Hess Midstream LP declares 68.46c per Class A share quarterly distribution

Hess Midstream LP (HESM) 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.”