Key Highlights

  • Net income was USD 179.1 million, or USD 0.77 per Class A share, compared with USD 0.75 a year earlier.
  • Adjusted EBITDA reached USD 319.9 million, while adjusted free Cash Flow totaled USD 247.9 million for the third quarter.
  • The quarterly distribution rose USD 0.0097 to USD 0.7985 per Class A share, in line with the 5% growth target.
  • Capital expenditures fell 73% from the prior-year quarter to USD 21.5 million after gas compression expansion work finished in January.

Net Income Rises on Lower Costs

Hess Midstream LP (NYSE:HESM) reported third-quarter 2026 Net Income of USD 179.1 million, compared with USD 175.5 million in the same quarter of 2025. After deducting noncontrolling interests, net income attributable to the Partnership was USD 99.4 million, or USD 0.77 per basic Class A share. Net cash provided by Operating Activities was USD 267.9 million.

Revenues and other income were USD 410.1 million, down from USD 420.9 million a year earlier, as lower throughput volumes outweighed higher Tariff rates. Total operating costs and expenses declined to USD 147.7 million from USD 162.0 million because of lower charges under the omnibus and employee secondment agreements and lower maintenance expense.

Volumes Soften While Spending Drops

Throughput decreased 10% for oil terminaling, 8% for gas processing and 4% for water gathering compared with the third quarter of 2025, primarily because of lower production. Direct third-party volumes were relatively flat. Net interest expense fell to USD 53.6 million from USD 57.1 million on reduced borrowings, and the revolving Credit Facility carried a drawn balance of USD 180.0 million at September 30.

Capital expenditures totaled USD 21.5 million against USD 79.8 million a year earlier, reflecting the completion of the gas compression capacity expansion in January 2026. Chief executive Jonathan Stein said the quarter reflected a focus on cost management while executing growth.

Guidance Reiterated and DJ Basin Deal Pending

Hess Midstream reiterated full-year 2026 guidance issued on October 6: net income of USD 650 million to USD 675 million, Adjusted EBITDA of USD 1,225 million to USD 1,250 million, capital expenditures of about USD 105 million and adjusted free cash flow of USD 910 million to USD 935 million. Gas gathering is guided to 435 to 445 million cubic feet per day and Crude Oil gathering to 110 to 120 thousand barrels per day.

The company announced a transaction on October 6 that adds DJ Basin assets, with closing targeted by year end. Management said the deal roughly triples crude gathering throughput and adds ownership in a long-haul crude oil pipeline, turning the company into a multi-basin midstream operator.

Distribution Details to Follow

The board declared a third-quarter distribution of USD 0.7985 per Class A share, payable November 13, 2026 to holders of record on November 5. Management targets annual distribution growth of at least 5% per share and intends to keep quarterly distributions in 2027 at the fourth-quarter 2026 level at minimum, funded by adjusted free cash flow.

Items to follow include closing of the DJ Basin transaction, throughput trends in the Bakken and the pace of revolver repayment.