"We're also funding incremental shareholder returns for free cash flow after distributions, rather than leverage buybacks. And so it's just a bit more of a conservative approach that we're following that is in line with our profile and Chevron's target of 200,000 barrels of oil per day plateau production in the Bakken."
"The dividend payout ratio relative to earnings sits at a concerning 105%, and analysts have flagged a 2026 EPS forecast of $2.56, a step down from the $2.86 earned in 2025. Free cash flow coverage tells a more reassuring story at 36%, though that metric tightened in 2025 when total shareholder returns of $750.2 million consumed 96% of the $728.2 million in free cash flow generated."
"The March repurchase included an $18 million buyback of 455,811 Class B units from a Chevron affiliate and a $42 million accelerated share repurchase with JPMorgan Chase Bank. Chevron became HESM's sponsor on July 18, 2025, and its ownership now sits at 37.6% following prior repurchases."
Hess Midstream LP announced a $60 million equity repurchase in March 2026 as part of ongoing capital returns to shareholders. The company maintains a 7.49% dividend yield with nine consecutive years of uninterrupted distributions and a commitment to 5% annual growth through 2028. However, the dividend payout ratio reaches 105% of earnings, with 2026 EPS forecasted at $2.56, down from $2.85 in 2025. Total shareholder returns consumed 96% of free cash flow in 2025. Chevron became the sponsor in July 2025 with 37.6% ownership. Management emphasizes funding buybacks from free cash flow rather than leverage, citing alignment with Chevron's plateau production strategy in the Bakken, where rig counts have been reduced.
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