Hess Midstream LP – Chevron Takes 37.8% Stake

By Philip Seaworth • Saturday, July 19 15:27 • Permanent Link

Hess Midstream LP (NYSE: HESM) has announced significant changes to its board of directors and executive leadership following the completion of the merger between Hess Corporation and Chevron Corporation. As a result of the merger, Chevron now beneficially owns approximately 37.8% interest in Hess Midstream on a consolidated basis.

The company's board of directors has undergone a considerable transformation, with the departure of John B. Hess, Chairman and CEO of Hess Corporation, Gregory P. Hill, President and COO of Hess Corporation, and John P. Rielly, Executive VP and CFO of Hess Corporation. In their place, Andy Walz, President of Chevron Downstream, Midstream & Chemicals, has joined the board and will serve as chairman. Joining Walz on the board from Chevron are Kristen Ghattas and Kristi McCarthy, while Gerbert Schoonman will remain on the board.

Hess Midstream's three independent directors, Stephen J.J. Letwin, David W. Niemiec, and John P. Reddy, will continue to serve on the board and its audit committee. The company also expects to appoint a fourth independent board member in the future.

In terms of executive leadership, Jonathan C. Stein, the current CFO of Hess Midstream, has been appointed as the new CEO, succeeding John B. Hess. Additionally, Michael J. Chadwick has been named the new CFO, succeeding Mr. Stein.

Hess Midstream's focus remains on strong operational and financial performance, as well as delivering significant shareholder returns consistently. The company is looking forward to collaborating with Chevron to further enhance shareholder value.

Hess Midstream LP is a fee-based, growth-oriented midstream company that owns, operates, develops, and acquires a diverse set of midstream assets to provide services to Chevron, its subsidiaries, and third-party customers. The company's assets primarily include oil, gas, and produced water handling assets located in the Bakken and Three Forks shale plays in the Williston Basin area of North Dakota. The market has reacted to these announcements by moving the company's shares 6.74% to a price of $41.00. Check out the company's full 8-K submission here.

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