Hess Midstream's Q2 adjusted EBITDA beats on lower operating costs

Hess Midstream LP

03/08/2026 13:10

Overview
U.S. midstream energy firm's Q2 adjusted EBITDA beat analyst expectations
Q2 revenue and net income declined yr/yr due to lower throughput volumes
Company raised quarterly cash distribution and reaffirmed full-year 2026 guidance

Outlook
Hess Midstream reaffirms 2026 net income guidance of $650 mln to $700 mln
Company expects 2026 adjusted EBITDA of $1,225 mln to $1,275 mln
Hess Midstream sees 2026 adjusted free cash flow at $910 mln to $960 mln

Result Drivers
LOWER THROUGHPUT VOLUMES - Co said Q2 revenue decline was primarily due to lower throughput volumes, mainly from reduced production and lower new-well activity
PLANNED MAINTENANCE - Co said gas processing throughput volumes fell 4% yr/yr due to planned maintenance at the Tioga Gas Plant
LOWER OPERATING COSTS - Operating costs and expenses declined mainly due to lower employee costs and maintenance expense

Company press release: ID:nBw7TH0gla

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
$173.70 mln
 
Q2 Adjusted EBITDA
Beat
$313.70 mln
$301.81 mln (6 Analysts)
Q2 Adjusted Free Cash Flow
 
$231.60 mln
 
Q2 Capex
 
$30.60 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy."
Wall Street's median 12-month price target for Hess Midstream LP is $37.00, about 9.4% below its July 31 closing price of $40.83
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)