Hess Midstream Partners LP Hess Midstream Partners LP Announces Acquisition of Hess Infrastructure Partners LP, IDR Simplification and Conversion to an Up-C Corporate Structure; Provides 2020 Guidance October 2019
Hess Midstream Partners Strategic Transaction Hess Midstream Partners (HESM or HESM OpCo) to acquire Hess Infrastructure Partners LP (HIP) including Incentive Distribution Rights (IDRs), resulting in a simplified, large-scale, premier…
Transaction Summary Hess Midstream Partners to acquire 100% of HIP, including economic interests in joint interest assets, water services, and GP Incentive Distribution Rights(1) Pro Forma Structure (Simplified) 1. 100% acquisition of…
Transaction Details Creation of Hess Midstream LP in Up-C structure Pro-Forma Ownership(3) HESM to acquire HIP from Sponsors, consolidating Hess Midstream Shares (MM) Total 100% of midstream operations Pro-Forma Ownership Class A…
Continues Track Record of Unitholder Value Creation No Change to Distribution Policy Distributions Per Unit/Share(1) No change to current distribution Targeted 15% Continued commitment to 15% DPU growth target Annualized Growth 2.14…
Enhances Leading Midstream Platform Maintaining Existing Strong Business Model . . . . . . New Platform Aligns Sponsor and Unitholder Interest Pro-forma 7.25 billion enterprise value midstream platform(1) Integrated Portfolio 100%…
Multiple Drivers of Forward Growth Hess Bakken Net Production(1) (MBoe/d) Strategic midstream infrastructure 20% CAGR 2018-21 servicing Hess and Third Parties Visible Organic Hess expected to grow Bakken production 200 Growth to 200…
Compelling Value Proposition Differentiated Fundamentals with Peer-Leading Financial Metrics(1) 2021E Unlevered 2019E 2021E EBITDA CAGR Total Debt / 2019E EBITDA Free Cash Flow Conversion(2) 25% Publicly Announced 22% Leverage…
Hess Midstreams Strategic Transaction Transaction Immediately Accretive for Public Unitholders 25% EBITDA Growth and Targeted 15% Annualized DPU Growth Premier Large-Scale Midstream Company Visible Growing Cash Flow…
Appendix 12
Hess Midstream
Unitholder Accretion Table Illustrative DCF per Unit/Share Accretion Based on 2020 EBITDA Guidance Range Low End Midpoint High End Existing New Existing New Existing New MM (unless otherwise noted) MLP HESM MLP HESM MLP HESM…
Reconciliation to GAAP Metrics Non-GAAP Financial Measures We define Adjusted EBITDA as net income (loss) before net interest expense, income tax expense (benefit) and depreciation and amortization, as further adjusted to eliminate the…
Strategically Located, Integrated, High Quality Large-Scale Asset Base Serving Hess & Third Parties 350 MMcf/d of Gas Processing Capacity Tioga Gas Plant (TGP): Capacity of 250 MMcf/d incl. ethane extraction, planned 150 MMcf/d…
Stable, Growing Cash Flows Supported by Long-Term Commercial Contracts with Hess MVCs provide ongoing Annual fee recalculation for changes in volume near-term downside protection forecast to maintain EBITDA stability (1),(2) (2)…
Opportunities to Deploy Capital Executed 500 MM of Expanding processing capacity from 350 MMcf/d incremental growth projects over Focused Capacity to 500 MMcf/d by mid-2021 past 24 months Expansions Ongoing build-out of water…
Hess Bakken Upstream
Hess Bakken Upstream Growth Engine Leading Acreage Position Delivering Long-Term Volume Growth Material Position in Premium Tight Oil Play Leading acreage position: 550,000 net acres (Hess 75% WI, operator) Competitive More gross…
Significant Future Production Growth Hess Expects Bakken Net Production to Grow to 200 MBoe/d by 2021 Hess Bakken Net Production(1) (MBoe/d) Significant Inventory of High Return Well Locations 20% Number of Locations with IRRs at 15% or…
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