Welcome to our dedicated page for Hess Midstream P news (Ticker: HESM), a resource for investors and traders seeking the latest updates and insights on Hess Midstream P stock.
Overview of Hess Midstream Partners
Hess Midstream Partners (symbol: HESM) is a diversified operator in the midstream energy sector, focusing on processing natural gas, fractionating natural gas liquids (NGLs), and managing an array of asset operations. With a strong presence in natural gas processing, NGL fractionation, and midstream asset management, the company provides fee-based services for both its primary client, Hess, and various third-party customers. This comprehensive approach positions Hess Midstream as a key participant within the broader energy infrastructure landscape.
Business Operations and Model
The company’s business is structured around multiple segments that work synergistically to support its core operations. Its gathering segment includes natural gas gathering and compression, crude oil gathering, and the management of produced water gathering and disposal. These activities ensure that raw materials are efficiently collected and prepared for further processing, marking a critical foundation for its fee-based revenue model.
Processing, Storage and Terminaling
Hess Midstream Partners also places significant emphasis on processing and storage operations. The facility for processing natural gas and fractionating NGLs is central to its service offering, providing reliable and efficient operations that are essential for maintaining industry standards. In addition, its terminaling and exporting segment extends its service capabilities to include the loading and terminaling of crude oil, along with the storage and terminaling of propane, illustrating a well-rounded approach to midstream service provision.
Operational Excellence and Expertise
The company has developed extensive expertise in managing midstream assets, enabling it to support complex energy logistics and asset operations. Its fee-based service model reduces dependence on commodity price fluctuations and emphasizes operational efficiency and reliability. By focusing on core midstream services, Hess Midstream Partners has established a robust operational infrastructure designed to ensure safe, efficient, and compliant management of energy assets.
Market Position and Competitive Landscape
Within the competitive midstream energy landscape, Hess Midstream Partners is recognized for its dedication to service excellence and operational rigor. Rather than emphasizing speculative future performance, the company maintains a consistent business model built on diversified asset management and a focus on fee-based revenue streams. This strategic emphasis allows the company to navigate industry challenges with a clear, operationally driven approach that supports its long-term viability.
Key Operational Segments
- Gathering: Involves the collection and compression of natural gas and crude oil along with associated produced water management.
- Processing and Storage: Centers on the processing of natural gas and the fractionation of NGLs, coupled with robust storage solutions.
- Terminaling and Exporting: Focuses on loading crude oil and NGLs, along with storing and terminaling propane.
Understanding the Midstream Infrastructure
This detailed exploration of Hess Midstream Partners underscores a strong focus on operational efficiency and comprehensive infrastructure management. Using a diversified set of assets, the company addresses key needs within the midstream sector, aligning with industry best practices and delivering consistent operations. The clear organization of its business segments also assists industry analysts and researchers in understanding the multifaceted nature of midstream services.
Investor and Industry Insights
For investors and industry professionals, understanding the intricacies of Hess Midstream Partners is crucial. The company’s operations, which combine gathering, processing, storage, and terminaling, contribute to a resilient business model that minimizes exposure to commodity price volatility. Each business segment is designed to add value through efficient, fee-based services that underpin the company’s market standing in the energy infrastructure domain.
Hess Midstream (NYSE: HESM) has announced the filing of its annual report on Form 10-K for the fiscal year ended December 31, 2024. The report was filed with the Securities and Exchange Commission on February 27, 2025.
The annual report, which includes complete audited financial statements, is accessible on the company's website at www.hessmidstream.com under the Investors section and SEC Filings subsection. Shareholders can request free printed copies of the report by emailing Investor Relations at HessMidstream@hess.com.
Hess Midstream LP (NYSE: HESM) has announced its participation in the upcoming Morgan Stanley Energy & Power Conference scheduled for March 6, 2025. The company will be represented by Jonathan Stein, Chief Financial Officer, and Jennifer Gordon, Vice President of Investor Relations, who will engage with investors during the conference. A presentation related to the event has been made available to the public and can be accessed in the 'Investors' section of the company's official website at www.hessmidstream.com.
Hess Midstream LP (NYSE: HESM) announced the pricing of an upsized secondary public offering of 11,000,000 Class A shares at $39.45 per share. The offering, increased from the initially planned 10,000,000 shares, is being conducted by an affiliate of Global Infrastructure Partners, a part of BlackRock.
The gross proceeds are expected to reach $433.95 million. The Selling Shareholder has granted the underwriter a 30-day option to purchase up to 1,650,000 additional Class A shares. HESM will not receive any proceeds from this sale. The offering is expected to close on February 12, 2025, with Goldman Sachs & Co. acting as the bookrunning manager.
Hess Midstream LP (NYSE: HESM) announced a secondary public offering of 10,000,000 Class A shares by an affiliate of Global Infrastructure Partners, a part of BlackRock (the Selling Shareholder). The Selling Shareholder is granting underwriters a 30-day option to purchase up to 1,500,000 additional Class A shares.
Goldman Sachs & Co. is serving as the bookrunning manager for the offering. HESM will not receive any proceeds from the sale of Class A shares in this offering. The shares will be offered through a shelf registration statement previously filed with the SEC.
Hess Midstream Operations, a consolidated subsidiary of Hess Midstream LP (NYSE: HESM), has priced a $800 million private offering of 5.875% senior unsecured notes due 2028. The notes are being priced at par and will be sold exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.
The company plans to use the net proceeds, combined with borrowings from its revolving credit facility, to redeem its outstanding 5.625% senior notes due 2026. The redemption notice was delivered on February 3, 2025, and the new offering is expected to close on February 12, 2025, subject to customary closing conditions.
Hess Midstream Operations LP, a consolidated subsidiary of Hess Midstream LP (NYSE: HESM), announced plans to offer $800 million in senior unsecured notes due 2028 through a private offering. The company intends to use the net proceeds, combined with borrowings from its revolving credit facility, to redeem its outstanding 5.625% senior notes due 2026.
The Notes will be offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S. The securities will not be registered under the Securities Act or state securities laws, limiting their sale and transfer in the United States without registration or applicable exemption.
Hess Midstream LP (HESM) has announced its 2025 guidance and extended its Return of Capital program through 2027. The company expects 10% throughput volume growth across oil and gas systems in 2025 compared to 2024, with projected net income of $715-765 million and Adjusted EBITDA of $1,235-$1,285 million for 2025.
The company anticipates capital expenditures of $300 million in 2025 and expects to generate approximately $135 million in Adjusted Free Cash Flow after distributions. Looking ahead, HESM projects at least 10% growth in net income and Adjusted EBITDA in 2026, followed by 5% growth in 2027.
The Return of Capital framework includes targeting annual distribution per Class A share growth of at least 5% through 2027 and provides over $1.25 billion of financial flexibility through 2027 for incremental shareholder returns. The company plans to construct a new gas processing plant with 125 MMcf per day capacity, expected to be online in 2027.
Hess Midstream (NYSE: HESM) reported strong Q4 2024 results with net income of $172.1 million, up from $152.8 million in Q4 2023. The company achieved net income attributable to HESM of $70.4 million, or $0.68 basic earnings per Class A share.
Key financial metrics include Adjusted EBITDA of $298.2 million and Adjusted Free Cash Flow of $164.3 million. Revenues increased to $395.9 million from $356.5 million year-over-year. The company completed a $100 million repurchase of Class B units and increased its quarterly cash distribution to $0.7012 per Class A share.
Operational highlights show significant growth with throughput volumes increasing 15% for gas gathering and processing, 11% for crude oil gathering, and 6% for terminaling compared to Q4 2023. The company ended the quarter with approximately $3.5 billion in debt and a leverage ratio of 3.1x Adjusted EBITDA.
Hess Midstream (NYSE: HESM) has announced a quarterly cash distribution of $0.7012 per Class A share for Q4 2024, representing an increase of $0.0166 per share compared to Q3 2024. This increase is supported by excess adjusted free cash flow following the company's $100 million unit repurchase in January 2025.
The distribution growth exceeds Hess Midstream's targeted 5% annual distribution growth through 2026. The company has achieved approximately 55% increase in distribution per Class A share since Q1 2021 and over 10% since Q4 2023. Management expects over $1.25 billion of financial flexibility through 2026 to support their return of capital framework. The quarterly distribution will be paid on February 14, 2025, to shareholders of record as of February 6, 2025.
Hess Midstream (NYSE: HESM) has announced its upcoming fourth quarter 2024 earnings conference call, scheduled for Wednesday, January 29, 2025, at 12:00 p.m. Eastern Time. Participants interested in joining the call must pre-register through a provided link to receive their unique PIN and dial-in number. The company will also make the conference call and its replay available via webcast on their official website at www.hessmidstream.com.
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