 Total Borrowings 2,594.0 1,934.0 Unamortized deferred financing costs and discounts ( 30.5 ) ( 23.9 ) Total debt 2,563.5 1,910.1 Less: current maturities of long-term debt 20.0 10.0 Total long-term debt $ 2,543.5 $ 1,900.1 |
Summary of Maturity Profile of Total Debt, Excluding Deferred Financing Costs and Discounts | As of December 31, 2021, the maturity profile of total debt, excluding deferred financing costs and discounts, is as follows: (in millions) Total 2022 2023 2024 2025 2026 2027 and thereafter Fixed-rate senior notes $ 2,100.0 $ - $ - $ - $ - $ 800.0 $ 1,300.0 Term Loan facility 390.0 20.0 30.0 340.0 - - - Revolving credit facility 104.0 - - 104.0 - - - Total debt (excluding interest) $ 2,594.0 $ 20.0 $ 30.0 $ 444.0 $ - $ 800.0 $ 1,300.0 |
Partners' Capital and Distrib_2
Partners' Capital and Distributions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Partners Capital Notes [Abstract] | |
Schedule of Changes in Number of Shares Outstanding | The changes in the number of shares outstanding from December 31, 2019 through December 31, 2021 are as follows: Class A Shares Public Sponsors Total Class A Shares Class B Shares Total Class A and Class B Shares Balance, December 31, 2019 17,062,655 898,000 17,960,655 266,416,928 284,377,583 Equity-based compensation 67,653 - 67,653 - 67,653 Balance, December 31, 2020 17,130,308 898,000 18,028,308 266,416,928 284,445,236 Equity-based compensation 118,760 - 118,760 - 118,760 Equity offering transaction - 6,900,000 - 6,900,000 ( 6,900,000 ) - Equity offering transaction - 8,625,000 - 8,625,000 ( 8,625,000 ) - Repurchase Transaction - - - ( 31,250,000 ) ( 31,250,000 ) Balance, December 31, 2021 32,774,068 898,000 33,672,068 219,641,928 253,313,996 |
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 Class A share First Quarter 2019 May 3, 2019 May 14, 2019 $ 0.3833 Second Quarter 2019 August 5, 2019 August 13, 2019 $ 0.3970 Third Quarter 2019 November 4, 2019 November 13, 2019 $ 0.4112 Fourth Quarter 2019 February 6, 2020 February 14, 2020 $ 0.4258 First Quarter 2020 May 4, 2020 May 14, 2020 $ 0.4310 Second Quarter 2020 August 6, 2020 August 14, 2020 $ 0.4363 Third Quarter 2020 November 5, 2020 November 13, 2020 $ 0.4417 Fourth Quarter 2020 February 4, 2021 February 12, 2021 $ 0.4471 First Quarter 2021 May 3, 2021 May 13, 2021 $ 0.4526 Second Quarter 2021 August 9, 2021 August 13, 2021 $ 0.5042 Third Quarter 2021 November 4, 2021 November 12, 2021 $ 0.5104 Fourth Quarter 2021 (1) February 3, 2022 February 14, 2022 $ 0.5167 (1) For more information, see Note 16 , Subsequent Events . |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Equity-based Award Activity | Equity‑based award activity for the year ended December 31, 2021 was as follows: Weighted Average Award Date Number of Shares Fair Value Outstanding and unvested shares at December 31, 2020 228,344 $ 13.78 Granted 78,347 22.40 Vested ( 118,760 ) 14.77 Outstanding and unvested shares at December 31, 2021 187,931 $ 16.75 (in millions) 2021 2020 2019 Fair value of shares granted $ 1.8 $ 1.9 $ 1.7 Fair value of shares vested $ 1.8 $ 1.5 $ 1.0 |
Earnings per Share_Limited Pa_2
Earnings per Share/Limited Partner Unit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share Limited Partner Unit | Subsequent to the Restructuring, we calculate earnings per Class A Share as we do not have any other participating securities. Substantially all of income tax expense is attributed to earnings of Class A Shares reflective of our organizational structure. Class B Units of the Partnership together with the equal number of Class B Shares of the Company are convertible to Class A Shares of the Company on a one -for-one basis. In addition, our restricted equity-based awards may have a dilutive effect on our earnings per share. Diluted earnings per Class A Share are calculated using the “treasury stock method” or “if-converted method”, whichever is more dilutive. Year Ended December 31, (in millions, except per share amounts) 2021 2020 2019 Net income 617.8 484.9 317.7 Less: Net income attributable to net parent investment - - ( 55.0 ) Less: Net income attributable to noncontrolling interest 571.4 460.9 302.6 Net income attributable to Hess Midstream LP 46.4 24.0 70.1 Less: General partners' interest in net income - - 3.4 Limited partners' interest in net income $ 46.4 $ 24.0 $ 66.7 Net income attributable to Hess Midstream LP Basic: $ 1.81 $ 1.33 $ 1.21 Diluted: $ 1.76 $ 1.31 $ 1.20 Weighted average Class A shares outstanding: Basic: 25.6 18.0 18.0 Diluted: 25.7 18.1 18.0 Weighted average limited partner units outstanding Basic: Common 27.3 Subordinated 27.3 Diluted: Common 27.5 Subordinated 27.3 *Net income attributable to Hess Midstream LP per Class A Share/limited partner unit for 2019 was calculated by combining net income per limited partner unit (common and subordinated) for the period prior to the Restructuring on December 16, 2019, and net income per Class A Share for the period subsequent to the Restructuring. |
Summary of Reconciliation of Numerator and Denominator of Diluted Earnings | A reconciliation of the numerator and the denominator of the diluted earnings per Class A Share calculation under the “if-converted” method for the year ended December 31, 2021, is presented below: Year Ended December 31, 2021 (in millions, except per share data) Diluted net income per share Numerator: Net income attributable to Hess Midstream LP $ 46.4 Effect of exchange of Class B Units of the Partnership and 571.4 Effect of income tax expense on additional income attributable (1) ( 139.4 ) Diluted net income attributable to Hess Midstream LP $ 478.4 Denominator: Basic weighted average Class A Shares outstanding 25.6 Effect of dilutive securities: Weighted average Class B Units/Shares 246.7 Restricted equity-based awards 0.1 Diluted weighted average shares outstanding 272.4 Diluted net income attributable to Hess Midstream LP $ 1.76 (1) Income tax effect is calculated assuming 24.39 % blended U.S. federal and state income tax rate. |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 (in millions) For the Year Ended December 31, 2021 Revenues and other income $ 630.6 $ 435.7 $ 137.5 $ - $ 1,203.8 Net income (loss) 377.6 263.8 103.7 ( 127.3 ) 617.8 Net income (loss) attributable to 36.3 25.5 10.1 ( 25.5 ) 46.4 Depreciation expense 101.0 48.4 16.2 - 165.6 Proportional share of equity affiliates' depreciation - 5.1 - - 5.1 Income from equity investments - 10.6 - - 10.6 Interest expense, net - - - 105.4 105.4 Income tax expense - - - 14.6 14.6 Adjusted EBITDA 478.6 317.3 119.9 ( 7.3 ) 908.5 Capital expenditures* 154.0 28.8 0.2 - 183.0 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated (in millions) For the Year Ended December 31, 2020 Revenues and other income $ 561.9 $ 370.6 $ 159.4 $ - $ 1,091.9 Net income (loss) 300.7 218.7 73.5 ( 108.0 ) 484.9 Net income (loss) attributable to 19.2 13.7 4.7 ( 13.6 ) 24.0 Depreciation expense 96.0 44.8 16.1 - 156.9 Proportional share of equity affiliates' depreciation - 5.1 - - 5.1 Income from equity investments - 10.3 - - 10.3 Interest expense, net - - - 94.7 94.7 Income tax expense (benefit) - - - 7.3 7.3 Gain on sale of property, plant and equipment 0.1 - - - 0.1 Adjusted EBITDA 396.6 268.6 89.6 ( 6.0 ) 748.8 Capital expenditures* 96.2 156.2 0.6 - 253.0 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated (in millions) For the Year Ended December 31, 2019 Revenues and other income $ 422.9 $ 295.3 $ 130.1 $ - $ 848.3 Net income (loss) 186.0 176.1 54.8 ( 99.2 ) 317.7 Net income (loss) attributable to 34.6 34.6 10.5 ( 9.6 ) 70.1 Depreciation expense 81.6 44.7 16.2 - 142.5 Proportional share of equity affiliates' depreciation - 2.0 - - 2.0 Income from equity investments - 3.4 - - 3.4 Interest expense, net - - - 62.4 62.4 Income tax expense (benefit) - - - ( 0.1 ) ( 0.1 ) Transaction costs - - - 26.2 26.2 Adjusted EBITDA 267.6 222.8 71.0 ( 10.7 ) 550.7 Capital expenditures* 373.6 42.5 0.2 - 416.3 * Includes acquisition, expansion, and maintenance capital expenditures. |
Total Assets for Reportable Segments | Total assets for reportable segments are as follows: December 31, 2021 December 31, 2020 (in millions) Gathering $ 1,927.0 $ 1,856.2 Processing and Storage (1) 1,149.5 1,170.3 Terminaling and Export 281.4 292.3 Interest and Other 127.7 55.7 Total assets $ 3,485.6 $ 3,374.5 (1) Includes investment in equity investees of $ 101.6 million as of December 31, 2021 and $ 108.4 million as of December 31, 2020. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes consisted of: Year Ended December 31, (in millions) 2021 2020 2019 Federal Current $ 0.1 $ - $ - Deferred taxes and other accruals 12.5 6.2 ( 0.1 ) State 2.0 1.1 - Total provision (benefit) for income taxes $ 14.6 $ 7.3 $ ( 0.1 ) |
Summary of Difference between the Effective Income Tax Rate and U.S. Statutory Rate | The difference between the effective income tax rate and the U.S. statutory rate is reconciled below: Year Ended December 31, 2021 2020 2019 U.S. statutory rate 21.0 % 21.0 % 21.0 % Non-taxable income from pre-Restructuring period - - ( 21.4 ) Noncontrolling interest in partnership ( 19.0 ) ( 19.7 ) 0.4 State tax 0.3 0.2 - Effective rate 2.3 % 1.5 % - % |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: December 31, 2021 2020 (in millions) Deferred tax liabilities Investments $ ( 0.4 ) $ ( 0.3 ) Total deferred tax liabilities ( 0.4 ) ( 0.3 ) Deferred tax assets Investments 102.3 39.0 Net operating loss carryforwards 15.0 3.8 Total deferred tax assets 117.3 42.8 Net deferred tax assets (liabilities) $ 116.9 $ 42.5 |
Description of Business - Addit
Description of Business - Additional Information (Detail) $ in Millions | Dec. 16, 2019USD ($)shares | Oct. 03, 2019 | Apr. 10, 2017shares | Dec. 31, 2021SegmentsharesMMcf | Dec. 31, 2020sharesMMcf | Dec. 31, 2019shares | Sep. 30, 2019 | Jan. 25, 2018MMcf | Jan. 24, 2018 |
Description Of Business [Line Items] | |||||||||
Number of operating segments | Segment | 3 | ||||||||
Percentage of ownership interest | 13.30% | 6.30% | |||||||
Number of units hold in partnership | 253,313,996 | 284,445,236 | 284,377,583 | ||||||
LM4 | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership in joint venture | 50.00% | 50.00% | 50.00% | ||||||
Gas processing plant capacity | MMcf | 200 | ||||||||
LM4 | Targa Resources Corp. | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership in joint venture | 50.00% | 50.00% | |||||||
Class B Shares | |||||||||
Description Of Business [Line Items] | |||||||||
Common and subordinated units issued | 219,641,928 | 266,416,928 | |||||||
Number of units hold in partnership | 219,641,928 | 266,416,928 | 266,416,928 | ||||||
Common Class A | |||||||||
Description Of Business [Line Items] | |||||||||
Common and subordinated units issued | 33,672,068 | 18,028,308 | |||||||
Number of units hold in partnership | 33,672,068 | 18,028,308 | 17,960,655 | ||||||
Hess North Dakota Pipelines Operations Limited Partnership | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of noncontrolling economic interest | 80.00% | ||||||||
Hess T G P Operations Limited Partnership | |||||||||
Description Of Business [Line Items] | |||||||||
Natural gas processing capacity expansion | MMcf | 150 | ||||||||
Percentage of noncontrolling economic interest | 80.00% | ||||||||
Hess North Dakota Export Logistics Operations Limited Partnership | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of noncontrolling economic interest | 80.00% | ||||||||
Third-party Residue Export Expansion | |||||||||
Description Of Business [Line Items] | |||||||||
Expected natural gas processing capacity | MMcf | 400 | ||||||||
Hess Water Services Holdings Limited Liability Company | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 100.00% | 100.00% | |||||||
Hess Midstream Partners GP Limited Partner | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 100.00% | ||||||||
Hess Infrastructure Partners LP | Common Units | |||||||||
Description Of Business [Line Items] | |||||||||
Common and subordinated units issued | 10,282,654 | ||||||||
Hess Infrastructure Partners LP | Subordinated Units | |||||||||
Description Of Business [Line Items] | |||||||||
Common and subordinated units issued | 27,279,654 | ||||||||
Hess Infrastructure Partners LP | IPO | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 20.00% | ||||||||
Hess Mentor Storage Holdings Limited Liability Company | IPO | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 100.00% | ||||||||
Hess Infrastructure Partners Limited Partnership Joint Interest Assets | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 80.00% | ||||||||
Hess Water Services and Hess Midstream Partners GP Limited Partner | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 100.00% | ||||||||
Public Limited Partners | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 97.30% | 95.00% | |||||||
Percentage of indirect ownership interest | 12.90% | 6.00% | |||||||
Percentage of voting interest | 12.90% | 6.00% | |||||||
Hess and GIP | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of noncontrolling economic interest | 86.70% | 93.70% | |||||||
Percentage of ownership interest | 2.70% | 5.00% | |||||||
Percentage of indirect ownership interest | 100.00% | ||||||||
Percentage of direct ownership interest | 87.10% | 94.00% | |||||||
Cash consideration | $ | $ 601.8 | ||||||||
Percentage of voting interest | 87.10% | 94.00% | |||||||
Stock exchange ratio | 100.00% | ||||||||
Hess and GIP | Common Class A | |||||||||
Description Of Business [Line Items] | |||||||||
Conversion of Class B units and Class B shares into Class A shares | 100.00% | ||||||||
Number of units hold in partnership | 898,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) - USD ($) | Dec. 16, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Line Items] | ||||
Doubtful accounts written off | $ 0 | $ 0 | ||
Allowance for doubtful accounts | 0 | 0 | ||
Impairment of long-lived assets | $ 0 | 0 | $ 0 | |
Minimum | ||||
Accounting Policies [Line Items] | ||||
Depreciation lives of assets | 12 years | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Depreciation lives of assets | 35 years | |||
Other Noncurrent Liabilities | ||||
Accounting Policies [Line Items] | ||||
Asset retirement obligation, noncurrent | $ 11,000,000 | 12,800,000 | ||
Accrued Liabilities | ||||
Accounting Policies [Line Items] | ||||
Asset retirement obligation,current | 3,000,000 | 1,700,000 | ||
Revolving Credit Facility | Other Noncurrent Assets | ||||
Accounting Policies [Line Items] | ||||
Unamortized deferred financing costs and discounts | 6,900,000 | 9,300,000 | ||
Fixed-Rate Senior Notes and Term Loan | Long-term Debt | ||||
Accounting Policies [Line Items] | ||||
Unamortized deferred financing costs and discounts | $ 30,500,000 | $ 23,900,000 | ||
LM4 | ||||
Accounting Policies [Line Items] | ||||
Capitalized interests expenses | $ 4,100,000 | |||
Hess and GIP | ||||
Accounting Policies [Line Items] | ||||
Noncontrolling interest percentage | 86.70% | 93.70% | ||
Hess Infrastructure Partners Limited Partnership Joint Interest Assets | ||||
Accounting Policies [Line Items] | ||||
Noncontrolling interest percentage prior to restructuring | 80.00% | |||
Percentage of ownership interest | 80.00% | |||
General Partner Interest and IDRs | ||||
Accounting Policies [Line Items] | ||||
Percentage of ownership interest | 2.00% |
Equity Transactions - Additiona
Equity Transactions - Additional Information (Details) - USD ($) | Oct. 08, 2021 | Jul. 27, 2021 | Mar. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 10, 2021 |
Class of Stock [Line Items] | ||||||
Percentage of ownership interest | 13.30% | 6.30% | ||||
Additions to deferred tax asset | $ 117,300,000 | $ 42,800,000 | $ 89,000,000 | |||
Costs incurred to repurchase shares were charged to equity | 2,100,000 | |||||
4.250% Senior Notes Due 2030 | ||||||
Class of Stock [Line Items] | ||||||
Fixed-rate senior notes | $ 750,000,000 | |||||
Class A Shares | ||||||
Class of Stock [Line Items] | ||||||
Equity offering transaction | 8,625,000 | 6,900,000 | ||||
Shares issued, price per share | $ 26 | $ 21 | ||||
Proceeds from Issuance of public equity offering | 0 | |||||
Net proceeds received by sponsors from public equity offering | 356,500,000 | |||||
Common unitholders | $ 52,400,000 | 204,100,000 | $ 125,000,000 | |||
Additions to deferred tax asset | $ 74,200,000 | $ 14,800,000 | ||||
Class A Shares | Maximum | ||||||
Class of Stock [Line Items] | ||||||
Underwriters’ option to purchase additional shares | 900,000 | |||||
Underwriters' option to purchase additional shares fully exercised | 1,125,000 | |||||
Class B Shares | ||||||
Class of Stock [Line Items] | ||||||
Repurchase of shares | 15,625,000 | |||||
Value of shares repurchased | $ 750,000,000 | |||||
Stock purchased price per share | $ 24 | |||||
Percentage of discount on purchase price per share | 4.00% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | Dec. 16, 2019 | Oct. 03, 2019 | Mar. 22, 2019 | Mar. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||||||
Cash paid for business acquisition, net of cash acquired | $ 89.2 | ||||||
Restructuring costs | 26.2 | ||||||
Hess Infrastructure Partners Limited Partnership Joint Interest Assets | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of ownership interest | 80.00% | ||||||
Hess Water Services Holdings Limited Liability Company | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of ownership interest | 100.00% | 100.00% | |||||
Hess Infrastructure Partners LP | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of membership interest acquired | 100.00% | ||||||
Cash paid for business acquisition, net of cash acquired | $ 225 | ||||||
Hess | |||||||
Business Acquisition [Line Items] | |||||||
Business combination consideration transferred in excess of book value of net assets acquired as capital distribution | 156.1 | ||||||
Hess | Final Purchase Settlement | |||||||
Business Acquisition [Line Items] | |||||||
Business combination consideration transferred in excess of book value of net assets acquired as capital distribution | $ 1.6 | ||||||
Tioga System Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of membership interest acquired | 100.00% | ||||||
Cash paid for business acquisition, net of cash acquired | $ 89.2 | ||||||
Tioga System Acquisition | Other Noncurrent Liabilities | |||||||
Business Acquisition [Line Items] | |||||||
Contingent liability | $ 7 | $ 2.9 | |||||
Hess Infrastructure Partners LP Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 601.8 | ||||||
Stock split conversion ratio | 1 | ||||||
Hess Infrastructure Partners LP Acquisition | General and Administrative Expenses | |||||||
Business Acquisition [Line Items] | |||||||
Restructuring costs | $ 26.2 | ||||||
Hess Infrastructure Partners LP Acquisition | Class A Shares | |||||||
Business Acquisition [Line Items] | |||||||
Units representing noncontrolling limited partner interests | 898,000 | ||||||
Hess Infrastructure Partners LP Acquisition | Class B Shares | |||||||
Business Acquisition [Line Items] | |||||||
Units representing noncontrolling limited partner interests | 266,416,928 | ||||||
Cash consideration | $ 601.8 |
Acquisitions - Summary of Hess
Acquisitions - Summary of Hess Water Services Acquisition (Detail) - Hess Infrastructure Partners LP $ in Millions | Mar. 01, 2019USD ($) |
Business Acquisition [Line Items] | |
Property, plant and equipment, net | $ 70.8 |
Working capital | (1.2) |
Asset retirement obligations | (0.7) |
Net assets acquired | $ 68.9 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Jan. 24, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jan. 25, 2018 |
LM4 | ||||||
Related Party Transaction [Line Items] | ||||||
Initial term of agreement | 16 years | |||||
Agreement description | The agreement has a 16-year initial term, after which it is automatically renewed for subsequent one-year terms unless terminated by either party | |||||
Percentage of gas processing plant capacity | 50.00% | |||||
Percentage of ownership in joint venture | 50.00% | 50.00% | 50.00% | |||
Customer Concentration Risk | Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues attributable to fee based commercial agreements | 100.00% | 100.00% | ||||
Hess | Customer Concentration Risk | Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues attributable to fee based commercial agreements | 100.00% | 100.00% | 100.00% | |||
Hess | Amended and Restated Commercial Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Minimum volume commitments, Description | MVCs are equal to 80% of Hess' nominations in each development plan that apply on a three-year rolling basis such that MVCs are set for the three years following the most recent nomination. Without our consent, the MVCs resulting from the nominated volumes for any quarter or year contained in any prior development plan cannot be reduced by any updated development plan unless dedicated production is released by us. The applicable MVCs may, however, be increased as a result of the nominations contained in any such updated development plan. | |||||
Minimum volume commitments expressed as percentage of related party nominations in development plans | 80.00% | |||||
Initial term of agreement | 10 years | |||||
Agreement description | each of our commercial agreements with Hess has an initial 10-year term effective January 1, 2014 (“Initial Term”). | |||||
Number of rights to extend the term of agreement | one | |||||
Advance period to call for extension of term of agreement | 3 years | |||||
Secondary term of agreement | 10 years | |||||
Hess | Amended and Restated Agreement for Certain Gas Gathering Sub-system | ||||||
Related Party Transaction [Line Items] | ||||||
Initial term of agreement | 15 years | |||||
Agreement description | For this gathering sub-system, the Initial Term is 15 years effective January 1, 2014 and for the water services agreements the Initial Term is 14 years effective January 1, 2019. | |||||
Secondary term of agreement | 5 years | |||||
Hess | Amended and Restated Water Services Agreements | ||||||
Related Party Transaction [Line Items] | ||||||
Initial term of agreement | 14 years | |||||
Secondary term of agreement | 10 years | |||||
Hess | Terminal and Export Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Commercial agreement period | 20 years | |||||
Hess | Commercial Agreements Other Than Storage Services Agreement and Terminal and Export Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Minimum volume commitments, Description | During the Secondary Term of our commercial agreements, Hess will continue to have MVCs equal to 80% of Hess' nominations in each development plan that apply on a three-year rolling basis through the Secondary Term. | |||||
Minimum volume commitments expressed as percentage of related party nominations in development plans | 80.00% | |||||
Maximum consumer price index percentage | 3.00% | |||||
Fee recalculation model description | the fee recalculation model under each applicable agreement will be replaced by an inflation-based fee structure. The initial fee for the first year of the Secondary Term will be determined based on the average fees paid by Hess under the applicable agreement during the last three years of the Initial Term (with such fees adjusted for inflation through the first year of the Secondary Term). For each year following the first year of the Secondary Term, the applicable fee will be adjusted annually based on the percentage change in the consumer price index, provided that we may not increase any fee by more than 3% in any calendar year solely by reason of an increase in the consumer price index, and no fee will ever be reduced below the amount of the applicable fee payable by Hess in the prior year as a result of a decrease in the consumer price index. During the Secondary Term of our commercial agreements, Hess will continue to have MVCs equal to 80% of Hess' nominations in each development plan that apply on a three-year rolling basis through the Secondary Term. | |||||
Targa Resources Corp. | LM4 | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership in joint venture | 50.00% | 50.00% |
Related Party Transactions - Su
Related Party Transactions - Summary of Revenues From Contracts With Customers on Disaggregated Basis (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | $ 1,203.8 | $ 1,091.6 | $ 847.6 |
Other income | 0.3 | 0.7 | |
Total revenues | 1,203.8 | 1,091.9 | 848.3 |
Oil and Gas Gathering Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | 540.4 | 469.3 | 345.6 |
Processing and Storage Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | 435.7 | 370.3 | 294.7 |
Terminaling and Export Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | 137.5 | 159.4 | 130 |
Water Gathering and Disposal Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | $ 90.2 | $ 92.6 | $ 77.3 |
Related Party Transactions - _2
Related Party Transactions - Summary of MVC Shortfall Fees Earned (Details) - Hess - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | $ 87 | $ 18.7 | $ 8.3 |
Oil and Gas Gathering Services | |||
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | 43 | 12.5 | 5 |
Terminaling and Export Services | |||
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | 32.8 | 4.8 | 2.2 |
Water Gathering and Disposal Services | |||
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | 6.8 | $ 1.4 | $ 1.1 |
Processing and Storage Services | |||
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | $ 4.4 |
Related Party Transactions - _3
Related Party Transactions - Summary of Third-party Pass-through Costs for Which Revenues in Amount Equal to Costs are Recognized (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Reimbursement revenue | $ 1,203.8 | $ 1,091.6 | $ 847.6 |
Hess | |||
Related Party Transaction [Line Items] | |||
Total | 87.4 | 146.6 | 130.1 |
Hess | Electricity and Other Related Fees | |||
Related Party Transaction [Line Items] | |||
Reimbursement revenue | 50.3 | 40 | 32.2 |
Hess | Produced Water Trucking and Disposal Costs | |||
Related Party Transaction [Line Items] | |||
Reimbursement revenue | 37 | 55.9 | 57.7 |
Hess | Rail Transportation Costs | |||
Related Party Transaction [Line Items] | |||
Reimbursement revenue | $ 0.1 | $ 50.7 | $ 40.2 |
Related Party Transactions - _4
Related Party Transactions - Summary of Classification of Charges between Operating and Maintenance Expenses and General and Administrative Expenses (Detail) - Hess - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Operating and maintenance expenses | $ 63.6 | $ 62.8 | $ 53.1 |
General and administrative expenses | 15.4 | 15.1 | 15.5 |
Total | $ 79 | $ 77.9 | $ 68.6 |
Related Party Transactions - _5
Related Party Transactions - Summary of Activity Related to Agreements with Related Party (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Earnings from equity investments | $ 10.6 | $ 10.3 | $ 3.4 |
Distributions received from equity investments | 17.4 | 9.7 | |
LM4 | |||
Related Party Transaction [Line Items] | |||
Processing fee incurred | 27.7 | 25.6 | 6.3 |
Earnings from equity investments | 10.6 | 10.3 | $ 3.4 |
Distributions received from equity investments | $ 17.4 | $ 9.7 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 4,341.4 | $ 4,162.7 |
Accumulated depreciation | (1,216.4) | (1,051.4) |
Property, plant and equipment, net | $ 3,125 | 3,111.3 |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 12 years | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 35 years | |
Logistics Facilities and Railcars | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 386.5 | 386.2 |
Logistics Facilities and Railcars | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 20 years | |
Logistics Facilities and Railcars | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Storage Facilities | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 19.5 | 19.5 |
Storage Facilities | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 20 years | |
Storage Facilities | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Other | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 25.8 | 20.9 |
Other | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 20 years | |
Other | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Construction-In-Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 131.6 | 227.3 |
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 | $ 1,489.7 | 1,470.6 |
Gathering Assets | Compressors, Pumping Stations and Terminals | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 809 | 778.6 |
Gathering Assets | Compressors, Pumping Stations and Terminals | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 22 years | |
Gathering Assets | Compressors, Pumping Stations and Terminals | Maximum | ||
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 | Pipelines, Pipes and Valves | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 22 years | |
Gas Plant Assets | Pipelines, Pipes and Valves | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Gas Plant Assets | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 428.3 | 428.3 |
Gas Plant Assets | Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 12 years | |
Gas Plant Assets | Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 30 years | |
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 | $ 408.7 | 189 |
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 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Accrued interest | $ 30.9 | $ 18 |
Accrued capital expenditures | 26.5 | 13.6 |
Other accruals | 18.8 | 22.5 |
Total | $ 76.2 | $ 54.1 |
Accrued Liabilities and Other_4
Accrued Liabilities and Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Other current liabilities | $ 10.2 | $ 9.9 |
Debt and Interest Expense - Sum
Debt and Interest Expense - Summary of Total Long-term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total Borrowings | $ 2,594 | $ 1,934 |
Unamortized deferred financing costs and discounts | (30.5) | (23.9) |
Total debt | 2,563.5 | 1,910.1 |
Less: current maturities of long-term debt | 20 | 10 |
Total long-term debt | 2,543.5 | 1,900.1 |
Term Loan A Facility | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 390 | 400 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 104 | 184 |
Fixed-Rate Senior Notes | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 2,100 | 1,350 |
Fixed-Rate Senior Notes | 5.625% Fixed Rate Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 800 | 800 |
Fixed-Rate Senior Notes | 5.125% Fixed Rate Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 550 | $ 550 |
Fixed-Rate Senior Notes | 4.250% Fixed Rate Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Total Borrowings | $ 750 |
Debt and Interest Expense - S_2
Debt and Interest Expense - Summary of Total Long-term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
5.625% Fixed Rate Senior Notes due 2026 | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 5.625% |
Debt instrument due year | 2026 |
5.125% Fixed Rate Senior Notes due 2028 | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 5.125% |
Debt instrument due year | 2028 |
4.250% Fixed Rate Senior Notes due 2030 | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 4.25% |
Debt instrument due year | 2030 |
Debt and Interest Expense - S_3
Debt and Interest Expense - Summary of Maturity Profile of Total Debt, Excluding Deferred Financing Costs and Discounts (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total debt (excluding interest) | $ 2,594 | $ 1,934 |
2022 | 20 | |
2023 | 30 | |
2024 | 444 | |
2026 | 800 | |
2027 and thereafter | 1,300 | |
Fixed-Rate Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt (excluding interest) | 2,100 | 1,350 |
2026 | 800 | |
2027 and thereafter | 1,300 | |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Total debt (excluding interest) | 390 | |
2022 | 20 | |
2023 | 30 | |
2024 | 340 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt (excluding interest) | 104 | $ 184 |
2024 | $ 104 |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Debt covenant, leverage ratio | 550.00% | ||||
Ratio of debt to EBITDA | 500.00% | ||||
Secured leverage ratio - Maximum | 400.00% | ||||
Debt instrument covenant, description | The Credit Facilities contain representations and warranties, affirmative and negative covenants and events of default that the Partnership considers to be customary for an agreement of this type, including a covenant that requires the Partnership to maintain a ratio of total debt to EBITDA (as defined in the Credit Facilities) for the prior four fiscal quarters of not greater than 5.00 to 1.00 as of the last day of each fiscal quarter (5.50 to 1.00 during the specified period following certain acquisitions) and, prior to the Partnership obtaining an investment grade credit rating, a ratio of secured debt to EBITDA for the prior four fiscal quarters of not greater than 4.00 to 1.00 as of the last day of each fiscal quarter. | ||||
Total debt | $ 2,563,500,000 | $ 1,910,100,000 | |||
Line of credit interest paid on credit facilities, including facility fees | $ 88,900,000 | $ 60,800,000 | |||
Carrying Value | |||||
Debt Instrument [Line Items] | |||||
Total debt | 2,563,500,000 | ||||
Level 2 | |||||
Debt Instrument [Line Items] | |||||
Total debt fair value | $ 2,648,500,000 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility - Term | 5 years | ||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||
Borrowings | $ 104,000,000 | ||||
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate applicable margin | 1.55% | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate applicable margin | 2.50% | ||||
Term Loan A Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility - Term | 5 years | ||||
Maximum borrowing capacity | $ 400,000,000 | ||||
Cash received | 210,000,000 | ||||
Borrowings | $ 390,000,000 | ||||
Syndicated Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility - Term | 5 years | ||||
Syndicated Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate applicable margin | 1.275% | ||||
Syndicated Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate applicable margin | 2.00% | ||||
Fixed-Rate Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt covenant, leverage ratio | 425.00% | ||||
5.625% Fixed Rate Senior Notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of fixed-rate senior notes | $ 800,000,000 | 800,000,000 | |||
Debt instrument interest rate | 5.625% | ||||
Debt instrument due year | 2026 | ||||
5.625% Fixed Rate Senior Notes due 2026 | Fixed-Rate Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 5.625% | ||||
Debt instrument due year | 2026 | ||||
Frequency of periodic interest payment | semi‑annually | ||||
Interest payment terms | Interest is payable semi‑annually on February 15 and August 15. | ||||
5.625% Fixed Rate Senior Notes due 2026 | Fixed-Rate Senior Notes | Hess Infrastructure Partners LP | |||||
Debt Instrument [Line Items] | |||||
Exchange consent fee | 2,000,000 | ||||
5.125% Fixed Rate Senior Notes due 2028 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of fixed-rate senior notes | $ 550,000,000 | $ 550,000,000 | |||
Debt instrument interest rate | 5.125% | ||||
Debt instrument due year | 2028 | ||||
5.125% Fixed Rate Senior Notes due 2028 | Fixed-Rate Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 5.125% | ||||
Debt instrument due year | 2028 | ||||
Frequency of periodic interest payment | semi‑annually | ||||
Interest payment terms | Interest is payable semi‑annually on June 15 and December 15. | ||||
4.250% Fixed Rate Senior Notes due 2030 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of fixed-rate senior notes | $ 750,000,000 | ||||
Debt instrument interest rate | 4.25% | ||||
Debt instrument due year | 2030 | ||||
4.250% Fixed Rate Senior Notes due 2030 | Fixed-Rate Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 4.25% | ||||
Debt instrument due year | 2030 | ||||
Frequency of periodic interest payment | semi‑annually | ||||
Interest payment terms | Interest is payable semi‑annually on February 15 and August 15 |
Partners' Capital and Distrib_3
Partners' Capital and Distributions - Additional Information (Detail) $ / shares in Units, $ in Millions | Dec. 16, 2019USD ($)$ / sharesshares | Dec. 31, 2021 |
Distribution Made To Limited Partner [Line Items] | ||
Period of cash distribution to shareholders | 45 days | |
Hess Infrastructure Partners LP Acquisition | ||
Distribution Made To Limited Partner [Line Items] | ||
Cash consideration | $ | $ 601.8 | |
Stock split conversion ratio | 1 | |
Common units of the partnership converted into class A shares | 17,062,655 | |
Hess Infrastructure Partners LP Acquisition | Common Class A | ||
Distribution Made To Limited Partner [Line Items] | ||
Units representing noncontrolling limited partner interests | 898,000 | |
Hess Infrastructure Partners LP Acquisition | Class B Shares | ||
Distribution Made To Limited Partner [Line Items] | ||
Units representing noncontrolling limited partner interests | 266,416,928 | |
Cash consideration | $ | $ 601.8 | |
Business acquisition, share price | $ / shares | $ 0.0001 |
Partners' Capital and Distrib_4
Partners' Capital and Distributions - Schedule of Changes in Number of Shares Outstanding (Details) - shares | Oct. 08, 2021 | Mar. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Limited Partners Capital Account [Line Items] | ||||
Shares Outstanding, Beginning Balance | 284,445,236 | 284,377,583 | ||
Equity-based compensation | 118,760 | 67,653 | ||
Repurchase Transaction | (31,250,000) | |||
Shares Outstanding, Ending Balance | 253,313,996 | 284,445,236 | ||
Class A Shares | ||||
Limited Partners Capital Account [Line Items] | ||||
Shares Outstanding, Beginning Balance | 18,028,308 | 17,960,655 | ||
Equity-based compensation | 118,760 | 67,653 | ||
Equity offering transaction | 8,625,000 | 6,900,000 | ||
Shares Outstanding, Ending Balance | 33,672,068 | 18,028,308 | ||
Class A Shares | March 2021 | ||||
Limited Partners Capital Account [Line Items] | ||||
Equity offering transaction | 6,900,000 | |||
Class A Shares | October 2021 | ||||
Limited Partners Capital Account [Line Items] | ||||
Equity offering transaction | 8,625,000 | |||
Class B Shares | ||||
Limited Partners Capital Account [Line Items] | ||||
Shares Outstanding, Beginning Balance | 266,416,928 | 266,416,928 | ||
Repurchase Transaction | (31,250,000) | |||
Shares Outstanding, Ending Balance | 219,641,928 | 266,416,928 | ||
Class B Shares | March 2021 | ||||
Limited Partners Capital Account [Line Items] | ||||
Equity offering transaction | (6,900,000) | |||
Class B Shares | October 2021 | ||||
Limited Partners Capital Account [Line Items] | ||||
Equity offering transaction | (8,625,000) | |||
Public | ||||
Limited Partners Capital Account [Line Items] | ||||
Shares Outstanding, Beginning Balance | 17,130,308 | 17,062,655 | ||
Equity-based compensation | 118,760 | 67,653 | ||
Shares Outstanding, Ending Balance | 32,774,068 | 17,130,308 | ||
Public | March 2021 | ||||
Limited Partners Capital Account [Line Items] | ||||
Equity offering transaction | 6,900,000 | |||
Public | October 2021 | ||||
Limited Partners Capital Account [Line Items] | ||||
Equity offering transaction | 8,625,000 | |||
Sponsors | ||||
Limited Partners Capital Account [Line Items] | ||||
Shares Outstanding, Beginning Balance | 898,000 | 898,000 | ||
Shares Outstanding, Ending Balance | 898,000 | 898,000 |
Partners' Capital and Distrib_5
Partners' Capital and Distributions - Schedule of Distributions Declared and Paid (Detail) | 12 Months Ended | |
Dec. 31, 2021$ / shares | ||
First Quarter 2019 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | May 3, 2019 | |
Distribution Date | May 14, 2019 | |
Distribution per Class A share | $ 0.3833 | |
Second Quarter 2019 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Aug. 5, 2019 | |
Distribution Date | Aug. 13, 2019 | |
Distribution per Class A share | $ 0.3970 | |
Third Quarter 2019 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Nov. 4, 2019 | |
Distribution Date | Nov. 13, 2019 | |
Distribution per Class A share | $ 0.4112 | |
Fourth Quarter 2019 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Feb. 6, 2020 | |
Distribution Date | Feb. 14, 2020 | |
Distribution per Class A share | $ 0.4258 | |
First Quarter 2020 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | May 4, 2020 | |
Distribution Date | May 14, 2020 | |
Distribution per Class A share | $ 0.4310 | |
Second Quarter 2020 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Aug. 6, 2020 | |
Distribution Date | Aug. 14, 2020 | |
Distribution per Class A share | $ 0.4363 | |
Third Quarter 2020 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Nov. 5, 2020 | |
Distribution Date | Nov. 13, 2020 | |
Distribution per Class A share | $ 0.4417 | |
Fourth Quarter 2020 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Feb. 4, 2021 | |
Distribution Date | Feb. 12, 2021 | |
Distribution per Class A share | $ 0.4471 | |
First Quarter 2021 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | May 3, 2021 | |
Distribution Date | May 13, 2021 | |
Distribution per Class A share | $ 0.4526 | |
Second Quarter 2021 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Aug. 9, 2021 | |
Distribution Date | Aug. 13, 2021 | |
Distribution per Class A share | $ 0.5042 | |
Third Quarter 2021 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Nov. 4, 2021 | |
Distribution Date | Nov. 12, 2021 | |
Distribution per Class A share | $ 0.5104 | |
Fourth Quarter 2021 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Feb. 3, 2022 | [1] |
Distribution Date | Feb. 14, 2022 | [1] |
Distribution per Class A share | $ 0.5167 | [1] |
[1] | For more information, see Note 16 , Subsequent Events . |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Equity-based compensation expense | $ 1.4 | $ 1.5 | $ 1.5 |
2017 Long-Term Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cost related to restricted shares to be recognized | $ 1.8 | ||
Cost related to unvested restricted shares to be recognized, over an expected weighted-average period | 1 year 9 months 18 days | ||
2017 Long-Term Incentive Plan | Officers and Employees | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Phantom units vesting period | 3 years | ||
2017 Long-Term Incentive Plan | Directors | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Phantom units vesting period | 1 year | ||
Common Class A | 2017 Long-Term Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares pursuant to vested awards | 3,000,000 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Equity-based Award Activity (Detail) - Restricted Share - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Outstanding and unvested shares at December 31, 2020, Number of Shares | 228,344 | ||
Granted, Number of Shares | 78,347 | ||
Vested, Number of Shares | (118,760) | ||
Outstanding and unvested shares at December 31, 2021, Number of Shares | 187,931 | 228,344 | |
Outstanding and unvested shares at December 31, 2020, Weighted Average Award Date Fair Value | $ 13.78 | ||
Granted, Weighted Average Award Date Fair Value | 22.40 | ||
Vested, Weighted Average Award Date Fair Value | 14.77 | ||
Outstanding and unvested shares at December 31, 2021, Weighted Average Award Date Fair Value | $ 16.75 | $ 13.78 | |
Fair value of shares granted | $ 1.8 | $ 1.9 | $ 1.7 |
Fair value of shares vested | $ 1.8 | $ 1.5 | $ 1 |
Earnings per Share_Limited Pa_3
Earnings per Share/Limited Partner Unit - Additional Information (Detail) - shares | Dec. 16, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Dilutive Restricted Shares | ||||
Limited Partners Capital Account [Line Items] | ||||
Weighted average number shares | 103,672 | 88,013 | ||
Dilutive Restricted Units | ||||
Limited Partners Capital Account [Line Items] | ||||
Weighted average number shares | 135,712 | |||
Hess and GIP | Class A Shares | ||||
Limited Partners Capital Account [Line Items] | ||||
Conversion of Class B units and Class B shares into Class A shares | 100.00% |
Earnings per Share_Limited Pa_4
Earnings per Share/Limited Partner Unit - Partnership's Calculation of Earnings per Share Limited Partner Unit (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Diluted net income per share [Line Items] | ||||
Net income | $ 617.8 | $ 484.9 | $ 317.7 | |
Less: Net income (loss) attributable to net parent investment | (55) | |||
Less: Net income (loss) attributable to noncontrolling interest | 571.4 | 460.9 | 302.6 | |
Net income attributable to Hess Midstream LP | 46.4 | 24 | 70.1 | |
Less: General partners' interest in net income prior to the Restructuring | 3.4 | |||
Limited partners' interest in net income | $ 46.4 | $ 24 | $ 66.7 | |
Common Units | ||||
Weighted average limited partner units outstanding prior to the Restructuring, Basic: | ||||
Units outstanding prior to the Restructuring, Basic | 27.3 | |||
Weighted average limited partner units outstanding prior to the Restructuring, Diluted: | ||||
Units outstanding prior to the Restructuring, Diluted | 27.5 | |||
Subordinated Units | ||||
Weighted average limited partner units outstanding prior to the Restructuring, Basic: | ||||
Units outstanding prior to the Restructuring, Basic | 27.3 | |||
Weighted average limited partner units outstanding prior to the Restructuring, Diluted: | ||||
Units outstanding prior to the Restructuring, Diluted | 27.3 | |||
Class A Shares | ||||
Net income attributable to Hess Midstream LP per Class A share: | ||||
Net income attributable to Hess Midstream LP per Class A share, Basic | [1] | $ 1.81 | $ 1.33 | $ 1.21 |
Net income attributable to Hess Midstream LP per Class A share, Diluted | [1] | $ 1.76 | $ 1.31 | $ 1.20 |
Net income attributable to Hess Midstream LP per limited partner unit (basic and diluted): | ||||
Weighted average Class A shares outstanding, Basic | 25.6 | 18 | 18 | |
Weighted average Class A shares outstanding, Diluted | 25.7 | 18.1 | 18 | |
[1] | *Net income attributable to Hess Midstream LP per Class A Share/limited partner unit for 2019 was calculated by combining net income per limited partner unit (common and subordinated) for the period prior to the Restructuring on December 16, 2019, and net income per Class A Share for the period subsequent to the Restructuring. |
Earnings per Share_Limited Pa_5
Earnings per Share/Limited Partner Unit - Summary of Reconciliation of Numerator and Denominator of Diluted Earnings (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Numerator | ||||
Net income attributable to Hess Midstream LP | $ 46.4 | $ 24 | $ 70.1 | |
Effect of Exchange of Units of Partnership and Equal Number Shares of Common Stocks | 571.4 | |||
Effect of income tax expense on additional income attributable to Hess Midstream LP | [1] | (139.4) | ||
Diluted net income attributable to Hess Midstream LP | $ 478.4 | |||
Class A Shares | ||||
Denominator | ||||
Basic weighted average shares outstanding | 25.6 | 18 | 18 | |
Effect of dilutive securities | ||||
Diluted weighted average shares outstanding | 25.7 | 18.1 | 18 | |
Diluted net income attributable to Hess Midstream LP per Class A Share | $ 1.76 | |||
Class B Units/Shares | ||||
Denominator | ||||
Basic weighted average shares outstanding | 246.7 | |||
Effect of dilutive securities | ||||
Diluted weighted average shares outstanding | 272.4 | |||
Restricted equity-based awards | 0.1 | |||
[1] | (1) Income tax effect is calculated assuming 24.39 % blended U.S. federal and state income tax rate. |
Earnings per Share_Limited Pa_6
Earnings per Share/Limited Partner Unit - Summary of Reconciliation of Numerator and Denominator of Diluted Earnings (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Federal and state income tax rate | 24.39% |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments And Contingencies Disclosure [Abstract] | ||
Estimated remediation liabilities included in accrued liabilities | $ 800,000 | $ 900,000 |
Estimated remediation liabilities included in other noncurrent liabilities | 3,100,000 | 3,100,000 |
Accrued liabilities for legal contingencies | 0 | 0 |
Lease obligations | 0 | $ 0 |
Unconditional purchase obligation, due in next fiscal year | 11,900,000 | |
Unconditional purchase obligation, due thereafter | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2021RailcarmiSegment | Sep. 30, 2019 | Jan. 25, 2018 | Jan. 24, 2018 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 3 | |||
Number of crude oil rail cars | 550 | |||
McKenzie County | ||||
Segment Reporting Information [Line Items] | ||||
Crude oil pipeline length | mi | 6 | |||
Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Number of crude oil rail cars, operate as unit trains | 100 | |||
Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Number of crude oil rail cars, operate as unit trains | 110 | |||
LM4 | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of ownership in joint venture | 50.00% | 50.00% | 50.00% |
Segments - Financial Data for E
Segments - Financial Data for Each Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Revenues and other income | $ 1,203.8 | $ 1,091.9 | $ 848.3 | |
Net income (loss) | 617.8 | 484.9 | 317.7 | |
Net income (loss) attributable to Hess Midstream LP | 46.4 | 24 | 70.1 | |
Depreciation expense | 165.6 | 156.9 | 142.5 | |
Proportional share of equity affiliates' depreciation | 5.1 | 5.1 | 2 | |
Income from equity investments | 10.6 | 10.3 | 3.4 | |
Interest expense, net | 105.4 | 94.7 | 62.4 | |
Income tax expense (benefit) | 14.6 | 7.3 | (0.1) | |
Transaction costs | 26.2 | |||
Gain on sale of property, plant and equipment | 0.1 | |||
Adjusted EBITDA | 908.5 | 748.8 | 550.7 | |
Capital expenditures | [1] | 183 | 253 | 416.3 |
Interest and Other | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (127.3) | (108) | (99.2) | |
Net income (loss) attributable to Hess Midstream LP | (25.5) | (13.6) | (9.6) | |
Interest expense, net | 105.4 | 94.7 | 62.4 | |
Income tax expense (benefit) | 14.6 | 7.3 | (0.1) | |
Transaction costs | 26.2 | |||
Adjusted EBITDA | (7.3) | (6) | (10.7) | |
Gathering Opco | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and other income | 630.6 | 561.9 | 422.9 | |
Net income (loss) | 377.6 | 300.7 | 186 | |
Net income (loss) attributable to Hess Midstream LP | 36.3 | 19.2 | 34.6 | |
Depreciation expense | 101 | 96 | 81.6 | |
Gain on sale of property, plant and equipment | 0.1 | |||
Adjusted EBITDA | 478.6 | 396.6 | 267.6 | |
Capital expenditures | [1] | 154 | 96.2 | 373.6 |
Processing and Storage | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and other income | 435.7 | 370.6 | 295.3 | |
Net income (loss) | 263.8 | 218.7 | 176.1 | |
Net income (loss) attributable to Hess Midstream LP | 25.5 | 13.7 | 34.6 | |
Depreciation expense | 48.4 | 44.8 | 44.7 | |
Proportional share of equity affiliates' depreciation | 5.1 | 5.1 | 2 | |
Income from equity investments | 10.6 | 10.3 | 3.4 | |
Adjusted EBITDA | 317.3 | 268.6 | 222.8 | |
Capital expenditures | [1] | 28.8 | 156.2 | 42.5 |
Terminaling and Export | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and other income | 137.5 | 159.4 | 130.1 | |
Net income (loss) | 103.7 | 73.5 | 54.8 | |
Net income (loss) attributable to Hess Midstream LP | 10.1 | 4.7 | 10.5 | |
Depreciation expense | 16.2 | 16.1 | 16.2 | |
Adjusted EBITDA | 119.9 | 89.6 | 71 | |
Capital expenditures | [1] | $ 0.2 | $ 0.6 | $ 0.2 |
[1] | Includes acquisition, expansion, and maintenance capital expenditures. |
Segments - Total Assets for Rep
Segments - Total Assets for Reportable Segments (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 3,485.6 | $ 3,374.5 | |
Interest and Other | |||
Segment Reporting Information [Line Items] | |||
Total assets | 127.7 | 55.7 | |
Gathering Opco | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,927 | 1,856.2 | |
Processing and Storage | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | [1] | 1,149.5 | 1,170.3 |
Terminaling and Export | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 281.4 | $ 292.3 | |
[1] | Includes investment in equity investees of $ 101.6 million as of December 31, 2021 and $ 108.4 million as of December 31, 2020. |
Segments - Total Assets for R_2
Segments - Total Assets for Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Cash contributed to acquire equity investments | $ 33 | ||
Processing and Storage | |||
Segment Reporting Information [Line Items] | |||
Cash contributed to acquire equity investments | $ 101.6 | $ 108.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Aug. 10, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Deferred tax asset related to investments | $ 102,300,000 | $ 39,000,000 | $ 49,800,000 | |
Additions to deferred tax asset | 117,300,000 | $ 89,000,000 | $ 42,800,000 | |
Deferred tax asset related to U.S. federal net operating loss carryforwards | 12,400,000 | |||
Deferred tax asset related to U.S. state net operating loss carryforwards | $ 2,600,000 | |||
Operating loss carryforward expiration year | 2040 | |||
Unrecognized tax benefits | $ 0 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Federal | |||
Current | $ 0.1 | ||
Deferred taxes and other accruals | 12.5 | $ 6.2 | $ (0.1) |
State | 2 | 1.1 | |
Total provision (benefit) for income taxes | $ 14.6 | $ 7.3 | $ (0.1) |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Difference between the Effective Income Tax Rate and U.S. Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
U.S. statutory rate | 21.00% | 21.00% | 21.00% |
Non-taxable income from pre-Restructuring period | (21.40%) | ||
Noncontrolling interest in partnership | (19.00%) | (19.70%) | 0.40% |
State tax | 0.30% | 0.20% | |
Effective rate | 2.30% | 1.50% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Aug. 10, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax liabilities | ||||
Investments | $ (0.4) | $ (0.3) | ||
Total deferred tax liabilities | (0.4) | (0.3) | ||
Deferred tax assets | ||||
Deferred tax asset related to investments | 102.3 | 39 | $ 49.8 | |
Net operating loss carryforwards | 15 | 3.8 | ||
Total deferred tax assets | 117.3 | $ 89 | 42.8 | |
Net deferred tax assets (liabilities) | $ 116.9 | $ 42.5 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Feb. 14, 2022 | Jan. 24, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | ||||
Distributions to unitholders - per unit/share | $ 1.9143 | $ 1.7348 | ||
Subsequent Event | Class A Shares | ||||
Subsequent Event [Line Items] | ||||
Quarterly cash distribution declared date | Jan. 24, 2022 | |||
Quarterly cash distribution declared per Class A Share | $ 0.5167 | |||
Distribution made to limited partner, increase in percentage than prior year quarter declared | 15.60% | |||
Distribution paid date | Feb. 14, 2022 | |||
Record Date | Feb. 3, 2022 | |||
Subsequent Event | Class B Shares | ||||
Subsequent Event [Line Items] | ||||
Distribution paid date | Feb. 14, 2022 | |||
Distributions to unitholders - per unit/share | $ 0.5167 | |||
Units representing noncontrolling limited partner interests | 219,641,928 |