Hess Midstream (HESM) Company Report

Hess Midstream expects net income between $650 million and $700 million and Adjusted EBITDA between $1,225 million and $1,275 million for 2026.
Total capital expenditures are projected to be approximately $150 million in 2026, a significant reduction from 2025, with further reductions to less than $75 million annually in both 2027 and 2028.
The company anticipates annualized growth of approximately 5% for net income and Adjusted EBITDA and approximately 10% for Adjusted Free Cash Flow through 2028 from 2026 levels.
Hess Midstream is targeting annual distribution per Class A share growth of at least 5% through 2028 and expects to generate approximately $1 billion of Adjusted Free Cash Flow after Distributions through 2028 for incremental shareholder returns and debt repayment.

1 day ago

Press Release

Hess Midstream Reports Q3 2025 Results, Narrows Full Year Guidance, and Suspends Kappa Gas Plant Project

HESM

Earnings

Guidance Update

Share Buyback

Hess Midstream reported Q3 2025 net income of $176 million and Adjusted EBITDA of $321 million, maintaining a gross adjusted EBITDA margin of approximately 80%.
The company narrowed its full year 2025 guidance, expecting net income of $685 million-$695 million and Adjusted EBITDA of $1,245 million-$1,255 million, implying approximately 10% year-on-year growth at the midpoint.
Full year 2025 capital expenditures are now projected to be approximately $270 million, a reduction following the suspension of the Kappa gas plant project, which is anticipated to provide additional free cash flow.
In Q3 2025, Hess Midstream executed a $100 million share and unit repurchase and increased its distribution by 2.4%, targeting annual distribution growth of at least 5% through 2027.

Nov 3, 2025, 3:00 PM

Transcript

Hess Midstream Reports Q3 2025 Results, Updates Guidance, and Suspends Kappa Gas Plant Project

HESM

Earnings

Guidance Update

Share Buyback

Hess Midstream reported Q3 2025 net income of $176 million and Adjusted EBITDA of $321 million. The company narrowed its full-year 2025 guidance for net income to $685 million-$695 million and Adjusted EBITDA to $1,245 million-$1,255 million, implying approximately 10% year-on-year EBITDA growth at the midpoint.
In Q3, Hess Midstream executed a $100 million share and unit repurchase and increased its distribution by 2.4%, or approximately 10% on an annualized basis per Class A share. The company targets annual distribution per Class A share growth of at least 5% through 2027.
Activities on the Kappa gas plant have been suspended and the project removed from forward plans, resulting in a revised full-year 2025 capital expenditures expectation of approximately $270 million and significantly lower capital going forward. This is expected to provide additional free cash flow, with excess adjusted free cash flow of approximately $140 million anticipated after fully funding targeted distributions.
Q3 throughput volumes averaged 462 million cubic feet per day for gas processing, 130,000 barrels of oil per day for crude terminaling, and 137,000 barrels of water per day for water gathering, with gas gathering and processing increasing approximately 3% from Q2. The company expects fourth quarter volumes to be relatively flat with Q3 due to lower third-party volumes and planned maintenance.

Nov 3, 2025, 3:00 PM

Transcript

Hess Midstream Reports Q3 2025 Results, Updates Full-Year Guidance, and Suspends Capa Gas Plant Project

HESM

Earnings

Guidance Update

Share Buyback

Hess Midstream (HESM) reported Q3 2025 net income of $176 million and Adjusted EBITDA of $321 million, with gas gathering and processing throughputs increasing approximately 3% from the second quarter.
The company narrowed its full-year 2025 guidance for Adjusted EBITDA to $1.245 billion-$1.255 billion and revised capital expenditures down to approximately $270 million due to the suspension of the Capa gas plant project.
HESM executed a $100 million share and unit repurchase in Q3 and increased its distribution by 2.4%, maintaining a target of at least 5% annual growth per Class A share through 2027. The lower capital expenditures are expected to drive continued growth in free cash flow.
Management expects 2026 EBITDA to be relatively flat with 2025 but anticipates free cash flow growth due to significantly lower capital requirements. Guidance for 2026 and 2028 Minimum Volume Commitments (MVCs) will be released in December.

Nov 3, 2025, 3:00 PM

Transcript

Hess Midstream LP Reports Q3 2025 Results and Updates Guidance

HESM

Earnings

Guidance Update

Share Buyback

Hess Midstream LP reported Q3 2025 net income of $175.5 million and Adjusted EBITDA of $320.7 million, with net income attributable to Hess Midstream LP at $97.7 million, or $0.75 basic earnings per Class A share.
Operational performance saw throughput volumes increase 10% for gas processing, 7% for oil terminaling, and 7% for water gathering in Q3 2025 compared to the prior-year quarter.
The company increased its quarterly cash distribution to $0.7548 per Class A share for Q3 2025 and completed $70.0 million in Class A share repurchases and $30.0 million in Class B unit repurchases.
For Q4 2025, Hess Midstream LP expects net income of $170 - $180 million and Adjusted EBITDA of $315 - $325 million, while reducing its full year 2025 capital expenditure guidance to approximately $270 million.
Following the merger of Hess Corporation and Chevron on July 18, 2025, Chevron indirectly owns approximately a 37.9% interest in Hess Midstream LP, and the company's senior unsecured debt was upgraded to BBB- by S&P on July 24, 2025.

Nov 3, 2025, 1:00 PM

8-K

Hess Midstream LP Reports Third Quarter 2025 Results and Updates Guidance

HESM

Earnings

Guidance Update

Dividends

Hess Midstream LP reported third quarter 2025 results including net income of $175.5 million, Adjusted EBITDA of $320.7 million, and $0.75 basic earnings per Class A share.
Operational performance saw throughput volumes increase 10% for gas processing, 7% for oil terminaling, and 7% for water gathering in the third quarter of 2025 compared to the prior-year quarter.
The company completed $70.0 million in Class A share repurchases and $30.0 million in Class B unit repurchases, and increased its quarterly cash distribution to $0.7548 per Class A share for the third quarter of 2025.
For the fourth quarter of 2025, Hess Midstream LP expects net income between $170 million and $180 million and Adjusted EBITDA between $315 million and $325 million, while reducing its full year 2025 capital expenditure guidance to approximately $270 million.

Nov 3, 2025, 1:00 PM

Press Release

Hess Midstream Announces Distribution Per Share Increase

HESM

Dividends

Share Buyback

Guidance Update

Hess Midstream LP declared a quarterly cash distribution of $0.7548 per Class A share for the quarter ended September 30, 2025, representing an increase of $0.0178 per share compared to the second quarter of 2025.
This distribution increase is supported by excess Adjusted Free Cash Flow and follows $30 million in unit repurchases and $70 million in Class A share repurchases completed in the third quarter of 2025.
On an annualized basis, this increase is significantly above Hess Midstream's targeted 5% growth in annual distributions per Class A share through 2027.
The quarterly distribution will be payable on November 14, 2025, to Class A shareholders of record as of November 6, 2025.