Key Highlights

  • Consensus EPS of 0.72 compares with second-quarter basic earnings per Class A share of 0.75, against 0.74.
  • Consensus revenue of USD 404.67 million compares with second-quarter revenues of USD 399.0 million, down from USD 414.2 million.
  • Management guided third-quarter net income of USD 165 million to USD 175 million, against USD 173.7 million last quarter.
  • Management guided third-quarter adjusted EBITDA of USD 310 million to USD 320 million, against USD 313.7 million.

Hess Midstream (NYSE:HESM) reports third-quarter results on Wednesday, Oct. 28, with the timing not given in the estimates table. Consensus stands at EPS of 0.72 on revenue of USD 404.67 million, and the company has a market capitalization of USD 6.43 billion.

Hess Midstream provides midstream services including gas gathering and processing, crude oil gathering and terminaling, and water gathering. Second-quarter revenues were USD 399.0 million against USD 414.2 million, and net income was USD 173.7 million against USD 179.7 million.

Estimates Against Third-Quarter Guidance and Second-Quarter Results

The EPS estimate of 0.72 is below second-quarter basic earnings per Class A share of 0.75, which compared with 0.74. The estimates table does not state its EPS basis. The revenue estimate of USD 404.67 million is above the USD 399.0 million reported, which compared with USD 414.2 million.

Management guided third-quarter net income of USD 165 million to USD 175 million, with higher revenues and volumes offset by increased operating expenses, and adjusted EBITDA of USD 310 million to USD 320 million. It described the EBITDA midpoint as approximately flat against the second quarter.

What Management Guided and What It Left Open

For 2026, management reaffirmed net income of USD 650 million to USD 700 million and guided adjusted EBITDA of USD 1.225 billion to USD 1.275 billion and adjusted free cash flow of USD 910 million to USD 960 million. It put excess adjusted free cash flow at USD 280 million for the year after funding targeted distributions.

Management left open the pace of volumes, citing 5% growth into the second half of 2026 from drilling program optimization and longer laterals, and the balance between debt paydown and shareholder returns. It targets leverage of 2.5 times by 2028 from the current 3 times.

Throughput and Cash Flow Detail

Gas processing throughput was 433 million cubic feet per day, down 4% on planned maintenance at the Tioga Gas Plant. Gas gathering throughput was 445 million cubic feet per day against 464 million. Crude oil gathering throughput was 103,000 barrels per day against 127,000, and crude terminaling throughput was 117,000 barrels per day, down 15%.

Water gathering throughput was 121,000 barrels per day, down 12%. Adjusted EBITDA was USD 313.7 million and adjusted free cash flow was USD 231.6 million. Capital expenditures were USD 30.6 million against USD 70.0 million.

Income Statement Lines, Debt and Distribution

Operating income was USD 253.2 million against USD 260.2 million, and income before income taxes was USD 204.8 million against USD 208.8 million. Net income attributable to the company was USD 96.4 million against USD 90.3 million. Total revenues included USD 29.6 million of pass-through costs.

The revolving credit facility balance was USD 256.0 million after a USD 87.0 million repayment, and long-term debt was USD 3,642.5 million. The distribution declared was 0.7888 per Class A share, up 1.2% from the first quarter. The estimates table lists a market capitalization of USD 6.43 billion.

Markers for the Release

Reported EPS against 0.72 and revenues against USD 404.67 million are the headline comparisons. Other markers are throughput volumes, adjusted EBITDA and the third-quarter guidance ranges.