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Hess Midstream LP Reports Estimated Results for the Second Quarter of 2026
Hess Midstream LP Reports Estimated Results for the Second Quarter of
About this update from Hess Midstream Lp
Hess Midstream LP (NYSE: HESM) (“Hess Midstream” or the “Company”) today reported second quarter 2026 net income of $173.7 million compared with net income of $179.7 million for the second quarter of 2025. After deduction for noncontrolling interests, net income attributable to Hess Midstream was $96.4 million, or $0.75 basic earnings per Class A share, compared with $0.74 basic earnings per Class A share in the second quarter of 2025. Hess Midstream generated Adjusted EBITDA of $313.7 million. Net cash provided by operating activities was $278.6 million and Adjusted Free Cash Flow was $231.6 million. “In the second quarter of 2026, we continued to progress our operational priorities, executing a safe and efficient maintenance program while delivering on our financial strategy,” said Jonathan Stein, Chief Executive Officer of Hess Midstream. “As we enter the second half of the year, we remain focused on execution and generating Adjusted Free Cash Flow to support continued shareholder returns and balance sheet strength.” Hess Midstream’s results contained in this release are consolidated to include the noncontrolling interests in Hess Midstream Operations LP (the “Partnership”) owned by our Sponsor. References to “Sponsor” or “Sponsors” refer to (a) Hess Corporation (“Hess”) and Global Infrastructure Partners when referring to periods prior to May 30, 2025, (b) Hess from May 30, 2025, to July 17, 2025, and (c) Chevron from July 18, 2025. We refer to certain results as “attributable to Hess Midstream LP,” which exclude the noncontrolling interests in the Partnership owned by the Sponsors. As used in this news 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. (1) Adjusted EBITDA, Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions are non‑GAAP measures. Definitions and reconciliations of these non‑GAAP measures to the most directly comparable GAAP reporting measures appear in the following pages of this release. Financial Results Revenues and other income in the second quarter of 2026 were $399.0 million compared with $414.2 million in the prior-year quarter. Second quarter 2026 revenues included $29.6 million of pass-through electricity, produced water trucking and disposal costs and certain other fees compared with $28.0 million in the prior-year quarter. Second quarter 2026 revenues and other income were down $15.2 million compared with the prior-year quarter, primarily due to lower throughput volumes, partially offset by higher tariff rates and third-party services. Total operating costs and expenses in the second quarter of 2026 were $145.8 million, down from $154.0 million in the prior-year quarter, primarily due to lower employee costs and lower maintenance expense, partially offset by higher depreciation expense. Interest expense, net of interest income, in the second quarter of 2026 was $54.5 million, approximately flat compared with $55.4 million in the prior-year quarter. Net income for the second quarter of 2026 was $173.7 million, or $0.75 basic earnings per Class A share, after deduction for noncontrolling interests, compared with $0.74 basic earnings per Class A share in the prior-year quarter. Substantially all of income tax expense was attributed to earnings of Class A shares reflective of Hess Midstream’s organizational structure. Net cash provided by operating activities for the second quarter of 2026 was $278.6 million. Adjusted EBITDA for the second quarter of 2026 was $313.7 million. Adjusted Free Cash Flow for the second quarter of 2026 was $231.6 million. At June 30, 2026, Hess Midstream had a drawn balance of $256.0 million on its revolving credit facility. Operational Highlights Throughput volumes decreased 15% for oil terminaling and 12% for water gathering compared with the second quarter of 2025, primarily due to lower production as a result of lower new-well activity. Throughput volumes decreased 4% for gas processing in the second quarter of 2026 compared with the second quarter of 2025, primarily due to planned maintenance at the Tioga Gas Plant. Capital Expenditures Capital expenditures for the second quarter of 2026 totaled $30.6 million compared with $70.0 million in the prior-year quarter, a 56% decrease resulting mainly from the completion of Hess Midstream's expansion of its gas compression capacity. Quarterly Cash Distributions On July 27, 2026, the Board of Directors of Hess Midstream’s General Partner declared a quarterly cash distribution of $0.7888 per Class A share for the second quarter of 2026, an increase of $0.0096 per Class A share as compared with the first quarter of 2026. The distribution is expected to be paid on August 14, 2026, to shareholders of record as of the close of business on August 6, 2026. Guidance Hess Midstream is reaffirming its full year 2026 financial and throughput guidance, as follows: Year Ending December 31, 2026 (Unaudited) Financials ( in millions ) Net income $ 650 - 700 Adjusted EBITDA $ 1,225 - 1,275 Capital expenditures $ 105 Adjusted free cash flow $ 910 - 960 Year Ending December 31, 2026 (Unaudited) Throughput volumes Gas gathering - MMcf of natural gas per day 450 - 460 Crude oil gathering - MBbl of crude oil per day 115 - 125 Gas processing - MMcf of natural gas per day 435 - 445 Crude terminals - MBbl of crude oil per day 125 - 135 Water gathering - MBbl of water per day 125 - 135 Hess Midstream continues to expect to generate approximately $1 billion of Adjusted Free Cash Flow after Distributions through 2028 that is expected to be available for incremental shareholder returns and debt repayment. Investor Webcast Hess Midstream will review second quarter financial and operating results and other matters on a webcast today at 10:00 a.m. Eastern Time. For details about the event, refer to www.hessmidstream.com . About Hess Midstream Hess Midstream LP 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 . 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. We define “Adjusted Free Cash Flow after Distributions” as Adjusted Free Cash Flow less cash distributions to shareholders and to noncontrolling interest. We define “Gross Adjusted EBITDA Margin” as the ratio of Adjusted EBITDA to total revenues, less pass-through revenues. 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. Reconciliations of Adjusted EBITDA, Adjusted Free Cash Flow and Gross Adjusted EBITDA Margin to reported net income (GAAP), net cash provided by operating activities (GAAP) and gross margin (GAAP), respectively, are provided below. Hess Midstream is unable to project net cash provided by operating activities with a reasonable degree of accuracy because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occur. Therefore, Hess Midstream is unable to provide projected net cash provided by operating activities, or the related reconciliation of projected Adjusted Free Cash Flow to projected net cash provided by operating activities without unreasonable effort. Second Quarter (unaudited) 2026 2025 (in millions) Reconciliation of Adjusted EBITDA to net income: Net income $ 173.7 $ 179.7 Plus: Depreciation expense 54.4 51.8 Interest expense, net 54.5 55.4 Income tax expense 31.1 29.1 Adjusted EBITDA $ 313.7 $ 316.0 Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to net cash provided by operating activities: Net cash provided by operating activities $ 278.6 $ 276.9 Changes in assets and liabilities (19.5 ) (12.1 ) Amortization of deferred financing costs (3.0 ) (3.2 ) Interest expense, net 54.5 55.4 Income from equity investments 6.1 4.0 Distribution from equity investments (2.9 ) (4.7 ) Other (0.1 ) (0.3 ) Adjusted EBITDA $ 313.7 $ 316.0 Less: Interest, net (1) 51.5 52.2 Capital expenditures 30.6 70.0 Adjusted Free Cash Flow $ 231.6 $ 193.8 (1) Excludes amortization of deferred financing costs. Second Quarter (Unaudited) 2026 2025 (in millions, except ratios) Reconciliation of Gross Adjusted EBITDA Margin to gross margin: Income from operations $ 253.2 $ 260.2 Total revenues $ 399.0 $ 414.2 Gross margin 63 % 63 % Income from operations $ 253.2 $ 260.2 Plus: Depreciation expense 54.4 51.8 Income from equity investments 6.1 4.0 Adjusted EBITDA $ 313.7 $ 316.0 Total revenues $ 399.0 $ 414.2 Less: pass-through revenues 29.6 28.0 Revenues excluding pass-through $ 369.4 $ 386.2 Gross Adjusted EBITDA Margin 85 % 82 % Guidance Year Ending December 31, 2026 (Unaudited) (in millions) Reconciliation of Adjusted EBITDA and Adjusted Free Cash Flow to net income: Net income $ 650 - 700 Plus: Depreciation expense 230 Interest expense, net 220 Income tax expense 125 Adjusted EBITDA $ 1,225 - 1,275 Less: Interest, net 210 Capital expenditures 105 Adjusted free cash flow $ 910 - 960 Less: Distributions (1) 655 Adjusted free cash flow after distributions (2) $ 280 (1) Reflects targeted distributions (2) Adjusted Free Cash Flow of approximately $935 million, at guidance midpoint, after funding targeted distributions 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 the Company’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 the Company’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 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 MVCs 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; 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; risks and uncertainties associated with Hess’ integration with Chevron; 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. HESS MIDSTREAM LP SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) Second Second First Quarter Quarter Quarter 2026 2025 2026 Statement of operations Revenues Affiliate services $ 379.8 $ 405.3 $ 373.1 Third-party services 17.9 8.2 15.6 Other income 1.3 0.7 1.4 Total revenues 399.0 414.2 390.1 Costs and expenses Operating and maintenance expenses (exclusive of depreciation shown separately below) 85.9 94.1 85.6 Depreciation expense 54.4 51.8 58.5 General and administrative expenses 5.5 8.1 7.9 Total operating costs and expenses 145.8 154.0 152.0 Income from operations 253.2 260.2 238.1 Income from equity investments 6.1 4.0 3.2 Interest expense, net 54.5 55.4 55.4 Income before income tax expense 204.8 208.8 185.9 Income tax expense 31.1 29.1 28.2 Net income $ 173.7 $ 179.7 $ 157.7 Less: Net income attributable to noncontrolling interest 77.3 89.4 70.1 Net income attributable to Hess Midstream LP $ 96.4 $ 90.3 $ 87.6 Net income attributable to Hess Midstream LP per Class A share: Basic $ 0.75 $ 0.74 $ 0.68 Diluted $ 0.75 $ 0.74 $ 0.68 Weighted average Class A shares outstanding Basic 128.4 121.8 129.2 Diluted 128.4 121.8 129.2 HESS MIDSTREAM LP SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) Six Months Ended June 30, 2026 2025 Statement of operations Revenues Affiliate services $ 752.9 $ 779.6 Third-party services 33.5 14.9 Other income 2.7 1.7 Total revenues 789.1 796.2 Costs and expenses Operating and maintenance expenses (exclusive of depreciation shown separately below) 171.5 179.7 Depreciation expense 112.9 103.3 General and administrative expenses 13.4 15.6 Total operating costs and expenses 297.8 298.6 Income from operations 491.3 497.6 Income from equity investments 9.3 7.4 Interest expense, net 109.9 111.8 Income before income tax expense 390.7 393.2 Income tax expense 59.3 52.1 Net income $ 331.4 $ 341.1 Less: Net income attributable to noncontrolling interest 147.4 179.2 Net income attributable to Hess Midstream LP $ 184.0 $ 161.9 Net income attributable to Hess Midstream LP per Class A share: Basic: $ 1.43 $ 1.39 Diluted: $ 1.43 $ 1.39 Weighted average Class A shares outstanding Basic 128.8 116.3 Diluted 128.8 116.3 Second Quarter 2026 Gathering Processing and Storage Terminaling and Export Interest and Other Total Statement of operations Revenues Affiliate services $ 203.2 $ 140.1 $ 36.5 $ - $ 379.8 Third-party services 6.6 11.2 0.1 - 17.9 Other income - - 1.3 - 1.3 Total revenues 209.8 151.3 37.9 - 399.0 Costs and expenses Operating and maintenance expenses (exclusive of depreciation shown separately below) 50.4 28.0 7.5 - 85.9 Depreciation expense 36.6 13.4 4.4 - 54.4 General and administrative expenses 2.8 0.9 0.3 1.5 5.5 Total operating costs and expenses 89.8 42.3 12.2 1.5 145.8 Income (loss) from operations 120.0 109.0 25.7 (1.5 ) 253.2 Income from equity investments - 6.1 - - 6.1 Interest expense, net - - - 54.5 54.5 Income before income tax expense 120.0 115.1 25.7 (56.0 ) 204.8 Income tax expense - - - 31.1 31.1 Net income (loss) 120.0 115.1 25.7 (87.1 ) 173.7 Less: Net income (loss) attributable to noncontrolling interest 45.3 43.5 9.7 (21.2 ) 77.3 Net income (loss) attributable to Hess Midstream LP $ 74.7 $ 71.6 $ 16.0 $ (65.9 ) $ 96.4 Second Quarter 2025 Gathering Processing and Storage Terminaling and Export Interest and Other Total Statement of operations Revenues Affiliate services $ 219.9 $ 152.3 $ 33.1 $ - $ 405.3 Third-party services 2.5 5.6 0.1 - 8.2 Other income - - 0.7 - 0.7 Total revenues 222.4 157.9 33.9 - 414.2 Costs and expenses Operating and maintenance expenses (exclusive of depreciation shown separately below) 54.7 30.6 8.8 - 94.1 Depreciation expense 32.7 14.8 4.3 - 51.8 General and administrative expenses 3.2 1.9 0.2 2.8 8.1 Total operating costs and expenses 90.6 47.3 13.3 2.8 154.0 Income (loss) from operations 131.8 110.6 20.6 (2.8 ) 260.2 Income from equity investments - 4.0 - - 4.0 Interest expense, net - - - 55.4 55.4 Income before income tax expense 131.8 114.6 20.6 (58.2 ) 208.8 Income tax expense - - - 29.1 29.1 Net income (loss) 131.8 114.6 20.6 (87.3 ) 179.7 Less: Net income (loss) attributable to noncontrolling interest 56.5 49.1 8.7 (24.9 ) 89.4 Net income (loss) attributable to Hess Midstream LP $ 75.3 $ 65.5 $ 11.9 $ (62.4 ) $ 90.3 HESS MIDSTREAM LP SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (IN MILLIONS) First Quarter 2026 Gathering Processing and Storage Terminaling and Export Interest and Other Total Statement of operations Revenues Affiliate services $ 197.9 $ 139.1 $ 36.1 $ - $ 373.1 Third-party services 6.2 9.3 0.1 - 15.6 Other income - - 1.4 - 1.4 Total revenues 204.1 148.4 37.6 - 390.1 Costs and expenses Operating and maintenance expenses (exclusive of depreciation shown separately below) 49.7 29.3 6.6 - 85.6 Depreciation expense 37.7 16.4 4.4 - 58.5 General and administrative expenses 4.1 1.4 0.3 2.1 7.9 Total operating costs and expenses 91.5 47.1 11.3 2.1 152.0 Income (loss) from operations 112.6 101.3 26.3 (2.1 ) 238.1 Income from equity investments - 3.2 - - 3.2 Interest expense, net - - - 55.4 55.4 Income before income tax expense 112.6 104.5 26.3 (57.5 ) 185.9 Income tax expense - - - 28.2 28.2 Net income (loss) 112.6 104.5 26.3 (85.7 ) 157.7 Less: Net income (loss) attributable to noncontrolling interest 42.4 39.4 9.9 (21.6 ) 70.1 Net income (loss) attributable to Hess Midstream LP $ 70.2 $ 65.1 $ 16.4 $ (64.1 ) $ 87.6 HESS MIDSTREAM LP SUPPLEMENTAL OPERATING DATA (UNAUDITED) (IN THOUSANDS) Second Second First Quarter Quarter Quarter 2026 2025 2026 Throughput volumes Gas gathering - Mcf of natural gas per day 445 464 438 Crude oil gathering - bopd 103 127 110 Gas processing - Mcf of natural gas per day 433 449 430 Crude terminals - bopd 117 137 119 NGL loading - blpd 17 17 15 Water gathering - blpd 121 138 115 Six Months Ended June 30, 2026 2025 Throughput volumes Gas gathering - Mcf of natural gas per day 442 448 Crude oil gathering - bopd 106 122 Gas processing - Mcf of natural gas per day 432 437 Crude terminals - bopd 118 131 NGL loading - blpd 16 15 Water gathering - blpd 118 132 View source version on businesswire.com: https://www.businesswire.com/news/home/20260803984188/en/