10:30 AM EDT, 03/12/2024 (MT Newswires) -- Hess Midstream ( HESM ) said Tuesday it signed an agreement for about $100 million to repurchase class B units by its Hess Midstream Operations unit from affiliates of Hess Corp. and Global Infrastructure Partners, which are sponsors of Hess Midstream ( HESM ).

The terms of the planned transaction were approved by the board of its general partner, Hess said.

The repurchased units will be canceled after the transaction closes, which is expected to result in increased distributable cash flow per class A share, the firm said, adding it will also allow incremental distribution growth above its 5% annual distribution target.

Hess Midstream Operations will repurchase about 2.82 million class B units of Hess Midstream Operations held by the sponsors, for a purchase price of $35.50 per class B unit.

The repurchase, which is expected to close on Thursday, will be funded by loans under an existing credit facility, the company said.

Price: 35.73, Change: +0.23, Percent Change: +0.65