Hess Midstream LP Reports Strong Q4 Earnings Growth

Hess Midstream Partners Lp ( (HESM) ) has released its Q4 earnings. Here is a breakdown of the information Hess Midstream Partners Lp presented to its investors.

Hess Midstream LP is a growth-oriented midstream company that operates in the oil, gas, and produced water handling industry, primarily located in the Bakken and Three Forks Shale plays in North Dakota, providing essential services to Hess Corporation and third-party customers. In their latest earnings report for the fourth quarter of 2024, Hess Midstream announced a net income of $172.1 million, which is an increase from the $152.8 million reported in the same quarter of the previous year. This growth is attributed to higher production and improved gas capture, resulting in a 15% rise in gas gathering and processing throughput volumes compared to the prior year.

Key financial metrics include an Adjusted EBITDA of $298.2 million and an Adjusted Free Cash Flow of $164.3 million. The company also completed a $100 million repurchase of Class B units, leading to an increased quarterly cash distribution of $0.7012 per Class A share. Additionally, revenues for the quarter reached $395.9 million, reflecting an uptick from the previous year’s $356.5 million. Operating costs rose slightly due to higher electricity and produced water costs, but were offset by reduced maintenance expenses.

The company maintained its focus on infrastructure expansion, with capital expenditures rising to $84.3 million in the fourth quarter. Looking forward, Hess Midstream aims to continue its strategy of reliable operations and infrastructure development to drive further volume growth and shareholder value, as indicated by management’s emphasis on executing their multi-year projects and achieving consistent performance gains.