Hess Midstream LP (Hess Midstream LP) Operating Income : $817 Mil (TTM As of Dec. 2023)

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What is Hess Midstream LP Operating Income?

Hess Midstream LP's Operating Income for the three months ended in Dec. 2023 was $210 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $817 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hess Midstream LP's Operating Income for the three months ended in Dec. 2023 was $210 Mil. Hess Midstream LP's Revenue for the three months ended in Dec. 2023 was $360 Mil. Therefore, Hess Midstream LP's Operating Margin % for the quarter that ended in Dec. 2023 was 58.44%.

Good Sign:

Hess Midstream LP operating margin is expanding. Margin expansion is usually a good sign.

Hess Midstream LP's 5-Year average Growth Rate for Operating Margin % was 5.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hess Midstream LP's annualized ROC % for the quarter that ended in Dec. 2023 was 21.29%. Hess Midstream LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 26.41%.

Hess Midstream LP Operating Income Historical Data

The historical data trend for Hess Midstream LP's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hess Midstream LP Operating Income Chart

Hess Midstream LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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376.60

576.50

727.20

791.20

816.90

Hess Midstream LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															196.40	188.70	198.10	220.00	210.10

Hess Midstream LP Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $817 Mil.

Hess Midstream LP (NYSE:HESM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Hess Midstream LP's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	840.4 * ( 1 - 7.23% )	/	( (3658.5	+	3665.8)	/ 2 )
=	779.63908	/	3662.15
=	21.29 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3775.5	-	153.1	-	( 3.3	-	max(0, 173.8	-	137.7	+	3.3	))
=	3658.5

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3789.5	-	197.1	-	( 5.4	-	max(0, 210.2	-	136.8	+	5.4	))
=	3665.8

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Hess Midstream LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	850	/	( ( (3207.8 + max(-29.4, 0))	+	(3229.2 + max(-66.3, 0)) )	/	2 )
=	850	/	( ( 3207.8	+	3229.2 )	/	2 )
=	850	/	3218.5
=	26.41 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(122	+	0	+	12.4)	-	(153.1	+	0	+	10.7)
=	-29.4

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(124.4	+	0	+	7)	-	(197.1	+	0	+	0.59999999999999)
=	-66.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Hess Midstream LP's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	210.1	/	359.5
	=	58.44 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Hess Midstream LP Operating Income Related Terms

Thank you for viewing the detailed overview of Hess Midstream LP's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Hess Midstream LP (Hess Midstream LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Hess Midstream LP (NYSE:HESM) » Definitions » Operating Income

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Traded in Other Exchanges

N/A

Address

1501 McKinney Street, Houston, TX, USA, 77010

Website

https://www.hessmidstream.com

Hess Midstream LP owns, operates, develops, and acquires a diverse set of midstream assets and provides fee-based services to Hess and third-party customers. It conducts its business through three operating segments: gathering, processing and storage, and terminaling and exporting. The company derives the maximum revenue from the gathering segment. Its gathering segment consists of the following assets namely Natural Gas Gathering and Compression; Crude Oil Gathering and Produced Water Gathering and Disposal.

Executives

Global Infrastructure Investors Ii, Llc	director, 10 percent owner	C/O GLOBAL INFRASTRUCTURE PARTNERS, 12 E. 49TH STREET, NEW YORK NY 10017
Hess Corp	director, 10 percent owner	1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Jonathan C. Stein	officer: Chief Financial Officer	HESS MIDSTREAM PARTNERS LP, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John A. Gatling	officer: President and COO	HESS MIDSTREAM PARTNERS LP, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Geurt G Schoonman	director	HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
James K Lee	director	1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Gip Ii Blue Holding, L.p.	director, 10 percent owner	C/O GLOBAL INFRASTRUCTURE MANAGEMENT LLC, 1345 AVENUE OF THE AMERICAS, 30TH FLOOR, NEW YORK NY 10105
Letwin Stephen J J	director	HESS MIDSTREAM PARTNERS LP, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John B Hess	director, officer: Chairman and CEO	C/O HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Global Infrastructure Gp Ii, L.p.	director, 10 percent owner	12 EAST 49TH STREET, 38TH FLOOR, NEW YORK NY 10017
J Patrick Reddy	director
Hess Infrastructure Partners Gp Llc	director, 10 percent owner	1501 MCKINNEY STREET, HOUSTON TX 77010
Hess Midstream Gp Llc	director, 10 percent owner	1501 MCKINNEY STREET, HOUSTON TX 77010
Hess Midstream Gp Lp	director, 10 percent owner	1501 MCKINNEY STREET, HOUSTON TX 77010
Gip Blue Holding Gp, Llc	director, 10 percent owner	12 EAST 49TH STREET, 38TH FLOOR, NEW YORK NY 10017