HOUSTON—Jonathan C. Stein, Chief Financial Officer of Hess Midstream LP (NYSE:HESM), recently executed a series of stock transactions, according to a filing with the Securities and Exchange Commission. On November 11, Stein sold 7,923 Class A shares at an average price of $35.32 per share, totaling approximately $279,840.
These sales were made to cover tax obligations related to the settlement of phantom shares, as noted in the filing. Prior to the sales, Stein had acquired a total of 15,517 Class A shares on November 8, through the settlement of phantom shares under Hess Midstream's 2017 Long Term Incentive Plan. These acquisitions were executed without any cash outlay, as the shares were acquired upon vesting of phantom shares.
Following these transactions, Stein's direct ownership stands at 59,945 shares.
In other recent news, Hess Midstream reported a strong third-quarter performance and a steady growth outlook. The company's robust performance was boosted by significant throughput volumes across its operations, with Hess Corporation (NYSE:HES)'s Bakken production exceeding expectations. CFO Jonathan Stein highlighted a financial strategy that prioritizes shareholder returns, with $1.85 billion returned since 2021. For the fourth quarter, Hess Midstream projects net income between $170 million and $185 million, and adjusted EBITDA between $295 million and $310 million. Plans for a new gas processing plant are underway, with capital expenditures for 2024 expected to be around $270 million. In the long-term, Hess Midstream anticipates steady third-party volume growth in the Bakken and is strategically evaluating potential merger and acquisition opportunities. These are just some of the latest developments for Hess Midstream.
InvestingPro Insights
As we delve deeper into Hess Midstream LP's (NYSE:HESM) financial landscape, recent data from InvestingPro provides additional context to Jonathan C. Stein's stock transactions. The company's market capitalization stands at $7.68 billion, reflecting its significant presence in the midstream energy sector.
HESM's P/E ratio of 14.63 suggests a relatively attractive valuation compared to industry peers. This metric aligns with the CFO's recent stock activities, potentially indicating management's confidence in the company's value proposition.
Notably, HESM boasts a robust dividend yield of 7.87%, with a dividend growth rate of 13.89% over the last twelve months as of Q3 2024. This impressive yield may be of particular interest to income-focused investors and could partially explain the market's positive reception of the stock, as evidenced by its 26.68% total return over the past year.
The company's strong financial health is further underscored by its gross profit margin of 76.47% and operating income margin of 60.85% for the last twelve months as of Q3 2024. These margins reflect HESM's operational efficiency and ability to generate substantial profits from its revenue streams.
InvestingPro Tips highlight that HESM has raised its dividend for 5 consecutive years, reinforcing the company's commitment to shareholder returns. Additionally, analysts have revised their earnings upwards for the upcoming fiscal year, suggesting positive expectations for the company's future performance.
For readers seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for Hess Midstream LP, providing a deeper understanding of the company's financial position and market outlook.
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