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Hess Midstream LP Announces Distribution Per Share Level Increase

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Hess Midstream (NYSE: HESM) announced a quarterly cash distribution of $0.6846 per Class A share for Q3 2024, representing a $0.0169 increase from Q2 2024. This increase follows the company's $100 million unit repurchase in September 2024 and exceeds their targeted 5% annual distribution growth through 2026. The company has increased distributions by over 50% since Q1 2021 and by over 10% in 2024 year-to-date. Hess Midstream expects to maintain $1.25 billion in financial flexibility through 2026 for potential additional unit repurchases. The distribution will be paid on November 14, 2024, to shareholders of record as of November 7, 2024.

Hess Midstream (NYSE: HESM) ha annunciato una distribuzione di cassa trimestrale di $0.6846 per azione di Classe A per il terzo trimestre del 2024, con un aumento di $0.0169 rispetto al secondo trimestre del 2024. Questo incremento segue il riacquisto di unità da $100 milioni effettuato dall'azienda a settembre 2024 e supera l'obiettivo di crescita della distribuzione annuale del 5% fino al 2026. L'azienda ha aumentato le distribuzioni di oltre il 50% dal primo trimestre del 2021 e di oltre il 10% nel 2024 fino ad oggi. Hess Midstream prevede di mantenere $1.25 miliardi di flessibilità finanziaria fino al 2026 per potenziali ulteriori riacquisti di unità. La distribuzione sarà pagata il 14 novembre 2024, agli azionisti registrati al 7 novembre 2024.

Hess Midstream (NYSE: HESM) anunció una distribución de efectivo trimestral de $0.6846 por acción de Clase A para el tercer trimestre de 2024, representando un aumento de $0.0169 en comparación con el segundo trimestre de 2024. Este aumento sigue a la recompra de unidades de $100 millones realizada por la compañía en septiembre de 2024 y supera su objetivo de crecimiento de la distribución del 5% anual hasta 2026. La compañía ha incrementado las distribuciones en más del 50% desde el primer trimestre de 2021 y en más del 10% en lo que va de 2024. Hess Midstream espera mantener $1.25 mil millones en flexibilidad financiera hasta 2026 para posibles recompras adicionales de unidades. La distribución se pagará el 14 de noviembre de 2024 a los accionistas registrados al 7 de noviembre de 2024.

헤스 미드스트림 (NYSE: HESM)은 2024년 3분기 동안 클래스 A 주식 1주당 $0.6846의 분기 현금 배당금을 발표했으며, 이는 2024년 2분기 대비 $0.0169 증가한 것입니다. 이 증가는 2024년 9월에 회사가 시행한 $1억 달러의 유닛 재매입에 이어 발생했으며 2026년까지 연간 배당금 증가 목표인 5%를 초과합니다. 회사는 2021년 1분기 이후 배당금을 50% 이상 증가시켰고, 2024년 현재까지 10% 이상 증가시켰습니다. 헤스 미드스트림은 2026년까지 $12.5억 달러의 재정적 유연성을 유지할 것으로 기대하며, 추가적인 유닛 재매입이 가능합니다. 배당금은 2024년 11월 14일에 2024년 11월 7일 기준 주주에게 지급될 예정입니다.

Hess Midstream (NYSE: HESM) a annoncé une distribution de trésorerie trimestrielle de $0.6846 par action de Classe A pour le troisième trimestre 2024, représentant une augmentation de $0.0169 par rapport au deuxième trimestre 2024. Cette augmentation fait suite au rachat d'unités de 100 millions de dollars réalisé par la société en septembre 2024 et dépasse son objectif de croissance de distribution annuelle de 5 % jusqu'en 2026. La société a augmenté les distributions de plus de 50 % depuis le premier trimestre 2021 et de plus de 10 % en 2024 à ce jour. Hess Midstream s'attend à maintenir 1,25 milliard de dollars de flexibilité financière jusqu'en 2026 pour de potentiels rachats supplémentaires d'unités. La distribution sera versée le 14 novembre 2024 aux actionnaires enregistrés au 7 novembre 2024.

Hess Midstream (NYSE: HESM) gab eine vierteljährliche Barausschüttung von $0.6846 pro A-Klasse-Aktie für das 3. Quartal 2024 bekannt, was eine Erhöhung von $0.0169 im Vergleich zum 2. Quartal 2024 darstellt. Diese Erhöhung folgt auf die Aktienrückkaufaktion über $100 Millionen, die das Unternehmen im September 2024 durchgeführt hat, und übersteigt ihr Ziel eines jährlichen Ausschüttungswachstums von 5% bis 2026. Das Unternehmen hat die Ausschüttungen seit dem 1. Quartal 2021 um über 50% erhöht und um über 10% im Jahr 2024 bis heute. Hess Midstream erwartet, bis 2026 $1,25 Milliarden finanziellen Spielraum zu behalten, um potenzielle weitere Aktienrückkäufe zu ermöglichen. Die Ausschüttung wird am 14. November 2024 an die zum 7. November 2024 registrierten Aktionäre ausgezahlt.

Positive
  • Quarterly distribution increased by $0.0169 per Class A share
  • Distribution growth exceeds targeted 5% annual growth rate
  • 50% increase in distributions since Q1 2021
  • 10% increase in distributions year-to-date for 2024
  • $1.25 billion financial flexibility through 2026
  • Successful completion of $100 million unit repurchase
Negative
  • None.

Insights

This distribution increase signifies strong financial execution at Hess Midstream. The new quarterly distribution of $0.6846 per Class A share represents a 2.5% sequential increase and puts the company well above its targeted 5% annual growth rate. The $100 million unit repurchase in September demonstrates robust capital allocation strategy, with distributions having grown over 50% since Q1 2021. The projected $1.25 billion financial flexibility through 2026 provides substantial runway for continued shareholder returns. The company's midstream infrastructure business model generates predictable cash flows, supporting these consistent distribution increases. The combination of buybacks and growing distributions creates a compelling total return proposition for income-focused investors.

HOUSTON--(BUSINESS WIRE)-- Hess Midstream LP (NYSE: HESM) (“Hess Midstream”), today announced that the Board of Directors of its general partner declared a quarterly cash distribution of $0.6846 per Class A share for the quarter ended September 30, 2024, an increase of $0.0169 per Class A share as compared with the second quarter of 2024. This quarterly increase includes incremental distribution per Class A share growth utilizing excess adjusted free cash flow available for distributions following Hess Midstream’s accretive $100 million unit repurchase in September 2024 and, on an annualized basis, is significantly above Hess Midstream’s targeted 5% growth in annual distributions per Class A share through 2026.

“We continue to execute on our differentiated financial strategy, prioritizing consistent and ongoing return of capital to our shareholders,” said Jonathan Stein, Chief Financial Officer of Hess Midstream. “With today’s announcement, we have once again utilized our excess adjusted free cash flow beyond our growing distributions to provide further return of capital to our shareholders. Through a combination of our 5% targeted growth in annual distributions per Class A share and incremental increases in our quarterly distributions following unit repurchases, we have increased our distribution per Class A share by over 50% since the first quarter of 2021 and by over 10% in 2024 year to date on an annualized basis. We expect to continue to have more than $1.25 billion of financial flexibility through 2026 that can be used to support our return of capital framework, including potential additional and ongoing unit repurchases that could support further distribution per share level increases.”

The quarterly distribution will be payable on November 14, 2024, to Class A shareholders of record as of the close of business on November 7, 2024.

About Hess Midstream

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 Hess Corporation (“Hess”) and third-party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.

Cautionary Note Regarding Forward-looking Information

This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results, including our ability to increase our distributions or achieve our targeted distribution growth rate; our business strategy and profitability; future economic and market conditions in the oil and gas industry; and our ability to execute future accretive opportunities, including incremental return of capital to shareholders and potential incremental unit repurchases.

Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: the ability of Hess and other parties to satisfy their obligations to us, including Hess’ ability to meet its drilling and development plans on a timely basis or at all, its ability to deliver its nominated volumes to us, and the operation of joint ventures that we may not control; our ability to generate sufficient cash flow to pay current and expected levels of distributions; reductions in the volumes of crude oil, natural gas, natural gas liquids (“NGLs”) and produced water we gather, process, terminal or store; the actual volumes we gather, process, terminal and store for Hess in excess of our minimum volume commitments and relative to Hess’ nominations; fluctuations in the prices and demand for crude oil, natural gas and NGLs; changes in global economic conditions and the effects of a global economic downturn or inflation on our business and the business of our suppliers, customers, business partners and lenders; our ability to comply with government regulations or make capital expenditures required to maintain compliance, including our ability to obtain or maintain permits necessary for capital projects in a timely manner, if at all, or the revocation or modification of existing permits; our ability to successfully identify, evaluate and timely execute our capital projects, investment opportunities and growth strategies, whether through organic growth or acquisitions; costs or liabilities associated with federal, state and local laws, regulations and governmental actions applicable to our business, including legislation and regulatory initiatives relating to environmental protection and health and safety, such as spills, releases, pipeline integrity and measures to limit greenhouse gas emissions and climate change; our ability to comply with the terms of our credit facility, indebtedness and other financing arrangements, which, if accelerated, we may not be able to repay; reduced demand for our midstream services, including the impact of weather or the availability of the competing third-party midstream gathering, processing and transportation operations; potential disruption or interruption of our business due to catastrophic events, such as accidents, severe weather events, labor disputes, information technology failures, constraints or disruptions and cyber-attacks; any limitations on our ability to access debt or capital markets on terms that we deem acceptable, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation; risks and uncertainties associated with Hess’ proposed merger with Chevron Corporation; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission.

As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Investor Contact:

Jennifer Gordon

(212) 536-8244

Media Contact:

Lorrie Hecker

(212) 536-8250

Source: Hess Midstream LP

FAQ

What is Hess Midstream's (HESM) new quarterly distribution per Class A share for Q3 2024?

Hess Midstream's quarterly distribution for Q3 2024 is $0.6846 per Class A share.

When will HESM pay its Q3 2024 quarterly distribution?

The quarterly distribution will be paid on November 14, 2024, to shareholders of record as of November 7, 2024.

How much did HESM increase its quarterly distribution compared to Q2 2024?

Hess Midstream increased its quarterly distribution by $0.0169 per Class A share compared to Q2 2024.

What is the value of HESM's unit repurchase completed in September 2024?

Hess Midstream completed a $100 million unit repurchase in September 2024.

Hess Midstream LP

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Oil & Gas Midstream
Crude Petroleum & Natural Gas
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United States of America
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