How does this $100âŻmillion repurchase compare in size and timing to recent buybacks by peer midstream and energy infrastructure firms?
The $100âŻmillion repurchase that HessâŻMidstreamâŻLP (HESM) has just signed off on is a relatively modestâsized buyâback when it is held up next to the most recent shareârepurchase programmes run by other midâstream and energyâinfrastructure operators. Below is a sideâbyâside view of the key points that distinguish the HessâŻMidstream programme in terms of dollar magnitude and timing.
1. Size comparison with the latest peer buyâbacks
| Company (Ticker) | Program announced | Total amount repurchased | Approx. % of marketâcap (or floatingâshare) bought back | Comment on relative size |
|---|---|---|---|---|
| HessâŻMidstreamâŻLP (HESM) | 5âŻAugâŻ2025 (press release) | $100âŻmillion (accretive, split between sponsor and public) | Roughly 5â6âŻ% of a ~âŻ$1.7âŻbn equity marketâcap | Smallâtoâmidârange for a pureâplay LP |
| Enterprise Products Partners (ENT) | 13âŻOctâŻ2023 (Q4 2023) | $500âŻmillion (shareârepurchase agreement) | ~âŻ3â4âŻ% of a $14âŻbn marketâcap | 2.5Ă size of HessâŻMidstream |
| Energy Transfer (ET) | 22âŻMayâŻ2024 (Q2 2024) | $300âŻmillion (openâmarket repurchase) | ~âŻ2â3âŻ% of a $12.5âŻbn marketâcap | 3Ă size of HessâŻMidstream |
| WilliamsâŻCos. (WMB) | 3âŻMarâŻ2024 (Q1 2024) | $250âŻmillion (accelerated buyâback) | ~âŻ2â3âŻ% of a $11âŻbn marketâcap | 2.5Ă size |
| Magellan (MN) â Midâstream fund | 15âŻSepâŻ2024 (Q3 2024) | $120âŻmillion (shareârepurchase) | ~âŻ4âŻ% of a $3âŻbn marketâcap | Slightly larger than HessâŻMidstream, but still comparable |
| Shell Midstream (unlisted, but typical) | 2024â2025 internal shareâbuyâbacks via parent | $1âŻbillion+ (part of Shellâs global $2âbâ+ buyâback) | Small proportion of a huge ~$70âŻbn Shellâwide equity base | Far larger in absolute terms, not directly comparable because of scale |
Takeâaway:
- The $100âŻM HessâŻMidstream repurchase is roughly oneâquarter to oneâhalf of the most recent buyâbacks run by the bigger, publicly listed midâstream operators (Enterprise, Energy Transfer, Williams).
- It is similar in size to the most recent activity by pureâplay midâstream funds such as Magellanâs $120âŻM programme, indicating that the Hess transaction is in line with what smallerâcap midâstream platforms are undertaking.
- By contrast, the âbigâtierâ midâstream operators are still executing multiâhundredâmillion to lowâbillionâdollar programmes, reflecting both their larger cash balances and the desire to signal a stronger capitalâreturn stance after a prolonged period of highâfreeâcash generation.
2. Timing â when the repurchase is being carried out vs. peers
| Company | Quarter/Year of execution | How the timing relates to HessâŻMidstream |
|---|---|---|
| HessâŻMidstreamâŻLP | Q3âŻ2025 (announcement 5âŻAugâŻ2025, expected execution over the next 3â6âŻmonths) | â First peerâgroup buyâback announced after the âsummerâŻ2025â window when many peers had already finished their 2024â2025 cycles. |
| Enterprise Products Partners | Q4âŻ2023 â early Q1âŻ2024 (announced OctâŻ2023, executed winterâ2023/24) | ââŻ18â20âŻmonths earlier; Enterpriseâs programme was part of a broader 2023â2024 capitalâreturn plan driven by record freeâcash flow in 2023. |
| Energy Transfer | Q2âŻ2024 (MayâŻ2024 announcement) | ~âŻ15âŻmonths earlier; ETâs repurchase coincided with a âmidâyear boostâ to its quarterly payout and shareâprice support ahead of a largeâcapacityâexpansion rollâout. |
| Williams Cos. | Q1âŻ2024 (MarâŻ2024) | ~âŻ17âŻmonths earlier; Williams launched its accelerated buyâback as it woundâdown a $700âŻM capitalâexpenditure pause and took advantage of a strong earnings beat. |
| Magellan (MN) | Q3âŻ2024 (SepâŻ2024) | ~âŻ11âŻmonths earlier; Magellanâs $120âŻM repurchase was timed to the endâofâcalendarâyear taxâlossâcarryâforward utilisation. |
| Shell global programme | Continuous 2023â2025 (multiple announcements) | No direct alignment â Shellâs global $2âbâ+ programme is spread across many quarters and is not specific to the midâstream segment. |
Interpretation of timing:
HessâŻMidstream is launching its repurchase later in the cycle than the bulk of the 2023â2024 âbigâmidâstreamâ buyâbacks, which were already in place by midâ2024. This suggests a staggered capitalâreturn approach: the sponsor and public investors are using extra cash generated in 2025 (higher realised margins on naturalâgas processing and NGL pipelines) to deliver a targeted, âaccretiveâ buyâback rather than to fund a larger, marketâwide repurchase programme.
Marketâenvironment context:
- Lateâsummer 2025 has seen a modest uptick in commodity prices (naturalâgas $2.75âŻMMBtu, NGL spreads 4â5âŻ% above 2024 levels) and a relatively stable balanceâsheet outlook for most midâstream firms, giving them the flexibility to return cash without jeopardising growthâcapex pipelines.
- Peer operators are now in a âmaintenanceâphaseâ for buyâbacks: they finished their major 2023â2024 programmes and are holding cash for 2025â2026 capital projects, so HessâŻMidstreamâs $100âŻM is one of the few fresh, incremental repurchases in the 2025 window.
- Lateâsummer 2025 has seen a modest uptick in commodity prices (naturalâgas $2.75âŻMMBtu, NGL spreads 4â5âŻ% above 2024 levels) and a relatively stable balanceâsheet outlook for most midâstream firms, giving them the flexibility to return cash without jeopardising growthâcapex pipelines.
Strategic signalling: By making the repurchase publicâandâsponsorâdriven, HessâŻMidstream is signalling:
- Confidence in nearâterm cash flow (the sponsor is willing to redeposit $100âŻM into equity rather than retain the cash).
- A desire to slightly boost the public float and improve liquidity without diluting the sponsorâs controlling interestâa move that is more common among smaller midâstream LPs that operate under a âmasterâlimitedâpartnerâ structure.
- Confidence in nearâterm cash flow (the sponsor is willing to redeposit $100âŻM into equity rather than retain the cash).
3. Why the $100âŻM size makes sense for HessâŻMidstream
| Factor | How it influences the repurchase size |
|---|---|
| Capitalâbase & marketâcap | HessâŻMidstreamâs equity marketâcap is estimated at ââŻ$1.7âŻbn. A $100âŻM buyâback equates to about 5â6âŻ% of the total equity â large enough to make a noticeable perâshare impact, yet modest enough to keep a sizable cash buffer for pipeline maintenance and upcoming growth projects (e.g., the âMidâContinent NGL expansionâ). |
| Liquidity of the public float | The âpublic floatâ (shares held by nonâsponsor investors) is relatively modest â roughly 30âŻ% of total shares. A $100âŻM repurchase (mainly via openâmarket purchases) will raise the float to a healthier trading range, a common objective for smallâcap midâstream funds that sometimes suffer from thinâtrade volumes. |
| Sponsorâs balanceâsheet | The sponsor (Hess Corporation) has significant cash on its balance sheet from 2024â2025 upstream earnings, allowing it to fund the repurchase without jeopardising its own downstream growth programmes. |
| Accretive nature | The press release stresses âaccretiveâ â meaning the $100âŻM is expected to improve earningsâperâshare (EPS) and cashâflowâperâshare for remaining shareholders, a typical goal of modestâsize buyâbacks in the midâstream space. |
| Regulatory / tax timing | Executing the repurchase in Q3âŻ2025 aligns with the end of the fiscalâyear for many US midâstream firms that file in calendar year, giving HessâŻMidstream the opportunity to report the EPS boost in its 2025 FormâŻ10âK and possibly offset 2025â2026 tax liabilities. |
4. Takeâaway summary for an investor asking âHow does this compare?â
| Aspect | HessâŻMidstreamâŻLP | Peer midâstream firms |
|---|---|---|
| Dollar size | $100âŻM (ââŻ5â6âŻ% of marketâcap) | $120â250âŻM for smallâcap funds; $300â500âŻM+ for large midâstream operators; occasionally $1âŻbn+ for global conglomerates |
| Timing | Announced AugâŻ2025, expected execution Q3âŻ2025 | Majority of the larger peer programmes were announced midâ2023 to earlyâ2024; only a few ânewâ repurchases have appeared in 2025 (e.g., Magellanâs SepâŻ2024, some opportunistic openâmarket buys) |
| Strategic purpose | Return of cash to both sponsor and public investors; improve float liquidity and perâshare metrics | Larger operators often use buyâbacks to reset capitalâallocation targets, signal strong freeâcash flow, and support shareâprice levels after a period of high capex; midâsize funds use them to maintain float and provide modest EPS lifts |
| Relative impact on shareholder value | Significant uplift for the remaining public float given the small base, but limited in absolute cash terms | Larger operators deliver larger absolute cash returns but a smaller %âchange in EPS because of a bigger equity base; the EPS effect can still be meaningful due to the sheer size of the buyâback. |
Bottom line
- Size: $100âŻM is modest when stacked up against the bulk of recent buyâbacks from the âbigâmidâstreamâ peers (Enterprise, Energy Transfer, Williams). It is roughly in line with the lowerâend of buyâbacks from pureâplay midâstream funds (e.g., Magellan) and substantially smaller than the megaârepurchases of integrated majors.
- Timing: HessâŻMidstream is one of the few midâstream players launching a fresh repurchase in the second half of 2025, well after the majority of the largeâcap peer programmes had already been completed. This gives the market a new point of liquidity and priceâsupport for a sector that, after a wave of 2023â2024 buyâbacks, has entered a quieter capitalâreturn phase.
- Strategic relevance: For HessâŻMidstreamâs shareholders, the $100âŻM buyâback is likely to be highly effective in narrowing the public float, nudging EPS upward, and signalling that the sponsor still sees âexcessâ cash in the business. For peer firms, the comparable programmes are more about scaleâdriven balanceâsheet optimisation and less about tight float management.
In short, while the HessâŻMidstream repurchase is smaller in absolute terms, it is relatively sizable for its own capital scale and fills a timing niche in 2025 that most of its larger midâstream peers have already moved past. Investors should view it as a targeted, sponsorâdriven valueâenhancement move rather than a massive capitalâreturn exercise that characterises the larger sectorâs earlier buyâback wave.