Hess Midstream announces $100 million share and unit repurchase program

Hess Midstream LP (NYSE: HESM) announced a $100 million repurchase program involving both Class B units from its sponsor and Class A shares from the public market.

The midstream company will repurchase approximately $30 million of Class B units of its subsidiary, Hess Midstream Operations LP, from an affiliate of Chevron Corporation. The transaction involves 695,894 Class B units at $43.11 per unit, representing about 0.3% of the consolidated company. The unit repurchase is expected to close on August 8, 2025.

Additionally, Hess Midstream entered into an accelerated share repurchase agreement with JPMorgan Chase Bank to buy back $70 million of publicly traded Class A shares. Under the agreement, the company will make an upfront payment of $70 million and receive an initial delivery of 1,136,627 Class A shares, representing approximately 70% of expected repurchases based on the August 4, 2025 closing price of $43.11.

Following the unit repurchase but before the share repurchase completion, public ownership will be approximately 62.4% with Chevron holding 37.6%. The company plans to fund both transactions through borrowings under its existing revolving credit facility.

"We continue to execute repurchase transactions as part of our ongoing financial strategy, which prioritizes return of capital to our shareholders," said Jonathan Stein, Chief Executive Officer of Hess Midstream.

The repurchased securities will be cancelled after settlement, which the company expects will increase distributable cash flow per Class A share. Hess Midstream stated it expects to maintain more than $1.25 billion of financial flexibility through 2027 for additional shareholder returns.

Final settlement of the accelerated share repurchase is expected in September 2025. The final number of shares purchased will be based on volume-weighted average prices during the transaction term.

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