The board of directors of Hess Midstream LP’s general partner declared a quarterly cash distribution of $0.65 per Class A share for the quarter ended March 31.
The first-quarter 2024 distribution has been increased by approximately 2.7% per Class A share compared to fourth-quarter 2023. The 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.
The increased distribution is consistent with Hess Midstream’s target of at least 5% growth in annual distributions per Class A share through 2026.
“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,” said Jonathan Stein, Hess Midstream CFO. “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.”
The quarterly distribution will be payable on May 14 to Class A shareholders of record as of the close of business on May 2.
Recommended Reading
Exclusive: Adkins on Challenged Gas Prices, Growing Crude Demand
2024-05-15 - J. Marshall Adkins, head of energy investment banking at Raymond James, details the future of natural gas prices and misconceptions about crude demand coming to an end in this Hart Energy Exclusive interview.
CoolCo, GAIL Enter Long-term LNG Agreement
2024-05-16 - CoolCo and GAIL’s agreement is intended to secure long-term LNG supply in India’s market, with GAIL having an option to extend the 14-year agreement by another two years.
ConocoPhillips Looks to Scale Portfolio, But Citgo Auction Not a Factor
2024-05-15 - ConocoPhillips has a long-term ambition to boost its LNG offtake capacity to between 10 mtpa to 15 mtpa as it keeps a short-term eye on the auction of Citgo Petroleum.
Linde Doubles Production Capacity at Gulf Coast Facility
2024-05-14 - Linde’s expansion of the production capacity at its air separation facility in La Porte, Texas, will help meet growing demand for industrial gases in the area.
Gas Prices in a Summer of Discontent
2024-05-14 - In February, natural gas prices dropped below $2/MMBtu and stayed there. How is the market handling it, and when will the price pick back up?