Hess Midstream Raises Quarterly Distribution 1.28%

Hess Midstream LP (NYSE: HESM) raised its quarterly distribution to $0.789 per share from $0.779, an increase of 1.28%. The ex-dividend date was Aug. 6, 2026.

At a share price of $39.08, the energy partnership has a forward annual yield of 7.91%, based on an annual dividend of $3.09 per share. Hess Midstream has now increased its payout for eight consecutive years.

Business and payout context

Hess Midstream owns and operates gathering, processing, storage, terminaling and export infrastructure. The partnership generates substantially all of its revenue through fees charged for handling natural gas, crude oil, natural gas liquids and produced water, according to its latest quarterly filing. Its general partner is controlled by Chevron. Hess Midstream second-quarter Form 10-Q

Long-term, fee-based agreements with Chevron include minimum-volume commitments and inflation-linked pricing mechanisms. Those arrangements are designed to provide greater cash-flow stability and limit Hess Midstream’s direct exposure to commodity-price movements because it generally does not own or trade the hydrocarbons it handles. The filing also notes that volumes and results remain sensitive to production activity and customers’ ability to meet their obligations. Hess Midstream second-quarter Form 10-Q

The distribution increase came as Hess Midstream reaffirmed its full-year financial and throughput guidance. Management also continued to project excess adjusted free cash flow after distributions through 2028, which it said could be used for additional shareholder returns and debt repayment. Capital spending declined after completion of an expansion of the partnership’s gas-compression capacity. Hess Midstream second-quarter results

What it means for income investors

The higher quarterly rate adds to Hess Midstream’s eight-year record of consecutive distribution growth. The supplied dividend data indicate a 7.91% forward yield, while the payout carries a dividend-safety score of 67 out of 100 and a B grade.

Those measures point to a comparatively solid payout profile, but they do not guarantee future distributions. Income investors may also weigh the partnership’s customer concentration, leverage and sensitivity to Bakken production volumes alongside its fee-based contracts and minimum-volume protections.