Hess Midstream LP Announces Signing Of Accretive $100M Sponsor Unit Repurchase
Portfolio Pulse from Happy Mohamed
Hess Midstream LP (HESM) announced a $100M repurchase of Class B units from its sponsors, Hess Corporation and Global Infrastructure Partners. This move, unanimously approved by the Board and its conflicts committee, is part of Hess Midstream's strategy to enhance shareholder returns and maintain a strong balance sheet. The repurchase is expected to reduce total unit count by over 20%, increase distributable cash flow per Class A share, and support distribution growth above 5% annually through 2026. The transaction will be funded through existing credit facilities and is expected to close on March 14, 2024.
March 12, 2024 | 12:14 pm
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Hess Midstream LP's $100M Class B unit repurchase from Hess Corporation and Global Infrastructure Partners is expected to enhance shareholder value by reducing total unit count and increasing distributable cash flow per Class A share.
The repurchase is part of a broader strategy to return value to shareholders and strengthen the balance sheet. By reducing the total unit count and increasing distributable cash flow, HESM is likely to see a positive impact on its stock price in the short term. The unanimous approval by the Board and the conflicts committee underscores the strategic importance of this transaction.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100