Hess Midstream president sells shares for $84,728

Published 11/03/2025, 21:46
Hess Midstream president sells shares for $84,728

John A. Gatling, the President and Chief Operating Officer of Hess (NYSE:HES) Midstream LP (NYSE:HESM), recently executed a sale of Class A shares valued at $84,728. The transaction took place on March 11, 2025, with shares sold at an average price of $40.598 each. This sale was conducted to cover tax obligations following the settlement of phantom shares. After the transaction, Gatling retains direct ownership of 62,457 shares in the company. The transaction comes as HESM trades near its 52-week high of $42.31, with the stock delivering a robust 22.4% return over the past year. According to InvestingPro analysis, the company maintains a GREAT financial health score and offers shareholders a substantial 6.95% dividend yield.

In addition to the sale, Gatling also acquired Class A shares through the settlement of phantom shares granted under Hess Midstream’s 2017 Long Term Incentive Plan. These acquisitions occurred on March 8, 2025, and involved a total of 7,812 Class A shares, although these transactions were executed at no cost per share. With a market capitalization of $9.4 billion, HESM has caught analysts’ attention, with price targets ranging from $39 to $48. For deeper insights into HESM’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Hess Midstream Partners LP reported its fourth-quarter 2024 financial results, exceeding analysts’ expectations with an earnings per share of $0.68, compared to the forecast of $0.67. However, the company’s revenue slightly missed projections, coming in at $388.5 million against the expected $390.41 million. Despite this, the company achieved a full-year net income of $659 million and adjusted EBITDA of $1.136 billion, marking a 12% year-over-year growth. Looking forward, Hess Midstream projects significant growth in 2025, with net income expected to range between $715 million and $765 million.

Additionally, Hess Midstream has initiated a public offering of 10 million Class A shares through an affiliate of Global Infrastructure Partners, with Goldman Sachs as the bookrunning manager. The company clarified that it will not receive any proceeds from this offering. Furthermore, Hess Midstream Operations LP announced the pricing of an $800 million offering in senior unsecured notes due 2028, aimed at redeeming existing 5.625% senior notes maturing in 2026. This strategic financial move is part of the company’s efforts to manage its debt profile effectively.

In analyst updates, Citi raised its price target for Hess Midstream to $44 while maintaining a Buy rating, reflecting optimism about the company’s future free cash flow, particularly beyond 2027. The analyst noted an expected improvement in free cash flow following a period of elevated capital expenditures. This anticipated reduction in capital expenditures is projected to support the continuation or acceleration of Hess Midstream’s capital allocation program, with the potential for significant shareholder distributions.

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