Core Insights - Cushing Asset Management sold 960,000 shares of Hess Midstream for an estimated value of $32.28 million in Q4 2025, resulting in a decrease in the position's value by $33.24 million due to trading and stock price movements [1][2] Company Overview - Hess Midstream is a leading energy infrastructure company that specializes in the ownership and operation of critical midstream assets across the oil and gas value chain [4] - The company operates pipelines, gas processing plants, storage facilities, and export terminals, primarily generating revenue through fee-based contracts supported by long-term agreements with producers [7][8] - As of January 26, 2026, Hess Midstream's market capitalization is $7.88 billion, with a revenue of $1.62 billion and a dividend yield of 7.94% [3] Financial Performance - The share price of Hess Midstream as of January 26, 2026, is $35.13, reflecting a one-year decline of approximately 5.7%, underperforming the S&P 500 by 22.10 percentage points [2] - The fund's stake in Hess Midstream has been reduced to approximately 2.69% of its reportable assets under management as of December 31, 2025 [2] Investment Implications - Hess Midstream is recognized for its ability to generate steady income in the energy sector, relying on stable throughput and disciplined balance sheet management to convert pipeline volumes into consistent cash distributions [6][8]

Core Viewpoint - Plains All American Pipeline is transitioning to a pure-play crude operator, aiming for more stable cash flows and stronger distribution growth following significant acquisitions and divestitures [1]. Group 1: Strategic Transactions - Plains acquired 100% ownership of the EPIC Crude pipeline system for approximately $1.3 billion, which includes around $500 million in debt [3][4]. - The acquisition was completed in two parts: a 55% stake from Diamondback and Kinetik, followed by a 45% interest from an Ares private equity portfolio company [4]. - The company plans to rename the EPIC system to Cactus III and integrate it with its existing Cactus long-haul infrastructure [4]. Group 2: Financial Projections - CEO Willie Chiang described the EPIC acquisitions as "highly synergistic and very strategic," projecting a mid-teens unlevered return [5]. - Management anticipates a 2026 adjusted EBITDA multiple of approximately 10x, with expectations for meaningful improvement in the coming years [5]. Group 3: Divestiture - Plains is selling its entire Canadian NGL business to Keyera for $5.15 billion, with the deal expected to close by the end of Q1 2026, pending regulatory approvals [6]. - Two of the three required approvals have been secured, including U.S. Hart-Scott-Rodino and Canadian Transportation Act approvals, while the Canadian Competition Bureau approval is still in progress [6]. Group 4: Operational Benefits - The EPIC acquisition allows Plains to control operatorship, facilitating synergy capture across the entire system [7]. - Near-term benefits include contractual step-ups, reduced operating costs, quality optimization opportunities, and better utilization of existing Permian and Eagle Ford assets [7]. - Long-term, the system offers expansion capacity that could enhance Gulf Coast access as demand increases [7]. Group 5: Contractual Stability - A significant portion of EPIC's contracts are long-term, with medium-duration agreements covering the remainder, positioning the pipeline for stable and growing cash flows [8]. - The acquisition extends Plains' weighted average contract duration from 2028 to October 2029 [9].