Hess Midstream Partners Lp Representing Partner Interests Stock Earnings Reports

Hess Midstream LP reported solid first-quarter 2026 results despite severe winter weather in January and February. Key operational metrics: gas processing averaged 430 MMcf/d, crude terminaling 119,000 bbls/d, and water gathering 115,000 bbls/d. The company completed a $60 million accretive share/unit repurchase in March and raised the Class A distribution by 2% (approx. 8% annualized), which includes a targeted 5% annual increase. With the second of two new compressor stations now online and Chevron shifting to longer laterals (reducing well-connect CapEx), Hess Midstream cut its 2026 CapEx estimate by roughly one-third to ~$100–105 million and raised full-year adjusted free cash flow guidance to $910–960 million (about +20% YoY at midpoint). First-quarter adjusted EBITDA was $300 million, gross adjusted EBITDA margin remained strong at ~83%, and adjusted free cash flow for the quarter was $237 million. Management expects Q2 adjusted EBITDA roughly flat vs. Q1 (~$295–305 million) with some volume impact from planned Tioga maintenance (5–10 MMcf/d). Full-year 2026 guidance: net income $650–700 million and adjusted EBITDA $1.225–1.275 billion (roughly flat year-over-year at midpoint). The company expects to generate ~ $280 million of excess adjusted free cash flow after funding the targeted 5% distribution growth and plans to use excess cash for incremental buybacks and debt repayment. Management also indicated they no longer expect to pay material cash taxes in 2026 and do not expect material cash taxes until after 2028 due to IRS interim guidance on the corporate AMT. The strategic stance remains capital-conservative: prioritize distribution growth, share repurchases, and deleveraging while preserving downside protection from long-term MVCs to 2028 and tariffed terminal contracts to 2033.