HESM
Hess Midstream LP34.09
-0.61-1.76%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Reaffirms guidance, details delevering.
Q&A largely reaffirmed prepared remarks on flat 2026 EBITDA guidance and 10% annualized FCF growth through 2028, but added color on conservative capital allocation prioritizing debt repayment from excess FCF to naturally delever below 3x leverage alongside incremental returns. Management detailed capex downtrend to under $75M/year by 2027-28, driven by Chevron's rig reduction to three and longer laterals cutting well connects. Third-party volumes hold at 10% average despite crude weakness; Chevron's 200k BOE/d plateau unchallenged. Extreme cold—not power outages—curbed Q1 volumes, but seasonal recovery expected with 95% MVC protection. No long-term leverage target set. No shocks surfaced. Watch winter recovery and Chevron execution.
Key Stats
Market Cap
7.16BP/E (TTM)
12.13Basic EPS (TTM)
2.81Dividend Yield
0.08%Recent Filings
8-K
Executes $60M unit/share repurchases
Hess Midstream executed a $60 million repurchase: its OpCo subsidiary bought 455,811 Class B units from Chevron affiliate HINDL for $18 million at $39.49 per unit, closing March 4, 2026; it also launched a $42 million ASR for Class A shares with JPMorgan, initially receiving 744,492 shares. Units and shares will cancel, boosting distributable cash flow per Class A share. Conflicts Committee approved with fairness opinion.
10-K
FY2025 results
Hess Midstream crushed FY2025 with throughput surging across the board—gas processing up 6% y/y to 445 MMcf/d, crude gathering 6% to 121 MBbl/d, terminaling 5% to 129 MBbl/d, water 5% to 131 MBbl/d—fueled by Chevron and third-party ramps in the Bakken, while revenues climbed 8% to $1.62B on higher tariffs and volumes. Q4 momentum held firm with steady growth, compression expansions adding 20 MMcf/d net capacity (50 MMcf/d more in early 2026), and Adjusted EBITDA jumping 9% to $1.24B. Cash from ops hit $984M; they repurchased $400M in shares/units, issued $800M notes to swap debt, and hiked distributions to $0.7641/share. Debt stands at $3.77B with investment-grade ratings easing covenants. Chevron integration post-July merger risks diluting synergies if drilling lags.
8-K
Q4 results beat EPS prior year
8-K
Office and agent updates
Hess Midstream LP amended its certificate and partnership agreement effective January 26, 2026, shifting principal office to 1400 Smith Street, Houston, from 1501 McKinney Street, and updating registered agent to Corporation Service Company at 251 Little Falls Drive, Wilmington. OpCo mirrored these administrative changes. Routine housekeeping. No operational impact disclosed.
8-K
Board shakeup: resignation, new chair
Hess Midstream LP's board reshuffled on December 4, 2025, as Andrew B. Walz resigned immediately after joining Chevron as an executive officer—no disagreements cited. Kristi H. McCarthy stepped up as Chairman, while Chevron-nominated Barbara F. Harrison, CUSA's VP of Crude Supply and Trading, filled the vacancy. Board stays fully Chevron-controlled. No extra pay for Harrison.
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