Hess Midstream LP Increases Distribution Per Share Level by 5%, Reiterates Annual Targeted Distribution Growth Per Class A Share From New Level
HOUSTON–(BUSINESS WIRE)–Hess Midstream LP (NYSE: HESM) (“Hess Midstream”), today announced that the Board of Directors of its general partner declared a quarterly cash distribution of $0.5492 per Class A share for the quarter ended March 31, 2022. The distribution represents an approximate 6.3% increase in its quarterly distribution per Class A share for the first quarter of 2022 as compared to the fourth quarter of 2021. This increase consists of a 5% immediate increase in Hess Midstream’s distribution level per Class A share in addition to the quarterly increase consistent with its targeted 5% growth in annual distributions per Class A share.
“We continue to use our financial flexibility to deliver consistent and ongoing return of capital to our shareholders,” said Jonathan Stein, Chief Financial Officer of Hess Midstream. “With today’s announcement, we utilized our excess adjusted free cash flow beyond our growing distributions and were able to provide a further return of capital to our shareholders through an immediate 5% increase in our quarterly distribution levels. We expect to continue to have financial flexibility, including expected ongoing adjusted free cash flow after distributions and leverage declining below our 3.0x Debt/Adjusted EBITDA target as early as 2023, allowing for potential further return of capital to shareholders.”
Hess Midstream continues to target 5% annual distribution growth per Class A share through at least 2024 from this new higher level with expected annual distribution coverage greater than 1.4x, including distribution coverage greater than 1.5x in 2022.
The quarterly distribution will be payable on May 13, 2022 to Class A shareholders of record as of the close of business on May 5, 2022.
About Hess Midstream
Hess Midstream LP is a fee-based, growth-oriented midstream company that operates, develops and acquires a diverse set of midstream assets to provide services to Hess Corporation 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. More information is available at www.hessmidstream.com.
Contacts
Investor Contact:
Jennifer Gordon
(212) 536-8244
Media Contact:
Robert Young
(346) 319-8783
