Q4 2024 Hess Midstream LP Earnings Call Transcript
Key Points
- Hess Midstream LP (HESM) reported a 14% year-over-year growth in gas processing throughputs for 2024.
- The company extended its guidance release, projecting gas volumes to grow by more than 25% from 2024 through 2027.
- Hess Midstream LP (HESM) achieved a full year adjusted EBITDA of $1.136 billion in 2024, representing a 12% growth from 2023.
- The company plans to maintain a 4-rig drilling program in 2025, supporting continued production growth.
- Hess Midstream LP (HESM) has a strong financial strategy with a focus on returning capital to shareholders, having returned $1.95 billion since 2021.
- Severe winter weather in January 2025 is expected to impact first-quarter volumes, potentially affecting financial performance.
- The company anticipates a temporary reduction in gas volumes in 2027 due to planned regulatory inspections and maintenance at the Tioga Gas Plant.
- Capital expenditures are expected to remain high, with $300 million planned for 2025, which may impact free cash flow.
- Hess Midstream LP (HESM) faces potential challenges in maintaining growth beyond 2027 without further infrastructure investments.
- The company's growth is heavily reliant on Hess Corporation's development activity, which could pose risks if there are changes in Hess's strategy.
Good day, ladies and gentlemen, and welcome to the fourth quarter 2024 Hess Midstream conference call. My name is Gigi, and I'll be your operator for today. (Operator Instructions) Please be advised that today's conference is being recorded for replay purposes.
I would now like to turn the conference over to Jennifer Gordon, Vice President of Investor Relations. Please proceed.
Thank you, Gigi. Good afternoon, everyone, and thank you for participating in our fourth quarter earnings conference call. Our earnings release was issued this morning and appears on our website, www.hessmidstream.com.
Today's conference call contains projections and other forward-looking statements within the meaning of the federal securities laws. These statements are subject to known and unknown risks and uncertainties that may cause actual results to differ from those expressed or implied in such statements.
These risks include
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