Hess Midstream LP’s general partner's board of directors declared a quarterly cash distribution of $0.6175 per Class A share, the company said in an Oct. 23 press release.

According to the company, the quarterly distribution is an approximately 2.7% increase in quarter-over-quarter. The increase consists of approximately 1.5% in Hess’ distribution level per Class A share and the quarterly 1.2% increase per share, consistent with its goal of at least 5% annual distribution per Class A share growth through 2025.

The quarterly distribution will be payable on Nov. 14 to Class A shareholders on record by Nov. 2.

“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,” said Hess Midstream CFO Jonathan Stein said.

Chevron-Hess Acquisition

Hess Corp. announced Oct. 23 that it has entered into an agreement to be acquired by Chevron Corp. Chevron will acquire 37.8% ownership of Hess, including rights to appoint four directors to Hess’ board.

In accordance with Hess’ long- term commercial contracts, the company plans in January 2024 to set its minimum volume commitments and rates based on Hess’ current four-rig program in the Bakken.