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 LP (NYSE: HESM) has upsized its public offering of Class A shares to 8,900,000, priced at $29.50 each, up from 7,900,000 shares. The offering, led by Hess Corporation and Global Infrastructure Partners, is expected to generate approximately $262,550,000 in gross proceeds. Importantly, HESM will not receive any proceeds from this sale. The offering is set to close on April 4, 2022, pending customary closing conditions.
Hess Midstream LP (NYSE: HESM) announced a $400 million repurchase of Class B units from Hess Corporation and Global Infrastructure Partners. The Board of Directors approved the transaction to enhance shareholder returns and improve capital structure, targeting a 3.0x Debt/Adjusted EBITDA ratio for 2022. This move is expected to increase distributable cash flow per unit and facilitate growth above the 5% annual distribution target. Funded through debt financing, the repurchase will close concurrently with a $250 million secondary public offering.
Hess Midstream LP (NYSE: HESM) has initiated an underwritten public offering of 7,900,000 Class A shares, representing limited partner interests, by subsidiaries of Hess Corporation and Global Infrastructure Partners. The underwriters also have an option to purchase an additional 1,185,000 shares within 30 days. Importantly, HESM will not receive any proceeds from this offering. Citigroup and Goldman Sachs are the joint bookrunning managers for the offering, which is conducted under an effective shelf registration statement. More details are available in the SEC filing.
Hess Midstream LP (NYSE: HESM) has filed its annual report on Form 10-K for the fiscal year ending December 31, 2021, with the SEC on March 1, 2022. The report is available on Hess Midstream’s website, which includes fully audited financial statements. Hess Midstream operates a diverse range of midstream assets primarily in the Bakken and Three Forks Shale plays located in the Williston Basin of North Dakota, offering services to Hess Corporation and other third-party customers.
Hess Midstream LP (NYSE: HESM) reaffirmed its Q1 and full-year 2022 guidance, projecting nearly 95% minimum volume commitment revenue. Throughput volume expectations and adjusted EBITDA for Q1 are set between $235-$245 million, with full-year adjusted EBITDA at $970-$1,000 million. Net income is anticipated to be $150-$160 million for Q1 and $630-$660 million for FY 2022. The company targets 5% annual distribution growth through 2024, supported by a distribution coverage ratio exceeding 1.4x, enhancing capital flexibility.
Hess Midstream LP (NYSE: HESM) announced participation in the Credit Suisse Annual Energy Summit on February 28, 2022, and the Morgan Stanley Energy & Power Conference on March 2, 2022. The company has made a presentation available on its website to provide insights to investors. Hess Midstream focuses on midstream assets associated with oil, gas, and produced water handling, primarily in North Dakota's Bakken and Three Forks Shale plays. For more information, visit www.hessmidstream.com.
Hess Midstream LP (NYSE: HESM) announced that President John Gatling and CFO Jonathan Stein will join a fireside chat co-hosted by Morgan Stanley and Alerian on February 24, 2022, at 2:00 PM ET. Investors can access a presentation in the 'Investors' section of the Hess Midstream website. Hess Midstream specializes in fee-based, growth-oriented midstream services, primarily focusing on oil, gas, and water handling assets in the Bakken and Three Forks shale plays in North Dakota.
Hess Midstream LP reported a robust fourth quarter of 2021 with a net income of $165.1 million, up from $132.3 million year-over-year. Adjusted EBITDA reached $246.6 million, and Distributable Cash Flow was $215.0 million, yielding a distribution coverage ratio of approximately 1.6x. For 2022, the company projects a net income between $630-$660 million and plans $235 million in capital expenditures focused on gas compression capacity. The board declared a quarterly cash distribution of $0.5167 per Class A share, a 1.2% increase from the prior quarter.
Hess Midstream LP (NYSE: HESM) has provided guidance for 2022, projecting net income between $630 million and $660 million, with Adjusted EBITDA expected between $970 million and $1,000 million. The company anticipates Distributable Cash Flow will be in the range of $840 million to $870 million, resulting in a distribution coverage ratio over 1.5x. 2022 capital expenditures are planned at approximately $235 million, focused on expanding gas compression capacity. The company expects to maintain a 5% annual distribution growth through 2024.
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