Hess Midstream LP Q2 2026 Earnings Recap

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.