HOUSTON--(BUSINESS WIRE)--Hess Midstream LP (NYSE: HESM) (“Hess Midstream”), today announced that the Board of Directors of its general partner declared a quarterly cash distribution of $0.7985 per Class A share for the quarter ended September 30, 2026, an increase of $0.0097 per Class A share compared with the second quarter of 2026.
“This distribution increase highlights our continued execution of return of capital to our shareholders,” said Jonathan Stein, Chief Executive Officer of Hess Midstream. “On an annualized basis, the third quarter increase is in line with Hess Midstream’s targeted 5% growth in annual distributions per Class A share through 2026. We continue to target annual distribution per Class A share growth of 5% per share on an annualized basis in the fourth quarter of 2026. Looking forward, we expect to maintain quarterly distributions in 2027 consistent with the expected fourth quarter 2026 distribution amount and intend to maintain at least that distribution level going forward fully funded by Adjusted Free Cash Flow(1).”
The quarterly distribution will be payable on November 13, 2026, to Class A shareholders of record as of the close of business on November 5, 2026.
Earnings Release
Hess Midstream today announced that it will issue an earnings release on October 30, 2026. Hess Midstream does not intend to hold a conference call to discuss its third quarter 2026 earnings release in light of holding the recent October 7, 2026 Investor Update Call. The earnings release will be posted on Hess Midstream’s website at www.hessmidstream.com.
About Hess Midstream
Hess Midstream is a fee-based, growth-oriented midstream company that owns, operates, develops and acquires a diverse set of midstream assets to provide services to Chevron, its subsidiaries 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.
As used in this press release, the term “Chevron” may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or to all of them taken as a whole. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.
Cautionary Note Regarding Forward-looking Information
This press release contains “forward-looking statements.” Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “drive,” “could,” “may,” “should,” “would,” “enable,” “believe,” “intend,” “focus,” “potential,” “project,” “plan,” “trend,” “predict,” “will,” “target,” “opportunity” and similar expressions, and variations or negatives of these words, are intended to identify forward-looking statements, but not all forward-looking statements include such words.
Forward-looking statements relating to Hess Midstream’s operations, assets, and strategy, are based on management’s current expectations, assessments, estimates, projections and assumptions about the industry. These statements are not guarantees of future performance and are subject to numerous risks, uncertainties and other factors, many of which are beyond Hess Midstream’s control and difficult to predict. Therefore, actual outcomes and results may differ materially from our current projections or expectations of future results expressed or forecasted by these forward-looking statements. Among the important factors that could cause actual results to differ materially from those in our forward-looking statements are: the transaction contemplated by the purchase and sale agreement dated October 6, 2026 (“Transaction”) may not close on the anticipated timeline or at all; our ability to efficiently integrate the DJ Basin assets into our portfolio pursuant to the Transaction; risks and uncertainties associated with Chevron continuing to provide employees and services to us under the amended secondment and employee transition agreement and transition services agreement pursuant to the Transaction; diversion of management time on issues relating to the Transaction; unforeseen expenses associated with the Transaction; the expected tax treatment of the Transaction and the tax implications of the Transaction Hess Midstream and its shareholders; the effects of the Transaction, including on our future financial condition, results of operations, strategy and plans; the ability of Chevron and other parties to satisfy their obligations to us, including Chevron's 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 Chevron in excess of our minimum volume commitments and relative to Chevron's 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 businesses 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; our ability to refinance our existing indebtedness; reduced demand for our midstream services, including the impact of weather or the availability of competing third-party midstream gathering, processing and transportation operations; potential disruption or interruption of our business due to natural and human causes beyond our control, such as accidents, severe weather events, labor disputes, political crises, 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 changes in credit ratings, weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation; 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.
Other unpredictable or unknown factors not discussed in this press release could also cause actual results to differ materially from those in our forward-looking statements. Caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date of this press release. 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.
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 define “Adjusted EBITDA” as reported net income (loss) before net interest expense, income tax expense (benefit), 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. 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. Beginning with the closing of the Transaction, we will update the definition of Adjusted Free Cash Flow to also deduct changes in deferred revenue in the period. We made this change to better reflect the impact of the Transaction and the cash flow available to fund distributions. 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.
One Chevron deal sent Hess Midstream units into a monthlong slide, but the reason the stock fell and the reason it may have fallen too far are two completely different stories.
Hess Midstream (NYSE:HESM | HESM Price Prediction) has fallen nearly 23% over the past month to $30.62 as of midday, Oct. 20, including a 22.63% slide over the past month. One transaction caused it. On Oct. 6, the company announced a deal with Chevron (NYSE:CVX), and the deal is expected to close by year-end. The units closed at $38.69 on Oct. 6 and $33.03 on Oct. 7. That 14.6% one-day drop a week ago set the direction for the whole month.
4 Moving Parts Reshape Hess Midstream
The pending deal has four parts:
Cash out: Hess Midstream pays Chevron $200 million.
Assets in: It acquires Chevron’s DJ Basin gathering and storage assets, which adds a second basin to a operations that has been all Bakken.
Units retired: Chevron contributes its Hess Midstream interests, which offsets about 78 million Class B units and 449,000 Class A shares.
Net effect: Shares outstanding fall by nearly 40% once the deal closes.
The DJ assets put Hess Midstream in the same basin as Western Midstream Partners (NYSE:WES), which lists the DJ as one of its core operating basins.
Lower Tariffs Buy Years of Contract Certainty
Chevron gets lower Bakken tariffs for several years starting in 2027. In return, Hess Midstream gets contracts extended well into the next decade. It trades higher rates for longer certainty. The company’s preliminary 2027 adjusted EBITDA guidance is $850 million to $950 million. Its 2026 guidance is $1,225 million to $1,250 million. At the centers, that is a drop of about 27%. The 2027 range is a forecast, and no results back it yet.
The August call had already suggested at slower growth. Chief Executive Jonathan Stein said, “Chevron did mention this, that even at a lower rig count, they’re able to maintain production.”
He said future growth would come mostly from price escalators and cost savings, “A lot of that is inflation escalation as you go forward. And so that’s really a kind of driver and some OPEX savings.” The tariff cut takes that flat volume outlook and adds lower rates on top of it.
Why a Flat Payout Costs Less With 40% Fewer Units
Hess Midstream targets annualized per-share distribution growth of at least 5% through the third and fourth quarters. After that, it holds the per-share payout flat through 2027 at the fourth-quarter level. The second-quarter payout was $0.7888, or $3.155 a year. At the current price, that is a yield of about 10.4%.
A freeze keeps each holder’s check at the same dollar amount. The company’s total distribution bill equals the per-share rate times the number of units. If units fall by nearly 40%, the total bill falls with them even though the rate stays put. EBITDA drops by roughly a quarter while the unit count drops by more than a third, so cash flow per remaining unit could hold up. The $200 million cash payment and the DJ assets’ earnings will decide how much room is left. As a limited partnership, Hess Midstream reports taxes differently from an ordinary corporation, so holders should check its year-end tax materials.
The peers show the range. MPLX (NYSE:MPLX) expects distribution increases of 12.5% in both 2026 and 2027. Western Midstream has kept its quarterly payout at $0.930. Hess Midstream is moving from MPLX’s growth model toward Western’s steady one.
Verdict: Right on Earnings, Too Harsh on the Payout
The market is right to mark down a business whose EBITDA steps down about 27%. A yield of about 10.4% on a fixed payout, though, suggests investors doubt the distribution itself (a double-digit yield usually sets off the warning signs we cataloged in a free dividend traps report). The shrinking unit count makes that doubt look overdone. Before the deal, leverage stood at three times EBITDA, and management was aiming for about two and a half times by 2028. The stock is worth watching through the closing date and the third-quarter earnings report. If leverage stays near three times after the deal, the selloff looks overdone. If it grows significantly, the discount is deserved.
Contact [email protected] for any questions or corrections.
Hess Midstream koupí aktiva Chevronu v DJ Basin a Chevronův podíl ve společnosti, čímž se stane zcela veřejně obchodovanou firmou. Transakce má ztrojnásobit propustnost pro shromažďování ropy.
Hess Midstream Partners NYSE: HESM said it has entered a definitive agreement with Chevron to become an independent, publicly owned multi-basin midstream company, expanding beyond its Bakken operations through the acquisition of Chevron’s DJ Basin midstream assets.
Under the agreement, Hess Midstream will simplify its Bakken commercial arrangements with Chevron. The revised contracts will reduce rates from 2027 through 2033, extend contract terms through 2045, and replace multiple volume-based minimum volume commitments with a basin-wide minimum revenue commitment, or MRC. The MRC will be established three years in advance and, once set for a given year, may be increased but not decreased based on Chevron’s updated annual development plans.
Get HESM alerts:
The MRCs for 2027 through 2029 have been set based on a two-rig development program. Hess Midstream said all fees will move to a fixed-fee structure with inflation escalators.
DJ Basin Assets and Ownership Changes In exchange for the Bakken contract changes and a $200 million cash payment to Chevron at closing, which Hess Midstream expects to fund through its revolving credit facility, the company will acquire DJ Basin midstream assets and Chevron’s full ownership interest in Hess Midstream, including the general partner.
The DJ Basin assets include crude oil gathering and storage infrastructure, gas and water gathering systems, full ownership of the Black Diamond gathering system, and a 20% interest in the Saddlehorn interstate crude pipeline. Saddlehorn connects Colorado production to the Cushing storage hub in Oklahoma.
Jonathan Stein, Hess Midstream’s chief executive officer, said Chevron’s exit will reduce the total unit share count by about 40%, lowering total distributions and supporting accretion on an adjusted EBITDA-per-share basis. Following the transaction, Hess Midstream will be owned entirely by public investors and will remain an Up-C structure rather than converting to a C corporation.
Stein will continue as CEO. The initial board will have seven members, including Stein and the company’s three current independent directors. John P. Reddy, one of the existing independent directors, will become board chairman. The company said it will begin searching for three additional directors and that public investors will elect directors beginning in 2028.
Expanded Operating Footprint Hess Midstream said the DJ assets will approximately triple its crude gathering throughput and increase gas gathering throughput by more than 30%. The company expects third-party volumes to rise to approximately 20% of total volumes following the deal.
The DJ gathering systems have approximately 400,000 barrels per day of crude throughput capacity, 300 million cubic feet per day of natural-gas gathering capacity, and two terminals with 420,000 barrels of combined storage capacity, according to the company. The systems connect to major DJ Basin pipelines including Saddlehorn, White Cliffs, Grand Mesa and Pony Express.
Stein said Hess Midstream expects to gather nearly all of Chevron’s crude volumes in both the Bakken and DJ Basin. He added that the DJ platform is largely built out and could support efforts to win additional third-party business with limited capital investment.
Chevron intends to reduce its Bakken activity from three rigs to two in December. As a result, Hess Midstream expects Bakken volumes to decline by approximately 5% through 2027 before reaching a plateau in 2028.
Financial Policy and Preliminary 2027 Outlook Chief Financial Officer Mike Chadwick said approximately 70% of post-transaction revenue will have downside protection, supported by Bakken MRCs and Chevron ship-or-pay commitments, primarily associated with DJ long-haul pipeline capacity.
Hess Midstream issued preliminary 2027 guidance calling for adjusted EBITDA of $900 million at the midpoint and capital spending of $125 million. Planned capital expenditures include about $75 million in the Bakken, including a scheduled turnaround at the Tioga Gas Plant, and $50 million in the DJ Basin.
The company expects a 75% gross adjusted EBITDA margin and said it anticipates approximately $575 million of adjusted free cash flow at the midpoint of its 2027 outlook. Chadwick said the company expects about $160 million of adjusted free cash flow after distributions at the midpoint.
Management said GAAP accounting for the contract modification will require certain consideration to be recorded as deferred revenue and amortized through 2045. However, Chadwick said the net impact of deferred-revenue adjustments on 2027 EBITDA is expected to be relatively small, while adjusted free cash flow will exclude non-cash deferred-revenue accounting impacts.
The company plans to grow its distribution by 5% annually through the fourth-quarter 2026 distribution, resulting in approximately 7% year-over-year growth in 2026. It expects to maintain the distribution at that fourth-quarter 2026 level during 2027, representing approximately 2% annual growth, while remaining free-cash-flow positive.
Hess Midstream’s priorities after maintaining the distribution include pursuing accretive growth opportunities, preserving balance-sheet strength and considering additional shareholder returns. The company is targeting long-term leverage of 3.5 to 3.75 times adjusted EBITDA, compared with preliminary 2027 leverage guidance of 3.75 to 4.0 times. The transaction is expected to close at the end of the year, after which the company plans to provide updated 2027 guidance.
About Hess Midstream Partners (NYSE:HESM)Hess Midstream Partners LP NYSE: HESM is a fee-based midstream energy company that owns and operates infrastructure supporting crude oil, natural gas and produced-water production in the Bakken Shale of North Dakota. The partnership primarily serves Hess Corp. and other producers operating in the region.
Its assets include systems for gathering and processing natural gas, gathering and transporting crude oil, and handling and disposing of produced water. Hess Midstream also provides storage, terminal and transportation services, helping connect production sites with downstream pipelines, rail facilities and other market outlets.
The company was formed to own midstream assets previously developed or operated by Hess and began trading publicly in 2017.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Hess Midstream Partners Right Now?Before you consider Hess Midstream Partners, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Hess Midstream Partners wasn't on the list.
While Hess Midstream Partners currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
HESM čeká v roce 2026 upravený volný cash flow 910–960 milionů USD, protože kapitálové výdaje prudce klesnou. Zároveň mají být objemy ropy a plynu i Adjusted EBITDA zhruba beze změny.
Key Takeaways HESM expects 2026 adjusted free cash flow of $910-$960 million as capital spending drops sharply.About 95% of HESM's 2026 revenues are protected by minimum volume commitments under fee-based contracts.HESM expects broadly flat 2026 oil and gas volumes, with Adjusted EBITDA roughly flat at the midpoint. Hess Midstream LP (HESM - Free Report) is generating more cash even as its 2026 operating outlook points to limited volume and EBITDA growth. Adjusted free cash flow is guided higher as capital spending falls, giving the partnership more room for distributions, buybacks and debt reduction.
That cash-flow shift is balanced by broadly flat expected oil and gas volumes, modest earnings expansion and a valuation close to its five-year median. The investment case therefore rests more on contracted cash generation and capital returns than on near-term operating acceleration.
Rising Free Cash Flow Strengthens HESM's Capital ReturnsAdjusted free cash flow is projected at $910-$960 million in 2026, up from $779.1 million in 2025. The main driver is a much lighter capital program, with 2026 expenditures expected around $105 million versus $247.5 million last year.
At the midpoint, about $280 million of adjusted free cash flow after targeted distributions is expected to remain available for incremental shareholder returns and debt repayment. Management also targets at least 5% annual distribution-per-share growth through 2028, while leverage is expected to fall below 3.0X in 2026 and toward roughly 2.5X by 2028.
Image Source: Hess Midstream LP
Fee-Based Model Protects Cash Flow VisibilityCash flow visibility is anchored by long-term commercial agreements with Chevron, alongside third-party services. Contracts are 100% fee-based, most extend through 2033 and roughly 95% of 2026 revenues are protected by minimum volume commitments.
Fixed-fee rates are adjusted annually for inflation up to 3%, while the business generally does not own or trade the commodities it handles. That limits direct commodity-price exposure, though lower commodity prices can still pressure producer activity and future throughput.
Flat 2026 Volumes Keep HESM's Growth Case in CheckHESM's operating outlook is less dynamic. Full-year 2026 guidance calls for oil and gas volumes to remain broadly flat with 2025, while Adjusted EBITDA of $1.225-$1.275 billion is roughly flat at the midpoint versus $1.238 billion in 2025.
Second-quarter trends illustrate the drag. Oil terminaling fell 15% year over year, water gathering declined 12% and gas processing slipped 4%, with lower new-well activity and Tioga Gas Plant maintenance among the causes. Management expects volumes to improve in the second half, but near-term growth remains measured.
HESM's Valuation Sits Near Its Five-Year MedianHESM trades at 13.19X forward 12-month earnings, almost in line with its five-year median of 13.23X but above the Zacks sub-industry's 9.41X. The comparison puts more weight on dependable cash generation and distributions than on a clearly discounted entry point.
Image Source: Zacks Investment Research
Enterprise Products Partners L.P. (EPD - Free Report) reported record second-quarter 2026 Adjusted EBITDA of $2.8 billion and raised its quarterly distribution 2.8% year over year. Western Midstream Partners, LP (WES - Free Report) raised 2026 free cash flow guidance to $1.1-$1.3 billion while maintaining a quarterly distribution of 93 cents, giving investors two midstream benchmarks for cash-return execution.
Mixed Signals Shape HESM's Near-Term SetupHESM's near-term setup is mixed. Rising free cash flow, contractual protection and a lower capital burden support capital returns, while flat volumes and a near-normal valuation keep the growth case restrained.
The stock currently carries a Zacks Rank #2 (Buy), which points to a favorable short-term setup based on earnings estimate revisions. Yet its Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of D show that valuation, growth and price-momentum characteristics are not equally supportive. Investors considering HESM may therefore weigh the improving cash-return profile against muted operating growth and less favorable Style Scores. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hess Midstream LP (HESM) ve 2. čtvrtletí překonal odhady výsledků, i když nižší průtoky snížily tržby a ostatní výnosy o 3,7 % na 399 milionů USD. Firma ve 3. čtvrtletí očekává Adjusted EBITDA 310–320 milionů USD.
Key Takeaways HESM beat Q2 earnings expectations as higher tariffs and lower costs offset weaker throughput.HESM expects second-half volumes to improve as Chevron wells come online and longer laterals boost efficiency.HESM sees Q3 Adjusted EBITDA of $310-$320 million as deferred maintenance and capital spending rise. Hess Midstream LP (HESM - Free Report) beat second-quarter 2026 earnings expectations even as lower throughput weighed on revenues. Higher tariff rates, third-party services and lower operating costs helped offset weaker oil, gas and water volumes.
Adjusted free cash flow also improved as capital spending fell sharply. The next test is whether those supports can hold as deferred maintenance and higher capital expenditures move into the second half.
HESM's Q2 Beat Came Despite Lower ThroughputHESM reported earnings of 75 cents per Class A share, up 1.4% year over year and 8.7% above the Zacks Consensus Estimate. Revenues and other income declined 3.7% to $399 million but topped the consensus mark by 1%.
Lower throughput was the main drag on revenues, partly offset by higher tariff rates and third-party services. Third-party services more than doubled to $17.9 million from $8.2 million, helping cushion softer affiliate activity.
Lower Costs Lift HESM's Second-Quarter MarginOperating and maintenance expenses fell to $85.9 million from $94.1 million a year earlier, mainly due to lower employee and maintenance costs. Gross Adjusted EBITDA margin improved to 85% from 82%, with lower general and administrative allocations also supporting quarterly costs.
Adjusted EBITDA still slipped 0.7% to $313.7 million from $316 million, showing that lower costs did not fully offset weaker operating activity. Enterprise Products Partners L.P. (EPD - Free Report) , another midstream operator, reported record second-quarter Adjusted EBITDA of $2.8 billion, up 17% year over year, providing a broader industry reference point.
HESM Expects Volumes to Improve in the Second HalfManagement expects second-half volumes to exceed first-half levels. Full-year guidance remains 450-460 MMcf/d for gas gathering, 435-445 MMcf/d for gas processing and 125-135 MBbl/d for both crude terminaling and water gathering.
The expected improvement reflects normal timing as Chevron wells come online and efficiency gains from longer laterals. Management said those productivity gains can help maintain production with fewer wells, although HESM is not assuming meaningful production growth.
The Zacks Consensus Estimate for HESM’s 2026 earnings is pegged at $2.94 per share, indicating a 2.8% year-over-year increase.
Image Source: Zacks Investment Research
Deferred Maintenance Could Pressure HESM's Q3 Cash FlowSome maintenance work originally planned for the second quarter shifted into the second half, temporarily benefiting costs and margins. HESM expects third-quarter Adjusted EBITDA of $310-$320 million as higher revenues and volumes are offset by higher operating expenses.
Adjusted free cash flow is expected to decline sequentially because capital spending is projected to rise from second-quarter levels. Western Midstream Partners, LP (WES - Free Report) raised its 2026 free cash flow guidance to $1.1-$1.3 billion after record second-quarter Adjusted EBITDA, illustrating how throughput and capital spending can produce different cash-flow paths across midstream peers.
HESM's Short-Term Signal Meets Weak MomentumThe second-quarter beat was supported by tariffs, cost control and lower capital spending, but second-half execution will determine whether higher volumes can absorb normalized maintenance and investment. Full-year Adjusted EBITDA guidance of $1.225-$1.275 billion is roughly flat at the midpoint versus 2025.
HESM currently carries a Zacks Rank #2 (Buy), which signals a favorable short-term earnings estimate-revision setup. Its Momentum Score of F and Value Score of D are weak, while the Growth Score of C sits in the middle of the range. The VGM Score of D shows that the combined value, growth and momentum profile remains less supportive.
Hess Midstream Partners vykázala za čtvrtletí výnosy 399 milionů USD, meziročně o 3,7 % méně, ale nad odhadem analytiků. EPS dosáhl 0,75 USD oproti 0,74 USD loni.
For the quarter ended June 2026, Hess Midstream Partners LP (HESM - Free Report) reported revenue of $399 million, down 3.7% over the same period last year. EPS came in at $0.75, compared to $0.74 in the year-ago quarter.
The reported revenue represents a surprise of +1% over the Zacks Consensus Estimate of $395.07 million. With the consensus EPS estimate being $0.69, the EPS surprise was +8.7%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Hess Midstream Partners performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Throughput Volumes - Gas gathering: 445.00 MMcf/d versus 440.91 MMcf/d estimated by two analysts on average.Throughput Volumes - Crude oil gathering: 103.00 MBbl/d versus the two-analyst average estimate of 115.29 MBbl/d.Throughput Volumes - Water gathering: 121.00 MBbl/d compared to the 125.49 MBbl/d average estimate based on two analysts.Throughput Volumes - Crude terminals: 117.00 MBbl/d compared to the 126.53 MBbl/d average estimate based on two analysts.Throughput Volumes - NGL loading: 17.00 MBbl/d compared to the 14.97 MBbl/d average estimate based on two analysts.Throughput Volumes - Gas processing: 433.00 MMcf/d versus 428.40 MMcf/d estimated by two analysts on average.Revenue- Gathering: $209.8 million versus $210.13 million estimated by two analysts on average.Revenue- Terminaling and Export: $37.9 million compared to the $35.73 million average estimate based on two analysts.Revenue- Processing and Storage: $151.3 million versus $152.87 million estimated by two analysts on average.Adjusted EBITDA- Terminaling and Export: $30.1 million compared to the $26.37 million average estimate based on two analysts.Adjusted EBITDA- Gathering: $156.6 million versus $155.03 million estimated by two analysts on average.View all Key Company Metrics for Hess Midstream Partners here>>>
Shares of Hess Midstream Partners have returned +3% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Hess Midstream Partners vykázala tržby 399 milionů USD za čtvrtletí končící v červnu 2026 a EPS 0,75 USD; obojí překonalo odhady trhu. Tržby ale meziročně klesly o 3,7 %.
Hess Midstream Partners LP (HESM - Free Report) reported $399 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 3.7%. EPS of $0.75 for the same period compares to $0.74 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $395.07 million, representing a surprise of +1%. The company delivered an EPS surprise of +8.7%, with the consensus EPS estimate being $0.69.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Hess Midstream Partners performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Throughput Volumes - Gas gathering: 445.00 MMcf/d versus the two-analyst average estimate of 440.91 MMcf/d.Throughput Volumes - Crude oil gathering: 103.00 MBbl/d compared to the 115.29 MBbl/d average estimate based on two analysts.Throughput Volumes - Water gathering: 121.00 MBbl/d compared to the 125.49 MBbl/d average estimate based on two analysts.Throughput Volumes - Crude terminals: 117.00 MBbl/d compared to the 126.53 MBbl/d average estimate based on two analysts.Throughput Volumes - NGL loading: 17.00 MBbl/d versus 14.97 MBbl/d estimated by two analysts on average.Throughput Volumes - Gas processing: 433.00 MMcf/d versus the two-analyst average estimate of 428.40 MMcf/d.Revenue- Gathering: $209.8 million versus the two-analyst average estimate of $210.13 million.Revenue- Terminaling and Export: $37.9 million versus $35.73 million estimated by two analysts on average.Revenue- Processing and Storage: $151.3 million versus the two-analyst average estimate of $152.87 million.View all Key Company Metrics for Hess Midstream Partners here>>>
Shares of Hess Midstream Partners have returned +7% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Hess Midstream Partners ve 2. čtvrtletí zvýšila čistý zisk na 174 milionů USD a upravený EBITDA na 314 milionů USD. Potvrdila celoroční výhled a plánuje vracet kapitál akcionářům i snižovat dluh.
Hess Midstream Partners NYSE: HESM reported higher second-quarter net income and adjusted EBITDA, supported by lower operating expenses and general and administrative savings, while reaffirming its full-year financial outlook and plans for shareholder returns and debt reduction.
Net income for the second quarter of 2026 was $174 million, compared with about $158 million in the first quarter, while adjusted EBITDA rose to $314 million from $300 million. Chief Financial Officer Mike Chadwick said the increase primarily reflected operating activity that shifted into the second half of the year, as well as lower G&A allocations.
Get HESM alerts:
Revenue excluding pass-through revenue increased by about $10 million sequentially. Gathering revenue rose approximately $7 million, and processing revenue increased approximately $3 million, Chadwick said.
Operations and Volume Outlook Chief Executive Officer Jonathan Stein said the company completed planned maintenance at TGP on time and under budget during the quarter. Hess Midstream plans maintenance at LM4 in the third quarter and expects to complete work that had shifted from the first half into the latter half of the year.
Second-quarter throughput averaged 433 million cubic feet per day for gas processing, 117,000 barrels of oil per day for crude terminaling, and 121,000 barrels of water per day for water gathering. Compared with the first quarter, oil-related volumes were flat to lower, while gas volumes increased as additional third-party volumes helped offset the impact of TGP maintenance, Stein said.
The company continues to expect higher volumes in the second half of 2026 than in the first half. Stein said the anticipated increase reflects the normal timing of wells coming online as Chevron optimizes its drilling program, along with longer laterals and greater productivity discussed by Chevron.
“The volume growth that we had was really planned and just part of normal phasing,” Stein said. He added that the company expects continued quarter-over-quarter volume growth, including at least 5% growth into the second half of the year.
Stein said Chevron’s efficiency gains in the basin have helped maintain production at lower rig counts. From Hess Midstream’s perspective, longer laterals can allow similar throughput volumes to be handled with fewer wells, supporting capital efficiency. He said the company is not assuming production growth beyond the production expectations previously discussed by Chevron, with future growth drivers expected to include inflation-based tariff escalation and operating-cost savings.
Margins, Capital Spending and Third-Quarter View Hess Midstream’s gross adjusted EBITDA margin was approximately 85% in the second quarter, above its long-term 75% target. Chadwick said the margin benefited in part from relatively minor credits recorded during the quarter, but that the larger factor was the phasing of operating expenses into the third and fourth quarters.
While the company has maintained margins above 80% for an extended period, Chadwick said management remains comfortable retaining the 75% long-term margin target rather than changing its guidance.
Capital expenditures totaled approximately $31 million in the second quarter, including the completion of greenfield high-pressure gathering pipeline infrastructure. The company expects spending to increase in the third quarter as planned activity rises.
For the third quarter, Hess Midstream expects net income of approximately $165 million to $175 million and adjusted EBITDA of $310 million to $320 million. The midpoint of the EBITDA outlook is roughly flat with the second quarter, as higher projected revenue and volumes are expected to be offset by higher operating expenses, including deferred maintenance work.
Adjusted free cash flow is expected to decline sequentially in the third quarter because of higher capital expenditures, Chadwick said.
Full-Year Guidance and Capital Allocation The company reiterated its 2026 outlook for net income of $650 million to $700 million and adjusted EBITDA of $1.225 billion to $1.275 billion, with the EBITDA midpoint approximately flat compared with 2025. It also maintained adjusted free cash flow guidance of $910 million to $960 million, representing a 20% year-over-year increase at the midpoint, according to Stein.
Chadwick said the range of potential outcomes for full-year EBITDA will depend largely on weather and maintenance execution. Favorable weather and continued successful maintenance execution could support results toward the higher end of the range, while operational interruptions or higher maintenance costs could pressure results.
Second-quarter adjusted free cash flow was approximately $232 million, down about 2% from the first quarter. Net interest expense, excluding amortization of deferred financing costs, was approximately $51 million. The revolving credit facility balance was $256 million at quarter-end, down approximately $87 million from the first quarter. After funding its targeted 5% annual distribution growth, Hess Midstream expects approximately $280 million of excess adjusted free cash flow in 2026. The company plans to use that cash for incremental shareholder returns and debt repayment.
Chadwick said the board will continue to evaluate the mix of share repurchases and debt reduction during the year. The company repurchased $60 million of shares from public holders and its sponsor in March, while second-quarter capital allocation included the $87 million reduction in revolver borrowings.
Hess Midstream was at roughly 3 times leverage during the quarter and expects that ratio to decline as debt is reduced and EBITDA increases. Chadwick said the company’s outlook indicates leverage could reach about 2.5 times by 2028, though management does not expect it to move materially below that level.
About Hess Midstream Partners (NYSE:HESM)Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.
Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Hess Midstream Partners Right Now?Before you consider Hess Midstream Partners, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Hess Midstream Partners wasn't on the list.
While Hess Midstream Partners currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
