Houston - (Business Wire) - Nov. 14 - Hess Midstream LP (NYSE: HESM) (“Hess Midstream”), announced the execution of a definitive agreement providing for the repurchase of approximately $100 million of Class B units by its subsidiary, Hess Midstream Operations LP, from affiliates of Hess Corporation and Global Infrastructure Partners, Hess Midstream’s sponsors (the “Sponsors”). 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.
“We continue to execute unit repurchase transactions as part of our unique and differentiated financial strategy, which prioritizes consistent and ongoing return of capital to our shareholders,” said Jonathan Stein, Hess Midstream Chief Financial Officer. “Since the beginning of 2021 through this current transaction, we will have returned $1.55 billion to shareholders through accretive unit repurchases from our Sponsors that have reduced the total unit count by approximately 20%. Following this unit repurchase, which is expected to provide immediate accretion to our shareholders, we expect to continue to have more than $1 billion of financial flexibility through 2025 that can be used to support potential incremental unit repurchases.”
Pursuant to the terms of the repurchase agreement, the repurchased units will be cancelled upon the closing of the unit 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 2025, consistent with Hess Midstream’s return of capital framework.
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