Q3 2025 Hess Midstream LP Earnings Call Transcript
Key Points
- Hess Midstream LP (HESM) delivered strong operational performance with increased gas throughputs despite localized flooding.
- The company executed a $100 million share and unit repurchase and increased its distribution by 2.4%, or approximately 10% on an annualized basis for Class A shares.
- Throughput volumes increased by approximately 3% in gas gathering and processing compared to the second quarter.
- Hess Midstream LP (HESM) completed and brought online the first of two new compressor stations, with the second expected to be completed in the fourth quarter.
- The company expects continued adjusted free cash flow growth through 2027, supporting targeted annual distribution per Class A share growth of at least 5%.
- Net income for the third quarter was $176 million, slightly down from $180 million in the second quarter.
- The company expects fourth-quarter volumes to be relatively flat due to lower expected third-party volumes and planned maintenance.
- Hess Midstream LP (HESM) suspended activities on the Capa gas plant, leading to a reduction in capital expenditures.
- The company anticipates flat EBITDA in 2026, despite rising gas volumes, due to various offsetting factors.
- There is uncertainty regarding future rig activity and potential impacts on oil and gas volumes, as Chevron plans to reduce its rig count.
Good day, ladies and gentlemen, and welcome to the third quarter 2025 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 morning, everyone, and thank you for participating in our third quarter earnings conference call. Our earnings release was issued this morning and appears on our website, 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 those set forth in the Risk Factors section of Hess Midstream's filings
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