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HOUSTON - Hess Midstream LP (NYSE:HESM), a midstream company with a market capitalization of $8.07 billion and an impressive track record of raising dividends for eight consecutive years according to InvestingPro, announced changes to its Board of Directors and executive leadership following the completion of the merger between Hess Corporation and Chevron Corporation, according to a company press release.
With the merger now complete, Chevron beneficially owns Hess’s approximately 37.8% interest in Hess Midstream on a consolidated basis. The company maintains a robust 7.39% dividend yield and has received a "GOOD" overall financial health score from InvestingPro. As part of the transition, John B. Hess, Gregory P. Hill, and John P. Rielly have departed from the Hess Midstream Board.
Andy Walz, President of Chevron Downstream, Midstream & Chemicals, has been appointed as the new Board Chairman. Kristen Ghattas and Kristi McCarthy from Chevron have also joined the Board, while Gerbert Schoonman will remain in his position.
The company’s three independent directors - Stephen J.J. Letwin, David W. Niemiec, and John P. Reddy - will continue to serve on the Board and its Audit Committee. Hess Midstream plans to appoint a fourth independent Board member.
In executive changes, Jonathan C. Stein, previously Chief Financial Officer, has been promoted to Chief Executive Officer, replacing John B. Hess. Michael J. Chadwick has been appointed as the new Chief Financial Officer. Chadwick, who joined Hess in 2000, most recently served as Vice President and Controller since 2022.
Want deeper insights into Hess Midstream’s performance and potential? InvestingPro subscribers get access to 10+ additional ProTips and comprehensive analysis, including Fair Value estimates that currently suggest the stock may be undervalued.Hess Midstream is a fee-based midstream company that owns, operates, and develops assets providing services to Chevron, its subsidiaries, and third-party customers. With annual revenues exceeding $1.5 billion and a strong 76.7% gross profit margin, the company’s operations are primarily located in the Bakken and Three Forks Shale plays in North Dakota’s Williston Basin area.
In other recent news, Hess Midstream reported its first-quarter 2025 earnings, showing a slight earnings per share (EPS) beat at $0.65 against a forecast of $0.63, while revenue fell short at $382 million compared to the expected $384.46 million. The company announced a $200 million share repurchase, including $190 million of Class B units from its sponsors and a $10 million accelerated share repurchase of Class A shares. Hess Midstream also initiated a public offering of 15,022,517 Class A shares, with the company not receiving any proceeds from this sale. Analyst firms Citi and UBS reiterated their Buy ratings on Hess Midstream, with price targets set at $42 and $45, respectively, and adjusted EBITDA estimates for the second quarter of 2025 ranging from $306 million to $308 million. UBS projects full-year 2025 EBITDA slightly above the Street estimate, aligning with Hess Midstream’s guidance. These developments indicate a focus on capital allocation and strategic growth, with ongoing governance updates and board decisions requiring independent director approval. Hess Midstream’s CFO highlighted the company’s financial strategy, emphasizing shareholder returns and maintaining balance sheet strength.
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