Hess Midstream LP announces accretive $60M repurchase

Hess Midstream LP (HESM) announced an accretive $60M repurchase that included both Class B units of its subsidiary, Hess Midstream Operations, from an affiliate of Chevron (CVX), Hess Midstream’s sponsor, and Hess Midstream’s Class A shares from the public. Hess Midstream announced the execution of a definitive agreement providing for the repurchase of approximately $18M of Class B units by its subsidiary, Hess Midstream Operations, from the sponsor. The terms of the proposed unit repurchase transaction were unanimously approved by the board of directors of Hess Midstream’s general partner, based on the unanimous approval and recommendation of its conflicts committee composed solely of independent directors. Hess Midstream also announced that it has entered into an accelerated share repurchase agreement with JPMorgan Chase Bank, to repurchase $42M of Hess Midstream’s publicly traded Class A shares. The repurchased securities will be cancelled following settlement of each repurchase transaction, which is expected to result in increased distributable cash flow per Class A share providing capacity for incremental distribution growth above Hess Midstream’s annual distribution target of at least 5% through 2028, consistent with Hess Midstream’s return of capital framework.