Hess Midstream LP Announces Distribution Per Share Level Increase
23 Oktober 2023 - 11:40PM
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 $0.6175 per Class A share
for the quarter ended September 30, 2023. The distribution
represents an approximate 2.7% increase in the quarterly
distribution per Class A share for the third quarter of 2023 as
compared to the second 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 2025.
“We continue to execute a unique and 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 increased our
distribution level for the third time this year, and 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 2025.
We expect to continue to have more than $1 billion of financial
flexibility through 2025 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, 2023,
to Class A shareholders of record as of the close of business on
November 2, 2023.
Announced Chevron Acquisition
Hess Corporation (“Hess”) announced that it entered into a
definitive agreement to be acquired by Chevron Corporation
(“Chevron”). Hess Midstream expects upon consummation of the
proposed transaction, Chevron will acquire Hess’ 37.8% ownership in
Hess Midstream, including its right to appoint four directors to
the Board of Hess Midstream. Hess Midstream’s contract structure
remains in place. As part of the annual nomination process set
forth in Hess Midstream’s long-term commercial contracts, Hess
Midstream plans to set its MVCs and rates, which are expected to be
set based on Hess’ current 4-rig program in the Bakken, and will
release both in January 2024, consistent with prior practice.
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 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;
expected timing and completion of Hess’ proposed merger with
Chevron; 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; the direct and indirect
effects of an epidemic or outbreak of an infectious disease, such
as COVID-19 and its variants, on our business and those of our
business partners, suppliers and customers, including Hess; 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; 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231023891872/en/
Investor Contact: Jennifer Gordon (212) 536-8244 Media
Contact: Lorrie Hecker (212) 536-8250
Hess Midstream (NYSE:HESM)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Hess Midstream (NYSE:HESM)
Historical Stock Chart
Von Mai 2023 bis Mai 2024