Is Hess Midstream’s Capital Return Program a Strength or a Warning Sign?

Quick Read Hess Midstream (HESM) executed a $60 million equity repurchase in March and carries a 7.49% dividend yield backed by nine consecutive years of uninterrupted quarterly distributions, though its payout ratio sits at a concerning 105% with 2026 EPS forecast declining to $2.56 from $2.86 in 2025. Chevron (CVX) reduced its Bakken rig count from 4 to 3 starting Q4 2025, targeting a 200,000 barrels per day plateau, which prompted UBS to cut HESM’s price target from $36 to $34 due to anticipated volum ...