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Mar 31
Hess Midstream Q1 2025 Earnings Report
Hess Midstream reported its first quarter 2025 earnings, with net income of $161.4 million and an increase in throughput volumes across all segments.
Key Takeaways
Hess Midstream LP reported a net income of $161.4 million for the first quarter of 2025, with Adjusted EBITDA of $292.3 million and Adjusted Free Cash Flow of $190.7 million. The company increased its quarterly cash distribution to $0.7098 per Class A share and completed a $100.0 million repurchase of Class B units. Throughput volumes saw increases across gas processing, oil terminaling, and water gathering compared to the prior-year quarter.
Net income for Q1 2025 was $161.4 million, with net cash provided by operating activities at $202.4 million.
Adjusted EBITDA reached $292.3 million and Adjusted Free Cash Flow was $190.7 million.
Quarterly cash distribution increased to $0.7098 per Class A share, up $0.0086 from Q4 2024.
Throughput volumes increased across all segments: gas processing up 8%, oil terminaling up 7%, and water gathering up 9% compared to the prior-year quarter.
Hess Midstream
Hess Midstream
Hess Midstream Revenue by Segment
Revenue by Segment
Gathering Revenue
CapyFin.comProcessing and Storage Revenue
CapyFin.comTerminaling and Export Revenue
CapyFin.com Forward Guidance
Hess Midstream is reaffirming its full year 2025 financial and throughput guidance, targeting at least 5% annual distribution growth per Class A share through 2027 and a long-term leverage target of 3x Adjusted EBITDA.
Positive Outlook
- Targeting at least 5% annual distribution growth per Class A share through 2027.
- Prioritizing financial strength with a long-term leverage target of 3x Adjusted EBITDA.
- Expecting organic throughput volume growth across all systems relative to 2025 volume guidance for 2026 and 2027.
- Projected net income for 2025 between $715 million and $765 million.
- Projected Adjusted EBITDA for 2025 between $1,235 million and $1,285 million.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- Potential for challenging weather conditions to impact operations.
- Market fluctuations in crude oil, natural gas, and NGLs prices and demand.
- Regulatory changes or inability to obtain necessary permits for capital projects.
- Disruptions due to catastrophic events, labor disputes, or IT failures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income