Hess Midstream Announces $60 Million Share, Unit Repurchase Deal

Hess Midstream has announced a $60 million share and unit repurchase, including equity purchases from Chevron and public shareholders, as part of its strategy to boost distributable cash flow and shareholder returns.

(P&GJ) — Hess Midstream LP announced a $60 million repurchase of equity from both its sponsor and public shareholders, a move the company said will increase distributable cash flow per share and support its capital return strategy.

The transaction includes the repurchase of approximately $18 million of Class B units of Hess Midstream Operations LP from an affiliate of Chevron, as well as $42 million of publicly traded Class A shares through an accelerated share repurchase agreement with JPMorgan Chase Bank.

Hess Midstream’s subsidiary agreed to repurchase 455,811 Class B units from the sponsor at a price of $39.49 per unit, matching the closing price of the company’s Class A shares on March 2, 2026. The transaction represents roughly 0.2% of the consolidated company and is expected to close March 4.

The company also entered into an accelerated share repurchase agreement with JPMorgan under which Hess Midstream will initially receive about 744,492 Class A shares, representing approximately 70% of the expected repurchases tied to the $42 million agreement. The final number of shares will be determined based on the average volume-weighted price of the company’s shares during the transaction period, with settlement expected later this month.

“We continue to execute repurchase transactions as part of our ongoing financial strategy,” said Jonathan Stein, Chief Executive Officer of Hess Midstream. “Following these repurchase transactions, we continue to expect to have approximately $1 billion of financial flexibility through 2028 for incremental shareholder returns and debt repayment, including the potential for further unit and share repurchases over this period.”

Hess Midstream said the repurchased securities will be canceled following settlement, which is expected to increase distributable cash flow per Class A share and support its targeted annual distribution growth of at least 5% through 2028. The company plans to fund the repurchases through borrowings under its existing revolving credit facility.

Following the repurchase of Class B units, public shareholders will hold approximately 62.2% of Hess Midstream, while Chevron will retain about 37.8%.