Denver, CO, March 27, 2026 (GLOBE NEWSWIRE) -- Beacon Hill announced the appointment of Amy Hess as Director of Beacon Hill Associates in Denver, Colorado, expanding the firm’s administrative and office support staffing presence in the region. Hess will oversee the growth of Beacon Hill Associates in the Denver market, working with local employers to deliver administrative talent that supports business operations and long‑term workforce needs. “Amy brings a strong track record of building teams and developi ...

Core Viewpoint - Hess Midstream is transitioning from a capital expenditure phase to a free cash flow generation phase, with significant reductions in capital spending expected in the coming years, leading to substantial free cash flow and shareholder returns [3][6][11]. Capital Expenditure - In 2026, Hess Midstream plans to reduce capital spending by 40% to approximately $150 million, with further declines anticipated to under $75 million annually in 2027 and 2028 [3][6]. - The company has completed its multiyear infrastructure buildout, allowing for a focus on free cash flow generation rather than growth spending [3][11]. Free Cash Flow and Shareholder Returns - Adjusted free cash flow is forecasted to be between $850 million and $900 million in 2026, representing a 12% increase over 2025 [6][10]. - The free cash flow will support a targeted 5% annual distribution growth per Class A share through 2028, alongside a $260 million share repurchase program [6][7]. Revenue Stability - Approximately 95% of 2026 revenues are secured by minimum volume commitments, providing a revenue floor despite potential fluctuations in throughput due to weather conditions [8]. - The company expects to maintain adjusted EBITDA guidance for 2026 at $1.225 billion to $1.275 billion, which is roughly flat compared to 2025 [10]. Weather Impact - Q4 throughput experienced declines due to severe winter conditions, with oil terminaling down 4%, gas processing down 1%, and water gathering down 5% [9]. - The CEO anticipates a recovery in the second half of 2026, consistent with historical seasonal patterns [9]. Strategic Integration - The integration with Chevron, which became Hess Midstream's sponsor in July 2025, allows for coordinated planning that minimizes overbuilding and enhances economic efficiency [8]. - The focus on longer laterals in drilling operations is expected to reduce capital requirements while maintaining throughput levels [8].

Core Viewpoint - Hess Midstream's capital return program, including a recent $60 million equity repurchase, raises questions about its sustainability amid declining earnings forecasts and capital spending cuts [1][4]. Financial Performance - Hess Midstream executed a $60 million equity repurchase in March 2026 and offers a 7.49% dividend yield, supported by nine consecutive years of quarterly distributions [1][7]. - The dividend payout ratio is concerning at 105%, with a forecasted EPS decline from $2.86 in 2025 to $2.56 in 2026 [1][8]. - The most recent quarterly payout was $0.7641 per Class A share, an increase from $0.2703 since inception in August 2017 [7]. Capital Expenditure and Cash Flow - Capital spending is projected to collapse by 40% to $150 million in 2026, with further reductions to below $75 million annually in 2027-2028 [2][12]. - Approximately 95% of 2026 revenues are protected by minimum volume commitments, providing a stable revenue base despite reduced capital expenditures [2][12]. - Free cash flow coverage is at 36%, although total shareholder returns of $750.2 million consumed 96% of the $728.2 million in free cash flow generated in 2025 [8]. Market Response and Analyst Opinions - Chevron's reduction of its Bakken rig count from 4 to 3 starting Q4 2025 has led UBS to lower Hess Midstream's price target from $36 to $34 due to anticipated volume declines [1][11]. - The stock has increased by 16.88% year-to-date, indicating some market confidence despite the challenges [13]. Buyback Mechanics - The March 2026 repurchase included an $18 million buyback of Class B units from a Chevron affiliate and a $42 million accelerated share repurchase with JPMorgan Chase Bank [10]. - Chevron's ownership in Hess Midstream now stands at 37.6% following prior repurchases [10].

Core Viewpoint - The law firms representing the plaintiff in the lawsuit against Hess Corporation have reached an agreement to resolve their application for attorneys' fees and expenses related to the litigation, which arose from a merger transaction with Chevron Corporation [1][10]. Group 1: Merger Agreement and Legal Proceedings - On October 22, 2023, Hess Corporation entered into a Merger Agreement with Chevron Corporation, where Chevron would acquire all outstanding shares of Hess [2]. - Hess filed a Definitive Proxy Statement with the SEC on April 26, 2024, in connection with the merger transaction [3]. - A complaint was filed by stockholder George Assad on May 2, 2024, alleging that the Hess Board violated fiduciary duties by failing to disclose material information regarding the merger [3][4]. Group 2: Supplemental Disclosures and Stockholder Approval - Following the complaint, Hess supplemented the Proxy Statement on May 21, 2024, to address issues raised by the litigation [5]. - A special meeting of stockholders was held on May 28, 2024, where the merger transaction was approved [5]. Group 3: Resolution of Fee and Expense Application - On July 18, 2025, the merger between Hess and Chevron was consummated, with Hess becoming a wholly owned subsidiary of Chevron [6]. - The court dismissed all claims in the action with prejudice for the named plaintiff but retained jurisdiction to hear the Fee and Expense Application [8]. - The parties agreed to resolve the Fee and Expense Application with a payment of $115,000 to the plaintiff's counsel, while Hess denies any liability regarding the claims [10].

Core Viewpoint - Hess Midstream LP has filed its annual report on Form 10-K for the fiscal year ended December 31, 2025, with the SEC, highlighting its financial performance and operational updates [1]. Group 1: Company Overview - Hess Midstream is a fee-based, growth-oriented midstream company that owns, operates, develops, and acquires a diverse set of midstream assets [2]. - The company provides services primarily to Chevron and its subsidiaries, as well as third-party customers [2]. - Hess Midstream's assets include oil, gas, and produced water handling facilities, mainly located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota [2]. Group 2: Financial Reporting - The annual report on Form 10-K includes complete audited financial statements of Hess Midstream [1]. - Shareholders can request printed copies of the annual report free of charge by contacting Investor Relations [1].

Core Viewpoint - Investors in Hess Midstream LP (HESM) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Feb. 2, 2026 $43 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future price movements, with high levels suggesting anticipation of significant price changes or upcoming events that could lead to a rally or sell-off [2] - Options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4] Group 2: Analyst Sentiment - Hess Midstream currently holds a Zacks Rank 3 (Hold) in the Energy and Pipeline - Master Limited Partnerships industry, which is in the top 39% of the Zacks Industry Rank [3] - Over the past 60 days, two analysts have raised their earnings estimates for the current quarter, while none have lowered them, resulting in a slight decrease in the Zacks Consensus Estimate from 68 cents to 65 cents per share [3]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting a trend towards diversification in investment portfolios [1] Group 1: Investment Focus - The company has diversified its investments across various sectors including banking, telecommunications, logistics, and hotels, indicating a strategic approach to portfolio management [1] - The entry into the US market in 2020 reflects a growing interest in international investments, particularly in sectors like banks, hotels, and logistics [1] Group 2: Market Trends - The popularity of insurance companies in the Philippines since 2014 has influenced investment strategies, leading to a shift from traditional savings methods to stock market investments [1] - The trend of using analyses from platforms like Seeking Alpha for comparative insights between different markets suggests a growing reliance on data-driven investment decisions [1]

Financing Highlights - Gold X2 Mining Inc. has announced a non-brokered strategic investment package totaling $115,898,301, which includes 75,659,611 charity flow-through common shares priced at $1.233 each and 23,800,000 units priced at $0.95 each [2][5][8] - The proceeds from the charity flow-through shares will be used for exploration and resource expansion at the Moss Gold Project, with specific tax benefits for initial holders [6][7] - AngloGold Ashanti will acquire approximately 9.9% of the issued common shares through this offering, while Hess Capital will invest in units that include common shares and purchase warrants [8][11] Board of Directors Update - Tom Obradovich has been appointed as Chair of the Board, bringing significant experience from previous successful projects [3][12] - Brett Richards has retired from the Board, having played a key role in the company's formation and growth [3][13] Strategic Partnerships - The company welcomes AngloGold Ashanti and Hess Capital as strategic shareholders, aiming to develop the Moss Gold Project into a major gold producing asset in Canada [4][5] - An investor rights agreement will be established with AngloGold Ashanti, granting them participation rights in future equity financings and the formation of a joint technical committee for project development [9] Project Development - The Moss Gold Project has a mineral resource estimate of 2.458 million ounces of indicated gold resources and 4.209 million ounces of inferred gold resources, with a preliminary economic assessment suggesting strong production potential [15][16] - The company has invested over $100 million and completed approximately 100,000 meters of drilling on the Moss Gold Project, indicating a commitment to advancing this asset [15]

Economic Relations - China has imposed an immediate ban on the export of dual-use items to Japan and is considering stricter controls on rare earth elements, a move seen as retaliation against Japan's comments on Taiwan [2][8] - Japanese manufacturers, especially in the electric vehicle and defense sectors, are highly vulnerable due to their reliance on China for heavy rare earths, with potential losses estimated at ¥660 billion ($4.2 billion) for a three-month disruption and ¥2.6 trillion ($16.4 billion) for a year-long restriction [3][8] Market Performance - Chinese equity markets have started 2026 with strong momentum, as the Shanghai Composite Index surged 1.40% to close at 4,023.42 points, marking its highest level in nearly a decade [4][8] - The rally is primarily driven by technology sectors, with semiconductors up 5.60% and AI stocks gaining between 3.20% and 3.7%, with analysts predicting further growth of 10-20% for Chinese equities in the coming years [5][8] Energy Sector Developments - Chevron and Quantum Energy Partners are among the bidders for Lukoil's international assets, valued at approximately $22 billion, as Lukoil divests under U.S. sanctions [6][8] Regulatory Challenges - Social media platform X, owned by Elon Musk, has been fined €120 million by the European Commission for multiple breaches of the Digital Services Act, marking a significant regulatory challenge [7][8]

Core Points - Hess Corporation is involved in a legal action regarding its merger with Chevron Corporation, with a lawsuit filed by stockholder George Assad alleging fiduciary duty violations by the Hess Board [3][4] - The lawsuit seeks an injunction against the merger, damages, and an award of attorneys' fees, with the plaintiff's counsel now filing for an award of fees and expenses totaling up to $350,000 [8][10] - The merger between Hess and Chevron was completed on July 18, 2025, with Hess becoming a wholly owned subsidiary of Chevron [6] Group 1: Legal Proceedings - The law firms representing the plaintiff intend to file a Fee and Expense Application in the Delaware Court of Chancery [1] - The defendants, including Hess and its board, deny any wrongdoing and plan to oppose the Fee and Expense Application [4][8] - The court has retained jurisdiction to hear the Fee and Expense Application after dismissing all claims in the action with prejudice as to the named plaintiff only [10] Group 2: Merger Details - Hess entered into a Merger Agreement with Chevron on October 22, 2023, for Chevron to acquire all outstanding shares of Hess [2] - A Definitive Proxy Statement was filed by Hess on April 26, 2024, in connection with the merger [3] - Following the lawsuit, Hess supplemented its Proxy Statement with additional disclosures before the special meeting where the transaction was approved [5]