Hess Midstream LP (NYSE:HESM) Plans Dividend Increase – $0.68 Per Share

Hess Midstream LP (NYSE:HESM) announced a quarterly dividend on Monday, October 28th, NASDAQ reports. Investors of record on Thursday, November 7th will be given a dividend of 0.6846 per share on Thursday, November 14th. This represents a $2.74 dividend on an annualized basis and a yield of 7.71%. The ex-dividend date of this dividend is Thursday, November 7th. This is an increase from Hess Midstream’s previous quarterly dividend of $0.67.

Hess Midstream has raised its dividend by an average of 11.0% per year over the last three years. Hess Midstream has a payout ratio of 85.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities research analysts expect Hess Midstream to earn $2.75 per share next year, which means the company should continue to be able to cover its $2.74 annual dividend with an expected future payout ratio of 99.6%.

Hess Midstream Price Performance

Shares of NYSE:HESM opened at $35.54 on Wednesday. Hess Midstream has a 12 month low of $29.20 and a 12 month high of $39.11. The firm has a market capitalization of $7.85 billion, a price-to-earnings ratio of 14.70 and a beta of 1.51. The business’s 50 day simple moving average is $35.81 and its 200-day simple moving average is $35.96. The company has a debt-to-equity ratio of 8.55, a current ratio of 1.11 and a quick ratio of 1.11.

Hess Midstream (NYSE:HESM) last posted its earnings results on Wednesday, October 30th. The company reported $0.63 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.05. The company had revenue of $378.50 million for the quarter, compared to analyst estimates of $376.98 million. Hess Midstream had a return on equity of 49.72% and a net margin of 13.06%. Hess Midstream’s revenue was up 4.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.57 earnings per share. As a group, equities analysts forecast that Hess Midstream will post 2.45 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. upped their price target on shares of Hess Midstream from $38.00 to $39.00 and gave the company a “neutral” rating in a report on Wednesday, August 21st.

Insider Activity

In related news, Director Infrastructure Investor Global sold 12,650,000 shares of Hess Midstream stock in a transaction dated Friday, September 20th. The stock was sold at an average price of $35.12, for a total transaction of $444,268,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

About Hess Midstream

Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities.