Hess Midstream LP Reports Estimated Results for Q2 2025

Hess Midstream LP, a growth-oriented midstream company, has released its estimated financial results for the second quarter of 2025. The company, which operates a diverse set of midstream assets primarily in the Bakken and Three Forks Shale plays, reported strong financial and operational performance driven by higher production and system availability.

Financial Highlights

For the second quarter of 2025, Hess Midstream LP reported a net income of $179.7 million, an increase from $160.3 million in the same period of 2024. Net income attributable to Hess Midstream LP was $90.3 million, or $0.74 per Class A share, compared to $0.59 per Class A share in the prior-year quarter. The company generated Adjusted EBITDA of $316.0 million and Adjusted Free Cash Flow of $193.8 million. Revenues for the quarter were $414.2 million, up from $365.5 million in the second quarter of 2024.

Business and Operational Highlights

Operationally, Hess Midstream saw a significant increase in throughput volumes, with gas processing up 7%, oil terminaling up 9%, and water gathering up 11% compared to the previous year. This growth was primarily due to higher production levels. Capital expenditures for the quarter totaled $70.0 million, primarily related to the expansion of gas compression and associated pipeline infrastructure.

Strategic Initiatives and Corporate Developments

During the second quarter, Hess Midstream completed a $190.0 million repurchase of Class B units and a $10.0 million repurchase of Class A shares. The company also increased its quarterly cash distribution to $0.7370 per Class A share, supported by excess Adjusted Free Cash Flow. Additionally, on July 18, 2025, Hess Corporation and Chevron Corporation completed their previously announced merger, making Chevron the direct parent of Hess and indirectly owning approximately 37.8% of Hess Midstream.

Management's Perspective

John Gatling, President and Chief Operating Officer of Hess Midstream, commented, "Hess Midstream delivered strong operational and financial results in the second quarter, driven by upstream performance and high system availability. We reiterate our expectation for volume growth across all systems, which is expected to result in sustained excess adjusted free cash flow generation and continued return of capital to our shareholders."

Future Outlook

Hess Midstream reaffirmed its full-year 2025 throughput and Adjusted EBITDA guidance. The company updated its net income guidance to $685 – $735 million and expects Adjusted Free Cash Flow to be between $725 – $775 million. The company continues to target at least 5% annual distribution growth per Class A share through 2027 and expects organic throughput volume growth across all systems for 2026 and 2027 relative to 2025 volume guidance.

SEC Filing: Hess Midstream LP [ HESM ] - 8-K - Jul. 30, 2025