Hess Midstream LP (NYSE: HESM) announced a $60 million accretive repurchase program that will buy back $18 million of Class B units of its subsidiary, Hess Midstream Operations LP, from a Chevron affiliate and $42 million of its publicly traded Class A shares through an accelerated share repurchase (ASR).
The unit repurchase is scheduled to close on March 4, 2026, and the first tranche of the ASR will be paid to JPMorgan Chase Bank on the same day, following the announcement made on March 3, 2026. The program is funded through borrowings under the company’s existing revolving credit facility.
Management said the repurchase will leave Hess Midstream with roughly $1 billion of financial flexibility through 2028, supporting a target of at least 5 % annual distribution growth and providing capacity for future buybacks or debt repayment.
After the unit repurchase but before the ASR is completed, public ownership of the company will be about 62.2 %, with Chevron holding 37.8 %. This shift in ownership structure reflects the company’s strategy of balancing sponsor influence with broader shareholder participation.
The ASR’s final share count will be determined by the average daily volume‑weighted average price (VWAP) of the shares, ensuring the repurchase price reflects market conditions while the initial tranche is paid immediately to JPMorgan Chase.
Hess Midstream’s Q4 2025 results—net income of $168.0 million, adjusted EBITDA of $309.1 million, and revenue of $404.2 million—provide a solid financial foundation for the repurchase program and demonstrate the company’s ability to generate strong cash flow.
"We continue to execute repurchase transactions as part of our ongoing financial strategy," said CEO Jonathan Stein. "Following these repurchase transactions, we continue to expect to have approximately $1 billion of financial flexibility through 2028 for incremental shareholder returns and debt repayment, including the potential for further unit and share repurchases over this period."
The repurchase is described as accretive, meaning it is expected to increase distributable cash flow per share. By reducing outstanding equity, the program supports the company’s goal of maintaining a robust balance sheet while delivering enhanced returns to shareholders. The move aligns with Hess Midstream’s long‑term strategy of returning capital to investors without compromising its operational and financial flexibility.
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