Hess Midstream impresses with 4th dividend hike in 2024

Hess Midstream LP (HESM) announced its fourth dividend hike for 2024 raising the quarterly dividend from $0.6677 to $0.6846 per share. This dividend yield for HESM is 7.6% and this marks the 7th consecutive year of increased dividends by the oil and gas midstream company.

This new 2.5% dividend hike by HESM is equal to $2.73 on an annual basis. The quarterly distribution will be payable on November 14, 2024, to Class A shareholders of record as of the close of business on November 7, 2024.

“We continue to execute on our 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 once again utilized our excess adjusted free cash flow beyond our growing distributions to provide further return of capital to our shareholders. Through a combination of our 5% targeted growth in annual distributions per Class A share and incremental increases in our quarterly distributions following unit repurchases, we have increased our distribution per Class A share by over 50% since the first quarter of 2021 and by over 10% in 2024 year to date on an annualized basis. 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.”

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 (“Hess”) 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.