Hess Midstream LP Earnings Recaps
Q2 2026
Aug 7, 2026
Shares declined 0.8% following the earnings release, reflecting investor caution despite largely stable volumes and margin performance, as the incremental free cash flow declined modestly and third-quarter capital expenditures are expected to rise.
Key takeaways
- Q2 adjusted EBITDA increased modestly to $314 million from $300 million in Q1, driven by lower operating expenses and higher revenues in gathering (+$7 million) and processing (+$3 million).
- Adjusted free cash flow decreased 2% sequentially to approximately $232 million, pressured by increased net interest expenses and higher capital spending guidance.
- Throughput volumes were broadly steady, with gas processing volumes slightly higher offset by flat to lower oil volumes, consistent with their annual guidance.
- Third-quarter guidance indicates adjusted EBITDA will remain roughly flat sequentially ($310-320 million), but adjusted free cash flow is expected to decline due to higher capital expenditures.
- The company reiterated full-year 2026 adjusted free cash flow guidance of $910 million to $960 million, though EBITDA is projected to be roughly flat year-over-year at the midpoint, signaling no acceleration in growth.
Q1 2026
May 5, 2026
Shares rose 2.8% following Q1 results that aligned with guidance despite winter-related volume headwinds and the expected seasonal maintenance impact. The slight market gain reflects cautious recognition of stable margins and a cash flow outlook upgrade amid operational challenges.
Key takeaways
- Q1 adjusted EBITDA was $300 million, down modestly from $309 million in Q4 2025 due to severe winter weather reducing volumes and revenues.
- Throughput volumes averaged 430 MMcf/d for gas processing, 119,000 barrels/day for crude terminaling, and 115,000 barrels/day for water gathering, with volumes expected to increase after seasonal maintenance in Q2.
- Capital expenditures in Q1 were seasonally low at $10 million, with a 33% reduction in full-year 2026 capex guidance to approximately $100 million, driven by operational efficiencies including Chevron’s longer laterals.
- Adjusted free cash flow guidance for 2026 was raised to $910 million–$960 million, a 20% increase year over year at the midpoint, supported by lower capex and cash tax deferral.
- Distribution increased 2% (8% annualized for Class A shares) and $60 million in accretive share/unit repurchases were completed, maintaining cash returns while reducing share count.