Hess Midstream reports higher Q4 income as volumes rise

Hess Midstream LP

31/01/2024 15:42

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, 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.
    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. 

 (Reporting by Georgina McCartney in Houston; Editing by
Alexander Smith)
 ((Georgina.McCartney@thomsonreuters.com;))