Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
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 | Yes | ||
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 | 44,002,846 | ||
Entity Public Float | $ 1.2 | ||
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, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 3.1 | $ 2.2 |
Accounts receivable—affiliate: | ||
From contracts with customers | 123 | 120.3 |
Other current assets | 6.2 | 10.6 |
Total current assets | 132.3 | 133.1 |
Equity investments | 93.9 | 101.6 |
Property, plant and equipment, net | 3,172.8 | 3,125 |
Long-term receivable—affiliate | 0.7 | 0.8 |
Deferred tax asset | 177.2 | 117.3 |
Other noncurrent assets | 11.3 | 7.8 |
Total assets | 3,588.2 | 3,485.6 |
Liabilities | ||
Accounts payable—trade | 35 | 26.9 |
Accounts payable—affiliate | 27.7 | 37.6 |
Accrued liabilities | 82.9 | 76.2 |
Current maturities of long-term debt | 2.5 | 20 |
Other current liabilities | 11.4 | 10.2 |
Total current liabilities | 159.5 | 170.9 |
Long-term debt | 2,883.1 | 2,543.5 |
Deferred tax liability | 0.5 | 0.4 |
Other noncurrent liabilities | 16.1 | 17.7 |
Total liabilities | 3,059.2 | 2,732.5 |
Partners' capital | ||
Total Class A and Class B partners' capital | 245.1 | 204.1 |
Noncontrolling interest | 283.9 | 549 |
Total partners' capital | 529 | 753.1 |
Total liabilities and partners' capital | 3,588.2 | 3,485.6 |
Class A Shares | ||
Partners' capital | ||
Common unitholders | $ 245.1 | $ 204.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Common units outstanding | 239,850,452 | 253,313,996 |
Class A Shares | ||
Common units issued | 44,002,846 | 33,672,068 |
Common units outstanding | 44,002,846 | 33,672,068 |
Class B Shares | ||
Common units issued | 195,847,606 | 219,641,928 |
Common units outstanding | 195,847,606 | 219,641,928 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Affiliate services | $ 1,273.2 | $ 1,203.8 | $ 1,091.6 |
Type of Revenue [Extensible List] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Other income | $ 2 | $ 0.3 | |
Total revenues | 1,275.2 | $ 1,203.8 | 1,091.9 |
Costs and expenses | |||
Operating and maintenance expenses (exclusive of depreciation shown separately below) | 279.6 | 288.3 | 337.4 |
Depreciation expense | 181.3 | 165.6 | 156.9 |
General and administrative expenses | 23.1 | 22.7 | 21.1 |
Total operating costs and expenses | 484 | 476.6 | 515.4 |
Income from operations | 791.2 | 727.2 | 576.5 |
Income from equity investments | 5.3 | 10.6 | 10.3 |
Interest expense, net | 149.3 | 105.4 | 94.7 |
Gain on sale of property, plant and equipment | 0.1 | ||
Income before income tax expense | 647.2 | 632.4 | 492.2 |
Income tax expense | 26.6 | 14.6 | 7.3 |
Net income | 620.6 | 617.8 | 484.9 |
Less: Net income attributable to noncontrolling interest | 536.7 | 571.4 | 460.9 |
Net income attributable to Hess Midstream LP | $ 83.9 | $ 46.4 | $ 24 |
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 | $ 2.03 | $ 1.81 | $ 1.33 |
Net income attributable to Hess Midstream LP per Class A share, Diluted | $ 2.01 | $ 1.76 | $ 1.31 |
Weighted average Class A shares outstanding | |||
Weighted average Class A shares outstanding, Basic | 41.3 | 25.6 | 18 |
Weighted average Class A shares outstanding, Diluted | 41.4 | 25.7 | 18.1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 620.6 | $ 617.8 | $ 484.9 |
Effect of hedge (gains) losses reclassified to income | (0.4) | ||
Total other comprehensive income | (0.4) | ||
Comprehensive income | 620.6 | 617.8 | 484.5 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 536.7 | 571.4 | 460.5 |
Comprehensive income attributable to Hess Midstream LP | $ 83.9 | $ 46.4 | $ 24 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Millions | Total | Limited Partner Class A Shares | Noncontrolling Interest | Accumulated Other Comprehensive Income |
Balance, beginning 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) | |
Other comprehensive income (loss) | (0.4) | $ (0.4) | ||
Acquisition of Hess Water Services | 1.6 | 1.6 | ||
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 | |
Net income | 620.6 | 83.9 | 536.7 | |
Equity-based compensation | 1.6 | 1.6 | ||
Distributions to unitholders | (531.2) | (91) | (440.2) | |
Recognition of Deferred Tax Asset | 86.4 | 86.4 | ||
Sale of shares held by Sponsors | 27 | (27) | ||
Class B unit repurchase | (400) | (66.6) | (333.4) | |
Transaction costs | (1.5) | (0.3) | (1.2) | |
Balance, end of period at Dec. 31, 2022 | $ 529 | $ 245.1 | $ 283.9 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Distributions to unitholders - per unit/share | $ 2.1845 | $ 1.9143 | $ 1.7348 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 620.6 | $ 617.8 | $ 484.9 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation expense | 181.3 | 165.6 | 156.9 |
(Gain) loss on sale of property, plant and equipment | (0.1) | ||
(Gain) loss on interest rate swaps | (0.4) | ||
(Income) loss from equity investments | (5.3) | (10.6) | (10.3) |
Distributions from equity investments | 13 | 17.4 | 9.7 |
Amortization of deferred financing costs | 8.8 | 7.3 | 6.5 |
Equity-based compensation expense | 1.6 | 1.4 | 1.5 |
Deferred income tax expense (benefit) | 26.6 | 14.6 | 7.3 |
Changes in assets and liabilities: | |||
Accounts receivable – affiliate | (2.6) | (27) | (5) |
Other current and noncurrent assets | 3.5 | (5.1) | (0.7) |
Accounts payable – trade | 8.1 | (3.1) | (0.6) |
Accounts payable – affiliate | (5.8) | 9.7 | 0.1 |
Accrued liabilities | 9.1 | 9.2 | (11.4) |
Other current and noncurrent liabilities | 2.2 | (1.7) | 3.3 |
Net cash provided by (used in) operating activities | 861.1 | 795.5 | 641.7 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (238.2) | (163.2) | (301.1) |
Proceeds from sale of property, plant and equipment | 0.1 | ||
Net cash provided by (used in) investing activities | (238.2) | (163.2) | (301) |
Cash flows from financing activities | |||
Net proceeds from (repayments of) bank borrowings with maturities of 90 days or less | (86) | (80) | 152 |
Bank borrowings with maturities of greater than 90 days | |||
Borrowings | 20 | ||
Repayments | (10) | (10) | |
Proceeds from issuance of senior notes | 400 | 750 | |
Financing costs | (13.3) | (11.6) | (1.3) |
Transaction costs | (1.5) | (2.1) | |
Class B unit repurchase | (400) | (750) | |
Distributions to shareholders/unitholders | (91) | (49.4) | (31.6) |
Distributions to noncontrolling interest | (440.2) | (479.6) | (462.1) |
Capital contributions (distributions) to Hess associated with acquisitions | 1.6 | ||
Net cash provided by (used in) financing activities | (622) | (632.7) | (341.4) |
Increase (decrease) in cash and cash equivalents | 0.9 | (0.4) | (0.7) |
Cash and cash equivalents, beginning of period | 2.2 | 2.6 | 3.3 |
Cash and cash equivalents, end of period | 3.1 | 2.2 | 2.6 |
Supplemental disclosure of non-cash investing and financing activities: | |||
(Increase) decrease in accrued capital expenditures and related liabilities | 6.5 | (19.8) | 48.1 |
Recognition of deferred tax asset | 86.4 | 89 | |
Tioga System Acquisition contingent liability adjustment | $ (2.9) | $ (4.1) | $ (3) |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
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, the general partner of Hess Infrastructure Partners LP ("HIP"), and our general partner to own, operate, develop and acquire a diverse set of midstream assets and provide fee-based services to Hess and third-party customers. HIP was originally formed in 2015 as a 50 / 50 joint venture between Hess and Global Infrastructure Partners ("GIP" and, together with Hess, the "Sponsors"). We are managed and controlled by Hess Midstream GP LLC, the general partner of our general partner. On April 10, 2017, we completed an initial public offering (“IPO”) as a master limited partnership, pursuant to which HIP contributed to the Partnership a 20 % controlling economic interest in each of (i) Hess North Dakota Pipelines Operations LP; (ii) Hess TGP Operations LP; and (iii) Hess North Dakota Export Logistics Operations LP (collectively, the “Joint Interest Assets”) and a 100 % interest in Hess Mentor Storage Holdings LLC. HIP owned the remaining 80 % economic interest in the Joint Interest Assets, a 100 % interest in certain other businesses, including Hess’ Bakken water services business (“Hess Water Services”), which it acquired from Hess on March 1, 2019, and a 100 % interest in Hess Midstream Partners GP LP (“MLP GP LP”), which held all of the Partnership’s outstanding incentive distribution rights and the general partner interest in the Partnership, and controlled the Partnership. 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. Pursuant to the Restructuring, 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 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 the Company in a one-for-one exchange. Class A Shares commenced trading on the New York Stock Exchange under the former symbol “HESM” on December 17, 2019. As a result of the Restructuring, the Company was delegated control of the Partnership and replaced the Partnership as its publicly traded successor. The Partnership changed its name to “Hess Midstream Operations LP” and became a consolidated subsidiary of the Company. After consummation of the Restructuring, the Sponsors and their affiliates own an aggregate of 898,000 Class A shares in the Company, all of the Class B units representing noncontrolling limited partner interests in the Partnership, 100 % interest in the general par tner of the Company and, through their ownership of the general partner, continue to have the right to elect the entire board of directors. 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 13 , Segments ). Significant Activities. In 2022, we brought online two new greenfield compressor stations. In aggregate, the new stations provide an additional 85 MMcf/d of installed capacity and can be expanded up to 130 MMcf/d in the future. 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. 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 4 , Related Party Transactions . |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
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 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 13 , Segments ). At December 31, 2022, our noncontrolling interest represents the 81.7 % interest in the Partnership retained by Hess and GIP (2021: 86.7 %) . 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. 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, 2022 and 2021. 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, 2022, 2021 and 2020. 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. 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 (2022: $ 9.5 million, 2021: $ 6.9 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 (2022: $ 32.4 million, 2021: $ 30.5 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, 2022, the asset retirement obligation balance included in Other noncurrent liabilities was $ 10.8 million and the current portion included in Accrued liabilities was $ 3.0 million (2021: $ 11.0 million and $ 3.0 million, respectively). 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 4, 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 4, 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. 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, 2022 and 2021. 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, 2022 and 2021. 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. There were no derivatives outstanding at December 31, 2022 and 2021 and the impact of derivative hedging was immaterial to our 2020 consolidated financial statements. |
Equity Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2022 | |
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. On April 4, 2022, the Sponsors sold an aggregate of 10,235,000 of our Class A Shares, inclusive of the underwriters’ option to purchase up to 1,335,000 of additional shares, which was fully exercised, in an underwritten public offering at a price of $ 29.50 per Class A Share, less underwriting discounts. The Sponsors received net proceeds from the 2022 offering of approximately $ 291.7 million, after deducting underwriting discounts (2021: $ 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 equ ity offering transactions described above, we recognized adjustments increasing the amount of the Class A shareholders’ capital balance by $ 27.0 million (2021: $ 52.4 million) and decreasing the carrying amount of noncontrolling interest by an equal amount to reflect the change in ownership interest. Class B Unit Repurchases On July 2 7, 2021, the Company, the Partnership and our Sponsors entered into a unit repurchase agreement pursuant to which the Partnership agreed to purchase 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 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 by the Partnership of $ 750.0 million aggregate principal amount of senior unsecured notes (see Note 7, Debt and Interest Expense ). On March 29, 2022, the Company, the Partnership and our Sponsors entered into a unit repurchase agreement pursuant to which the Partnership agreed to purchase from the Sponsors, subject to the secondary equity offering transaction described above, an aggregate number of Class B Units representing limited partner interests in the Partnership to be determined by dividing (a) $ 400.0 million by (b) the public offering price of the Class A Shares to be set in the secondary offering. On April 4, 2022, the repurchase transaction closed, and the Partnership purchased directly from the Sponsors 13,559,322 Class B Units at a purchase price per Class B Unit of $ 29.50 , which is equal to the public offering price per Class A Share in the transaction described above. 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 was funded using borrowings under the Partnership’s revolving credit facility, which were subsequently repaid with proceeds from an issuance by the Partnership of $ 400.0 million senior unsecured notes (see Note 7, Debt and Interest Expense ). The repurchase transactions were 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 amounts of the noncontrolling interest were adjusted to reflect the changes in the ownership interest with the difference between the amounts of consideration paid and the amounts by which the noncontrolling interest were adjusted recognized as a reduction in equity attributable to Class A shareholders. We incurred approximately $ 1.5 million of costs directly attributable to the repurchase transaction (2021: $ 2.1 million) that were charged to equity. As a result of the equity offering transactions and the repurchase transactions described above, we also recognized an additional deferred tax asset of $ 86.4 million (2021: $ 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 transaction being characterized as a transaction among or with shareholders. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 4. 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, 2022, 2021 and 2020 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. In addition, we had Class B unit repurchase transactions and distributions to the Sponsors, which are disclosed elsewhere in the Notes to consolidated financial statements. 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, 2022, 2021 and 2020, 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, 2022 2021 2020 (in millions) Oil and gas gathering services $ 600.8 $ 540.4 $ 469.3 Processing and storage services 470.8 435.7 370.3 Terminaling and export services 124.5 137.5 159.4 Water gathering and disposal services 77.1 90.2 92.6 Total revenues from contracts with customers $ 1,273.2 $ 1,203.8 $ 1,091.6 Other income 2.0 - 0.3 Total revenues $ 1,275.2 $ 1,203.8 $ 1,091.9 The following table presents MVC shortfall fees earned during each period: Year Ended December 31, 2022 2021 2020 (in millions) Oil and gas gathering services $ 93.0 $ 43.0 $ 12.5 Processing and storage services 34.9 4.4 - Terminaling and export services 32.0 32.8 4.8 Water gathering and disposal services 0.4 6.8 1.4 Total $ 160.3 $ 87.0 $ 18.7 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, 2022 2021 2020 (in millions) Electricity and other related fees $ 44.8 $ 50.3 $ 40.0 Produced water trucking and disposal costs 33.1 37.0 55.9 Rail transportation costs 3.5 0.1 50.7 Total $ 81.4 $ 87.4 $ 146.6 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, 2022, 2021 and 2020, 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, 2022 2021 2020 (in millions) Operating and maintenance expenses $ 71.2 $ 63.6 $ 62.8 General and administrative expenses 15.9 15.4 15.1 Total $ 87.1 $ 79.0 $ 77.9 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, 2022, 2021 and 2020, we had the following activity related to our agreements with LM4: Year Ended December 31, 2022 2021 2020 (in millions) Processing fee incurred $ 20.5 $ 27.7 $ 25.6 Earnings from equity investments $ 5.3 $ 10.6 $ 10.3 Distributions received from equity investments $ 13.0 $ 17.4 $ 9.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 5. Property, Plant and Equipment Property, plant and equipment, at cost, is as follows: Estimated useful lives December 31, 2022 December 31, 2021 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 1,591.7 $ 1,489.7 Compressors, pumping stations and terminals 22 to 25 years 923.1 809.0 Gas plant assets Pipelines, pipes and valves 22 to 25 years 460.0 460.0 Equipment 12 to 30 years 428.2 428.3 Processing and fractionation facilities 25 years 414.4 408.7 Buildings 35 years 182.3 182.3 Logistics facilities and railcars 20 to 25 years 389.3 386.5 Storage facilities 20 to 25 years 19.7 19.5 Other 20 to 25 years 25.5 25.8 Construction-in-progress N/A 136.3 131.6 Total property, plant and equipment, at cost 4,570.5 4,341.4 Accumulated depreciation ( 1,397.7 ) ( 1,216.4 ) Property, plant and equipment, net $ 3,172.8 $ 3,125.0 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities and Other Current Liabilities | Note 6. Accrued Liabilities and Other Current Liabilities Accrued liabilities are as follows: December 31, 2022 December 31, 2021 (in millions) Accrued interest $ 35.4 $ 30.9 Accrued capital expenditures 24.1 26.5 Other accruals 23.4 18.8 Total $ 82.9 $ 76.2 Other current liabilities are as follows: December 31, 2022 December 31, 2021 (in millions) Property and sales and use tax payable $ 10.7 $ 10.1 Other current liabilities 0.7 0.1 Total $ 11.4 $ 10.2 |
Debt and Interest Expense
Debt and Interest Expense | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Interest Expense | Note 7. Debt and Interest Expense Total long-term debt is as follows: December 31, 2022 December 31, 2021 (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 750.0 750.0 5.500 % due 2030 400.0 - Total fixed-rate senior notes 2,500.0 2,100.0 Term Loan A facility 400.0 390.0 Revolving credit facility 18.0 104.0 Total Borrowings 2,918.0 2,594.0 Unamortized deferred financing costs and discounts ( 32.4 ) ( 30.5 ) Total debt 2,885.6 2,563.5 Less: current maturities of long-term debt 2.5 20.0 Total long-term debt $ 2,883.1 $ 2,543.5 As of December 31, 2022, the maturity profile of total debt, excluding deferred financing costs and discounts, is as follows: (in millions) Total 2023 2024 2025 2026 2027 2028 and thereafter Fixed-rate senior notes $ 2,500.0 $ - $ - $ - $ 800.0 $ - $ 1,700.0 Term Loan facility 400.0 2.5 12.5 22.5 32.5 330.0 - Revolving credit facility 18.0 - - - - 18.0 - Total debt (excluding interest) $ 2,918.0 $ 2.5 $ 12.5 $ 22.5 $ 832.5 $ 348.0 $ 1,700.0 Fixed‑Rate Senior Notes In April 2022, the Partnership issued $ 400.0 million aggregate principal amount of 5.500 % fixed-rate senior unsecured notes due 2030 to qualified institutional investors. Interest is payable semi‑annually on April 15 and October 15, commencing October 15, 2022. The Partnership used the proceeds to repay the borrowings under its revolving credit facility used to finance the 2022 repurchase transaction (see Note 3, Equity Transactions ). In August 2021, the Partnership issued $ 750.0 million aggregate principal amount of 4.250 % fixed‑rate senior unsecured notes due 2030 to qualified institutional investors. Interest is payable semi‑annually on February 15 and August 15 . The Partnership used the proceeds to fund the 2021 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 unsecured notes due 2028 to qualified institutional investors. 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. 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 unsecured notes due 2026 of the Partnership. Interest is payable semi‑annually on February 15 and August 15. The notes described above are guaranteed by certain subsidiaries of the Partnership. 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, 2022, 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 On July 14, 2022, the Partnership amended and restated its existing credit agreement for its 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, resulting in an incremental $ 20.0 million drawn on the term loan facility at closing. The amended and restated Credit Facilities mature in July 2027 . 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 Secured Overnight Financing Rate (”SOFR”) plus the applicable margin ranging from 1.65 % to 2.55 %, while the applicable margin for the 5 ‑year syndicated revolving credit facility ranges from 1.375 % to 2.050 %. 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, 2022, borrowings of $ 18.0 million were drawn and outstanding under the Partnership’s revolving credit facility, and borrowings of $ 400.0 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, 2022, the Partnership was in compliance with these financial covenants. Fair Value Measurement At December 31, 2022, our total debt had a carrying value of $ 2,885.6 million and had a fair value of approximately $ 2,720.7 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, 2022, 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, 2022, 2021 and 2020 was $ 136.8 million, $ 84.5 million and $ 88.9 million, respectively. |
Partners' Capital and Distribut
Partners' Capital and Distributions | 12 Months Ended |
Dec. 31, 2022 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital and Distributions | Note 8. Partners’ Capital and Distributions Shares Outstanding As of December 31, 2022, our Sponsors and their affiliates, including our general partner, collectively held 898,000 Class A Shares (economic and voting) and 195,847,606 Class B Shares (non-economic, voting only) representing limited partner interests in the Company, and 195,847,606 Cl ass B Units of the Partnership representing limited partner interests in the Partnership. 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 of the Company outstanding from December 31, 2019 through December 31, 2022 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 Equity-based compensation 95,778 - 95,778 - 95,778 Equity offering transaction - 10,235,000 - 10,235,000 ( 10,235,000 ) - Repurchase Transaction - - - ( 13,559,322 ) ( 13,559,322 ) Balance, December 31, 2022 43,104,846 898,000 44,002,846 195,847,606 239,850,452 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 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 February 3, 2022 February 14, 2022 $ 0.5167 First Quarter 2022 May 5, 2022 May 13, 2022 $ 0.5492 Second Quarter 2022 August 4, 2022 August 12, 2022 $ 0.5559 Third Quarter 2022 November 3, 2022 November 14, 2022 $ 0.5627 Fourth Quarter 2022 (1) February 2, 2023 February 13, 2023 $ 0.5696 (1) For more information, see Note 15 , Subsequent Events . |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Note 9. 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, 2022 was as follows: Weighted Average Award Date Number of Shares Fair Value Outstanding and unvested shares at December 31, 2021 187,931 $ 16.75 Granted 53,548 33.52 Vested ( 95,778 ) 16.89 Outstanding and unvested shares at December 31, 2022 145,701 $ 22.82 (in millions) 2022 2021 2020 Fair value of shares granted $ 1.8 $ 1.8 $ 1.9 Fair value of shares vested $ 1.6 $ 1.8 $ 1.5 During the year ended December 31, 2022, we recognized compensation expense related to the outstanding awards of $ 1.6 million (2021: $ 1.4 million, 2020: $ 1.5 million). As of December 31, 2022, $ 1.9 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
Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 10. Earnings per Share 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) 2022 2021 2020 Net income 620.6 617.8 484.9 Less: Net income attributable to noncontrolling interest 536.7 571.4 460.9 Net income attributable to Hess Midstream LP 83.9 46.4 24.0 Net income attributable to Hess Midstream LP Basic: $ 2.03 $ 1.81 $ 1.33 Diluted: $ 2.01 $ 1.76 $ 1.31 Weighted average Class A shares outstanding: Basic: 41.3 25.6 18.0 Diluted: 41.4 25.7 18.1 For the year ended December 31, 2022, the weighted average number of Class A Shares outstanding included 70,795 dilutive restricted shares (2021: 103,672 ; 2020: 88,013 shares). 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, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 11. 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, 2022, 2021 and 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Environmental Contingencies The Company is subject to federal, state and local laws and regulations relating to the environment. On August, 12, 2022, the Company became aware of a produced water release from an underground pipeline located approximately 8 miles north of Ray, North Dakota. At this time, it is estimated that approximately 34,000 barrels of produced water were released, causing impacts to soils, crops, and groundwater. The Company has recorded reserves for the estimated future costs to investigate and remediate impacts of the release. As of December 31, 2022 our reserves for all estimated remediation liabilities, inclusive of the produced water release above, in Accrued liabilities and Other noncurrent liabilities were $ 1.4 million and $ 4.3 million, respectively, compared with $ 0.8 million and $ 3.1 million, respectively, as of December 31, 2021. Legal Proceedings 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. The Company has not received any notice of litigation or regulatory enforcement in the connection with the produced water release described under Environmental Contingencies above. Unless and until an enforcement action is started, the Company cannot fully predict the potential cost of such fines or penalties and what rights, claims, and defenses it may have. Based on currently available information, we believe it is remote that the outcome of known matters, including the produced water release described above, would have a material adverse impact on our financial condition, results of operations or cash flows. Accordingly, as of December 31, 2022 and December 31, 2021, we did no t have material accrued liabilities for legal contingencies. Lease and Purchase Obligations As of December 31, 2022 and 2021, we did no t have material lease obligations. As of December 31 2022, we had unconditional purchase commitments of $ 45.7 million for the year ending December 31, 2023, primarily related to expansion of our compression capacity, and none for the years thereafter. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments | Note 13. 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, 2022 Revenues and other income $ 677.9 $ 470.8 $ 126.5 $ - $ 1,275.2 Net income (loss) 389.6 329.1 85.0 ( 183.1 ) 620.6 Net income (loss) attributable to 66.4 56.6 14.4 ( 53.5 ) 83.9 Depreciation expense 107.4 57.7 16.2 - 181.3 Proportional share of equity affiliates' depreciation - 5.1 - - 5.1 Income from equity investments - 5.3 - - 5.3 Interest expense, net - - - 149.3 149.3 Income tax expense - - - 26.6 26.6 Adjusted EBITDA 497.0 391.9 101.2 ( 7.2 ) 982.9 Capital expenditures* 210.2 8.8 12.8 - 231.8 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 (benefit) - - - 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 * Includes expansion and maintenance capital expenditures. Total assets for reportable segments are as follows: December 31, 2022 December 31, 2021 (in millions) Gathering $ 2,022.0 $ 1,927.0 Processing and Storage (1) 1,099.2 1,149.5 Terminaling and Export 275.8 281.4 Interest and Other 191.2 127.7 Total assets $ 3,588.2 $ 3,485.6 (1) Includes investment in equity investees of $ 93.9 million as of December 31, 2022 and $ 101.6 million as of December 31, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. 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) 2022 2021 2020 Federal Current $ 0.1 $ 0.1 $ - Deferred taxes and other accruals 22.8 12.5 6.2 State 3.7 2.0 1.1 Total provision (benefit) for income taxes $ 26.6 $ 14.6 $ 7.3 The difference between the effective income tax rate and the U.S. statutory rate is reconciled below: Year Ended December 31, 2022 2021 2020 U.S. statutory rate 21.0 % 21.0 % 21.0 % Noncontrolling interest in partnership ( 17.4 ) ( 19.0 ) ( 19.7 ) State tax 0.5 0.3 0.2 Effective rate 4.1 % 2.3 % 1.5 % A s a result of the equity offering and repurchase transactions (see Note 3, Equity Transactions ), we recognized an additional deferred tax asset in the total amount of $ 86.4 million (2021: $ 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, 2022 2021 (in millions) Deferred tax liabilities Investments $ ( 0.5 ) $ ( 0.4 ) Total deferred tax liabilities ( 0.5 ) ( 0.4 ) Deferred tax assets Investments 148.9 102.3 Net operating loss carryforwards 28.3 15.0 Total deferred tax assets 177.2 117.3 Net deferred tax assets (liabilities) $ 176.7 $ 116.9 At December 31, 2022, we have recognized a deferred tax asset of $ 23.5 million related to U.S. federal net operating loss carryforwards which do not expire and $ 4.8 million related to U.S. state net operating loss carryforwards which begin to expire in 2030 . 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, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | N ote 15. Sub sequent Events On January 23, 2023 the board of directors of our general partner declared a quarterly cash distribution of $ 0.5696 per Class A Share for the quarter ended December 31, 2022, an increase of approximately 10.2 % compared with the quarter ended December 31, 2021. The distribution was paid on February 13, 2023 to shareholders of record as of the close of business on February 2, 2023 . On February 13, 2023 , the Partnership also made a distribution of $ 0.5696 per Class B Unit of the Partnership to the Sponsors. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 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 13 , Segments ). At December 31, 2022, our noncontrolling interest represents the 81.7 % interest in the Partnership retained by Hess and GIP (2021: 86.7 %) . 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. |
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, 2022 and 2021. |
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, 2022, 2021 and 2020. |
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. 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 (2022: $ 9.5 million, 2021: $ 6.9 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 (2022: $ 32.4 million, 2021: $ 30.5 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, 2022, the asset retirement obligation balance included in Other noncurrent liabilities was $ 10.8 million and the current portion included in Accrued liabilities was $ 3.0 million (2021: $ 11.0 million and $ 3.0 million, respectively). |
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 4, 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 4, 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. |
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, 2022 and 2021. 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, 2022 and 2021. |
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. There were no derivatives outstanding at December 31, 2022 and 2021 and the impact of derivative hedging was immaterial to our 2020 consolidated financial statements. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 (in millions) Oil and gas gathering services $ 600.8 $ 540.4 $ 469.3 Processing and storage services 470.8 435.7 370.3 Terminaling and export services 124.5 137.5 159.4 Water gathering and disposal services 77.1 90.2 92.6 Total revenues from contracts with customers $ 1,273.2 $ 1,203.8 $ 1,091.6 Other income 2.0 - 0.3 Total revenues $ 1,275.2 $ 1,203.8 $ 1,091.9 |
Summary of MVC Shortfall Fees Earned | The following table presents MVC shortfall fees earned during each period: Year Ended December 31, 2022 2021 2020 (in millions) Oil and gas gathering services $ 93.0 $ 43.0 $ 12.5 Processing and storage services 34.9 4.4 - Terminaling and export services 32.0 32.8 4.8 Water gathering and disposal services 0.4 6.8 1.4 Total $ 160.3 $ 87.0 $ 18.7 |
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, 2022 2021 2020 (in millions) Electricity and other related fees $ 44.8 $ 50.3 $ 40.0 Produced water trucking and disposal costs 33.1 37.0 55.9 Rail transportation costs 3.5 0.1 50.7 Total $ 81.4 $ 87.4 $ 146.6 For the years ended December 31, 2022, 2021 and 2020, 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, 2022 2021 2020 (in millions) Operating and maintenance expenses $ 71.2 $ 63.6 $ 62.8 General and administrative expenses 15.9 15.4 15.1 Total $ 87.1 $ 79.0 $ 77.9 |
Summary of Activity Related to Agreements with Related Party | For the years ended December 31, 2022, 2021 and 2020, we had the following activity related to our agreements with LM4: Year Ended December 31, 2022 2021 2020 (in millions) Processing fee incurred $ 20.5 $ 27.7 $ 25.6 Earnings from equity investments $ 5.3 $ 10.6 $ 10.3 Distributions received from equity investments $ 13.0 $ 17.4 $ 9.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 December 31, 2021 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 1,591.7 $ 1,489.7 Compressors, pumping stations and terminals 22 to 25 years 923.1 809.0 Gas plant assets Pipelines, pipes and valves 22 to 25 years 460.0 460.0 Equipment 12 to 30 years 428.2 428.3 Processing and fractionation facilities 25 years 414.4 408.7 Buildings 35 years 182.3 182.3 Logistics facilities and railcars 20 to 25 years 389.3 386.5 Storage facilities 20 to 25 years 19.7 19.5 Other 20 to 25 years 25.5 25.8 Construction-in-progress N/A 136.3 131.6 Total property, plant and equipment, at cost 4,570.5 4,341.4 Accumulated depreciation ( 1,397.7 ) ( 1,216.4 ) Property, plant and equipment, net $ 3,172.8 $ 3,125.0 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities are as follows: December 31, 2022 December 31, 2021 (in millions) Accrued interest $ 35.4 $ 30.9 Accrued capital expenditures 24.1 26.5 Other accruals 23.4 18.8 Total $ 82.9 $ 76.2 |
Schedule of Other Current Liabilities | Other current liabilities are as follows: December 31, 2022 December 31, 2021 (in millions) Property and sales and use tax payable $ 10.7 $ 10.1 Other current liabilities 0.7 0.1 Total $ 11.4 $ 10.2 |
Debt and Interest Expense (Tabl
Debt and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Total Long-term Debt | Total long-term debt is as follows: December 31, 2022 December 31, 2021 (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 750.0 750.0 5.500 % due 2030 400.0 - Total fixed-rate senior notes 2,500.0 2,100.0 Term Loan A facility 400.0 390.0 Revolving credit facility 18.0 104.0 Total Borrowings 2,918.0 2,594.0 Unamortized deferred financing costs and discounts ( 32.4 ) ( 30.5 ) Total debt 2,885.6 2,563.5 Less: current maturities of long-term debt 2.5 20.0 Total long-term debt $ 2,883.1 $ 2,543.5 |
Summary of Maturity Profile of Total Debt, Excluding Deferred Financing Costs and Discounts | As of December 31, 2022, the maturity profile of total debt, excluding deferred financing costs and discounts, is as follows: (in millions) Total 2023 2024 2025 2026 2027 2028 and thereafter Fixed-rate senior notes $ 2,500.0 $ - $ - $ - $ 800.0 $ - $ 1,700.0 Term Loan facility 400.0 2.5 12.5 22.5 32.5 330.0 - Revolving credit facility 18.0 - - - - 18.0 - Total debt (excluding interest) $ 2,918.0 $ 2.5 $ 12.5 $ 22.5 $ 832.5 $ 348.0 $ 1,700.0 |
Partners' Capital and Distrib_2
Partners' Capital and Distributions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Partners' Capital Notes [Abstract] | |
Schedule of Changes in Number of Shares Outstanding | The changes in the number of shares of the Company outstanding from December 31, 2019 through December 31, 2022 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 Equity-based compensation 95,778 - 95,778 - 95,778 Equity offering transaction - 10,235,000 - 10,235,000 ( 10,235,000 ) - Repurchase Transaction - - - ( 13,559,322 ) ( 13,559,322 ) Balance, December 31, 2022 43,104,846 898,000 44,002,846 195,847,606 239,850,452 |
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 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 February 3, 2022 February 14, 2022 $ 0.5167 First Quarter 2022 May 5, 2022 May 13, 2022 $ 0.5492 Second Quarter 2022 August 4, 2022 August 12, 2022 $ 0.5559 Third Quarter 2022 November 3, 2022 November 14, 2022 $ 0.5627 Fourth Quarter 2022 (1) February 2, 2023 February 13, 2023 $ 0.5696 (1) For more information, see Note 15 , Subsequent Events . |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Equity-based Award Activity | Equity‑based award activity for the year ended December 31, 2022 was as follows: Weighted Average Award Date Number of Shares Fair Value Outstanding and unvested shares at December 31, 2021 187,931 $ 16.75 Granted 53,548 33.52 Vested ( 95,778 ) 16.89 Outstanding and unvested shares at December 31, 2022 145,701 $ 22.82 (in millions) 2022 2021 2020 Fair value of shares granted $ 1.8 $ 1.8 $ 1.9 Fair value of shares vested $ 1.6 $ 1.8 $ 1.5 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | 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) 2022 2021 2020 Net income 620.6 617.8 484.9 Less: Net income attributable to noncontrolling interest 536.7 571.4 460.9 Net income attributable to Hess Midstream LP 83.9 46.4 24.0 Net income attributable to Hess Midstream LP Basic: $ 2.03 $ 1.81 $ 1.33 Diluted: $ 2.01 $ 1.76 $ 1.31 Weighted average Class A shares outstanding: Basic: 41.3 25.6 18.0 Diluted: 41.4 25.7 18.1 |
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, 2022 | |
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, 2022 Revenues and other income $ 677.9 $ 470.8 $ 126.5 $ - $ 1,275.2 Net income (loss) 389.6 329.1 85.0 ( 183.1 ) 620.6 Net income (loss) attributable to 66.4 56.6 14.4 ( 53.5 ) 83.9 Depreciation expense 107.4 57.7 16.2 - 181.3 Proportional share of equity affiliates' depreciation - 5.1 - - 5.1 Income from equity investments - 5.3 - - 5.3 Interest expense, net - - - 149.3 149.3 Income tax expense - - - 26.6 26.6 Adjusted EBITDA 497.0 391.9 101.2 ( 7.2 ) 982.9 Capital expenditures* 210.2 8.8 12.8 - 231.8 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 (benefit) - - - 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 * Includes expansion and maintenance capital expenditures. |
Total Assets for Reportable Segments | Total assets for reportable segments are as follows: December 31, 2022 December 31, 2021 (in millions) Gathering $ 2,022.0 $ 1,927.0 Processing and Storage (1) 1,099.2 1,149.5 Terminaling and Export 275.8 281.4 Interest and Other 191.2 127.7 Total assets $ 3,588.2 $ 3,485.6 (1) Includes investment in equity investees of $ 93.9 million as of December 31, 2022 and $ 101.6 million as of December 31, 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 2020 Federal Current $ 0.1 $ 0.1 $ - Deferred taxes and other accruals 22.8 12.5 6.2 State 3.7 2.0 1.1 Total provision (benefit) for income taxes $ 26.6 $ 14.6 $ 7.3 |
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, 2022 2021 2020 U.S. statutory rate 21.0 % 21.0 % 21.0 % Noncontrolling interest in partnership ( 17.4 ) ( 19.0 ) ( 19.7 ) State tax 0.5 0.3 0.2 Effective rate 4.1 % 2.3 % 1.5 % A |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: December 31, 2022 2021 (in millions) Deferred tax liabilities Investments $ ( 0.5 ) $ ( 0.4 ) Total deferred tax liabilities ( 0.5 ) ( 0.4 ) Deferred tax assets Investments 148.9 102.3 Net operating loss carryforwards 28.3 15.0 Total deferred tax assets 177.2 117.3 Net deferred tax assets (liabilities) $ 176.7 $ 116.9 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 12 Months Ended | ||||||||
Dec. 16, 2019 shares | Apr. 10, 2017 | Dec. 31, 2022 Segment shares MMcf | Dec. 31, 2021 shares | Dec. 31, 2020 shares MMcf | Dec. 31, 2019 shares | Sep. 30, 2019 | Jan. 25, 2018 MMcf | Jan. 24, 2018 | |
Description Of Business [Line Items] | |||||||||
Number of operating segments | Segment | 3 | ||||||||
Natural gas processing capacity expansion | 85 | ||||||||
Number of units hold in partnership | shares | 239,850,452 | 253,313,996 | 284,445,236 | 284,377,583 | |||||
Maximum | |||||||||
Description Of Business [Line Items] | |||||||||
Natural gas processing capacity expansion | 130 | ||||||||
LM4 | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership in joint venture | 50% | 50% | 50% | ||||||
Gas processing plant capacity | 200 | ||||||||
LM4 | Targa Resources Corp. | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership in joint venture | 50% | 50% | |||||||
Common Class A | |||||||||
Description Of Business [Line Items] | |||||||||
Number of units hold in partnership | shares | 44,002,846 | 33,672,068 | 18,028,308 | 17,960,655 | |||||
Hess | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership in joint venture | 50% | ||||||||
Global Infrastructure Partners | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership in joint venture | 50% | ||||||||
Hess T G P Operations Limited Partnership | |||||||||
Description Of Business [Line Items] | |||||||||
Natural gas processing capacity expansion | 150 | ||||||||
Third-party Residue Export Expansion | |||||||||
Description Of Business [Line Items] | |||||||||
Expected natural gas processing capacity | 400 | ||||||||
Hess Midstream Partners GP Limited Partner | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 100% | ||||||||
Hess Infrastructure Partners LP | IPO | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 20% | ||||||||
Hess Mentor Storage Holdings Limited Liability Company | IPO | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 100% | ||||||||
Hess Infrastructure Partners Limited Partnership Joint Interest Assets | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 80% | 80% | |||||||
Hess Water Services and Hess Midstream Partners GP Limited Partner | |||||||||
Description Of Business [Line Items] | |||||||||
Percentage of ownership interest | 100% | 100% | |||||||
Hess and GIP | Common Class A | |||||||||
Description Of Business [Line Items] | |||||||||
Number of units hold in partnership | shares | 898,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Line Items] | |||
Doubtful accounts written off | $ 0 | $ 0 | |
Allowance for doubtful accounts | 0 | 0 | |
Impairment of long-lived assets | 0 | 0 | $ 0 |
Derivatives outstanding | $ 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 | $ 10,800,000 | 11,000,000 | |
Accrued Liabilities | |||
Accounting Policies [Line Items] | |||
Asset retirement obligation,current | 3,000,000 | 3,000,000 | |
Revolving Credit Facility | Other Noncurrent Assets | |||
Accounting Policies [Line Items] | |||
Unamortized deferred financing costs and discounts | 9,500,000 | 6,900,000 | |
Fixed-Rate Senior Notes and Term Loan | Long-term Debt | |||
Accounting Policies [Line Items] | |||
Unamortized deferred financing costs and discounts | $ 32,400,000 | $ 30,500,000 | |
Hess and GIP | |||
Accounting Policies [Line Items] | |||
Noncontrolling interest percentage | 81.70% | 86.70% |
Equity Transactions - Additiona
Equity Transactions - Additional Information (Details) - USD ($) | 12 Months Ended | |||||||||
Apr. 04, 2022 | Mar. 29, 2022 | Oct. 08, 2021 | Jul. 27, 2021 | Mar. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2022 | Apr. 08, 2022 | Aug. 10, 2021 | |
Class of Stock [Line Items] | ||||||||||
Additions to deferred tax asset | $ 177,200,000 | $ 117,300,000 | ||||||||
Costs incurred to repurchase shares were charged to equity | 1,500,000 | 2,100,000 | ||||||||
5.500% Fixed Rate Senior Unsecured Notes due 2030 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Fixed-rate senior notes | $ 400,000,000 | $ 400,000,000 | ||||||||
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 | 10,235,000 | 8,625,000 | 6,900,000 | |||||||
Shares issued, price per share | $ 29.50 | $ 26 | $ 21 | |||||||
Proceeds from Issuance of public equity offering | $ 0 | |||||||||
Net proceeds received by sponsors from public equity offering | 291,700,000 | 356,500,000 | ||||||||
Increase (decrease) common unitholders | $ 27,000,000 | $ (52,400,000) | 245,100,000 | 204,100,000 | ||||||
Additions to deferred tax asset | $ 86,400,000 | $ 89,000,000 | ||||||||
Class A Shares | Maximum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Underwriters’ option to purchase additional shares | 1,335,000 | 900,000 | ||||||||
Underwriters' option to purchase additional shares fully exercised | 1,125,000 | |||||||||
Class B Shares | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of shares | 13,559,322 | 15,625,000 | ||||||||
Value of shares repurchased | $ 400,000,000 | $ 750,000,000 | ||||||||
Stock purchased price per share | $ 29.50 | $ 24 | ||||||||
Percentage of discount on purchase price per share | 4% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | Dec. 16, 2019 | Apr. 10, 2017 |
Hess Infrastructure Partners Limited Partnership Joint Interest Assets | ||
Business Acquisition [Line Items] | ||
Percentage of ownership interest | 80% | 80% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended | |||||
Jan. 24, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | 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% | |||||
Percentage of ownership in joint venture | 50% | 50% | 50% | |||
Customer Concentration Risk | Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues attributable to fee based commercial agreements | 100% | 100% | ||||
Hess | Customer Concentration Risk | Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues attributable to fee based commercial agreements | 100% | 100% | 100% | |||
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% | |||||
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% | |||||
Maximum consumer price index percentage | 3% | |||||
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% | 50% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | $ 1,273.2 | $ 1,203.8 | $ 1,091.6 |
Other income | 2 | 0.3 | |
Total revenues | 1,275.2 | 1,203.8 | 1,091.9 |
Oil and Gas Gathering Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | 600.8 | 540.4 | 469.3 |
Processing and Storage Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | 470.8 | 435.7 | 370.3 |
Terminaling and Export Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | 124.5 | 137.5 | 159.4 |
Water Gathering and Disposal Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue from contract with customer including assessed tax | $ 77.1 | $ 90.2 | $ 92.6 |
Related Party Transactions - _2
Related Party Transactions - Summary of MVC Shortfall Fees Earned (Detail) - Hess - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | $ 160.3 | $ 87 | $ 18.7 |
Oil and Gas Gathering Services | |||
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | 93 | 43 | 12.5 |
Terminaling and Export Services | |||
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | 32 | 32.8 | 4.8 |
Water Gathering and Disposal Services | |||
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | 0.4 | 6.8 | $ 1.4 |
Processing and Storage Services | |||
Related Party Transaction [Line Items] | |||
Total MVC shortfall fees | $ 34.9 | $ 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Reimbursement revenue | $ 1,273.2 | $ 1,203.8 | $ 1,091.6 |
Hess | |||
Related Party Transaction [Line Items] | |||
Total | 81.4 | 87.4 | 146.6 |
Hess | Electricity and Other Related Fees | |||
Related Party Transaction [Line Items] | |||
Reimbursement revenue | 44.8 | 50.3 | 40 |
Hess | Produced Water Trucking and Disposal Costs | |||
Related Party Transaction [Line Items] | |||
Reimbursement revenue | 33.1 | 37 | 55.9 |
Hess | Rail Transportation Costs | |||
Related Party Transaction [Line Items] | |||
Reimbursement revenue | $ 3.5 | $ 0.1 | $ 50.7 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Operating and maintenance expenses | $ 71.2 | $ 63.6 | $ 62.8 |
General and administrative expenses | 15.9 | 15.4 | 15.1 |
Total | $ 87.1 | $ 79 | $ 77.9 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Earnings from equity investments | $ 5.3 | $ 10.6 | $ 10.3 |
Distributions received from equity investments | 13 | 17.4 | 9.7 |
LM4 | |||
Related Party Transaction [Line Items] | |||
Processing fee incurred | 20.5 | 27.7 | 25.6 |
Earnings from equity investments | 5.3 | 10.6 | 10.3 |
Distributions received from equity investments | $ 13 | $ 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, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 4,570.5 | $ 4,341.4 |
Accumulated depreciation | (1,397.7) | (1,216.4) |
Property, plant and equipment, net | $ 3,172.8 | 3,125 |
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 | $ 389.3 | 386.5 |
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 | $ 19.7 | 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 | $ 25.5 | 25.8 |
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 | $ 136.3 | 131.6 |
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 | $ 1,591.7 | 1,489.7 |
Gathering Assets | Compressors, Pumping Stations and Terminals | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 923.1 | 809 |
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 | $ 428.2 | 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 | $ 414.4 | 408.7 |
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, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Accrued interest | $ 35.4 | $ 30.9 |
Accrued capital expenditures | 24.1 | 26.5 |
Other accruals | 23.4 | 18.8 |
Total | $ 82.9 | $ 76.2 |
Accrued Liabilities and Other_4
Accrued Liabilities and Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Other current liabilities | $ 11.4 | $ 10.2 |
Accrued Liabilities and Other_5
Accrued Liabilities and Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Property and sales and use tax payable | $ 10.7 | $ 10.1 |
Other current liabilities | 0.7 | 0.1 |
Total | $ 11.4 | $ 10.2 |
Debt and Interest Expense - Sum
Debt and Interest Expense - Summary of Total Long-term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total Borrowings | $ 2,918 | $ 2,594 |
Unamortized deferred financing costs and discounts | (32.4) | (30.5) |
Total debt | 2,885.6 | 2,563.5 |
Less: current maturities of long-term debt | 2.5 | 20 |
Total long-term debt | 2,883.1 | 2,543.5 |
Term Loan A Facility | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 400 | 390 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 18 | 104 |
Fixed-Rate Senior Notes | ||
Debt Instrument [Line Items] | ||
Total Borrowings | 2,500 | 2,100 |
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 | $ 750 |
Fixed-Rate Senior Notes | 5.500% Fixed Rate Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Total Borrowings | $ 400 |
Debt and Interest Expense - S_2
Debt and Interest Expense - Summary of Total Long-term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
5.500% Fixed Rate Senior Notes due 2030 | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 5.50% |
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, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt (excluding interest) | $ 2,918 | $ 2,594 |
2023 | 2.5 | |
2024 | 12.5 | |
2025 | 22.5 | |
2026 | 832.5 | |
2027 | 348 | |
2028 and thereafter | 1,700 | |
Fixed-Rate Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt (excluding interest) | 2,500 | 2,100 |
2026 | 800 | |
2028 and thereafter | 1,700 | |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Total debt (excluding interest) | 400 | |
2023 | 2.5 | |
2024 | 12.5 | |
2025 | 22.5 | |
2026 | 32.5 | |
2027 | 330 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt (excluding interest) | 18 | $ 104 |
2027 | $ 18 |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2022 | Apr. 08, 2022 | Aug. 31, 2021 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||||
Debt covenant, leverage ratio | 550% | ||||||
Ratio of debt to EBITDA | 500% | ||||||
Secured leverage ratio - Maximum | 400% | ||||||
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 | $ 2,885,600,000 | $ 2,563,500,000 | |||||
Line of credit interest paid on credit facilities, including facility fees | 136,800,000 | $ 84,500,000 | $ 88,900,000 | ||||
Carrying Value | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 2,885,600,000 | ||||||
Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt fair value | $ 2,720,700,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility - Term | 5 years | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||
Borrowings | $ 18,000,000 | ||||||
Revolving Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate applicable margin | 1.65% | ||||||
Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate applicable margin | 2.55% | ||||||
Term Loan A Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility - maturity year | 2027 | ||||||
Increase of outstanding term loan facility | $ 20,000,000 | ||||||
Credit facility - Term | 5 years | ||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||
Borrowings | $ 400,000,000 | ||||||
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 | 1.375% | ||||||
Syndicated Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate applicable margin | 2.05% | ||||||
Fixed-Rate Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt covenant, leverage ratio | 425% | ||||||
5.625% Fixed Rate Senior Unsecured Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of fixed-rate senior notes | $ 800,000,000 | ||||||
Debt instrument interest rate | 5.625% | ||||||
Debt instrument due year | 2026 | ||||||
5.625% Fixed Rate Senior Unsecured 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. | ||||||
5.125% Fixed Rate Senior Unsecured Notes due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of fixed-rate senior notes | $ 550,000,000 | ||||||
Debt instrument interest rate | 5.125% | ||||||
Debt instrument due year | 2028 | ||||||
5.125% Fixed Rate Senior Unsecured 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 Unsecured 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 Unsecured 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 | ||||||
5.500% Fixed Rate Senior Unsecured Notes due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of fixed-rate senior notes | $ 400,000,000 | $ 400,000,000 | |||||
Debt instrument interest rate | 5.50% | ||||||
Debt instrument due year | 2030 | ||||||
5.500% Fixed Rate Senior Unsecured Notes due 2030 | Fixed Rate Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 5.50% | ||||||
Debt instrument due year | 2030 | ||||||
Frequency of periodic interest payment | semi‑annually | ||||||
Interest payment terms | Interest is payable semi‑annually on April 15 and October 15, commencing October 15, 2022. |
Partners' Capital and Distrib_3
Partners' Capital and Distributions - Additional Information (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Limited Partners Capital Account [Line Items] | ||||
Period of cash distribution to shareholders | 45 days | |||
Number of units hold in partnership | 239,850,452 | 253,313,996 | 284,445,236 | 284,377,583 |
Conversion of Class B units and Class B shares into Class A shares | 100% | |||
Class A Shares | ||||
Limited Partners Capital Account [Line Items] | ||||
Number of units hold in partnership | 44,002,846 | 33,672,068 | 18,028,308 | 17,960,655 |
Class B Shares | ||||
Limited Partners Capital Account [Line Items] | ||||
Number of units hold in partnership | 195,847,606 | 219,641,928 | 266,416,928 | 266,416,928 |
Sponsors | ||||
Limited Partners Capital Account [Line Items] | ||||
Number of units hold in partnership | 898,000 | 898,000 | 898,000 | 898,000 |
Sponsors | Class A Shares | ||||
Limited Partners Capital Account [Line Items] | ||||
Number of units hold in partnership | 898,000 | |||
Sponsors | Class B Shares | ||||
Limited Partners Capital Account [Line Items] | ||||
Number of units hold in partnership | 195,847,606 |
Partners' Capital and Distrib_4
Partners' Capital and Distributions - Schedule of Changes in Number of Shares Outstanding (Details) - shares | 12 Months Ended | |||||
Apr. 04, 2022 | Oct. 08, 2021 | Mar. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Limited Partners Capital Account [Line Items] | ||||||
Shares Outstanding, Beginning Balance | 253,313,996 | 284,445,236 | 284,377,583 | |||
Equity-based compensation | 95,778 | 118,760 | 67,653 | |||
Repurchase Transaction | (13,559,322) | (31,250,000) | ||||
Shares Outstanding, Ending Balance | 239,850,452 | 253,313,996 | 284,445,236 | |||
Class A Shares | ||||||
Limited Partners Capital Account [Line Items] | ||||||
Shares Outstanding, Beginning Balance | 33,672,068 | 18,028,308 | 17,960,655 | |||
Equity-based compensation | 95,778 | 118,760 | 67,653 | |||
Equity offering transaction | 10,235,000 | 8,625,000 | 6,900,000 | |||
Shares Outstanding, Ending Balance | 44,002,846 | 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 A Shares | April 2022 | ||||||
Limited Partners Capital Account [Line Items] | ||||||
Equity offering transaction | 10,235,000 | |||||
Class B Shares | ||||||
Limited Partners Capital Account [Line Items] | ||||||
Shares Outstanding, Beginning Balance | 219,641,928 | 266,416,928 | 266,416,928 | |||
Repurchase Transaction | (13,559,322) | (31,250,000) | ||||
Shares Outstanding, Ending Balance | 195,847,606 | 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) | |||||
Class B Shares | April 2022 | ||||||
Limited Partners Capital Account [Line Items] | ||||||
Equity offering transaction | (10,235,000) | |||||
Public | ||||||
Limited Partners Capital Account [Line Items] | ||||||
Shares Outstanding, Beginning Balance | 32,774,068 | 17,130,308 | 17,062,655 | |||
Equity-based compensation | 95,778 | 118,760 | 67,653 | |||
Shares Outstanding, Ending Balance | 43,104,846 | 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 | |||||
Public | April 2022 | ||||||
Limited Partners Capital Account [Line Items] | ||||||
Equity offering transaction | 10,235,000 | |||||
Sponsors | ||||||
Limited Partners Capital Account [Line Items] | ||||||
Shares Outstanding, Beginning Balance | 898,000 | 898,000 | 898,000 | |||
Shares Outstanding, Ending Balance | 898,000 | 898,000 | 898,000 | |||
Sponsors | Class A Shares | ||||||
Limited Partners Capital Account [Line Items] | ||||||
Shares Outstanding, Ending Balance | 898,000 | |||||
Sponsors | Class B Shares | ||||||
Limited Partners Capital Account [Line Items] | ||||||
Shares Outstanding, Ending Balance | 195,847,606 |
Partners' Capital and Distrib_5
Partners' Capital and Distributions - Schedule of Distributions Declared and Paid (Detail) - $ / shares | 12 Months Ended | |||
Feb. 13, 2023 | Jan. 23, 2023 | Dec. 31, 2022 | ||
Distribution Made To Limited Partner [Line Items] | ||||
Record Date | Feb. 02, 2023 | |||
Distribution Date | Feb. 13, 2023 | Feb. 13, 2023 | ||
First Quarter 2020 | ||||
Distribution Made To Limited Partner [Line Items] | ||||
Record Date | May 04, 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. 06, 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. 05, 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. 04, 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 03, 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. 09, 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. 04, 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. 03, 2022 | |||
Distribution Date | Feb. 14, 2022 | |||
Distribution per Class A share | $ 0.5167 | |||
First Quarter 2022 | ||||
Distribution Made To Limited Partner [Line Items] | ||||
Record Date | May 05, 2022 | |||
Distribution Date | May 13, 2022 | |||
Distribution per Class A share | $ 0.5492 | |||
Second Quarter 2022 | ||||
Distribution Made To Limited Partner [Line Items] | ||||
Record Date | Aug. 04, 2022 | |||
Distribution Date | Aug. 12, 2022 | |||
Distribution per Class A share | $ 0.5559 | |||
Third Quarter 2022 | ||||
Distribution Made To Limited Partner [Line Items] | ||||
Record Date | Nov. 03, 2022 | |||
Distribution Date | Nov. 14, 2022 | |||
Distribution per Class A share | $ 0.5627 | |||
Fourth Quarter 2022 | ||||
Distribution Made To Limited Partner [Line Items] | ||||
Record Date | [1] | Feb. 02, 2023 | ||
Distribution Date | [1] | Feb. 13, 2023 | ||
Distribution per Class A share | [1] | $ 0.5696 | ||
[1] For more information, see Note 15 , Subsequent Events . |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Equity-based compensation expense | $ 1.6 | $ 1.4 | $ 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 | $ 1.9 | ||
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Outstanding and unvested shares at December 31, 2021, Number of Shares | 187,931 | ||
Granted, Number of Shares | 53,548 | ||
Vested, Number of Shares | (95,778) | ||
Outstanding and unvested shares at December 31, 2022, Number of Shares | 145,701 | 187,931 | |
Outstanding and unvested shares at December 31, 2021, Weighted Average Award Date Fair Value | $ 16.75 | ||
Granted, Weighted Average Award Date Fair Value | 33.52 | ||
Vested, Weighted Average Award Date Fair Value | 16.89 | ||
Outstanding and unvested shares at December 31, 2022, Weighted Average Award Date Fair Value | $ 22.82 | $ 16.75 | |
Fair value of shares granted | $ 1.8 | $ 1.8 | $ 1.9 |
Fair value of shares vested | $ 1.6 | $ 1.8 | $ 1.5 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Limited Partners Capital Account [Line Items] | |||
Conversion of Class B units and Class B shares into Class A shares | 100% | ||
Class A Shares | Dilutive Restricted Shares | |||
Limited Partners Capital Account [Line Items] | |||
Weighted average number shares | 70,795 | 103,672 | 88,013 |
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% |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Limited Partners Capital Account [Line Items] | |||
Net income | $ 620.6 | $ 617.8 | $ 484.9 |
Less: Net income attributable to noncontrolling interest | 536.7 | 571.4 | 460.9 |
Net income attributable to Hess Midstream LP | $ 83.9 | $ 46.4 | $ 24 |
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 | $ 2.03 | $ 1.81 | $ 1.33 |
Net income attributable to Hess Midstream LP per Class A share, Diluted | $ 2.01 | $ 1.76 | $ 1.31 |
Weighted average Class A shares outstanding | |||
Weighted average Class A shares outstanding, Basic | 41.3 | 25.6 | 18 |
Weighted average Class A shares outstanding, Diluted | 41.4 | 25.7 | 18.1 |
Earnings per Share - Summary of
Earnings per Share - 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Numerator | ||||
Net income attributable to Hess Midstream LP | $ 83.9 | $ 46.4 | $ 24 | |
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 | 41.3 | 25.6 | 18 | |
Effect of dilutive securities | ||||
Diluted weighted average shares outstanding | 41.4 | 25.7 | 18.1 | |
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] Income tax effect is calculated assuming 24.39 % blended U.S. federal and state income tax rate. |
Earnings per Share - Summary _2
Earnings per Share - Summary of Reconciliation of Numerator and Denominator of Diluted Earnings (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | Dec. 31, 2021 | |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100% | 100% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2022 USD ($) Barrels | Dec. 31, 2021 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
No of produced water released | Barrels | 34,000 | |
Estimated remediation liabilities included in accrued liabilities | $ 1,400,000 | $ 800,000 |
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Estimated remediation liabilities included in other noncurrent liabilities | $ 4,300,000 | $ 3,100,000 |
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Accrued liabilities for legal contingencies | $ 0 | $ 0 |
Lease obligations | 0 | $ 0 |
Unconditional purchase obligation, due in next fiscal year | 45,700,000 | |
Unconditional purchase obligation, due thereafter | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2022 mi Railcar Segment | 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% | 50% | 50% |
Segments - Financial Data for E
Segments - Financial Data for Each Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||
Revenues and other income | $ 1,275.2 | $ 1,203.8 | $ 1,091.9 | |
Net income (loss) | 620.6 | 617.8 | 484.9 | |
Net income (loss) attributable to Hess Midstream LP | 83.9 | 46.4 | 24 | |
Depreciation expense | 181.3 | 165.6 | 156.9 | |
Proportional share of equity affiliates' depreciation | 5.1 | 5.1 | 5.1 | |
Income from equity investments | 5.3 | 10.6 | 10.3 | |
Interest expense, net | 149.3 | 105.4 | 94.7 | |
Income tax expense (benefit) | 26.6 | 14.6 | 7.3 | |
Gain on sale of property, plant and equipment | 0.1 | |||
Adjusted EBITDA | 982.9 | 908.5 | 748.8 | |
Capital expenditures | [1] | 231.8 | 183 | 253 |
Interest and Other | ||||
Segment Reporting Information [Line Items] | ||||
Net income (loss) | (183.1) | (127.3) | (108) | |
Net income (loss) attributable to Hess Midstream LP | (53.5) | (25.5) | (13.6) | |
Interest expense, net | 149.3 | 105.4 | 94.7 | |
Income tax expense (benefit) | 26.6 | 14.6 | 7.3 | |
Adjusted EBITDA | (7.2) | (7.3) | (6) | |
Gathering Opco | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and other income | 677.9 | 630.6 | 561.9 | |
Net income (loss) | 389.6 | 377.6 | 300.7 | |
Net income (loss) attributable to Hess Midstream LP | 66.4 | 36.3 | 19.2 | |
Depreciation expense | 107.4 | 101 | 96 | |
Gain on sale of property, plant and equipment | 0.1 | |||
Adjusted EBITDA | 497 | 478.6 | 396.6 | |
Capital expenditures | [1] | 210.2 | 154 | 96.2 |
Processing and Storage | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and other income | 470.8 | 435.7 | 370.6 | |
Net income (loss) | 329.1 | 263.8 | 218.7 | |
Net income (loss) attributable to Hess Midstream LP | 56.6 | 25.5 | 13.7 | |
Depreciation expense | 57.7 | 48.4 | 44.8 | |
Proportional share of equity affiliates' depreciation | 5.1 | 5.1 | 5.1 | |
Income from equity investments | 5.3 | 10.6 | 10.3 | |
Adjusted EBITDA | 391.9 | 317.3 | 268.6 | |
Capital expenditures | [1] | 8.8 | 28.8 | 156.2 |
Terminaling and Export | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues and other income | 126.5 | 137.5 | 159.4 | |
Net income (loss) | 85 | 103.7 | 73.5 | |
Net income (loss) attributable to Hess Midstream LP | 14.4 | 10.1 | 4.7 | |
Depreciation expense | 16.2 | 16.2 | 16.1 | |
Adjusted EBITDA | 101.2 | 119.9 | 89.6 | |
Capital expenditures | [1] | $ 12.8 | $ 0.2 | $ 0.6 |
[1] Includes expansion and maintenance capital expenditures. |
Segments - Total Assets for Rep
Segments - Total Assets for Reportable Segments (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 3,588.2 | $ 3,485.6 | |
Interest and Other | |||
Segment Reporting Information [Line Items] | |||
Total assets | 191.2 | 127.7 | |
Gathering Opco | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,022 | 1,927 | |
Processing and Storage | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | [1] | 1,099.2 | 1,149.5 |
Terminaling and Export | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 275.8 | $ 281.4 | |
[1] Includes investment in equity investees of $ 93.9 million as of December 31, 2022 and $ 101.6 million as of December 31, 2021. |
Segments - Total Assets for R_2
Segments - Total Assets for Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Processing and Storage | ||
Segment Reporting Information [Line Items] | ||
Cash contributed to acquire equity investments | $ 93.9 | $ 101.6 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax asset related to investments | $ 148,900,000 | $ 102,300,000 |
Additions to deferred tax asset | 177,200,000 | 117,300,000 |
Deferred tax asset related to U.S. federal net operating loss carryforwards | 23,500,000 | |
Deferred tax asset related to U.S. state net operating loss carryforwards | $ 4,800,000 | |
Operating loss carryforward expiration year | 2030 | |
Unrecognized tax benefits | $ 0 | |
Class A Shares | ||
Operating Loss Carryforwards [Line Items] | ||
Additions to deferred tax asset | $ 86,400,000 | $ 89,000,000 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal | |||
Current | $ 0.1 | $ 0.1 | |
Deferred taxes and other accruals | 22.8 | 12.5 | $ 6.2 |
State | 3.7 | 2 | 1.1 |
Total provision (benefit) for income taxes | $ 26.6 | $ 14.6 | $ 7.3 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. statutory rate | 21% | 21% | 21% |
Noncontrolling interest in partnership | (17.40%) | (19.00%) | (19.70%) |
State tax | 0.50% | 0.30% | 0.20% |
Effective rate | 4.10% | 2.30% | 1.50% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax liabilities | ||
Investments | $ (0.5) | $ (0.4) |
Total deferred tax liabilities | (0.5) | (0.4) |
Deferred tax assets | ||
Deferred tax asset related to investments | 148.9 | 102.3 |
Net operating loss carryforwards | 28.3 | 15 |
Total deferred tax assets | 177.2 | 117.3 |
Net deferred tax assets (liabilities) | $ 176.7 | $ 116.9 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | 12 Months Ended | ||||
Feb. 13, 2023 | Jan. 23, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||||
Distributions to unitholders decalred date | Jan. 23, 2023 | ||||
Distribution paid date | Feb. 13, 2023 | Feb. 13, 2023 | |||
Distributions to unitholders record date | Feb. 02, 2023 | ||||
Distributions to unitholders - per unit/share | $ 2.1845 | $ 1.9143 | $ 1.7348 | ||
Subsequent Event | Class A Shares | |||||
Subsequent Event [Line Items] | |||||
Quarterly cash distribution declared per share | $ 0.5696 | ||||
Distribution made to limited partner, increase in percentage than prior year quarter declared | 10.20% | ||||
Subsequent Event | Class B Shares | |||||
Subsequent Event [Line Items] | |||||
Distributions to unitholders - per unit/share | $ 0.5696 |