HOUSTON - Hess Midstream LP (NYSE: HESM) announced today the launch of a public offering of 10 million Class A shares by an affiliate of Global Infrastructure Partners. In addition, the selling shareholder is offering underwriters a 30-day option to purchase up to an additional 1.5 million shares. Hess Midstream, a midstream energy operator, will not receive any proceeds from this offering.
The shares are being sold through Citigroup, the bookrunning manager, and may be offered on the New York Stock Exchange, over-the-counter, or through negotiated transactions. The offering is subject to market conditions, and the shares will be sold according to the prospectus supplement and base prospectus filed with the Securities and Exchange Commission (SEC).
Hess Midstream LP, headquartered in Houston, operates in the midstream energy sector. It provides services to Hess Corporation (NYSE:HES) and third-party customers, focusing on the Bakken and Three Forks Shale plays in North Dakota. The company's assets include oil, gas, and produced water handling facilities.
This news article is based on a press release statement.
InvestingPro Insights
In light of Hess Midstream LP's recent announcement regarding the public offering of Class A shares, investors may seek additional insights to gauge the investment potential of HESM. According to real-time data from InvestingPro, Hess Midstream has a market capitalization of approximately $7.96 billion and a P/E ratio of 16.43, which adjusts to 19.98 when considering the last twelve months as of Q4 2023. This suggests a valuation that requires careful consideration, especially in relation to near-term earnings growth.
InvestingPro Tips indicate that HESM has consistently rewarded shareholders, having raised its dividend for 7 consecutive years and maintained dividend payments for 8 consecutive years. The stock is also noted for its low price volatility, which could appeal to investors looking for stable income. However, the Relative Strength Index (RSI) suggests that the stock is currently in overbought territory, and analysts have revised their earnings expectations downwards for the upcoming period, signaling potential caution for short-term investors.
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