Hess Midstream LP raises quarterly distribution to 70.12c per class A share

Hess Midstream LP (HESM) announced that the Board of Directors of its general partner declared a quarterly cash distribution of 70.12c per Class A share for the quarter ended December 31, 2024, an increase of 1.66c per Class A share as compared with the third quarter of 2024. This increase is supported by excess adjusted free cash flow after distributions from the reduction in total units following Hess Midstream’s accretive $100M unit repurchase in January 2025 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 excess adjusted free cash flow after distributions from the reduction in total units following the accretive unit repurchase 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 approximately 55% since the first quarter of 2021 and by over 10% since the fourth quarter of 2023. 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.”