Hess Midstream Partners LP (NYSE:HESM) Raises Dividend to $0.79 Per Share

Key Points

• Hess Midstream Partners raised its quarterly dividend 1.2% to $0.7888 per share, payable August 14 to shareholders of record on August 6. The annualized yield is approximately 7.9%, and the company has increased its dividend for eight consecutive years.
• Dividend coverage may become a concern: the current payout ratio is 95.4%, while analysts expect next year’s earnings of $3.01 per share against an annual dividend of $3.11, implying a projected payout ratio above 100%.
• The company recently reported quarterly EPS of $0.68, topping estimates of $0.65, while revenue rose 2.1% year over year to $390.1 million. Shares opened at $39.74, down 2.2%, with a market capitalization of approximately $8.19 billion.

Hess Midstream Partners LP (NYSE:HESM - Get Free Report) announced a quarterly dividend on Monday, July 27th. Shareholders of record on Thursday, August 6th will be paid a dividend of 0.7888 per share on Friday, August 14th. This represents a c) dividend on an annualized basis and a dividend yield of 7.9%. The ex-dividend date of this dividend is Thursday, August 6th. This is a 1.2% increase from Hess Midstream Partners's previous quarterly dividend of $0.78.

Hess Midstream Partners has raised its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 8 consecutive years. Hess Midstream Partners has a payout ratio of 95.4% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Hess Midstream Partners to earn $3.01 per share next year, which means the company may not be able to cover its $3.11 annual dividend with an expected future payout ratio of 103.3%.

Hess Midstream Partners Trading Down 2.2%

Shares of HESM opened at $39.74 on Tuesday. Hess Midstream Partners has a 52-week low of $31.63 and a 52-week high of $44.14. The business's fifty day moving average is $38.75 and its 200-day moving average is $38.03. The company has a debt-to-equity ratio of 9.97, a quick ratio of 0.92 and a current ratio of 0.92. The firm has a market cap of $8.19 billion, a price-to-earnings ratio of 13.75 and a beta of 0.53.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The company reported $0.68 earnings per share for the quarter, topping the consensus estimate of $0.65 by $0.03. The business had revenue of $390.10 million during the quarter, compared to the consensus estimate of $389.51 million. Hess Midstream Partners had a return on equity of 84.47% and a net margin of 22.64%.Hess Midstream Partners's revenue for the quarter was up 2.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.65 EPS. Equities analysts anticipate that Hess Midstream Partners will post 2.87 EPS for the current fiscal year.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.

Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.

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