Hess Midstream Q1 sales slightly beat, helped by tariff and service revenue

Hess Midstream LP

04/05/2026 13:11

Overview

U.S. midstream operator's Q1 revenue slightly beat analyst expectations

Q1 adjusted EBITDA was a slight miss versus consensus

Company completed $60 mln in share and unit repurchases, raised quarterly cash distribution

Outlook

Hess Midstream raises 2026 Adjusted Free Cash Flow guidance to $910-$960 mln

Company reaffirms 2026 guidance for throughput, net income and Adjusted EBITDA

Hess Midstream does not expect to pay material income taxes until after 2028

Result Drivers

TARIFF AND SERVICE REVENUE - Higher tariff rates, third-party services, and pass-through revenues drove year-on-year revenue growth, partially offset by lower throughput volumes

THROUGHPUT CHANGES - Oil terminaling and water gathering throughput fell due to lower production from reduced new-well activity; gas processing throughput rose on higher third-party volumes

LOWER CAPITAL SPENDING - Capital expenditures dropped 79% from the prior-year quarter after completing gas compression capacity expansion

Company press release: ID:nBw5DcPbQa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$390.10 mln
$389.51 mln (4 Analysts)
Q1 Net Income
$157.70 mln
Q1 Adjusted EBITDA
Slight Miss*
$299.80 mln
$300.43 mln (6 Analysts)
Q1 Adjusted Free Cash Flow
$237 mln
Q1 Capex
$10.40 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 1 "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 2.9% below its May 1 closing price of $38.12

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)