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 (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.
Hess Midstream LP (NYSE: HESM) has announced a $100 million repurchase of Class B units from its sponsors, Hess and Global Infrastructure Partners. This transaction, unanimously approved by the Board of Directors, is part of Hess Midstream's financial strategy to deliver shareholder returns while maintaining balance sheet strength. Key points:
- 2,823,262 Class B units (1.3% of the consolidated company) will be repurchased at $35.42 per unit
- The repurchase is expected to close on September 11, 2024
- It will be funded through existing revolving credit facility
- Post-transaction ownership: Public 41.5%, Global Infrastructure Partners 20.7%, Hess 37.8%
- This brings total shareholder returns through unit repurchases to $1.85 billion since 2021
- The company expects to maintain over $1.25 billion in financial flexibility through 2026
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