Good day, ladies and gentlemen, and welcome to the Third Quarter 2019 Hess Midstream Partners Conference Call. My name is Latif and I will be your operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes. I would now like to turn the conference over to Jennifer Gordon, Director of Investor Relations. Please proceed.

Thank you, Latif. Good afternoon everyone and thank you for participating in our third quarter earnings conference call. Our earnings release was issued this morning and appears on our website www.hessmidstream.com. Today's conference call contains projections and other forward-looking statements within the meaning of the federal securities laws. These statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in such statements. These risks include those set forth in the Risk Factors section of Hess Midstream's filings with the SEC. Also on today's conference call, we may discuss certain non-GAAP financial measures, a reconciliation of the differences between these non-GAAP financial measures and the most directly comparable GAAP financial measures can be found in the earnings release. With me today are John Gatling, Chief Operating Officer; and Jonathan Stein, Chief Financial Officer. I'll now turn the call over to John Gatling.

Thanks, Jennifer. Good afternoon everyone and welcome to Hess Midstream's third quarter 2019 conference call. Today, I'll review our operating performance and recent highlights as we continue to execute our strategy and also discuss Hess Corporation's latest results in the Bakken. Jonathan will then review our financial results. Earlier this month Hess Midstream announced an agreement to acquire Hess Infrastructure Partners, including its incentive distribution rights in Hess Midstream and convert from an MLP to an Up-C corporate structure. With the acquisition of HIP's assets, Hess Midstream will become a large-scale, full service midstream company with no drop-down dependencies positioned for visible adjusted EBITDA growth and increasing free cash flow generation with a platform that provides opportunity for broad investor participation. Turning to Hess Midstream's results for the quarter, in late July, Targa Resources successfully brought online the 200 million cubic foot per day Little Missouri 4 gas plant. Gas processing volumes at LM4 ramp steadily in the third quarter and have averaged approximately 70 million cubic foot per day net to Hess Midstream during October. As additional Hess volume south of Missouri River were redirected to the plant. We expect to continue to build towards full utilization of our 100 million cubic foot per day share of LM4 over the balance of the fourth quarter. As LM4 has ramped up, we have simultaneously backfilled the Tioga Gas Plant with increasing Hess production along with contracted and connected third-party volumes from a range of upstream and midstream customers maintaining TGP near its nameplate capacity of 250 million cubic foot per day. In line with guidance provided on the July call, total third quarter gas processing volumes increased by 9% compared to the second quarter. We anticipate further growth in gas gathering and processing volumes in the fourth quarter as LM4…

Thanks, John, and good afternoon everyone. We are pleased with the positive response to our October 4th announcement. As we have highlighted, the transaction will deliver important benefits to unit holders. First, contribution of HIP's 80% remaining economic interest in the oil and gas midstream assets and 100% ownership in HIP's water business creating significant scale for the new enterprise. Second, a transaction that is expected to be immediately accretive to Hess Midstream unit holders and deliver long-term accretion on a distributable cash flow per unit basis. Third, maintaining our commitment to 15% annualized distribution per unit growth through 2021 and increasing our targeted distribution coverage to 1.2 times. Fourth, eliminating IDR payments to sponsors and converting to an Up-C corporate structure with broader investor appeal. And finally, to achieve all of this in a manner expected to be non-taxable to current Hess Midstream unit holders and with a generous tax yield resulting in no material tax is expected to be paid for the next several years. These changes position Hess Midstream for visible adjusted EBITDA growth and increasing free cash flow generation while maintaining conservative leverage without the need for funding from the equity capital market to deliver our planned growth. As one of the first steps in the proposed transaction, we commenced an offer to assume approximately $800 million of outstanding HIP notes in a par-for-par exchange and as of October 21, 2019, we received consents for greater than 99% of the aggregate principal amount of existing outstanding notes. The proposed transaction is expected to close in the fourth quarter of 2019 subject to customary closing condition and receipt of regulatory approval. As John noted, we are continuing to execute our strategic plan this year and we are complementing our volumetric growth with strong financial results. The startup…

[Operator Instructions] Our first question comes from the line of Phil Stewart of Scotia Howard Weil. Your line is open.

Jonathan, I wonder if we could circle back to the transaction and talk about the decision to pursue an Up-C corporate structure as opposed to a Full-C conversion maybe kind of what were the puts and takes there and what kind of the benefits might be to an Up-C versus a full corporate conversion?

Thank you. So, the Up-C structure really provides multiple benefits. For us, it allows us to have access to a broader investor base, obviously together with the IDR simplification, we also will have a line interest between the sponsors and our public equity holders. But in addition, it also, because ultimately the Up-C has a partnership at its base allows us to maintain significant integration with Hess Corporation, which has as our anchor customer and also as we co-develop, if you will, the Bakken together to optimize it and its 20% production growth is really underpinning our growth. So, that integration is really critical. So really the ability to have that broader investor base, but at the same time be able to maintain that integration was really key and allow the Up-C to be ideal choice for us.

And then, I guess, moving on to the TGP expansion, I know you've talked about a turnaround period at some point during next year and you've kind of already provided guidance for what the full year throughput volumes will be, just wonder if you all could maybe provide a little more clarity in terms of the actual timing of when the turnaround will take place?

Sure. Thanks for the question. We're still in the planning phases of the turnaround. And that's - so it's still moving around, as far as the actual duration of the turnaround itself, again, this is a maintenance turnaround that was already in the plan as it was built in and we're actually taking advantage of the maintenance turnaround to complete the expansion activities over that period of time. And all of this has been built into our plan, so it's in Hess' plan, it's also in Hess Midstream's plan as well. And we'll provide more information on the turnaround itself in the - during the January call.

And then, I guess, one last one from me if I can. On the saltwater disposal business, obviously, understanding it's new to the structure, can you just talk about the CapEx requirements for that business to continue to grow at over the next couple of years and how that kind of fits in with your ongoing maintenance and kind of sustaining CapEx program of well tie-ins on an annual basis going forward?

And I guess, it's important to note as far as the water business goes, we've been kind of running the midstream business for some period of time both the obviously the Hess Infrastructure Partners, Hess Midstream, but also some of the Midstream assets that sat with Hess. So, these are not new assets to us, we've been actually operating these assets with the intent of packaging them and selling them into or - Hess selling them into Hess Infrastructure Partners us acquiring and then ultimately making them available for Hess Midstream. So, that's been the plan and we've actually been actively managing the business and growing the business, as part of that. As far as the capital requirements go, again, this is a growth business for us. This is considered expansion, as you know, essentially all of the, what I would say, non-traditional which would be like equipment replacements, things like that it goes into our expansion line from a capital perspective, this would all be expansion capital for us, it is - has been and I would say the base in, generally speaking, has been under-invested in water services. So, it is a growth opportunity for us, it's got a substantial growth profile. I would say, it's a modest investment, it's not going to be a significant portion of our overall capital portfolio, but it's attractive, it grows rapidly, it's going to create a lot of EBITDA for us in the future, and we're going to continue to attack it aggressively for both - to support both Hess and third parties as well.

Thank you very much. This concludes today's conference. Thank you for your participation. You may now disconnect. Have a great day.