What guidance did Hess Midstream's management provide for the next earnings period?

Did Hess Midstream beat or miss consensus estimates last quarter?

What were the key takeaways from Hess Midstream's earnings call?

What is the revenue and EPS growth rate for Hess Midstream year over year?

What is Hess Midstream's gross profit margin?

What is the market's earnings forecast for Hess Midstream next quarter?

What does Hess Midstream do and what are its main business segments?

What were the key takeaways from Hess Midstream’s earnings call?

- **Capital Spending Reduction**: 40% drop to $150 million in 2026, with further reductions to under $75 million by 2028.
- **Free Cash Flow Growth**: 10% annualized through 2028, driven by lower capex and inflation escalators.
- **Financial Stability**: 95% MVC coverage in 2026, supporting net income and EBITDA growth despite Q1 weather impacts.
- **Distribution Growth**: 5% annual target, fully funded by free cash flow.
- **Weather Recovery**: Q1 volumes down, but seasonal recovery expected in Q2-Q3 with 95% MVC coverage.

**【CEO Summary Section】**
- **2025 Performance**: Completed multiyear projects on time and budget, with 2026 capital spending reduced by 40% to $150 million. Free cash flow strategy includes 5% annual distribution growth, debt repayment, and share buybacks.
- **Volume Metrics**: Full-year 2025 gas processing volumes averaged 445 MMcf/d, crude terminaling 129,000 bbls/d, and water gathering 131,000 bbls/d, resulting in $1.238 billion adjusted EBITDA.
- **2026 Outlook**: Q1 volumes down due to severe weather, but full-year net income and EBITDA expected higher. 95% of 2026 revenues protected by minimum volume commitments (MVCs), with 10% annualized free cash flow growth through 2028.
- **Long-Term Growth**: 5% annualized EBITDA and net income growth through 2028, supported by gas volume growth, inflation escalators, and reduced capital spend.

**【CFO Financial Commentary】**
- **2025 Results**: Net income $685 million, adjusted EBITDA $1.238 billion (9% YoY growth). Q4 net income $168 million, adjusted EBITDA $309 million (down 4% YoY due to weather and lower third-party volumes).
- **Q1 2026 Guidance**: Net income $150-160 million, adjusted EBITDA $295-305 million. Full-year 2026 adjusted EBITDA expected flat at midpoint ($1.225-1.275 billion).
- **Rate Structure**: 85% of revenues fixed with 3% inflation escalators; 15% subject to annual redetermination. Gross margin target 75%, Q4 achieved 83%.
- **Capital Expenditures**: $150 million in 2026, dropping to under $75 million in 2027-2028.

**【Q&A Highlights】**
- **Debt Strategy**: Free cash flow used for debt repayment, targeting natural deleveraging below 3x leverage as EBITDA grows.
- **Third-Party Volumes**: Expected 10% of total volumes, unaffected by current crude prices.
- **Weather Impact**: Q1 2026 volumes down, but recovery expected in Q2-Q3 with seasonal trends.
- **Growth Drivers**: Inflation escalators, gas volume growth, and reduced capital spend.
- **Leverage**: No specific target; focus on balance sheet strength through free cash flow generation.

Hess Midstream LP (HESM) Q4 2025 Earnings Call Transcript

- **Operational Excellence**: Q3 volumes up 3% in gas gathering, supporting $321M EBITDA (80% margin). 2025 free cash flow ~$760M.
- **Distribution Growth**: 5% annual Class A share target through 2027, backed by $140M+ annual excess cash flow.
- **CapEx Reduction**: 2026+ CapEx ~$125M+ (vs $250-300M prior), freeing up $140M+ annual free cash flow.
- **Chevron Synergy**: 3-rig program maintains 200,000 BOE/d plateau, driving gas volume growth (~75% of revenue).

**【CEO Summary Section】**
- **Operational Strength**: Q3 2025 throughput volumes averaged 462 MMcf/d gas processing, 130,000 bbl/d oil terminaling, and 137,000 bbl/d water gathering, up 3% QoQ in gas gathering. 
- **Distribution Growth**: Increased distribution by 2.4% (10% annualized) and completed $100M share/unit repurchase. Class A shares target 5% annual distribution growth through 2027.
- **Capital Discipline**: Suspended Capa gas plant project, reducing 2025 CapEx to $270M. 2026+ CapEx expected to be ~$125M+ (vs prior $250-300M guidance), freeing up $140M+ annual excess cash flow.
- **Free Cash Flow**: Q3 adjusted free cash flow $187M, full year ~$760-770M. 2026+ EBITDA expected flat vs 2025, but free cash flow to grow with lower CapEx.

**【CFO Financial Commentary】**
- **Q3 Financials**: Net income $176M, adjusted EBITDA $321M (80% margin). Q4 guidance: net income $170-180M, EBITDA $315-325M. Full year EBITDA ~$1.25B (10% YoY growth).
- **Distribution Policy**: Target 5% annual Class A share growth through 2027. 2025 excess free cash flow ~$140M after distributions. 2026+ financial flexibility for buybacks with leverage at 3x target.
- **Leverage Management**: Revolver balance $356M at quarter end. 2026+ EBITDA flat but free cash flow growth from reduced CapEx.

**【Q&A Key Highlights】**
- **Bakken Trends**: Chevron's 3-rig program supports 200,000 BOE/d plateau. Gas volumes to grow as GORs rise (~75% of revenue). Hess Midstream expects long-term gas-driven growth.
- **2026 Outlook**: EBITDA flat vs 2025 due to lower third-party volumes, but free cash flow to grow with $125M+ CapEx. 2026+ guidance to be released post-December budget.
- **Buyback Cadence**: $100M Q3 repurchase. 2026+ buybacks possible with ~$140M annual excess cash flow and 3x leverage target.
- **Chevron Relationship**: Smooth integration, 2 distribution increases approved. Chevron's focus on efficiency (longer laterals) supports Hess Midstream's capital framework.

Hess Midstream LP (HESM) Q3 2025 Earnings Call Transcript

- **Record Growth**: Q2 2025 throughput up 10% YoY, with 11% EBITDA growth target. S&P upgrades credit rating to BBB-.
- **Shareholder Returns**: $1.25B financial flexibility for buybacks, 5% annual distribution growth. Q2 buyback of $200M included first public shares.
- **Operational Excellence**: 80% gross margin maintained, $300M capex for infrastructure expansion. Q3 volumes offset by seasonal maintenance.
- **Strategic Stability**: Chevron merger no change to Bakken rig count or 200,000 BOE/day target. Independent director oversight added to governance.

**【CEO Summary Section】**
- **Operational Excellence**: Q2 2025 throughput increased across all segments, with volumes growing 10% YoY. 2025 guidance remains for 10% growth in oil and gas systems.
- **Financial Strength**: Adjusted EBITDA expected to grow 11% YoY, with $725M-$775M adjusted free cash flow. S&P upgraded credit rating to BBB- post-Chevron merger.
- **Shareholder Returns**: Target 5% annual distribution growth, with $1.25B financial flexibility through 2027 for buybacks and distributions. Q2 buyback of $200M included first public share repurchase.

**【COO Operational Review】**
- **Record Volumes**: Q2 2025 throughput: 449 MMcf/d gas processing (6% QoQ), 137,000 bbl/d crude terminaling (10% QoQ), 138,000 bbl/d water gathering. 2025 capex of $300M focused on 2 new compressor stations and Capa gas plant.
- **Growth Drivers**: Upstream production growth and midstream system availability. 2025 guidance reaffirmed for oil and gas throughput growth, with Q3 volumes offset by seasonal maintenance.

**【CFO Financial Commentary】**
- **Q2 Results**: Net income $180M (vs. $161M Q1), adjusted EBITDA $316M (vs. $292M Q1). 80% gross margin maintained, driven by higher throughput and cost control.
- **Guidance Updates**: Full-year net income $685M-$735M (up $15M for interest/tax expenses). Adjusted free cash flow $725M-$775M. Q3 net income $175M-$185M, EBITDA $315M-$325M.
- **Capital Allocation**: $1.25B financial flexibility for buybacks. Q2 buyback of $200M included $100M public shares, maintaining $100M/Q cadence.

**【Q&A Highlights】**
- **Chevron Impact**: Bakken rig count stable at 4, with no immediate changes to 200,000 BOE/day target. GOR trends stable, gas growth expected over long term.
- **Buyback Cadence**: Public share repurchases to continue at $100M/Q, with liquidity sufficient to maintain program. No change to 5% annual distribution growth target.
- **Governance**: Added independent director oversight for key decisions (leverage, equity issuance). Balanced governance framework maintained post-GIP exit.


Hess Midstream LP (HESM) Q2 2025 Earnings Call Transcript

- **Strong Q1 Resilience**: Despite -10% QoQ volumes due to winter, EBITDA maintained at $292M with 80% margin. March rebound signals Q2 recovery.
- **5%+ Shareholder Growth**: 57%+ distribution growth since 2021, with >$1.25B buyback capacity through 2027. 5%+ annual distribution growth locked in via MVCs.
- **Gas Growth Catalyst**: GOR rising to 5-6 Bcf/d from 3.5 Bcf/d as wells mature. Bison pipeline adds 150,000 bcf/d export capacity.
- **MVC Stability**: 2027 MVCs set at 4-rig levels, protecting 5%+ growth even in macro volatility. 3.1x leverage lowest in sector.

**【CEO (John Gatling) Summary】**
- **Q1 2025 Performance**: Despite severe winter weather, throughput volumes remained strong: 424 MMcf/d gas processing, 125,000 bbl/d oil terminaling, and 126,000 bbl/d water gathering. Volumes rebounded in March, aligning with guidance.
- **Hess Bakken Production**: Q1 net production 195,000 boe/d, with Q2 guidance of 210,000-215,000 boe/d (+9% midpoint). Hess maintains 4-rig drilling program through 2025.
- **Capital Program**: 2025 capex $300M, focused on 2 new compressor stations, Capa gas plant civil construction, and system expansions. No change to growth strategy.
- **Third-Party Growth**: Third-party oil volumes offset Hess winter production decline, with long-term target of 10% third-party share.

**【CFO (Jonathan Stein) Financial Highlights】**
- **Q1 2025 Financials**: Net income $161M, adjusted EBITDA $292M. Gross margin maintained at 80%, above 75% target. Adjusted free cash flow $191M.
- **Shareholder Returns**: $1.95B returned since 2021 via buybacks; 57% distribution growth since 2021. 2025-2027 financial flexibility >$1.25B for buybacks and 5%+ annual distribution growth.
- **Leverage & Liquidity**: 3.1x adjusted EBITDA leverage, one of lowest in sector. $128M drawn on $1.25B revolver at quarter end.
- **Q2 Guidance**: Net income $170-180M, EBITDA $300-310M (up 3% vs Q1). Full year EBITDA $1.235-1.285B, +11% H2 vs H1.

**【Key Q&A Takeaways】**
- **Bakken Resilience**: Despite macro volatility, Hess maintains 4-rig program. MVCs through 2027 protect cash flows. 5%+ distribution growth achievable even at MVC levels.
- **Gas Growth**: GOR rising as wells mature; basin gas volumes expected to grow 5-6 Bcf/d from current 3.5 Bcf/d. Bison pipeline adds export flexibility.
- **Buyback Cadence**: Multiple buybacks/year expected, with $100M+ quarterly pace. No change to 2025-2027 return strategy despite GIP stake below 10%.
- **Weather Impact**: Q1 volumes down 10% vs Q4 due to weather, but March recovery sets up strong Q2. Seasonal maintenance offsets volume growth in Q2.


Hess Midstream (HESM)-30 Apr 25-2025 Q1 Earnings call transcript

- **Strong 2024 Growth**: 14% gas processing volume growth, $1.136 billion adjusted EBITDA, and 12% Bakken production increase.
- **2025-2027 Expansion**: 10% gas volume growth in 2025-2026, 5% in 2027, with $125 MMcf/d Capa Plant construction starting in 2025.
- **Financial Strength**: 11% EBITDA growth in 2025, 80% gross margin, and $1.25 billion financial flexibility for buybacks and distributions.
- **Shareholder Focus**: 5%+ annual distribution growth, $1.95 billion returned since 2021, and disciplined capital allocation to maintain 3x leverage.

**【Management Overview】**
- **2024 Performance Highlights**: Gas processing volumes grew 14% YoY, with full-year adjusted EBITDA of $1.136 billion. Hess Bakken net production averaged 204,000 Boe/d, up 12% YoY.
- **2025-2027 Growth Guidance**: Gas volumes expected to grow 10% in 2025 and 2026, 5% in 2027, driven by Hess development and third-party volumes. New 125 MMcf/d Capa Gas Plant to begin construction in 2025, supporting long-term growth.
- **Capital Allocation**: 2025 capital expenditures of $300 million, with $175 million for growth projects (e.g., compressor stations, Capa Plant). Leverage target maintained at 3x adjusted EBITDA.

**【CFO Financial Review】**
- **2024 Financials**: Net income of $659 million, adjusted EBITDA of $1.136 billion (12% YoY growth). Gross margin maintained at 80%, above 75% target.
- **2025 Outlook**: Adjusted EBITDA projected to grow 11% YoY to $1.235-$1.285 billion. Free cash flow expected to exceed $700 million, supporting 5%+ annual distribution growth and share buybacks.
- **Shareholder Returns**: Since 2021, returned $1.95 billion via buybacks and distributions. 2024 distribution growth of 10%, with plans to extend 5%+ annual growth through 2027.

**【Q&A Key Takeaways】**
- **Long-Term Growth Drivers**: Hess' four-rig drilling program, increasing GORs, and third-party volume capture. Capa Plant to address 2027 capacity constraints.
- **Weather Impact**: Q1 2025 volumes down due to severe winter weather, but recovery expected in subsequent quarters.
- **Capital Efficiency**: Stepped-down capital spending post-2027 (target $250-$300 million/year), enabling free cash flow growth and shareholder returns.
- **M&A Strategy**: Focus on organic growth and bolt-on opportunities within Bakken, no plans to expand beyond current footprint.

Hess Midstream LP (HESM) Q4 2024 Earnings Call Transcript

Hess Midstream (HESM)-30 Oct 24-2024 Q3 Earnings call transcript

Hess Midstream LP - Ordinary Shares (HESM)-31 Jul 24-2024 Q2 Earnings call transcript

Hess Midstream LP - Ordinary Shares (HESM)-25 Apr 24-2024 Q1 Earnings call transcript

Hess Midstream (HESM)-31 Jan 24-2023 Q4 Earnings call transcript

- **Operational Strength**: Q2 gas processing up 6% QoQ, Bakken production 181k Boe/d (vs. 165-170k guidance). 2023 full-year Bakken guidance raised to 175-180k Boe/d.
- **Financial Resilience**: Adjusted EBITDA $248M in Q2, full-year guidance raised to $1.0-1.03B. Distributable cash flow $202M (1.4x coverage).
- **Shareholder Returns**: $200M bought back YTD, maintaining >$1B financial flexibility. 18% units repurchased since 2021, 33% distribution growth.
- **Growth Outlook**: 10%+ annualized EBITDA growth through 2025, targeting 200k Boe/d Bakken production by 2025.


**【Management Opening Remarks】**
- Jennifer Gordon opened the call, highlighting the earnings release and forward-looking statements. She introduced John Gatling and Jonathan Stein to discuss operational and financial performance.

**【President & COO Operational Update】**
- **Throughput Volumes**: Q2 gas processing averaged 358 MMcf/d (+6% QoQ), crude terminaling 108,000 bbl/d, and water gathering 87,000 bbl/d.
- **Hess Production Growth**: Bakken net production of 181,000 Boe/d (vs. guidance 165-170k Boe/d), with 2023 full-year guidance raised to 175-180k Boe/d. Hess plans 110 well connects in 2023 and 4-rig program.
- **2025 Outlook**: Anticipated 200k Boe/d Bakken production, implying 10% annualized growth in Hess Midstream throughput volumes.
- **Capital Program**: $225M FY23 capex ($210M expansion, $15M maintenance). Two new compressor stations to add 100 MMcf/d capacity.

**【CFO Financial Review】**
- **Q2 Results**: Net income $148M, Adjusted EBITDA $248M. Distributable cash flow $202M (1.4x coverage). 
- **Guidance Update**: Full-year net income $595-625M, Adjusted EBITDA $1.0-1.03B (+8% H2 vs H1). Q3 EBITDA $250-260M, Q4 expected higher due to lower seasonal OpEx.
- **Share Buybacks**: $200M repurchased YTD, maintaining >$1B financial flexibility through 2025. 18% unit reduction since 2021, 33% distribution growth.
- **Tax Profile**: No material cash taxes expected next 2-3 years, despite higher book tax expense from ownership changes.

**【Q&A Highlights】**
1. **Guidance & Well Connects** (Brian Reynolds): 
   - Q2 gas capture success drove volume growth. Well connect cadence expected stable at ~110/yr. 
   - Rig count fluctuation due to operator timing, no basin-wide slowdown anticipated.
2. **Buybacks vs M&A** (Praneeth Satish): 
   - Prioritize buybacks (18% units repurchased since 2021) over M&A. No interest in large-scale acquisitions.
3. **Ethane Recovery** (Praneeth Satish): 
   - Tioga Gas Plant running at full ethane extraction capacity. No constraints on ethane recovery.
4. **EBITDA Trajectory** (Jeremy Tonet): 
   - H2 2023 EBITDA +8% vs H1 driven by volume growth offset by seasonal OpEx. 2024+ growth to exceed 10% annually.


Actual		0.35	0.29	0.31	0.36	0.43	0.44	0.38	0.51	0.49	0.5	0.53	0.49	0.47	0.5	0.57	0.55	0.59	0.59	0.63	0.68	0.65	0.74	0.75	0.72
Forecast		0.4094	0.3807	0.3328	0.3407	0.3982	0.4123	0.3727	0.5907	0.5181	0.497	0.5249	0.544	0.5121	0.4789	0.5762	0.6271	0.6382	0.6338	0.6574	0.6761	0.6178	0.6544	0.7309	0.7155
Surprise	0.00%	-14.51%	-23.82%	-6.85%	+5.66%	+7.99%	+6.72%	+1.96%	-13.66%	-5.42%	+0.60%	+0.97%	-9.93%	-8.22%	+4.41%	-1.08%	-12.29%	-7.55%	-6.91%	-4.17%	+0.58%	+5.21%	+13.08%	+2.61%	+0.63%

HESM

HESM fundamentals

HESM Q4 2025 Earnings

Earnings Call

You can ask Aime

HESM

HESM fundamentals

HESM Q4 2025 Earnings

Earnings Call

HESM Earnings Call Summary for Q4/202510:00 AM on Feb 2, 2026

HESM Earnings Call Summary for Q3/202510:00 AM on Nov 3, 2025

HESM Earnings Call Summary for Q2/202512:00 PM on Jul 30, 2025

HESM Earnings Call Summary for Q1/202512:00 PM on Apr 30, 2025

HESM Earnings Call Summary for Q4/202412:00 PM on Jan 29, 2025

You can ask Aime