Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HESM | |
Entity Registrant Name | Hess Midstream LP | |
Entity Central Index Key | 0001789832 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-39163 | |
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 | |
Entity Common Stock, Shares Outstanding | 25,038,417 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Class A shares representing limited partner interests | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 1.5 | $ 2.6 |
Accounts receivable—affiliate: | ||
From contracts with customers | 108.1 | 93.2 |
Other current assets | 4.2 | 5.6 |
Total current assets | 113.8 | 101.4 |
Equity investments | 103.6 | 108.4 |
Property, plant and equipment, net | 3,094.5 | 3,111.3 |
Long-term receivable—affiliate | 0.9 | 0.9 |
Deferred tax asset | 66.4 | 42.5 |
Other noncurrent assets | 9.4 | 10 |
Total assets | 3,388.6 | 3,374.5 |
Liabilities | ||
Accounts payable—trade | 20.3 | 30 |
Accounts payable—affiliate | 18.6 | 21 |
Accrued liabilities | 40.2 | 54.1 |
Current maturities of long-term debt | 12.5 | 10 |
Other current liabilities | 2.7 | 9.9 |
Total current liabilities | 94.3 | 125 |
Long-term debt | 1,886.2 | 1,900.1 |
Other noncurrent liabilities | 23 | 23.4 |
Total liabilities | 2,003.5 | 2,048.5 |
Partners' capital | ||
Total partners' capital | 184 | 125 |
Noncontrolling interest | 1,201.1 | 1,201 |
Total partners' capital | 1,385.1 | 1,326 |
Total liabilities and partners' capital | 3,388.6 | 3,374.5 |
Class A Shares | ||
Partners' capital | ||
Common unitholders | 184 | 125 |
Total partners' capital | $ 184 | $ 125 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2021 | Dec. 31, 2020 |
Class A Shares | ||
Common units issued | 25,038,417 | 18,028,308 |
Common units outstanding | 25,038,417 | 18,028,308 |
Class B Shares | ||
Common units issued | 259,516,928 | 266,416,928 |
Common units outstanding | 259,516,928 | 266,416,928 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||
Affiliate services | $ 288.8 | $ 290.6 |
Type of Revenue [Extensible List] | hesm:AffiliateServicesMember | hesm:AffiliateServicesMember |
Other income | $ 0.2 | |
Total revenues | $ 288.8 | 290.8 |
Costs and expenses | ||
Operating and maintenance expenses (exclusive of depreciation shown separately below) | 59.8 | 91.9 |
Depreciation expense | 40.2 | 38.5 |
General and administrative expenses | 6.3 | 7.6 |
Total costs and expenses | 106.3 | 138 |
Income from operations | 182.5 | 152.8 |
Income from equity investments | 2.7 | 2.7 |
Interest expense, net | 23.1 | 24.8 |
Income before income tax expense | 162.1 | 130.7 |
Income tax expense | 2.5 | 1.7 |
Net income | 159.6 | 129 |
Less: Net income attributable to noncontrolling interest | 151 | 122.5 |
Net income attributable to Hess Midstream LP | 8.6 | 6.5 |
Class A Shares | ||
Costs and expenses | ||
Net income | $ 8.6 | $ 6.5 |
Net income attributable to Hess Midstream LP per Class A share: | ||
Net income attributable to Hess Midstream LP per Class A share, Basic | $ 0.45 | $ 0.37 |
Net income attributable to Hess Midstream LP per Class A share, Diluted | $ 0.43 | $ 0.35 |
Weighted average Class A shares outstanding | ||
Weighted average Class A shares outstanding subsequent to the restructuring, Basic | 19.3 | 18 |
Weighted average Class A shares outstanding subsequent to the restructuring, Diluted | 19.4 | 18 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 159.6 | $ 129 |
Other comprehensive income | ||
Effect of hedge (gains) losses reclassified to income | (0.2) | |
Total other comprehensive income | (0.2) | |
Comprehensive income | 159.6 | 128.8 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 151 | 122.3 |
Comprehensive income attributable to Hess Midstream LP | $ 8.6 | $ 6.5 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (UNAUDITED) - USD ($) $ in Millions | Total | 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 | 129 | 6.5 | 122.5 | |
Equity-based compensation | 0.5 | 0.5 | ||
Distributions to unitholders | (121) | (7.6) | (113.4) | |
Other comprehensive income (loss) | (0.2) | (0.2) | ||
Balance, end of period at Mar. 31, 2020 | 1,340.4 | 130.5 | 1,209.7 | $ 0.2 |
Balance, beginning of period at Dec. 31, 2020 | 1,326 | 125 | 1,201 | |
Net income | 159.6 | 8.6 | 151 | |
Equity-based compensation | 0.4 | 0.4 | ||
Distributions to unitholders | (127.3) | (8.2) | (119.1) | |
Recognition of deferred tax asset | 26.4 | 26.4 | ||
Sales of shares held by Sponsors | 31.8 | (31.8) | ||
Balance, end of period at Mar. 31, 2021 | $ 1,385.1 | $ 184 | $ 1,201.1 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Partners Capital [Abstract] | ||
Distributions to unitholders - per share | $ 0.4471 | $ 0.4258 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net income | $ 159.6 | $ 129 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation expense | 40.2 | 38.5 |
(Gain) loss on interest rate swaps | (0.2) | |
(Income) loss from equity investments | (2.7) | (2.7) |
Distributions from equity investments | 7.5 | |
Amortization of deferred financing costs | 1.7 | 1.8 |
Equity-based compensation expense | 0.4 | 0.5 |
Deferred income tax expense (benefit) | 2.5 | 1.7 |
Changes in assets and liabilities: | ||
Accounts receivable – affiliate | (14.9) | (19.1) |
Other current and noncurrent assets | 1.4 | 1.2 |
Accounts payable – trade | (9.7) | 7.3 |
Accounts payable – affiliate | (1.9) | (2.8) |
Accrued liabilities | (10.8) | (9.2) |
Other current and noncurrent liabilities | (7.9) | (5.8) |
Net cash provided by (used in) operating activities | 165.4 | 140.2 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (26.7) | (78.1) |
Net cash provided by (used in) investing activities | (26.7) | (78.1) |
Cash flows from financing activities | ||
Net proceeds from (repayments of) bank borrowings with maturities of 90 days or less | (10) | 60 |
Bank borrowings with maturities of greater than 90 days | ||
Repayments | (2.5) | |
Financing costs | (1.3) | |
Distributions to shareholders | (8.2) | (7.6) |
Distributions to noncontrolling interest | (119.1) | (113.4) |
Net cash provided by (used in) financing activities | (139.8) | (62.3) |
Increase (decrease) in cash and cash equivalents | (1.1) | (0.2) |
Cash and cash equivalents, beginning of period | 2.6 | 3.3 |
Cash and cash equivalents, end of period | 1.5 | 3.1 |
Supplemental disclosure of non-cash investing and financing activities: | ||
(Increase) decrease in accrued capital expenditures and related liabilities | 3.6 | $ 21.1 |
Recognition of deferred tax asset | $ 26.4 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Description Of Business [Abstract] | |
Description of Business | Note 1. Description of Business Hess Midstream LP (“the Company”) is a fee-based, growth-oriented, Delaware limited partnership that operates, develops and acquires a diverse set of midstream assets and provides fee-based services to Hess Corporation (“Hess”) and third-party customers. We are managed and controlled by Hess Midstream GP LLC, the general partner of our general partner that is owned 50/50 by Hess and GIP II Blue Holding Partnership, L.P. (“GIP” and together with Hess, the “Sponsors”). 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 reportable segments: (1) gathering, (2) processing and storage and (3) terminaling and export (see Note 13, Segments). Unless the context otherwise requires, references in this report to the “Company,” “we,” “our,” “us” or like terms, refer to Hess Midstream LP and its subsidiaries. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 2. Basis of Presentation The consolidated financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our consolidated financial position at March 31, 2021 and December 31, 2020, the consolidated results of operations and the consolidated cash flows for the three months ended March 31, 2021 and 2020. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. The consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted from these interim consolidated financial statements. These financial statements, therefore, should be read in conjunction with the financial statements and related notes included in the Company’s annual report on Form 10‑K for the year ended December 31, 2020. We consolidate the activities of Hess Midstream Operations LP (“the Partnership”), as a variable interest entity (“VIE”) under U.S. 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). We currently do not have any independent assets or operations other than our interest in the Partnership. Our noncontrolling interest represents the approximate 91.2% interest in the Partnership retained by Hess and GIP at March 31, 2021 and 93.7% at December 31, 2020. |
Equity Offering
Equity Offering | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Equity Offering | Note 3. Equity Offering On March 15, 2021, the Sponsors completed an underwritten public equity offering of 6,900,000 of our Class A shares, inclusive of the underwriters’ option to purchase up to 900,000 of additional shares, at a price of $21.00 per Class A share, less underwriting discounts. The Sponsors received net proceeds from the offering of $139.9 million, after deducting underwriting discounts; we did not receive any proceeds in the offering. The offering was conducted pursuant to a registration rights agreement among us and the Sponsors. The Class A Shares sold in the offering were obtained by the Sponsors by exchanging to us 6,900,000 of their Class B Units in the Partnership, together with an equal number of our Class B Shares. As a result of the exchange, Hess Midstream LP’s consolidated ownership in the Partnership increased from 6.3% at December 31, 2020 to 8.8% at March 31, 2021. Hess Midstream LP retained control in the Partnership based on the delegation of control provisions, as described above in Note 2, Basis of Presentation |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 4. Related Party Transactions Commercial Agreements Effective January 1, 2014, we entered into long-term fee-based (i) gas gathering, (ii) crude oil gathering, (iii) gas processing and fractionation, (iv) storage services, and (v) terminal and export services agreements with certain subsidiaries of Hess. Effective January 1, 2019, 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. M inimum volume commitments (“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 shall not 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 three months ended March 31, 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. We retain control of our assets and the flow of volumes based on available capacity within our integrated gathering, processing and terminaling systems. 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 are as follows: Three Months Ended March 31, 2021 2020 (in millions) Oil and gas gathering services $ 128.7 $ 117.4 Processing and storage services 103.5 96.8 Terminaling and export services 32.6 52.2 Water gathering and disposal services 24.0 24.2 Total revenues from contracts with customers $ 288.8 $ 290.6 Other income - 0.2 Total revenues $ 288.8 $ 290.8 During the three months ended March 31, 2021 and 2020, we earned $13.4 million and $1.0 million, respectively, of MVC shortfall fee payments. 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 unaudited consolidated statements of operations. Three Months Ended March 31, 2021 2020 (in millions) Produced water trucking and disposal costs $ 9.4 $ 16.6 Electricity fees 9.3 9.5 Rail transportation costs 0.1 23.2 Total $ 18.8 $ 49.3 Omnibus and Employee Secondment Agreements Under our omnibus and employee secondment agreements, Hess provides substantial operational and administrative services to us in support of our assets and operations. For the three months ended March 31, 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. Three Months Ended March 31, 2021 2020 (in millions) Operating and maintenance expenses $ 15.7 $ 15.5 General and administrative expenses 4.2 3.8 Total $ 19.9 $ 19.3 LM4 Agreements Separately from our commercial agreements with Hess, we entered into a gas processing agreement with Little Missouri 4 (“LM4”), a 50/50 joint venture with Targa Resources Corp., under which 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. In addition, we share profits and losses and receive distributions from LM4 under the LM4 amended and restated limited liability company agreement based on our ownership interest. For the three months ended March 31, 2021 and 2020, we had the following activity related to our agreements with LM4: Three Months Ended March 31, 2021 2020 (in millions) Processing fee incurred $ 6.9 $ 6.4 Earnings from equity investments 2.7 2.7 Distributions received from equity investments 7.5 - |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 December 31, 2020 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 1,478.7 $ 1,470.6 Compressors, pumping stations and terminals 22 to 25 years 786.7 778.6 Gas plant assets Pipelines, pipes and valves 22 to 25 years 460.0 460.0 Equipment 12 to 30 years 428.3 428.3 Buildings 35 years 182.3 182.3 Processing and fractionation facilities 25 years 189.3 189.0 Logistics facilities and railcars 20 to 25 years 386.5 386.2 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 22.1 20.9 Construction-in-progress N/A 232.6 227.3 Total property, plant and equipment, at cost 4,186.0 4,162.7 Accumulated depreciation (1,091.5 ) (1,051.4 ) Property, plant and equipment, net $ 3,094.5 $ 3,111.3 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Note 6. Accrued Liabilities Accrued liabilities are as follows: March 31, 2021 December 31, 2020 (in millions) Accrued interest $ 13.9 $ 18.0 Accrued capital expenditures 10.5 13.6 Other accruals 15.8 22.5 Total $ 40.2 $ 54.1 |
Debt and Interest Expense
Debt and Interest Expense | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Interest Expense | Note 7. Debt and Interest Expense Fixed‑Rate Senior Notes As of March 31, 2021, the Partnership had $800.0 million of 5.625% fixed‑rate senior notes due 2026 that were issued to qualified institutional investors. The notes are guaranteed by certain subsidiaries of the Partnership. Interest is payable semi‑annually on February 15 and August 15. In addition, as of March 31, 2021, the Partnership had $550.0 million of 5.125% fixed‑rate senior notes due 2028 that were issued to qualified institutional investors. The notes are guaranteed by certain subsidiaries of the Partnership. Interest is payable semi‑annually on June 15 and December 15. Each of the indentures for the 2026 and 2028 senior notes 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 March 31, 2021, we were in compliance with all debt covenants under the indentures. In addition, the covenants included in the indentures governing the senior notes contain provisions that allow the Company to satisfy the Partnership’s reporting obligations under the indenture, 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 As of March 31, 2021, the Partnership had 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. Facility fees accrue on the total capacity of the revolving credit facility. Borrowings under the 5-year Term Loan A facility will generally bear interest at LIBOR plus the applicable margin ranging from 1.55% to 2.50%, while the applicable margin for the 5-year syndicated revolving credit facility ranges from 1.275% to 2.000%. Pricing levels for the facility fee and interest-rate margins are based on the Partnership’s ratio of total debt to EBITDA (as defined in the Credit Facilities). If the Partnership obtains an investment grade credit rating, the pricing levels will be based on the Partnership’s credit ratings in effect from time to time. At March 31, 2021, borrowings of $174.0 million were drawn and outstanding under the Partnership’s revolving credit facility, and borrowings of $397.5 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 presently owned and after-acquired 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 March 31, 2021, the Partnership was in compliance with these financial covenants. Fair Value Measurement At March 31, 2021, our total debt had a carrying value of $1,898.7 million and had a fair value of approximately $1,949.3 million, based on Level 2 inputs in the fair value measurement hierarchy. 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 |
Partners' Capital and Distribut
Partners' Capital and Distributions | 3 Months Ended |
Mar. 31, 2021 | |
Partners Capital Notes [Abstract] | |
Partners' Capital and Distributions | Note 8. Partners’ Capital and Distributions Our partnership agreement requires that, within 45 days after the end of each quarter, we distribute all of our available cash, as defined in the partnership agreement, to shareholders of record on the applicable record date. The following table details the distributions declared and/or paid for the periods presented: z 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 (1) May 3, 2021 May 13, 2021 $ 0.4526 (1) |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | Note 9. Equity‑Based Compensation Equity‑based award activity for the three months ended March 31, 2021 is as follows: Weighted Average Award Date Number of Shares Fair Value Outstanding and unvested shares at December 31, 2020 228,344 $ 13.78 Granted 78,347 22.40 Vested (110,109 ) 14.91 Outstanding and unvested shares at March 31, 2021 196,582 $ 16.58 As of March 31, 2021, $3.0 million of compensation cost related to unvested restricted shares awarded under our long-term incentive plan remains to be recognized over an expected weighted‑average period of 2.3 years. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2021 | |
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 Three Months Ended March 31, (in millions, except per share amounts) 2021 2020 Net income $ 159.6 $ 129.0 Less: Net income attributable to noncontrolling interest 151.0 122.5 Net income attributable to Hess Midstream LP 8.6 6.5 Net income attributable to Hess Midstream LP per Class A share: Basic: $ 0.45 $ 0.37 Diluted: $ 0.43 $ 0.35 Weighted average Class A shares outstanding: Basic: 19.3 18.0 Diluted: 19.4 18.0 For the three months ended March 31, 2021 and 2020 the weighted average number of Class A shares outstanding included 122,222 and 52,442 dilutive restricted shares, respectively. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2021 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 11. Concentration of Credit Risk Hess represented approximately 100% of our total revenues and accounts receivable for the three months ended March 31, 2021 and 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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. As of March 31, 2021, our reserves for estimated remediation liabilities included in Accrued liabilities and Other noncurrent liabilities were $0.8 million and $3.1 million, respectively, compared with $0.9 million and $3.1 million, respectively, as of December 31, 2020. Legal Proceedings 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. As of March 31, 2021 and December 31, 2020, we did not have material accrued liabilities for legal contingencies. Based on currently available information, we believe it is remote that the outcome of known matters would have a material adverse impact on our financial condition, results of operations or cash flows. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Note 13. Segments Our operations are located in the United States and are organized into three reportable segments: (1) gathering, (2) processing and storage and (3) terminaling and export. Our reportable segments comprise the structure used by our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. These segments are strategic business units with differing products and services. Our CODM evaluates the segments’ operating performance based on multiple measures including Adjusted EBITDA, defined as net income (loss) before net interest expense, income tax expense (benefit), depreciation and amortization and our proportional share of depreciation of equity affiliates, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non-cash, non‑recurring items, if applicable. The following tables reflect certain financial data for each reportable segment: Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated (in millions) For the Three Months Ended March 31, 2021 Revenues and other income $ 152.7 $ 103.5 $ 32.6 $ - $ 288.8 Net income (loss) 92.4 70.9 24.0 (27.7 ) 159.6 Net income (loss) attributable to Hess Midstream LP 6.4 4.8 1.6 (4.2 ) 8.6 Depreciation expense 24.9 11.2 4.1 - 40.2 Proportional share of equity affiliates' depreciation - 1.3 - - 1.3 Income from equity investments - 2.7 - - 2.7 Interest expense, net - - - 23.1 23.1 Income tax expense - - - 2.5 2.5 Adjusted EBITDA 117.3 83.4 28.1 (2.1 ) 226.7 Capital expenditures* 19.4 3.7 - - 23.1 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated (in millions) For the Three Months Ended March 31, 2020 Revenues and other income $ 141.6 $ 97.0 $ 52.2 $ - $ 290.8 Net income (loss) 75.9 62.7 20.7 (30.3 ) 129.0 Net income (loss) attributable to Hess Midstream LP 4.8 4.0 1.3 (3.6 ) 6.5 Depreciation expense 23.3 11.2 4.0 - 38.5 Proportional share of equity affiliates' depreciation - 1.3 - - 1.3 Income from equity investments - 2.7 - - 2.7 Interest expense, net - - - 24.8 24.8 Income tax expense - - - 1.7 1.7 Adjusted EBITDA 99.2 75.2 24.7 (3.8 ) 195.3 Capital expenditures* 15.8 41.1 0.1 - 57.0 *Includes acquisition, expansion and maintenance capital expenditures, as applicable. Total assets for the reportable segments are as follows: March 31, 2021 December 31, 2020 (in millions) Gathering $ 1,859.3 $ 1,856.2 Processing and Storage ( 1) 1,161.6 1,170.3 Terminaling and Export 290.0 292.3 Interest and Other 77.7 55.7 Total assets $ 3,388.6 $ 3,374.5 (1) Includes investment in equity investees of $103.6 million as of March 31, 2021 and $108.4 million as of December 31, 2020. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events On April 23, 2021, the board of directors of our general partner declared a quarterly cash distribution of $0.4526 per Class A share for the quarter ended March 31, 2021, a 1.2% increase compared to the distribution on the Class A shares for the quarter ended December 31, 2020, which equals a 5% increase on an annualized basis. The distribution will be payable on May 13, 2021, to shareholders of record as of the close of business on May 3, 2021. Simultaneously, the Partnership will make a distribution of $0.4526 per Class B unit of the Partnership to the Sponsors as holders of an aggregate of 259,516,928 Class B units of the Partnership. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Presentation | The consolidated financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our consolidated financial position at March 31, 2021 and December 31, 2020, the consolidated results of operations and the consolidated cash flows for the three months ended March 31, 2021 and 2020. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. The consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted from these interim consolidated financial statements. These financial statements, therefore, should be read in conjunction with the financial statements and related notes included in the Company’s annual report on Form 10‑K for the year ended December 31, 2020. We consolidate the activities of Hess Midstream Operations LP (“the Partnership”), as a variable interest entity (“VIE”) under U.S. 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). We currently do not have any independent assets or operations other than our interest in the Partnership. Our noncontrolling interest represents the approximate 91.2% interest in the Partnership retained by Hess and GIP at March 31, 2021 and 93.7% at December 31, 2020. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Revenues From Contracts With Customers on Disaggregated Basis | Revenues from contracts with customers on a disaggregated basis are as follows: Three Months Ended March 31, 2021 2020 (in millions) Oil and gas gathering services $ 128.7 $ 117.4 Processing and storage services 103.5 96.8 Terminaling and export services 32.6 52.2 Water gathering and disposal services 24.0 24.2 Total revenues from contracts with customers $ 288.8 $ 290.6 Other income - 0.2 Total revenues $ 288.8 $ 290.8 |
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 unaudited consolidated statements of operations. Three Months Ended March 31, 2021 2020 (in millions) Produced water trucking and disposal costs $ 9.4 $ 16.6 Electricity fees 9.3 9.5 Rail transportation costs 0.1 23.2 Total $ 18.8 $ 49.3 Three Months Ended March 31, 2021 2020 (in millions) Operating and maintenance expenses $ 15.7 $ 15.5 General and administrative expenses 4.2 3.8 Total $ 19.9 $ 19.3 |
Summary of Activity Related to Agreements with Related Party | For the three months ended March 31, 2021 and 2020, we had the following activity related to our agreements with LM4: Three Months Ended March 31, 2021 2020 (in millions) Processing fee incurred $ 6.9 $ 6.4 Earnings from equity investments 2.7 2.7 Distributions received from equity investments 7.5 - |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment, at cost, is as follows: Estimated useful lives March 31, 2021 December 31, 2020 (in millions, except for number of years) Gathering assets Pipelines 22 years $ 1,478.7 $ 1,470.6 Compressors, pumping stations and terminals 22 to 25 years 786.7 778.6 Gas plant assets Pipelines, pipes and valves 22 to 25 years 460.0 460.0 Equipment 12 to 30 years 428.3 428.3 Buildings 35 years 182.3 182.3 Processing and fractionation facilities 25 years 189.3 189.0 Logistics facilities and railcars 20 to 25 years 386.5 386.2 Storage facilities 20 to 25 years 19.5 19.5 Other 20 to 25 years 22.1 20.9 Construction-in-progress N/A 232.6 227.3 Total property, plant and equipment, at cost 4,186.0 4,162.7 Accumulated depreciation (1,091.5 ) (1,051.4 ) Property, plant and equipment, net $ 3,094.5 $ 3,111.3 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities are as follows: March 31, 2021 December 31, 2020 (in millions) Accrued interest $ 13.9 $ 18.0 Accrued capital expenditures 10.5 13.6 Other accruals 15.8 22.5 Total $ 40.2 $ 54.1 |
Partners' Capital and Distrib_2
Partners' Capital and Distributions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Partners Capital Notes [Abstract] | |
Schedule of Distributions Declared and Paid | The following table details the distributions declared and/or paid for the periods presented: z 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 (1) May 3, 2021 May 13, 2021 $ 0.4526 (1) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Equity-based Award Activity | Equity‑based award activity for the three months ended March 31, 2021 is as follows: Weighted Average Award Date Number of Shares Fair Value Outstanding and unvested shares at December 31, 2020 228,344 $ 13.78 Granted 78,347 22.40 Vested (110,109 ) 14.91 Outstanding and unvested shares at March 31, 2021 196,582 $ 16.58 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 Three Months Ended March 31, (in millions, except per share amounts) 2021 2020 Net income $ 159.6 $ 129.0 Less: Net income attributable to noncontrolling interest 151.0 122.5 Net income attributable to Hess Midstream LP 8.6 6.5 Net income attributable to Hess Midstream LP per Class A share: Basic: $ 0.45 $ 0.37 Diluted: $ 0.43 $ 0.35 Weighted average Class A shares outstanding: Basic: 19.3 18.0 Diluted: 19.4 18.0 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Financial Data for Each Reportable Segment | The following tables reflect certain financial data for each reportable segment: Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated (in millions) For the Three Months Ended March 31, 2021 Revenues and other income $ 152.7 $ 103.5 $ 32.6 $ - $ 288.8 Net income (loss) 92.4 70.9 24.0 (27.7 ) 159.6 Net income (loss) attributable to Hess Midstream LP 6.4 4.8 1.6 (4.2 ) 8.6 Depreciation expense 24.9 11.2 4.1 - 40.2 Proportional share of equity affiliates' depreciation - 1.3 - - 1.3 Income from equity investments - 2.7 - - 2.7 Interest expense, net - - - 23.1 23.1 Income tax expense - - - 2.5 2.5 Adjusted EBITDA 117.3 83.4 28.1 (2.1 ) 226.7 Capital expenditures* 19.4 3.7 - - 23.1 Gathering Processing and Storage Terminaling and Export Interest and Other Consolidated (in millions) For the Three Months Ended March 31, 2020 Revenues and other income $ 141.6 $ 97.0 $ 52.2 $ - $ 290.8 Net income (loss) 75.9 62.7 20.7 (30.3 ) 129.0 Net income (loss) attributable to Hess Midstream LP 4.8 4.0 1.3 (3.6 ) 6.5 Depreciation expense 23.3 11.2 4.0 - 38.5 Proportional share of equity affiliates' depreciation - 1.3 - - 1.3 Income from equity investments - 2.7 - - 2.7 Interest expense, net - - - 24.8 24.8 Income tax expense - - - 1.7 1.7 Adjusted EBITDA 99.2 75.2 24.7 (3.8 ) 195.3 Capital expenditures* 15.8 41.1 0.1 - 57.0 *Includes acquisition, expansion and maintenance capital expenditures, as applicable. |
Total Assets for Reportable Segments | Total assets for the reportable segments are as follows: March 31, 2021 December 31, 2020 (in millions) Gathering $ 1,859.3 $ 1,856.2 Processing and Storage ( 1) 1,161.6 1,170.3 Terminaling and Export 290.0 292.3 Interest and Other 77.7 55.7 Total assets $ 3,388.6 $ 3,374.5 (1) Includes investment in equity investees of $103.6 million as of March 31, 2021 and $108.4 million as of December 31, 2020. |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021Segment | |
Description Of Business [Line Items] | |
Number of reportable segments | 3 |
Hess | |
Description Of Business [Line Items] | |
Percentage of ownership in joint venture | 50.00% |
GIP II Blue Holding Partnership, L.P | |
Description Of Business [Line Items] | |
Percentage of ownership in joint venture | 50.00% |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Hess and GIP | ||
Accounting Policies [Line Items] | ||
Noncontrolling interest percentage | 91.20% | 93.70% |
Equity Offering - Additional In
Equity Offering - Additional Information (Detail) - USD ($) | Mar. 15, 2021 | Dec. 31, 2020 | Mar. 31, 2021 |
Class Of Stock [Line Items] | |||
Percentage of ownership interest | 8.80% | 6.30% | |
Class A Shares | |||
Class Of Stock [Line Items] | |||
Underwritten public equity offering | 6,900,000 | ||
Shares issued, price per share | $ 21 | ||
Proceeds from Issuance of public equity offering | $ 0 | ||
Net proceeds received by sponsors from public equity offering | 139,900,000 | ||
Common unitholders | 31,800,000 | $ 125,000,000 | $ 184,000,000 |
Additions to deferred tax asset | $ 26,400,000 | ||
Class A Shares | Maximum | |||
Class Of Stock [Line Items] | |||
Underwriters’ option to purchase additional shares | 900,000 | ||
Class B Shares | |||
Class Of Stock [Line Items] | |||
Underwritten public equity offering | 6,900,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
LM4 | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership in joint venture | 50.00% | |
Credit Concentration Risk | Revenue | ||
Related Party Transaction [Line Items] | ||
Revenues attributable to fee based commercial agreements | 100.00% | 100.00% |
Hess | ||
Related Party Transaction [Line Items] | ||
MVC shortfall fee payments | $ 13.4 | $ 1 |
Percentage of ownership in joint venture | 50.00% | |
Hess | Credit Concentration Risk | Revenue | ||
Related Party Transaction [Line Items] | ||
Revenues attributable to fee based commercial agreements | 100.00% | 100.00% |
Hess | Amended and Restated Commercial Agreement | ||
Related Party Transaction [Line Items] | ||
Minimum volume commitments, Description | Minimum volume commitments (“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 shall not be reduced by any updated development plan unless dedicated production is released by us. The applicable MVCs may, however, be increased as a result of the nominations contained in any such updated development plan. | |
Minimum volume commitments expressed as percentage of related party nominations in development plans | 80.00% | |
Initial term of agreement | 10 years | |
Agreement description | each of our commercial agreements with Hess has an initial 10-year term effective January 1, 2014 (“Initial Term”). | |
Number of rights to extend the term of agreement | one | |
Advance period to call for extension of term of agreement | 3 years | |
Secondary term of agreement | 10 years | |
Hess | Amended and Restated Agreement for Certain Gas Gathering Sub-system | ||
Related Party Transaction [Line Items] | ||
Initial term of agreement | 15 years | |
Agreement description | For this gathering sub-system, the Initial Term is 15 years effective January 1, 2014 and for the water services agreements the Initial Term is 14 years effective January 1, 2019. | |
Secondary term of agreement | 5 years | |
Hess | Amended and Restated Water Services Agreements | ||
Related Party Transaction [Line Items] | ||
Initial term of agreement | 14 years | |
Secondary term of agreement | 10 years | |
Hess | Terminal and Export Services Agreement | ||
Related Party Transaction [Line Items] | ||
Commercial agreement period | 20 years | |
Hess | Commercial Agreements Other Than Storage Services Agreement and Terminal and Export Services Agreement | ||
Related Party Transaction [Line Items] | ||
Minimum volume commitments, Description | During the Secondary Term of our commercial agreements, Hess will continue to have MVCs equal to 80% of Hess’ nominations in each development plan that apply on a three-year rolling basis through the Secondary Term. | |
Minimum volume commitments expressed as percentage of related party nominations in development plans | 80.00% | |
Maximum consumer price index percentage | 3.00% | |
Fee recalculation model description | the fee recalculation model under each applicable agreement will be replaced by an inflation-based fee structure. The initial fee for the first year of the Secondary Term will be determined based on the average fees paid by Hess under the applicable agreement during the last three years of the Initial Term (with such fees adjusted for inflation through the first year of the Secondary Term). For each year following the first year of the Secondary Term, the applicable fee will be adjusted annually based on the percentage change in the consumer price index, provided that we may not increase any fee by more than 3% in any calendar year solely by reason of an increase in the consumer price index, and no fee will ever be reduced below the amount of the applicable fee payable by Hess in the prior year as a result of a decrease in the consumer price index. | |
Targa Resources Corp. | LM4 | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership in joint venture | 50.00% |
Related Party Transactions - Su
Related Party Transactions - Summary of Revenues From Contracts With Customers on Disaggregated Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | $ 288.8 | $ 290.6 |
Other income | 0.2 | |
Total revenues | 288.8 | 290.8 |
Oil and Gas Gathering Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 128.7 | 117.4 |
Processing and Storage Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 103.5 | 96.8 |
Terminaling and Export Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | 32.6 | 52.2 |
Water Gathering and Disposal Services | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues from contracts with customers | $ 24 | $ 24.2 |
Related Party Transactions - _2
Related Party Transactions - Summary of Third-party Pass-through Costs for Which Revenues in Amount Equal to Costs are Recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Reimbursement revenue | $ 288.8 | $ 290.6 |
Hess | ||
Related Party Transaction [Line Items] | ||
Total | 18.8 | 49.3 |
Hess | Produced Water Trucking and Disposal Costs | ||
Related Party Transaction [Line Items] | ||
Reimbursement revenue | 9.4 | 16.6 |
Hess | Electricity Fees | ||
Related Party Transaction [Line Items] | ||
Reimbursement revenue | 9.3 | 9.5 |
Hess | Rail Transportation Costs | ||
Related Party Transaction [Line Items] | ||
Reimbursement revenue | $ 0.1 | $ 23.2 |
Related Party Transactions - _3
Related Party Transactions - Summary of Classification of Charges between Operating and Maintenance Expenses and General and Administrative Expenses (Detail) - Hess - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Operating and maintenance expenses | $ 15.7 | $ 15.5 |
General and administrative expenses | 4.2 | 3.8 |
Total | $ 19.9 | $ 19.3 |
Related Party Transactions - _4
Related Party Transactions - Summary of Activity Related to Agreements with Related Party (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Earnings from equity investments | $ 2.7 | $ 2.7 |
Distributions received from equity investments | 7.5 | |
LM4 | ||
Related Party Transaction [Line Items] | ||
Processing fee incurred | 6.9 | 6.4 |
Earnings from equity investments | 2.7 | $ 2.7 |
Distributions received from equity investments | $ 7.5 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 4,186 | $ 4,162.7 |
Accumulated depreciation | (1,091.5) | (1,051.4) |
Property, plant and equipment, net | 3,094.5 | 3,111.3 |
Logistics Facilities and Railcars | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 386.5 | 386.2 |
Logistics Facilities and Railcars | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 20 years | |
Logistics Facilities and Railcars | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Storage Facilities | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 19.5 | 19.5 |
Storage Facilities | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 20 years | |
Storage Facilities | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Other | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 22.1 | 20.9 |
Other | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 20 years | |
Other | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Construction-In-Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 232.6 | 227.3 |
Gathering Assets | Pipelines | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 22 years | |
Total property, plant and equipment, at cost | $ 1,478.7 | 1,470.6 |
Gathering Assets | Compressors, Pumping Stations and Terminals | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 786.7 | 778.6 |
Gathering Assets | Compressors, Pumping Stations and Terminals | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 22 years | |
Gathering Assets | Compressors, Pumping Stations and Terminals | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Gas Plant Assets | Pipelines, Pipes and Valves | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 460 | 460 |
Gas Plant Assets | Pipelines, Pipes and Valves | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 22 years | |
Gas Plant Assets | Pipelines, Pipes and Valves | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Gas Plant Assets | Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 428.3 | 428.3 |
Gas Plant Assets | Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 12 years | |
Gas Plant Assets | Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 30 years | |
Gas Plant Assets | Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 35 years | |
Total property, plant and equipment, at cost | $ 182.3 | 182.3 |
Gas Plant Assets | Processing and Fractionation Facilities | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated useful life | 25 years | |
Total property, plant and equipment, at cost | $ 189.3 | $ 189 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Accrued interest | $ 13.9 | $ 18 |
Accrued capital expenditures | 10.5 | 13.6 |
Other accruals | 15.8 | 22.5 |
Total | $ 40.2 | $ 54.1 |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Debt covenant, leverage ratio | 550.00% |
Ratio of debt to EBITDA | 500.00% |
Secured leverage ratio - Maximum | 400.00% |
Debt instrument covenant, description | The Credit Facilities contain representations and warranties, affirmative and negative covenants and events of default that the Partnership considers to be customary for an agreement of this type, including a covenant that requires the Partnership to maintain a ratio of total debt to EBITDA (as defined in the Credit Facilities) for the prior four fiscal quarters of not greater than 5.00 to 1.00 as of the last day of each fiscal quarter (5.50 to 1.00 during the specified period following certain acquisitions) and, prior to the Partnership obtaining an investment grade credit rating, a ratio of secured debt to EBITDA for the prior four fiscal quarters of not greater than 4.00 to 1.00 as of the last day of each fiscal quarter. |
Carrying Value | |
Debt Instrument [Line Items] | |
Total debt | $ 1,898,700,000 |
Level 2 | |
Debt Instrument [Line Items] | |
Total debt fair value | $ 1,949,300,000 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Credit facility - Term | 5 years |
Maximum borrowing capacity | $ 1,000,000,000 |
Borrowings | $ 174,000,000 |
Revolving Credit Facility | Minimum | |
Debt Instrument [Line Items] | |
Interest rate applicable margin | 1.55% |
Revolving Credit Facility | Maximum | |
Debt Instrument [Line Items] | |
Interest rate applicable margin | 2.50% |
Term Loan A Facility | |
Debt Instrument [Line Items] | |
Credit facility - Term | 5 years |
Maximum borrowing capacity | $ 400,000,000 |
Borrowings | $ 397,500,000 |
Syndicated Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Credit facility - Term | 5 years |
Syndicated Revolving Credit Facility | Minimum | |
Debt Instrument [Line Items] | |
Interest rate applicable margin | 1.275% |
Syndicated Revolving Credit Facility | Maximum | |
Debt Instrument [Line Items] | |
Interest rate applicable margin | 2.00% |
Fixed-Rate Senior Notes | |
Debt Instrument [Line Items] | |
Debt covenant, leverage ratio | 425.00% |
5.625% Fixed Rate Senior Notes due 2026 | |
Debt Instrument [Line Items] | |
Fixed-rate senior notes | $ 800,000,000 |
5.625% Fixed Rate Senior Notes due 2026 | Fixed-Rate Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 5.625% |
Debt instrument due year | 2026 |
Frequency of periodic interest payment | semi‑annually |
Interest payment terms | Interest is payable semi‑annually on February 15 and August 15. |
5.125% Fixed Rate Senior Notes due 2028 | |
Debt Instrument [Line Items] | |
Fixed-rate senior notes | $ 550,000,000 |
5.125% Fixed Rate Senior Notes due 2028 | Fixed-Rate Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument interest rate | 5.125% |
Debt instrument due year | 2028 |
Frequency of periodic interest payment | semi‑annually |
Interest payment terms | Interest is payable semi‑annually on June 15 and December 15. |
Partners' Capital and Distrib_3
Partners' Capital and Distributions - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
Partners Capital Notes [Abstract] | |
Period of cash distribution to shareholders | 45 days |
Partners' Capital and Distrib_4
Partners' Capital and Distributions - Schedule of Distributions Declared and Paid (Detail) | 3 Months Ended | |
Mar. 31, 2021$ / shares | ||
First Quarter 2020 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | May 4, 2020 | |
Distribution Date | May 14, 2020 | |
Distribution per Class A share | $ 0.4310 | |
Second Quarter 2020 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Aug. 6, 2020 | |
Distribution Date | Aug. 14, 2020 | |
Distribution per Class A share | $ 0.4363 | |
Third Quarter 2020 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Nov. 5, 2020 | |
Distribution Date | Nov. 13, 2020 | |
Distribution per Class A share | $ 0.4417 | |
Fourth Quarter 2020 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | Feb. 4, 2021 | |
Distribution Date | Feb. 12, 2021 | |
Distribution per Class A share | $ 0.4471 | |
First Quarter 2021 | ||
Distribution Made To Limited Partner [Line Items] | ||
Record Date | May 3, 2021 | [1] |
Distribution Date | May 13, 2021 | [1] |
Distribution per Class A share | $ 0.4526 | [1] |
[1] | For more information, see Note 14, Subsequent Events. |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Equity-based Award Activity (Detail) - Restricted Share | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding and unvested shares at December 31, 2020, Number of Shares | shares | 228,344 |
Granted, Number of Shares | shares | 78,347 |
Vested, Number of Shares | shares | (110,109) |
Outstanding and unvested shares at March 31, 2021, Number of Shares | shares | 196,582 |
Outstanding and unvested shares at December 31, 2020, Weighted Average Award Date Fair Value | $ / shares | $ 13.78 |
Granted, Weighted Average Award Date Fair Value | $ / shares | 22.40 |
Vested, Weighted Average Award Date Fair Value | $ / shares | 14.91 |
Outstanding and unvested shares at March 31 2021, Weighted Average Award Date Fair Value | $ / shares | $ 16.58 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - 2017 Long-Term Incentive Plan $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Cost related to restricted shares to be recognized | $ 3 |
Cost related to unvested restricted shares to be recognized, over an expected weighted-average period | 2 years 3 months 18 days |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Dilutive Restricted Shares | ||
Limited Partners Capital Account [Line Items] | ||
Weighted average number shares | 122,222 | 52,442 |
Hess and GIP | Class A Shares | ||
Limited Partners Capital Account [Line Items] | ||
Conversion of Class B units and Class B shares into Class A shares | 100.00% |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Limited Partners Capital Account [Line Items] | ||
Net income | $ 159.6 | $ 129 |
Less: Net income attributable to noncontrolling interest | 151 | 122.5 |
Net income attributable to Hess Midstream LP | 8.6 | 6.5 |
Class A Shares | ||
Limited Partners Capital Account [Line Items] | ||
Net income | $ 8.6 | $ 6.5 |
Net income attributable to Hess Midstream LP per Class A share: | ||
Net income attributable to Hess Midstream LP per Class A share, Basic | $ 0.45 | $ 0.37 |
Net income attributable to Hess Midstream LP per Class A share, Diluted | $ 0.43 | $ 0.35 |
Weighted average Class A shares outstanding | ||
Weighted average Class A shares outstanding, Basic | 19.3 | 18 |
Weighted average Class A shares outstanding, Diluted | 19.4 | 18 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) - Credit Concentration Risk | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments And Contingencies Disclosure [Abstract] | ||
Estimated remediation liabilities included in accrued liabilities | $ 800,000 | $ 900,000 |
Estimated remediation liabilities included in other noncurrent liabilities | 3,100,000 | 3,100,000 |
Accrued liabilities for legal contingencies | $ 0 | $ 0 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segments - Financial Data for E
Segments - Financial Data for Each Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Segment Reporting Information [Line Items] | |||
Revenues and other income | $ 288.8 | $ 290.8 | |
Net income (loss) | 159.6 | 129 | |
Net income (loss) attributable to Hess Midstream LP | 8.6 | 6.5 | |
Depreciation expense | 40.2 | 38.5 | |
Proportional share of equity affiliates' depreciation | 1.3 | 1.3 | |
Income from equity investments | 2.7 | 2.7 | |
Interest expense, net | 23.1 | 24.8 | |
Income tax expense | 2.5 | 1.7 | |
Adjusted EBITDA | 226.7 | 195.3 | |
Capital expenditures | [1] | 23.1 | 57 |
Interest and Other | |||
Segment Reporting Information [Line Items] | |||
Net income (loss) | (27.7) | (30.3) | |
Net income (loss) attributable to Hess Midstream LP | (4.2) | (3.6) | |
Interest expense, net | 23.1 | 24.8 | |
Income tax expense | 2.5 | 1.7 | |
Adjusted EBITDA | (2.1) | (3.8) | |
Gathering Opco | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues and other income | 152.7 | 141.6 | |
Net income (loss) | 92.4 | 75.9 | |
Net income (loss) attributable to Hess Midstream LP | 6.4 | 4.8 | |
Depreciation expense | 24.9 | 23.3 | |
Adjusted EBITDA | 117.3 | 99.2 | |
Capital expenditures | [1] | 19.4 | 15.8 |
Processing and Storage | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues and other income | 103.5 | 97 | |
Net income (loss) | 70.9 | 62.7 | |
Net income (loss) attributable to Hess Midstream LP | 4.8 | 4 | |
Depreciation expense | 11.2 | 11.2 | |
Proportional share of equity affiliates' depreciation | 1.3 | 1.3 | |
Income from equity investments | 2.7 | 2.7 | |
Adjusted EBITDA | 83.4 | 75.2 | |
Capital expenditures | [1] | 3.7 | 41.1 |
Terminaling and Export | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues and other income | 32.6 | 52.2 | |
Net income (loss) | 24 | 20.7 | |
Net income (loss) attributable to Hess Midstream LP | 1.6 | 1.3 | |
Depreciation expense | 4.1 | 4 | |
Adjusted EBITDA | $ 28.1 | 24.7 | |
Capital expenditures | [1] | $ 0.1 | |
[1] | Includes acquisition, expansion and maintenance capital expenditures, as applicable |
Segments - Total Assets for Rep
Segments - Total Assets for Reportable Segments (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 3,388.6 | $ 3,374.5 | |
Interest and Other | |||
Segment Reporting Information [Line Items] | |||
Total assets | 77.7 | 55.7 | |
Gathering Opco | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,859.3 | 1,856.2 | |
Processing and Storage | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | [1] | 1,161.6 | 1,170.3 |
Terminaling and Export | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 290 | $ 292.3 | |
[1] | Includes investment in equity investees of $103.6 million as of March 31, 2021 and $108.4 million as of December 31, 2020. |
Segments - Total Assets for R_2
Segments - Total Assets for Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2019 | |
Processing and Storage | ||
Segment Reporting Information [Line Items] | ||
Cash contributed to acquire equity investments | $ 103.6 | $ 108.4 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Apr. 23, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Subsequent Event [Line Items] | |||
Distributions to unitholders - per unit/share | $ 0.4471 | $ 0.4258 | |
Subsequent Event | Class A Shares | |||
Subsequent Event [Line Items] | |||
Quarterly cash distribution declared date | Apr. 23, 2021 | ||
Quarterly cash distribution declared per Class A share | $ 0.4526 | ||
Distribution made to limited partner, increase in percentage than prior year quarter declared | 1.20% | ||
Distribution made to limited partner, increase in percentage on an annualized basis | 5.00% | ||
Distribution payable date | May 13, 2021 | ||
Record Date | May 3, 2021 | ||
Subsequent Event | Class B Shares | |||
Subsequent Event [Line Items] | |||
Distributions to unitholders - per unit/share | $ 0.4526 | ||
Units representing noncontrolling limited partner interests | 259,516,928 |