Hess Midstream announces $60 million share repurchase program

Hess Midstream LP (NYSE: HESM) announced a $60 million repurchase program involving both Class B units from sponsor Chevron and publicly traded Class A shares, according to a company statement.

The repurchase consists of two components. Hess Midstream Operations LP will buy back approximately $18 million of Class B units from a Chevron affiliate at $39.49 per unit, representing 455,811 units or about 0.2% of the consolidated company. The transaction received unanimous approval from the board of directors based on recommendations from the conflicts committee of independent directors.

Additionally, Hess Midstream entered into an accelerated share repurchase agreement with JPMorgan Chase Bank to buy back $42 million of publicly traded Class A shares. Under this arrangement, the company will make an upfront payment of $42 million and receive an initial delivery of 744,492 Class A shares, representing approximately 70% of expected repurchases.

Following the Class B unit repurchase but before the ASR transaction completion, public ownership will be approximately 62.2% while Chevron will hold 37.8%. The unit repurchase is expected to close March 4, 2026, with final ASR settlement anticipated in March 2026.

"We continue to execute repurchase transactions as part of our ongoing financial strategy," said Chief Executive Officer Jonathan Stein. The company expects to maintain approximately $1 billion of financial flexibility through 2028 for shareholder returns and debt repayment.

Hess Midstream plans to fund both transactions through borrowings under its existing revolving credit facility. The repurchased securities will be cancelled, potentially increasing distributable cash flow per Class A share and providing capacity for distribution growth above the company's annual target of at least 5% through 2028.

The final number of Class A shares purchased under the ASR agreement will be determined by average daily volume-weighted prices during the transaction term.

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