Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

10.  Subsequent Events

In April 2017, Hess Midstream Partners LP (the “Partnership”), sold 16,997,000 common units representing limited partner interests at a price of $23 per unit in an initial public offering (IPO) for net proceeds of approximately $360 million, of which $350 million was distributed equally to Hess Corporation and GIP.  

The Partnership owns an approximate 20% controlling interest in the operating companies that comprise our midstream joint venture, while HIP, the 50/50 joint venture between Hess Corporation and GIP, owns the remaining 80%.  Hess Corporation and GIP each own a direct 33.75% limited partner interest in the Partnership and a 50% indirect ownership through HIP of the general partner which has a 2% economic interest plus incentive distribution rights.  The public unit holders own a 30.5% limited partner interest.  Hess will continue to consolidate HIP subsequent to the IPO.

The Partnership has a $300 million 4-year senior secured syndicated revolving credit facility, which became available for utilization at completion of the IPO.  The credit facility can be used for borrowings and letters of credit to fund operating activities and capital expenditures of the Partnership.  Outstanding borrowings under this credit facility are non-recourse to Hess Corporation.