Hess Midstream posts bigger Q3 profit, cuts FY capex forecast

Hess Midstream LP

03/11/2025 13:07

Overview

Hess Midstream Q3 net income rises to $175.5 mln, up from $164.7 mln last year

Adjusted EBITDA for Q3 misses analyst expectations

Company completed $70 mln Class A share repurchase, $30 mln Class B unit repurchase

Outlook

Hess Midstream expects Q4 net income of $170 - $180 mln

Company anticipates Q4 Adjusted EBITDA of $315 - $325 mln

Company reduces 2025 capex guidance to $270 mln due to project suspension

Result Drivers

THROUGHPUT INCREASE - Higher production led to a 10% increase in gas processing, 7% in oil terminaling, and 7% in water gathering volumes compared to the prior year

NEW COMPRESSOR STATION - Completion of a new compressor station added 35 MMcf/d capacity, supporting throughput growth

SHARE REPURCHASES - $70 mln Class A share and $30 mln Class B unit repurchases supported increased cash distributions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
$175.50 mln
Q3 Adjusted EBITDA
Miss
$320.70 mln
$321.90 mln (5 Analysts)
Q3 Adjusted Free Cash Flow
$186.80 mln
Q3 Capex
$79.80 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and no "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 $38.00, about 10.7% above its October 31 closing price of $33.95

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw6G2yNQa

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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.)