Hess Midstream LP raises quarterly distribution 2.7% to 65.16c per share

Hess Midstream announced that the Board of Directors of its general partner declared a quarterly cash distribution of $0.6516 per Class A share for the quarter ended March 31, 2024. The distribution represents an approximate 2.7% increase in the quarterly distribution per Class A share for the first quarter of 2024 as compared to the fourth quarter of 2023. This increase consists of an approximate 1.5% increase in Hess Midstream’s distribution level per Class A share in addition to the quarterly 1.2% increase per Class A share consistent with its target of at least 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 a further return of capital to our shareholders through a 1.5% increase per Class A share in our quarterly distribution level in addition to the quarterly 1.2% increase per Class A share consistent with our target of at least 5% growth in annual distributions per Class A share through 2026. With the combination of our 5% targeted annual distribution growth and our distribution level increases, we have increased our distribution per Class A share by approximately 45% since the first quarter of 2021. 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.”