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 LP
Hess Midstream LP (NYSE: HESM) is a Houston, Texas-based midstream energy company that plays a critical role in the oil and gas supply chain. Established in 2014, the company specializes in owning, operating, developing, and acquiring midstream assets that support the transportation, processing, and storage of hydrocarbons. Its operations are structured into three key segments: gathering, processing and storage, and terminaling and exporting. Hess Midstream LP provides fee-based services to its parent company, Hess Corporation, as well as third-party energy producers, ensuring stable and predictable revenue streams.
Core Business Segments
- Gathering: The gathering segment is the company's largest revenue driver. It includes natural gas gathering and compression, crude oil gathering, and produced water gathering and disposal. These services are essential for transporting raw hydrocarbons from production sites to processing facilities efficiently and safely.
- Processing and Storage: This segment focuses on processing natural gas and fractionating natural gas liquids (NGLs). The company also provides storage solutions for crude oil and NGLs, ensuring energy producers have the infrastructure needed to manage supply and demand fluctuations effectively.
- Terminaling and Exporting: Hess Midstream facilitates the terminaling, loading, and exporting of crude oil and NGLs. This includes railcar transportation and propane storage and terminaling, enabling efficient delivery to downstream markets.
Business Model and Revenue Generation
Hess Midstream LP operates under a fee-based business model, which insulates it from commodity price volatility. By charging fixed fees for its services, the company ensures steady cash flows, making it an attractive option for energy producers seeking reliable midstream solutions. Its strategic partnership with Hess Corporation provides a stable customer base, while its ability to serve third-party clients enhances diversification and growth opportunities.
Market Position and Competitive Landscape
Operating within the midstream sector of the oil and gas industry, Hess Midstream LP competes with other infrastructure providers. However, its integrated asset base, which includes gathering systems, processing plants, and terminaling facilities, positions it as a comprehensive solution for energy logistics. The company's relationship with Hess Corporation further strengthens its market position by ensuring a consistent flow of hydrocarbons through its infrastructure.
Strategic Significance
Hess Midstream LP plays a vital role in the energy value chain by providing the infrastructure necessary for the efficient movement of hydrocarbons from production to market. Its operations support the reliability and efficiency of energy producers, contributing to the overall stability of the energy supply chain. With a focus on operational excellence and customer service, the company is well-regarded for its expertise in midstream operations.
Conclusion
In summary, Hess Midstream LP is a key player in the midstream energy sector, offering a diversified portfolio of services that enable the efficient transportation, processing, and storage of hydrocarbons. Its fee-based business model, integrated asset base, and strategic partnership with Hess Corporation make it a cornerstone of the energy supply chain. By focusing on operational reliability and customer satisfaction, Hess Midstream LP continues to provide critical infrastructure solutions to energy producers across the United States.
Hess Midstream LP (NYSE: HESM) will conduct a conference call on April 28, 2021, at 12:00 p.m. ET to discuss its first quarter 2021 earnings. Participants can dial in or access a webcast available on Hess Midstream's website. A replay of the call will be available until May 13, 2021. Hess Midstream specializes in fee-based midstream services, focusing on oil, gas, and produced water handling assets, primarily in North Dakota's Bakken and Three Forks Shale plays. Further details can be found on their official website.
Hess Midstream (NYSE: HESM) announced that CFO Jonathan Stein and VP of Investor Relations Jennifer Gordon will meet with investors on March 24, 2021, at the Scotia Howard Weil Energy Conference. The company has released a presentation available in the 'Investors' section of its website. Hess Midstream focuses on providing fee-based midstream services, owning and operating assets primarily in the Bakken and Three Forks Shale plays in North Dakota.
Hess Midstream LP (NYSE: HESM) announced the pricing of a public offering of 6,000,000 Class A shares at $21.00 each, aiming for gross proceeds of approximately $126 million. The offering, set to close on March 15, 2021, is conducted by a subsidiary of Hess Corporation and an affiliate of Global Infrastructure Partners. HESM will not receive proceeds from this sale. Additionally, underwriters have a 30-day option to purchase 900,000 more shares. The company specializes in midstream services, focusing on oil and gas assets in North Dakota's Bakken and Three Forks Shale plays.
Hess Midstream LP (NYSE: HESM) announced an underwritten public offering of 6,000,000 Class A shares by Hess Corporation and an affiliate of Global Infrastructure Partners. The underwriters have a 30-day option to purchase an additional 900,000 shares. HESM will not receive any proceeds from this offering. Goldman Sachs & Co. LLC and Citigroup are the joint bookrunning managers. The offering is made under a previously filed effective shelf registration statement with the SEC. This release does not constitute an offer or solicitation for the securities.
Hess Midstream LP (NYSE: HESM) filed its annual report on Form 10-K with the SEC for the fiscal year ending December 31, 2020, on February 22, 2021. The report is accessible on Hess Midstream’s website under the “Investors” section. Shareholders can request printed copies of the report, which includes complete audited financial statements, via email.
As a fee-based, growth-oriented midstream company, Hess Midstream operates diverse assets providing services primarily in North Dakota's Bakken and Three Forks Shale plays.
Hess Midstream LP (NYSE: HESM) has announced that its Chief Financial Officer Jonathan Stein and Vice President of Investor Relations Jennifer Gordon will engage with investors on February 24, 2021, at the Barclays Midstream and Clean Infrastructure Corporate Access Day. A detailed presentation is scheduled to be available on the Hess Midstream website. The company specializes in fee-based midstream services primarily in the Bakken and Three Forks Shale plays in North Dakota.
Hess Midstream LP (NYSE: HESM) reported a strong fourth quarter 2020 with net income of $132.3 million, up from $75.1 million in Q4 2019. Net income attributable to Hess Midstream was $6.6 million ($0.36 per Class A share). The company generated Adjusted EBITDA of $199.1 million and Distributable Cash Flow of $176.8 million, with an impressive distribution coverage ratio of approximately 1.4x. Revenues increased to $266.5 million, while total expenses decreased to $111.8 million, largely due to lower administrative costs. An increase in capital flexibility and business expansion is expected in 2021.
Hess Midstream LP (NYSE: HESM) declared a quarterly cash distribution of $0.4471 per Class A share for Q4 2020. This reflects a 1.2% increase from the previous quarter and a 5% annualized growth. The distribution is set for payment on February 12, 2021, to shareholders on record by February 4, 2021. Hess Midstream operates fee-based midstream services in the Bakken and Three Forks Shale regions in North Dakota, focusing on oil, gas, and produced water handling assets.
Hess Midstream LP (NYSE: HESM) has outlined its 2021 financial guidance and capital budget. The company anticipates full-year net income between $590 million and $620 million, with Adjusted EBITDA expected between $860 million and $890 million. Distributable Cash Flow is projected to range from $750 million to $780 million, resulting in a coverage ratio of at least 1.4x. Hess Midstream expects to generate Adjusted Free Cash Flow between $610 million and $640 million and plans to grow distributions by at least 5%. Average gas gathering volumes are projected at 285 to 295 MMcf/d.
Hess Midstream LP (NYSE: HESM) will host a conference call on January 27, 2021, at 12:00 p.m. ET to discuss its fourth quarter 2020 earnings. U.S. participants can dial 866-395-9624, while international callers should use 213-660-0871, entering the passcode 7380097. The call will also be accessible via a webcast. A replay will be available until February 11, 2021. Hess Midstream primarily operates in the Bakken and Three Forks Shale plays in North Dakota, focusing on fee-based growth through diverse midstream assets.
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