Hess Midstream Partners Lp ( (HESM) ) has realeased its Q3 earnings. Here is a breakdown of the information Hess Midstream Partners Lp presented to its investors.
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Hess Midstream LP is a fee-based, growth-oriented midstream company that operates and develops a diverse set of midstream assets, primarily in the Bakken and Three Forks Shale plays in North Dakota, providing services to Hess and third-party customers.
In the third quarter of 2024, Hess Midstream LP reported a net income of $164.7 million, reflecting strong operational execution and increased throughput volumes. The company also completed a $100 million repurchase of Class B units, resulting in an increased quarterly cash distribution per Class A share.
Key financial metrics highlighted in the earnings report include an adjusted EBITDA of $286.9 million and an adjusted free cash flow of $141.4 million. Revenue increased to $378.5 million, driven by a 9% growth in gas gathering and processing volumes. Additionally, Hess Midstream increased its quarterly cash distribution, leveraging excess free cash flow after the unit repurchase.
Looking forward, Hess Midstream expects continued throughput volume growth, with projected net income between $170 million and $185 million and adjusted EBITDA between $295 million and $310 million for the fourth quarter of 2024. The company remains committed to at least 5% annual distribution growth per Class A share through 2026, supported by a robust financial strategy and ongoing asset development.
Overall, Hess Midstream LP projects sustained growth in gas and oil throughput volumes, with a focus on maintaining financial strength and flexibility to support shareholder returns and strategic investments.
