Slide 1: Hess Midstream Investor Relations Presentation
Hess Midstream Investor Relations Presentation December 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “pred
Slide 3: Leading Midstream Platform
Leading Midstream Platform Delivering Long-Term, Competitive and Resilient Growth Leading Business Model with Strategic Infrastructure serving Hess(1) and Third Parties • Strategic infrastructure assets providing oil, gas and water midstream High Quality, services to Hess and third parties Integrate
Slide 4: Leading Midstream Attributes
Leading Midstream Attributes Visible Long-Term Growth, Sustainable Cash Flow Visible Volume and Significant Growth in Disciplined Capital Sustainable FCF and Revenue Growth Adjusted EBITDA Program Financial Flexibility Gas Capture a Key Driver 2023E Adjusted EBITDA of Targeted Investments to 2023E A
Slide 5: Return of Capital to Shareholders Framework
Return of Capital to Shareholders Framework Committed to Consistent & Ongoing Return of Capital 1 Growing Base Distribution 2 Incremental Return of Capital ✓ Target at least 5% annual DPS growth through ✓ Share repurchases and / or additional distribution at least 2025(1) increases ✓ Funded by lever
Slide 6: Leading Business Model
Hess Midstream Leading Business Model Differentiated Financial Metrics Compared to Wide Range of Peers1 Hess Midstream’s Leading 2022 Debt / 2022 Fundamentals Adjusted EBITDA 6.6x 6.8x Unique combination of: 4.0x 4.2x 3.6x 3.7x 3.8x ✓ Balance Sheet Strength 2.8x 3.0x 3.1x 3.2x ✓ Leading Shareholder
Slide 7: Stable, Growing Cash Flow
Stable, Growing Cash Flow Long-Term Commercial Contracts with Hess through 2033 100% Fee-Based Contracts(1) No direct commodity price exposure with inflation escalation Fixed Fee: ~85% of Revenues Cost of Service: ~15% of Revenues $/unit $/unit Average Illustrative Rate Fee (2021-23) Scenarios 1 202
Slide 8: Established Track Record
Established Track Record Demonstrated Effectiveness of Long-Term Commercial Contracts Hess Bakken Operated Rig Count(1) Hess Bakken Net Production(1) (MBoe/d) HESM Adjusted EBITDA(2,3) ($MM) 9 193 8 ~180 $983~$1,030 8 $909 156 154 152 7 $749 6 6 117 112 $551 5 105 105 5 $505 4 4 4 3.5 $380 3 3 2.5 $
Slide 9: Strategic Relationship with Strong Sponsor
Strategic Relationship with Strong Sponsor Significant Inventory of High Return Drilling Locations Divide Leading Acreage Position Hess Bakken Upstream Summary Burke Divide Burke Tioga Rail Terminal Kenmare Williams Tioga Gas Plant ▪ ~465,000-acre position Williams Tioga ▪ Hess ~75% WI, operator Sta
Slide 10: HESM Commitment to Sustainability
HESM Commitment to Sustainability Values drive value for the benefit of all stakeholders Fully aligned with Hess’ Played key role in Hess’ Support Hess’ 5-year position on climate emissions reduction emissions reduction change efforts through 2020 targets for 20253 Support aim of Paris Investments i
Slide 11: Integrated Gas Processing and Gathering
Integrated Gas Processing and Gathering Offers Processing and Export Optionality to Hess and Third Parties ~500 MMcf/d of Gas Processing Capacity • 500 MMcf/d processing capacity, including 400 MMcf/d at the Tioga Gas Plant and 100 MMcf/d (net) at Little Missouri 4 plant • 60 MBbl/d of NGL fractiona
Slide 12: Integrated Crude Oil Terminaling and Gathering
Integrated Crude Oil Terminaling and Gathering Offers Terminaling and Export Optionality to Hess and Third Parties ~385 MBbl/d of Crude Oil Terminaling Capacity • ~285 MBbl/d Ramberg Terminal Facility (RTF) export capacity • ~100 MBbl/d Johnson’s Corner Header System export capacity • Export optiona
Slide 13: Growing Water Services Assets
Growing Water Services Assets Offers Integrated Water Handling Services to Hess and Third Parties Rapidly Growing Business Line • Extensive water gathering footprint north of the Missouri River • Improved safety and environmental exposure, operational efficiencies, and cost savings through gathering
Slide 14: Disciplined Capital Allocation
Disciplined Capital Allocation Targeted Investments to Meet Customer Demand Stable & Focused Capital Program(1) Expansion Capital Area ($MM) 2023 capital focused on: Compression: Additional gas compression $100 - Completion of two new greenfield to meet Hess demand compressor stations and associated
Slide 15: Hess Midstream's Strengths
Hess Midstream’s Strengths Stable, Growing Cash Flow Generation from Leading Business Model High Quality, Integrated Portfolio With Meaningful Scale Long-Term Commercial Contracts with Hess Differentiated Cash Flow Stability Prioritized Shareholder Returns and Strong Balance Sheet 14
Slide 16: Hess Midstream
Hess [HESS] Midstream
Slide 17: 2023 Guidance
2023 Guidance Demonstrates Continued Free Cash Flow Generation 2023 Guidance: ~$1,030 MM Adjusted EBITDA and $225 MM Capex Guidance Highlights • Increasing Hess production and Hess Midstream gas capture driving volume guidance (1,2) • Expect ~5% increase in Adjusted EBITDA compared to full year 2022
Slide 18: Reconciliation to GAAP Metrics
Reconciliation to GAAP Metrics Non-GAAP Financial Measures In addition to our financial information presented in accordance with GAAP, management utilizes certain additional non-GAAP measures to facilitate comparisons of past performance and future periods. We define “Adjusted EBITDA” as net income
Slide 19: Reconciliation to GAAP Metrics
Reconciliation to GAAP Metrics The following table presents a reconciliation of Gross Adjusted EBITDA margin Gross margin, the most directly comparable GAAP financial measure. 18
Slide 20: Midstream Market Optionality
Midstream Market Optionality Providing Access to Key Export Routes Tioga Rail Terminal Rail to East Coast Rail to West Coast Crude Oil Enbridge Ramberg Terminal Facility DAPL Andeavor Refinery DAPL Johnson’s Corner Northern Border Dry Gas Alliance Gas and NGLs Tioga Gas Plant WBI CNG Vantage Allianc
Slide 21: Hess Midstream
Hess [HESS] Midstream