Hess Midstream Partners LP
today announced execution of a definitive agreement to acquire Hess Infrastructure Partners LP
(“HIP”), including HIP’s outstanding economic general partner interest and incentive distribution rights (“IDRs”) in HESM. In addition, HESM’s organizational structure will be converted into an “Up-C” structure in which IDR payments to sponsors are eliminated.
Commenting on the strategic transaction,
, Chief Executive Officer of HESM said, “These changes will create unitholder value by combining the strengths of our existing business model with the benefits of a new structure. As a result, HESM will transition from a small-cap MLP into a company with an enterprise value of more than $7.25 billion, no sponsor incentive distribution rights and a sustainable long-term structure.”
“This accretive transaction provides a more attractive long term growth platform for our portfolio,”
, Chief Financial Officer of HESM said, “We can continue to generate strong free cash flow growth and fund our capital program and consistent 15% distribution per unit growth at an increased coverage level with conservative leverage and no need for equity funding to meet our targeted growth.”