Hess Midstream Partners LP Q2 Earnings Call: Robust Growth and Optimism

Hess Midstream Partners LP's Q2 earnings call highlighted significant growth in throughput and EBITDA, with a 10% increase in oil and gas systems in 2025. The company achieved record operating performance and anticipates an 11% increase in adjusted EBITDA in 2025. Hess Midstream has returned over $2 billion to shareholders since 2021 and maintains financial flexibility exceeding $1.25 billion through 2027. However, the company faces challenges such as increased maintenance costs and additional interest and tax expenses.

Hess Midstream Partners LP (HESM) reported robust financial performance for the second quarter of 2025, showcasing significant growth in throughput volumes and EBITDA. The company's net income for the period was $179.7 million, a 12% increase from the same period last year [1].

Key highlights include a 7% increase in gas processing throughput, a 9% increase in oil terminaling, and an 11% increase in water gathering. These gains were primarily driven by higher production volumes. The company's Adjusted EBITDA for the quarter was $316.0 million, up 11% year-over-year, indicating strong operational efficiency [1].

Hess Midstream also reported an increase in its quarterly cash distribution to $0.7370 per Class A share, up $0.0272 from the first quarter of 2025. This increase is supported by the excess Adjusted Free Cash Flow generated after distributions and the reduction in total Hess Midstream LP shares and Hess Midstream Operations LP units following accretive repurchases [1].

The company's full-year 2025 net income guidance was updated to $685 - $735 million, while the Adjusted EBITDA guidance was reaffirmed at $1,235 - $1,285 million. Hess Midstream expects at least 10% growth in net income and Adjusted EBITDA in 2026, followed by at least 5% growth in 2027 [1].

Challenges faced by the company include increased maintenance costs and additional interest and tax expenses. However, Hess Midstream continues to prioritize financial strength with a long-term leverage target of 3x Adjusted EBITDA and expects to generate greater than $1.25 billion of financial flexibility through 2027 for incremental shareholder returns [1].

Hess Midstream's results are consolidated to include noncontrolling interests in Hess Midstream Operations LP, owned by affiliates of Chevron and, up until May 30, 2025, by Global Infrastructure Partners. On May 30, 2025, GIP sold all of its limited partner interests in the Partnership, no longer holding a direct or indirect ownership interest in the Company or the Partnership [1].

Hess Midstream will review its second quarter financial and operating results and other matters in a webcast today at 12:00 p.m. Eastern Time. For details, visit [www.hessmidstream.com](http://www.hessmidstream.com) [1].

References:
[1] Hess Midstream LP Reports Estimated Results for the Second Quarter of 2025. (2025, July 30). Morningstar. Retrieved from https://www.morningstar.com/news/business-wire/20250730268110/hess-midstream-lp-reports-estimated-results-for-the-second-quarter-of-2025