Hess Midstream ticks down as BlackRock's GIP exits in $560 mln secondary offering

Hess Midstream LP

29/05/2025 13:09

** Shares of Hess Midstream HESM.N down 0.5% before the bell to $38 after secondary offering priced

** Hess Midstream, a subsidiary of oil and gas producer Hess Corp HES.N, late Weds announced sale of 15 mln shares by affiliate of Global Infrastructure Partners (GIP) at $37.25

** Offering size equates to ~$559.6 mln and priced at 2.5% discount to HESM last sale

** JP Morgan and Citigroup are jt bookrunners

** GIP, owned by BlackRock BLK.N, divests its remaining 7.2% stake, per the SEC prospectus filing

** Houston-based Hess Midstream has ~210 mln shares outstanding as of May 27, giving co $8 bln market cap

** Through Weds close, HESM shares up 3% YTD. Stock hit intraday record high of $44.05 in mid-Mar

** 3 of 5 analysts rate HESM "strong buy" or "buy", 2 rate "hold" with $43.50 median PT, according to latest LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))