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Hess Midstream LP Reports Estimated Results for the Third Quarter of 2024

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Hess Midstream (NYSE: HESM) reported strong Q3 2024 results with net income of $164.7 million and Adjusted EBITDA of $286.9 million. The company achieved a 9% increase in gas gathering and processing volumes compared to the previous year. Net cash from operations reached $224.9 million, with Adjusted Free Cash Flow of $141.4 million. The company completed a $100 million Class B unit repurchase and increased its quarterly distribution to $0.6846 per Class A share. Looking ahead, HESM expects Q4 2024 net income of $170-185 million and Adjusted EBITDA of $295-310 million, representing approximately 5% growth. The company maintains its target of 5% annual distribution growth through 2026.

Hess Midstream (NYSE: HESM) ha riportato risultati solidi per il terzo trimestre del 2024, con un reddito netto di 164,7 milioni di dollari e un EBITDA rettificato di 286,9 milioni di dollari. L'azienda ha registrato un aumento del 9% nei volumi di raccolta e lavorazione del gas rispetto all'anno precedente. Il flusso di cassa netto dalle operazioni ha raggiunto 224,9 milioni di dollari, con un flusso di cassa libero rettificato di 141,4 milioni di dollari. L'azienda ha completato un riacquisto di unità di Classe B da 100 milioni di dollari e ha aumentato la distribuzione trimestrale a 0,6846 dollari per azione di Classe A. Guardando al futuro, HESM si aspetta un reddito netto per il quarto trimestre del 2024 compreso tra 170 e 185 milioni di dollari e un EBITDA rettificato tra 295 e 310 milioni di dollari, con una crescita di circa il 5%. L'azienda mantiene il suo obiettivo di una crescita annuale della distribuzione del 5% fino al 2026.

Hess Midstream (NYSE: HESM) reportó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de 164.7 millones de dólares y un EBITDA ajustado de 286.9 millones de dólares. La empresa logró un aumento del 9% en los volúmenes de recolección y procesamiento de gas en comparación con el año anterior. El flujo de efectivo neto de las operaciones alcanzó 224.9 millones de dólares, con un flujo de caja libre ajustado de 141.4 millones de dólares. La compañía completó una recompra de unidades de Clase B por 100 millones de dólares y aumentó su distribución trimestral a 0.6846 dólares por acción de Clase A. Mirando hacia adelante, HESM espera un ingreso neto para el cuarto trimestre de 2024 de entre 170 y 185 millones de dólares y un EBITDA ajustado de entre 295 y 310 millones de dólares, representando aproximadamente un crecimiento del 5%. La empresa mantiene su objetivo de un crecimiento anual de la distribución del 5% hasta 2026.

Hess Midstream (NYSE: HESM)는 2024년 3분기 실적을 발표하며 순이익 1억 6,470만 달러조정 EBITDA 2억 8,690만 달러를 기록했습니다. 회사는 전년 대비 가스 수집 및 처리량에서 9% 증가를 달성했습니다. 운영에서의 순현금은 2억 2,490만 달러에 도달했으며, 조정 자유현금 흐름은 1억 4,140만 달러입니다. 회사는 1억 달러 규모의 B 클래스 유닛 재매입을 완료하고 A 클래스 주식당 분배금을 0.6846달러로 인상했습니다. 앞으로 HESM은 2024년 4분기 순이익 1억 7,000만 ~ 1억 8,500만 달러와 조정 EBITDA 2억 9,500만 ~ 3억 1,000만 달러를 예상하며, 이는 약 5%의 성장률을 나타냅니다. 회사는 2026년까지 연간 5% 분배 성장 목표를 유지합니다.

Hess Midstream (NYSE: HESM) a rapporté des résultats solides pour le troisième trimestre 2024, avec un revenu net de 164,7 millions de dollars et un EBITDA ajusté de 286,9 millions de dollars. L’entreprise a atteint une augmentation de 9% des volumes de collecte et de traitement du gaz par rapport à l’année précédente. Le flux de trésorerie net provenant des opérations a atteint 224,9 millions de dollars, avec un flux de trésorerie libre ajusté de 141,4 millions de dollars. L’entreprise a complété un rachat d’unités de Classe B de 100 millions de dollars et a augmenté sa distribution trimestrielle à 0,6846 dollars par action de Classe A. En regardant vers l’avenir, HESM s’attend à un revenu net pour le quatrième trimestre 2024 compris entre 170 et 185 millions de dollars et un EBITDA ajusté de 295 à 310 millions de dollars, représentant environ 5% de croissance. L’entreprise maintient son objectif d’une croissance annuelle de la distribution de 5% jusqu’en 2026.

Hess Midstream (NYSE: HESM) berichtete über starke Ergebnisse im dritten Quartal 2024 mit einem Nettoeinkommen von 164,7 Millionen Dollar und einem bereinigten EBITDA von 286,9 Millionen Dollar. Das Unternehmen erzielte im Vergleich zum Vorjahr einen 9%igen Anstieg der Gasförder- und -verarbeitungsvolumen. Der Netto-Cashflow aus der Betriebstätigkeit erreichte 224,9 Millionen Dollar, mit einem bereinigten freien Cashflow von 141,4 Millionen Dollar. Das Unternehmen schloss eine Rückkaufaktion für B-Klasse-Einheiten im Wert von 100 Millionen Dollar ab und erhöhte die vierteljährliche Ausschüttung auf 0,6846 Dollar pro A-Klasse-Aktie. Für das vierte Quartal 2024 erwartet HESM ein Nettoeinkommen von 170 bis 185 Millionen Dollar sowie ein bereinigtes EBITDA von 295 bis 310 Millionen Dollar, was etwa 5% Wachstum entspricht. Das Unternehmen hält an seinem Ziel einer jährlichen Ausschüttungssteigerung von 5% bis 2026 fest.

Positive
  • Net income of $164.7 million in Q3 2024
  • 9% increase in gas gathering and processing volumes year-over-year
  • Adjusted EBITDA grew to $286.9 million
  • Completed accretive $100 million unit repurchase
  • Increased quarterly distribution by $0.0169 per Class A share
  • 29% increase in water gathering volumes
Negative
  • 5% decrease in terminaling throughput volumes due to lower third-party volumes
  • Higher interest expense due to new $600 million senior notes
  • Increased operating costs and expenses compared to prior year

Insights

Strong Q3 2024 results showcase HESM's robust operational performance with $164.7M net income and $286.9M Adjusted EBITDA. Key positives include 9% growth in gas gathering and processing volumes, successful completion of $100M Class B unit repurchase and increased quarterly distribution to $0.6846 per Class A share. The company's forward guidance is particularly encouraging, projecting 10% annual growth in gas throughput through 2026 and over $1.25B in financial flexibility. The leverage target of 3x Adjusted EBITDA demonstrates prudent financial management, while Q4 guidance suggests continued momentum with 5% sequential EBITDA growth expected.

The accelerated execution of infrastructure expansion, particularly the two compressor stations project, positions HESM well for future growth. The 29% increase in water gathering volumes indicates strong utilization of existing assets. Capital expenditure guidance increase to $275M reflects aggressive infrastructure development aligned with Hess' production growth plans. The established minimum volume commitments through 2026 provide revenue visibility and support the projected throughput growth trajectory. The ongoing gas gathering expansion projects will enhance gas capture efficiency, creating additional value from existing operations.

Third Quarter 2024 Highlights:

  • Net income was $164.7 million. Net cash provided by operating activities was $224.9 million.
  • Net income attributable to Hess Midstream LP was $58.6 million, or $0.63 basic earnings per Class A share, after deduction for noncontrolling interests.
  • Adjusted EBITDA1 was $286.9 million and Adjusted Free Cash Flow1 was $141.4 million.
  • Completed accretive $100 million repurchase of Class B units of Hess Midstream Operations LP in September 2024.
  • Increased quarterly cash distribution to $0.6846 per Class A share for the third quarter of 2024, an increase of $0.0169 per Class A share for the third quarter of 2024 compared with the second quarter of 2024; this quarterly increase included incremental distribution per Class A share growth utilizing excess Adjusted Free Cash Flow available for distributions following the accretive $100 million unit repurchase.
  • Throughput volumes increased 9% for gas gathering and gas processing compared with the prior-year quarter, primarily due to higher production and higher gas capture.

Guidance:

  • Hess Midstream LP expects $170 - $185 million of net income and $295 - $310 million of Adjusted EBITDA in the fourth quarter of 2024, representing an approximate 5% increase in Adjusted EBITDA, at the midpoint, compared with the third quarter of 2024 supported by growing throughput volumes.
  • Hess Midstream LP is reaffirming its full year 2024 throughput guidance.
  • Hess Midstream LP continues to expect annualized growth in gas throughput volumes of approximately 10% from 2024 through 2026 and continued growth in oil throughput volumes of approximately 10% in 2025 and approximately 5% in 2026 as implied in its already-established minimum volume commitments for 2026.
  • Hess Midstream LP continues to target at least 5% annual distribution growth per Class A share through 2026 and continues to prioritize financial strength with a long-term leverage target of 3x Adjusted EBITDA.
  • Hess Midstream LP continues to expect to generate greater than $1.25 billion of financial flexibility through 2026 for incremental shareholder returns, including potential unit repurchases.

HOUSTON--(BUSINESS WIRE)-- Hess Midstream LP (NYSE: HESM) (“Hess Midstream” or the "company") today reported third quarter 2024 net income of $164.7 million compared with net income of $164.8 million for the third quarter of 2023. After deduction for noncontrolling interests, net income attributable to Hess Midstream was $58.6 million, or $0.63 basic earnings per Class A share, compared with $0.57 basic earnings per Class A share in the third quarter of 2023. Hess Midstream generated Adjusted EBITDA of $286.9 million. Net cash provided by operating activities was $224.9 million and Adjusted Free Cash Flow was $141.4 million.

(1) Adjusted EBITDA and Adjusted Free Cash Flow are non‑GAAP measures. Definitions and reconciliations of these non‑GAAP measures to GAAP reporting measures appear in the following pages of this release.

“We delivered another strong quarter, thanks to strong operations and project execution,” said John Gatling, President and Chief Operating Officer of Hess Midstream. “Our multi-year gas gathering expansion projects are progressing well, and once completed, they will further boost gas capture. We anticipate volume growth through the balance of this year and remain confident in throughput volume growth across all systems in 2025 and 2026.”

Hess Midstream’s results contained in this release are consolidated to include the noncontrolling interests in Hess Midstream Operations LP owned by affiliates of Hess Corporation (“Hess”) and Global Infrastructure Partners (“GIP” and together with Hess, the “Sponsors”). We refer to certain results as “attributable to Hess Midstream LP,” which exclude the noncontrolling interests in Hess Midstream Operations LP owned by the Sponsors.

Financial Results

Revenues and other income in the third quarter of 2024 were $378.5 million compared with $363.1 million in the prior‑year quarter. Third quarter 2024 affiliate revenues included $24.8 million of pass-through electricity, produced water trucking and disposal costs and certain other fees compared with $25.1 million in the prior-year quarter. Third quarter 2024 revenues and other income were up $15.4 million compared with the prior-year quarter, primarily due to higher physical volumes. Total operating costs and expenses in the third quarter of 2024 were $146.8 million, up from $143.1 million in the prior-year quarter, primarily attributable to higher depreciation expense for additional assets placed in service. Interest expense, net of interest income, in the third quarter of 2024 was $51.8 million, up from $45.8 million in the prior-year quarter, primarily attributable to the new $600.0 million 6.500% fixed-rate senior unsecured notes issued in May 2024, partially offset by lower interest on lower borrowings under the company's revolving credit facility.

Net income for the third quarter of 2024 was $164.7 million, or $0.63 basic earnings per Class A share, after deduction for noncontrolling interests, compared with $0.57 basic earnings per Class A share in the prior-year quarter. Substantially all of income tax expense was attributed to earnings of Class A shares reflective of Hess Midstream's organizational structure. Net cash provided by operating activities for the third quarter of 2024 was $224.9 million.

Adjusted EBITDA for the third quarter of 2024 was $286.9 million. Adjusted Free Cash Flow for the third quarter of 2024 was $141.4 million. At September 30, 2024, Hess Midstream had a drawn balance of $30.0 million on its revolving credit facility.

Operational Highlights

Throughput volumes increased 9% for gas gathering, crude oil gathering and gas processing in the third quarter of 2024 compared with the third quarter of 2023, primarily due to higher production and higher gas capture. Throughput volumes decreased 5% for terminaling in the third quarter of 2024 compared with the third quarter of 2023, primarily due to lower third-party volumes. Water gathering volumes increased 29%, reflecting higher crude oil production and increased utilization of Hess Midstream's water gathering infrastructure.

Capital Expenditures

Capital expenditures for the third quarter of 2024 totaled $96.3 million and were primarily attributable to continued expansion of Hess Midstream's gas compression and related pipeline infrastructure. Capital expenditures in the prior-year quarter were $64.5 million and were also primarily attributable to expansion of the company's gas compression and related pipeline infrastructure.

Quarterly Cash Distributions

On October 28, 2024, the Board of Directors of Hess Midstream's General Partner declared a quarterly cash distribution of $0.6846 per Class A share for the third quarter of 2024, an increase of $0.0169 per Class A share as compared with the second quarter of 2024. This quarterly increase includes incremental distribution per Class A share growth utilizing excess Adjusted Free Cash Flow available for distributions following Hess Midstream's accretive $100 million unit repurchase in September 2024 and, on an annualized basis, is significantly above the company's targeted 5% growth in annual distributions per Class A share through 2026. The distribution is expected to be paid on November 14, 2024, to shareholders of record as of the close of business on November 7, 2024.

Guidance

For the fourth quarter of 2024, Hess Midstream expects net income of $170 - $185 million and Adjusted EBITDA of $295 - $310 million, implying full year expected net income of $655 - $670 million and Adjusted EBITDA of $1,135 - $1,150 million. The approximate 5% increase in Adjusted EBITDA, at the midpoint, in the fourth quarter of 2024 compared with the third quarter of 2024 is supported by growing throughput volumes, partially offset by volume impacts from power losses due to the October 2024 wildfires, higher expected operating expenses from continuing an active maintenance program and higher anticipated allocations under our omnibus and employee secondment agreements.

Hess Midstream is reaffirming its full year 2024 throughput guidance. Hess Midstream is also updating its full year 2024 capital expenditure guidance to approximately $275 million, reflecting faster Hess drilling and Hess Midstream's continuing accelerated execution of its multi‑year projects to build two compressor stations and associated pipeline infrastructure in support of Hess' expected production growth.

Hess Midstream continues to target at least 5% annual distribution growth per Class A share through 2026 from this new higher distribution level and continues to prioritize financial strength with a long-term leverage target of 3x Adjusted EBITDA. For 2025 and 2026, Hess Midstream continues to expect organic throughput volume growth across all systems relative to 2024 volume guidance.

Hess Midstream reiterates its guidance of at least 10% per year expected growth in net income, Adjusted EBITDA and Adjusted Free Cash Flow in each of 2025 and 2026. In addition, Hess Midstream reiterates its guidance of annualized growth in gas throughput volumes of approximately 10% from 2024 through 2026, and continued growth in oil throughput volumes of approximately 10% in 2025 and approximately 5% in 2026 as implied in its already-established minimum volume commitments for 2026.

Investor Webcast

Hess Midstream will review third quarter financial and operating results and other matters on a webcast today at 12:00 p.m. Eastern Time. For details about the event, refer to www.hessmidstream.com.

About Hess Midstream

Hess Midstream LP is a fee‑based, growth-oriented midstream company that owns, operates, develops and acquires a diverse set of midstream assets to provide services to Hess and third‑party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.

Reconciliation of U.S. GAAP to Non‑GAAP Measures

In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), management utilizes certain additional non‑GAAP measures to facilitate comparisons of past performance and future periods. We previously reported the non-GAAP measure of “Adjusted EBITDA”, which we defined as reported net income (loss) before net interest expense, income tax expense, depreciation and amortization and our proportional share of depreciation of our equity affiliates, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non-cash and non-recurring items, if applicable. As this definition varied from other definitions of Adjusted EBITDA, we determined it was appropriate to discontinue reporting Adjusted EBITDA as previously defined. Beginning with the second quarter of 2024, and as presented in this release, “Adjusted EBITDA” is defined as reported net income (loss) before net interest expense, income tax expense, and depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non‑cash and non‑recurring items, if applicable. Prior period calculations of Adjusted EBITDA have been recast to conform to the new presentation, as applicable. We define “Adjusted Free Cash Flow” as Adjusted EBITDA less net interest, excluding amortization of deferred financing costs, cash paid for federal and state income taxes, capital expenditures and ongoing contributions to equity investments. We define "Gross Adjusted EBITDA Margin" as the ratio of Adjusted EBITDA to total revenues, less pass-through revenues. We believe that investors’ understanding of our performance is enhanced by disclosing these measures as they may assist in assessing our operating performance as compared to other publicly traded companies in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods, and assessing the ability of our assets to generate sufficient cash flow to make distributions to our shareholders. These measures are not, and should not be viewed as, a substitute for GAAP net income or cash flow from operating activities and should not be considered in isolation. Reconciliations of Adjusted EBITDA, Adjusted Free Cash Flow and Gross Adjusted EBITDA Margin to reported net income (GAAP), net cash provided by operating activities (GAAP) and gross margin (GAAP), are provided below. Hess Midstream is unable to project net cash provided by operating activities with a reasonable degree of accuracy because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occur. Therefore, Hess Midstream is unable to provide projected net cash provided by operating activities, or the related reconciliation of projected Adjusted Free Cash Flow to projected net cash provided by operating activities without unreasonable effort.

 

 

Third Quarter

 

 

 

(unaudited)

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA to net income:

 

 

 

 

 

 

Net income

 

$

164.7

 

 

$

164.8

 

Plus:

 

 

 

 

 

 

Depreciation expense

 

 

51.5

 

 

 

47.7

 

Interest expense, net

 

 

51.8

 

 

 

45.8

 

Income tax expense

 

 

18.9

 

 

 

11.4

 

Adjusted EBITDA

 

$

286.9

 

 

$

269.7

 

 

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to net cash provided by operating activities:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

224.9

 

 

$

215.5

 

Changes in assets and liabilities

 

 

14.0

 

 

 

12.2

 

Amortization of deferred financing costs

 

 

(2.6

)

 

 

(2.1

)

Interest expense, net

 

 

51.8

 

 

 

45.8

 

Income from equity investments

 

 

3.7

 

 

 

2.0

 

Distribution from equity investments

 

 

(4.4

)

 

 

(3.4

)

Other

 

 

(0.5

)

 

 

(0.3

)

Adjusted EBITDA

 

$

286.9

 

 

$

269.7

 

Less:

 

 

 

 

 

 

Interest, net(1)

 

 

49.2

 

 

 

43.8

 

Capital expenditures

 

 

96.3

 

 

 

64.5

 

Adjusted free cash flow

 

$

141.4

 

 

$

161.4

 

 

(1) Excludes amortization of deferred financing costs.

 

Third Quarter

 

 

(Unaudited)

 

 

2024

 

 

2023

 

(in millions, except ratios)

 

 

 

 

 

 

Reconciliation of gross Adjusted EBITDA margin to gross margin:

 

 

 

 

 

 

Income from operations

$

231.7

 

 

$

220.0

 

Total revenues

$

378.5

 

 

$

363.1

 

Gross margin

 

61

%

 

 

61

%

 

 

 

 

 

 

 

Income from operations

$

231.7

 

 

$

220.0

 

Plus:

 

 

 

 

 

 

Depreciation expense

 

51.5

 

 

 

47.7

 

Income from equity investments

 

3.7

 

 

 

2.0

 

Adjusted EBITDA

$

286.9

 

 

$

269.7

 

 

 

 

 

 

 

 

Total revenues

$

378.5

 

 

$

363.1

 

Less: pass-through revenues

 

24.8

 

 

 

25.1

 

Revenues excluding pass-through

$

353.7

 

 

$

338.0

 

Gross Adjusted EBITDA margin

 

81

%

 

 

80

%

 

Guidance

 

 

Fourth Quarter Ending

 

 

Year Ending

 

 

December 31, 2024

 

 

December 31, 2024

 

 

(Unaudited)

 

 

(Unaudited)

 

(in millions)

 

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to net income:

 

 

 

 

 

 

 

Net income

$

170 - 185

 

 

$

655 - 670

 

Plus:

 

 

 

 

 

 

 

Depreciation expense

 

50

 

 

 

205

 

Interest expense, net

 

50

 

 

 

200

 

Income tax expense

 

25

 

 

 

75

 

Adjusted EBITDA

$

295 - 310

 

 

$

1,135 - 1,150

 

Less:

 

 

 

 

 

 

 

Interest, net*

 

45

 

 

 

190

 

Capital expenditures

 

70

 

 

 

275

 

Adjusted free cash flow

$

180 - 195

 

 

$

670 - 685

 

*Excludes amortization of deferred financing costs.

 

 

 

 

 

 

 

Cautionary Note Regarding Forward-looking Information

This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; our industry; our expected revenues; our future profitability; our maintenance or expansion projects; our projected budget and capital expenditures and the impact of such expenditures on our performance; future economic and market conditions in the oil and gas industry; expected timing and completion of Hess’ proposed merger with Chevron Corporation (“Chevron”); and our ability to execute future accretive opportunities, including incremental return of capital to shareholders.

Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: the ability of Hess and other parties to satisfy their obligations to us, including Hess’ ability to meet its drilling and development plans on a timely basis or at all, its ability to deliver its nominated volumes to us, and the operation of joint ventures that we may not control; our ability to generate sufficient cash flow to pay current and expected levels of distributions; reductions in the volumes of crude oil, natural gas, natural gas liquids (“NGLs”) and produced water we gather, process, terminal or store; the actual volumes we gather, process, terminal or store for Hess in excess of our MVCs and relative to Hess’ nominations; fluctuations in the prices and demand for crude oil, natural gas and NGLs; changes in global economic conditions and the effects of a global economic downturn or inflation on our business and the business of our suppliers, customers, business partners and lenders; our ability to comply with government regulations or make capital expenditures required to maintain compliance, including our ability to obtain or maintain permits necessary for capital projects in a timely manner, if at all, or the revocation or modification of existing permits; our ability to successfully identify, evaluate and timely execute our capital projects, investment opportunities and growth strategies, whether through organic growth or acquisitions; costs or liabilities associated with federal, state and local laws, regulations and governmental actions applicable to our business, including legislation and regulatory initiatives relating to environmental protection and health and safety, such as spills, releases, pipeline integrity and measures to limit greenhouse gas emissions and climate change; our ability to comply with the terms of our credit facility, indebtedness and other financing arrangements, which, if accelerated, we may not be able to repay; reduced demand for our midstream services, including the impact of weather or the availability of the competing third-party midstream gathering, processing and transportation operations; potential disruption or interruption of our business due to catastrophic events, such as accidents, severe weather events, labor disputes, information technology failures, constraints or disruptions and cyber-attacks; any limitations on our ability to access debt or capital markets on terms that we deem acceptable, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation; risks and uncertainties associated with Hess’ proposed merger with Chevron; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission.

As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

HESS MIDSTREAM LP

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

 

Third

 

 

Third

 

 

Second

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

 

2024

 

 

2023

 

 

2024

 

Statement of operations

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Affiliate services

 

$

371.4

 

 

$

361.3

 

 

$

358.5

 

Third-party services

 

 

6.2

 

 

 

1.2

 

 

 

6.1

 

Other income

 

 

0.9

 

 

 

0.6

 

 

 

0.9

 

Total revenues

 

 

378.5

 

 

 

363.1

 

 

 

365.5

 

Costs and expenses

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses (exclusive of depreciation shown separately below)

 

 

89.0

 

 

 

89.4

 

 

 

87.5

 

Depreciation expense

 

 

51.5

 

 

 

47.7

 

 

 

50.5

 

General and administrative expenses

 

 

6.3

 

 

 

6.0

 

 

 

5.2

 

Total operating costs and expenses

 

 

146.8

 

 

 

143.1

 

 

 

143.2

 

Income from operations

 

 

231.7

 

 

 

220.0

 

 

 

222.3

 

Income from equity investments

 

 

3.7

 

 

 

2.0

 

 

 

3.7

 

Interest expense, net

 

 

51.8

 

 

 

45.8

 

 

 

49.7

 

Income before income tax expense

 

 

183.6

 

 

 

176.2

 

 

 

176.3

 

Income tax expense

 

 

18.9

 

 

 

11.4

 

 

 

16.0

 

Net income

 

$

164.7

 

 

$

164.8

 

 

$

160.3

 

Less: Net income attributable to noncontrolling interest

 

 

106.1

 

 

 

129.5

 

 

 

110.8

 

Net income attributable to Hess Midstream LP

 

$

58.6

 

 

$

35.3

 

 

$

49.5

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Hess Midstream LP per Class A share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.63

 

 

$

0.57

 

 

$

0.59

 

Diluted

 

$

0.63

 

 

$

0.57

 

 

$

0.59

 

Weighted average Class A shares outstanding

 

 

 

 

 

 

 

 

 

Basic

 

 

93.0

 

 

 

62.5

 

 

 

83.8

 

Diluted

 

 

93.0

 

 

 

62.5

 

 

 

83.8

 

HESS MIDSTREAM LP

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

Statement of operations

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

Affiliate services

 

$

1,079.3

 

 

$

986.6

 

Third-party services

 

 

17.6

 

 

 

3.7

 

Other income

 

 

2.7

 

 

 

1.8

 

Total revenues

 

 

1,099.6

 

 

 

992.1

 

Costs and expenses

 

 

 

 

 

 

Operating and maintenance expenses (exclusive of depreciation shown separately below)

 

 

254.6

 

 

 

225.0

 

Depreciation expense

 

 

151.8

 

 

 

142.1

 

General and administrative expenses

 

 

17.2

 

 

 

18.2

 

Total operating costs and expenses

 

 

423.6

 

 

 

385.3

 

Income from operations

 

 

676.0

 

 

 

606.8

 

Income from equity investments

 

 

10.1

 

 

 

5.3

 

Interest expense, net

 

 

150.0

 

 

 

131.2

 

Income before income tax expense (benefit)

 

 

536.1

 

 

 

480.9

 

Income tax expense (benefit)

 

 

49.2

 

 

 

26.0

 

Net income

 

$

486.9

 

 

$

454.9

 

Less: Net income attributable to noncontrolling interest

 

 

334.2

 

 

 

373.8

 

Net income attributable to Hess Midstream LP

 

$

152.7

 

 

$

81.1

 

 

 

 

 

 

 

 

Net income attributable to Hess Midstream LP per Class A share:

 

 

 

 

 

 

Basic:

 

$

1.82

 

 

$

1.56

 

Diluted:

 

$

1.82

 

 

$

1.54

 

Weighted average Class A shares outstanding

 

 

 

 

 

 

Basic

 

 

84.0

 

 

 

52.2

 

Diluted

 

 

84.0

 

 

 

52.2

 

HESS MIDSTREAM LP

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

 

Third Quarter 2024

 

 

 

Gathering

 

 

Processing
and
Storage

 

 

Terminaling
and Export

 

 

Interest
and Other

 

Total

 

Statement of operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate services

 

$

201.7

 

 

$

140.8

 

 

$

28.9

 

 

$

-

 

 

$

371.4

 

Third-party services

 

 

1.8

 

 

 

4.3

 

 

 

0.1

 

 

 

-

 

 

 

6.2

 

Other income

 

 

-

 

 

 

-

 

 

 

0.9

 

 

 

-

 

 

 

0.9

 

Total revenues

 

 

203.5

 

 

 

145.1

 

 

 

29.9

 

 

 

-

 

 

 

378.5

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses (exclusive of depreciation shown separately below)

 

 

51.3

 

 

 

30.3

 

 

 

7.4

 

 

 

-

 

 

 

89.0

 

Depreciation expense

 

 

32.2

 

 

 

15.0

 

 

 

4.3

 

 

 

-

 

 

 

51.5

 

General and administrative expenses

 

 

2.4

 

 

 

1.2

 

 

 

0.3

 

 

 

2.4

 

 

 

6.3

 

Total operating costs and expenses

 

 

85.9

 

 

 

46.5

 

 

 

12.0

 

 

 

2.4

 

 

 

146.8

 

Income (loss) from operations

 

 

117.6

 

 

 

98.6

 

 

 

17.9

 

 

 

(2.4

)

 

 

231.7

 

Income from equity investments

 

 

-

 

 

 

3.7

 

 

 

-

 

 

 

-

 

 

 

3.7

 

Interest expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

51.8

 

 

 

51.8

 

Income before income tax expense

 

 

117.6

 

 

 

102.3

 

 

 

17.9

 

 

 

(54.2

)

 

 

183.6

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18.9

 

 

 

18.9

 

Net income (loss)

 

 

117.6

 

 

 

102.3

 

 

 

17.9

 

 

 

(73.1

)

 

 

164.7

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

68.0

 

 

 

59.0

 

 

 

10.5

 

 

 

(31.4

)

 

 

106.1

 

Net income (loss) attributable to Hess Midstream LP

 

$

49.6

 

 

$

43.3

 

 

$

7.4

 

 

$

(41.7

)

 

$

58.6

 

 

 

Third Quarter 2023

 

 

 

Gathering

 

 

Processing
and
Storage

 

 

Terminaling
and Export

 

 

Interest
and Other

 

Total

 

Statement of operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate services

 

$

197.3

 

 

$

132.2

 

 

$

31.8

 

 

$

-

 

 

$

361.3

 

Third-party services

 

 

0.2

 

 

 

1.0

 

 

 

-

 

 

 

-

 

 

 

1.2

 

Other income

 

 

-

 

 

 

-

 

 

 

0.6

 

 

 

-

 

 

 

0.6

 

Total revenues

 

 

197.5

 

 

 

133.2

 

 

 

32.4

 

 

 

-

 

 

 

363.1

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses (exclusive of depreciation shown separately below)

 

 

52.5

 

 

 

26.7

 

 

 

10.2

 

 

 

-

 

 

 

89.4

 

Depreciation expense

 

 

28.9

 

 

 

14.5

 

 

 

4.3

 

 

 

-

 

 

 

47.7

 

General and administrative expenses

 

 

2.5

 

 

 

1.2

 

 

 

0.3

 

 

 

2.0

 

 

 

6.0

 

Total operating costs and expenses

 

 

83.9

 

 

 

42.4

 

 

 

14.8

 

 

 

2.0

 

 

 

143.1

 

Income (loss) from operations

 

 

113.6

 

 

 

90.8

 

 

 

17.6

 

 

 

(2.0

)

 

 

220.0

 

Income from equity investments

 

 

-

 

 

 

2.0

 

 

 

-

 

 

 

-

 

 

 

2.0

 

Interest expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

45.8

 

 

 

45.8

 

Income before income tax expense

 

 

113.6

 

 

 

92.8

 

 

 

17.6

 

 

 

(47.8

)

 

 

176.2

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

11.4

 

 

 

11.4

 

Net income (loss)

 

 

113.6

 

 

 

92.8

 

 

 

17.6

 

 

 

(59.2

)

 

 

164.8

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

83.6

 

 

 

68.3

 

 

 

12.8

 

 

 

(35.2

)

 

 

129.5

 

Net income (loss) attributable to Hess Midstream LP

 

$

30.0

 

 

$

24.5

 

 

$

4.8

 

 

$

(24.0

)

 

$

35.3

 

HESS MIDSTREAM LP

SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)

(IN MILLIONS)

 

 

 

Second Quarter 2024

 

 

 

Gathering

 

 

Processing
and
Storage

 

 

Terminaling
and Export

 

 

Interest
and Other

 

Total

 

Statement of operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate services

 

$

193.7

 

 

$

135.2

 

 

$

29.6

 

 

$

-

 

 

$

358.5

 

Third-party services

 

 

1.8

 

 

 

4.3

 

 

 

-

 

 

 

-

 

 

 

6.1

 

Other income

 

 

-

 

 

 

-

 

 

 

0.9

 

 

 

-

 

 

 

0.9

 

Total revenues

 

 

195.5

 

 

 

139.5

 

 

 

30.5

 

 

 

-

 

 

 

365.5

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses (exclusive of depreciation shown separately below)

 

 

50.8

 

 

 

27.3

 

 

 

9.4

 

 

 

-

 

 

 

87.5

 

Depreciation expense

 

 

31.5

 

 

 

14.6

 

 

 

4.4

 

 

 

-

 

 

 

50.5

 

General and administrative expenses

 

 

2.3

 

 

 

1.0

 

 

 

0.2

 

 

 

1.7

 

 

 

5.2

 

Total operating costs and expenses

 

 

84.6

 

 

 

42.9

 

 

 

14.0

 

 

 

1.7

 

 

 

143.2

 

Income (loss) from operations

 

 

110.9

 

 

 

96.6

 

 

 

16.5

 

 

 

(1.7

)

 

 

222.3

 

Income from equity investments

 

 

-

 

 

 

3.7

 

 

 

-

 

 

 

-

 

 

 

3.7

 

Interest expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

49.7

 

 

 

49.7

 

Income before income tax expense

 

 

110.9

 

 

 

100.3

 

 

 

16.5

 

 

 

(51.4

)

 

 

176.3

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

16.0

 

 

 

16.0

 

Net income (loss)

 

 

110.9

 

 

 

100.3

 

 

 

16.5

 

 

 

(67.4

)

 

 

160.3

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

69.6

 

 

 

62.8

 

 

 

10.4

 

 

 

(32.0

)

 

 

110.8

 

Net income (loss) attributable to Hess Midstream LP

 

$

41.3

 

 

$

37.5

 

 

$

6.1

 

 

$

(35.4

)

 

$

49.5

 

HESS MIDSTREAM LP

SUPPLEMENTAL OPERATING DATA (UNAUDITED)

(IN THOUSANDS)

 

 

 

Third

 

 

Third

 

 

Second

 

 

 

Quarter

 

 

Quarter

 

 

Quarter

 

 

 

2024

 

 

2023

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

Throughput volumes

 

 

 

 

 

 

 

 

 

Gas gathering - Mcf of natural gas per day

 

 

442

 

 

 

404

 

 

 

440

 

Crude oil gathering - bopd

 

 

116

 

 

 

106

 

 

 

116

 

Gas processing - Mcf of natural gas per day

 

 

419

 

 

 

386

 

 

 

419

 

Crude terminals - bopd

 

 

122

 

 

 

129

 

 

 

126

 

NGL loading - blpd

 

 

15

 

 

 

13

 

 

 

15

 

Water gathering - blpd

 

 

128

 

 

 

99

 

 

 

124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

2024

 

 

2023

 

Throughput volumes

 

 

 

 

 

 

 

 

 

Gas gathering - Mcf of natural gas per day

 

 

 

 

 

429

 

 

 

373

 

Crude oil gathering - bopd

 

 

 

 

 

112

 

 

 

98

 

Gas processing - Mcf of natural gas per day

 

 

 

 

 

410

 

 

 

361

 

Crude terminals - bopd

 

 

 

 

 

122

 

 

 

114

 

NGL loading - blpd

 

 

 

 

 

15

 

 

 

11

 

Water gathering - blpd

 

 

 

 

 

123

 

 

 

89

 

 

For Hess Midstream LP

Investor Contact:

Jennifer Gordon

(212) 536-8244

Media Contact:

Lorrie Hecker

(212) 536-8250

Source: Hess Midstream LP

FAQ

What was Hess Midstream's (HESM) net income for Q3 2024?

Hess Midstream reported a net income of $164.7 million for Q3 2024.

How much did HESM increase its quarterly distribution in Q3 2024?

HESM increased its quarterly distribution by $0.0169 to $0.6846 per Class A share.

What is HESM's Adjusted EBITDA guidance for Q4 2024?

HESM expects Adjusted EBITDA of $295-310 million for Q4 2024, representing approximately 5% growth from Q3.

What was HESM's throughput volume growth in Q3 2024?

HESM reported a 9% increase in gas gathering and processing volumes compared to Q3 2023.

Hess Midstream LP

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