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 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.
Hess Midstream (NYSE: HESM) has announced a $100 million Class B unit repurchase agreement from its sponsors Hess and Global Infrastructure Partners (BlackRock). The repurchase involves 2,572,677 Class B units at $38.87 per unit, representing approximately 1.2% of the consolidated company.
Following the transaction, expected to close on January 15, 2025, ownership will be distributed as: 47.9% public, 14.3% Global Infrastructure Partners, and 37.8% Hess The company will fund the repurchase through its existing revolving credit facility.
This transaction marks a continuation of HESM's financial strategy, bringing total shareholder returns through sponsor unit repurchases to $1.95 billion since early 2021. The company expects to maintain over $1.25 billion in financial flexibility through 2026 for potential additional repurchases, while supporting its annual distribution growth target of at least 5% through 2026.
Hess Midstream LP (NYSE: HESM) has announced upcoming investor conference participations. Jonathan Stein, Chief Financial Officer, and Jennifer Gordon, Vice President of Investor Relations, will engage with investors at two major conferences:
1. The Goldman Sachs Energy, Clean Tech & Utilities Conference on January 7, 2025
2. The UBS Global Energy & Utilities Conference on January 14, 2025
The company has made a presentation available to investors in the "Investors" section of their website at www.hessmidstream.com.
Hess Midstream LP (NYSE: HESM) has released its 2023 Sustainability Report, demonstrating its commitment to transparency in environmental, social, and governance (ESG) performance and planning. The report is accessible on the company's website.
The report's development incorporated leading sustainability frameworks, including:
- Energy Infrastructure Council and GPA Midstream Association ESG Reporting Template
- Sustainability Accounting Standards Board standard for oil and gas – midstream
- Taskforce for Climate-Related Financial Disclosures
- Global Reporting Initiative Standards
Hess Midstream LP (NYSE: HESM) has announced that Jonathan Stein, Chief Financial Officer, and Jennifer Gordon, Vice President of Investor Relations, will participate in investor meetings at the Wells Fargo Midstream, Energy & Utilities Symposium scheduled for December 10-11, 2024.
The company has made a presentation available for viewing in the 'Investors' section of their corporate website at www.hessmidstream.com.
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) announced a quarterly cash distribution of $0.6846 per Class A share for Q3 2024, representing a $0.0169 increase from Q2 2024. This increase follows the company's $100 million unit repurchase in September 2024 and exceeds their targeted 5% annual distribution growth through 2026. The company has increased distributions by over 50% since Q1 2021 and by over 10% in 2024 year-to-date. Hess Midstream expects to maintain $1.25 billion in financial flexibility through 2026 for potential additional unit repurchases. The distribution will be paid on November 14, 2024, to shareholders of record as of November 7, 2024.
Hess Midstream LP (NYSE: HESM) has announced its upcoming conference call to discuss third quarter 2024 earnings. The call is scheduled for Wednesday, October 30, 2024, at 12:00 p.m. Eastern Time. Participants who wish to join the conference call by phone are required to register in advance using a provided link to receive a unique PIN and dial-in number. Additionally, the company will make the conference call and subsequent replay accessible via webcast (audio only) on the Hess Midstream website at www.hessmidstream.com.
Hess Midstream LP (NYSE: HESM) has announced the pricing of an upsized secondary public offering of Class A shares. The offering, initially set at 10,000,000 shares, has been increased to 11,000,000 Class A shares. These shares are being sold by an affiliate of Global Infrastructure Partners, the Selling Shareholder. The underwriter, Citigroup, has been granted 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 September 20, 2024, subject to customary conditions. The shares will be offered through various channels, including the New York Stock Exchange and over-the-counter market, at market or negotiated prices.
Hess Midstream LP (NYSE: HESM) has announced a secondary public offering of 10,000,000 Class A shares by an affiliate of Global Infrastructure Partners. The underwriter, Citigroup, may purchase up to 1,500,000 additional shares within 30 days. HESM will not receive proceeds from this sale. The shares will be offered on the New York Stock Exchange and over-the-counter markets at market or negotiated prices. This offering is made through a prospectus supplement and base prospectus filed with the SEC. The sale is pursuant to an effective shelf registration statement previously filed with the SEC.
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