Hess Midstream earnings beat forecast as volumes rise (updated)

Hess Midstream LP

31/01/2024 18:01

(Adds earnings per share detail in paragraph 7)
    By Georgina McCartney
       HOUSTON, Jan 31 (Reuters) - Hess Midstream LP
 HESM.N  on Wednesday reported stronger year-over-year net
income for the fourth quarter that topped analysts'
expectations, driven by higher throughput on its oil and gas
systems.
    The Houston, Texas-based company, which owns processing, 
gathering systems and terminals primarily in North Dakota,
reported fourth quarter net income of $152.8 million, up from
$149.8 million the previous year. 
    Hess said in a statement that it anticipates throughput
volumes on its systems to increase by 10% this year compared
with 2023.
    Volumes at its oil terminals rose by 19% in the fourth
quarter compared with the same period of 2022, due mostly to a
rise in drilling activity. Volumes on its oil gathering systems
were up 16% year-over-year due to higher production, it said. 
    West Texas Intermediate (WTI) prices on average fell in the
last quarter of 2023 compared with the same period of 2022. WTI
 CLc1  prices averaged $71.65 per barrel in the fourth quarter
of 2023, down from $80.26 per barrel in 2022.  
    Hess on Wednesday said it had $1.25 billion of financial
flexibility for incremental shareholder returns through 2026,
lifting previous guidance of $1 billion available for returns
through 2025. 
    Hess Midstream reported earnings of 63 cents per share for
the quarter, versus expectations of 55 cents per share,
according to LSEG data. That is up from 49 cents per share for
the same quarter of 2022. 
    Revenue of $356.5 million was up 13% from a year ago, but
fell short of analysts' forecasts of $358.9 million. 

 (Reporting by Georgina McCartney in Houston; Editing by Liz
Hampton and Alexander Smith, Kirsten Donovan)
 ((Georgina.McCartney@thomsonreuters.com;))