There is a lot of noise surrounding Hess Midstream (NYSE: HESM ) and whether or not Chevron ( CVX ) will take it over if its acquisition of Hess ( HES ) is Successful. I see value in theI have a long-term investment horizon and look for companies with strong fundamentals that have been beaten down due to short-term headwinds. I believe the market is overly concerned with the short-term, which leaves many great companies mispriced. I seek to uncover these short-term mispricings to unlock long-term value.Anal ...

Hess Midstream Investor Relations Presentation January 2025 Disclaimer Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of U.S. federal securities laws. Words such as "anticipate," "estimate," "expect," "forecast," "guidance," "could," "may," "should," "would," "believe," "intend," "project," "plan," "predict," "will," "target," "imply" and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking sta ...

| 2025-03-31 Ti | | | --- | --- | | 13F Activity | | | Market Value | $24.1b, Prior: $22.0b | | Inflows (Outflows) as % of Total MV | (-0.207)% | | New Purchases | 47 stocks | | Added To | 36 stocks | | Sold out of | 39 stocks | | Reduced holdings in | 25 stocks | | Top 10 Holdings % | 68.8% | 在黑石的前五大重仓股中，Cheniere Energy Partners(CQP.US)位列第一，持仓约1.02亿股，持仓市值约 67.59亿美元，占投资组合比例为28.07%，较上季度持仓数量保持不变。 Corebridge Financial Inc. (CRBG.US)位列第二，持仓约6196.21万股，持仓市值约19.56亿美元，占投资组 合比例为8.12%，较上季度持仓数量保持不变。 智通财经APP获悉，根据美国证券交易 ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited Q1 2025 financial statements show increased assets and operating cash flow, with a significant rise in net income attributable to its shareholders [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $4.3 billion, driven by a deferred tax asset, while total liabilities and partners' capital also increased due to debt and equity transactions Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $150.1 | $149.4 | | **Property, plant and equipment, net** | $3,324.4 | $3,325.4 | | **Total assets** | **$4,263.6** | **$4,151.0** | | **Total current liabilities** | $186.1 | $219.3 | | **Long-term debt** | $3,546.8 | $3,449.4 | | **Total liabilities** | **$3,750.7** | **$3,685.7** | | **Total partners' capital** | **$512.9** | **$465.3** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 revenues rose to $382.0 million, and net income attributable to Hess Midstream LP grew significantly to $71.6 million, reflecting ownership changes Q1 2025 vs Q1 2024 Statement of Operations (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total revenues** | $382.0 | $355.6 | | **Income from operations** | $237.4 | $222.0 | | **Interest expense, net** | $56.4 | $48.5 | | **Net income** | $161.4 | $161.9 | | **Net income attributable to Hess Midstream LP** | $71.6 | $44.6 | | **Diluted EPS** | $0.65 | $0.59 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $202.4 million in Q1 2025, while financing activities included debt refinancing, unit repurchases, and higher shareholder distributions Q1 2025 vs Q1 2024 Cash Flows (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $202.4 | $185.3 | | **Net cash used in investing activities** | $(45.5) | $(54.8) | | **Net cash used in financing activities** | $(155.1) | $(131.7) | | **Increase (decrease) in cash** | $1.8 | $(1.2) | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail significant equity transactions, debt refinancing, a high dependency on Hess for revenues, and a subsequent increase in shareholder distributions - In February 2025, GIP sold **12,650,000 Class A Shares** in an underwritten public offering; the company did not receive any proceeds from this transaction[31](index=31&type=chunk) - In January 2025, the Partnership repurchased **2,572,677 Class B Units** from its Sponsors for approximately **$100.0 million**, funded by its revolving credit facility[35](index=35&type=chunk) - Revenues from commercial agreements with Hess accounted for **98% of total revenues** for the first quarters of both 2025 and 2024[47](index=47&type=chunk) - In February 2025, the Partnership issued **$800.0 million of 5.875% senior notes** due 2028 and used the proceeds to redeem its $800.0 million 5.625% senior notes due 2026, recognizing a **$2.0 million extinguishment loss**[58](index=58&type=chunk) - Subsequent to quarter-end, the company declared a Q1 2025 cash distribution of **$0.7098 per Class A Share** and entered into agreements for a **$190.0 million Class B Unit repurchase** and a **$10.0 million accelerated share repurchase (ASR)**[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes a 7.4% revenue growth to higher volumes across all segments, resulting in increased Adjusted EBITDA and strong liquidity [Overview and First Quarter Results](index=19&type=section&id=Overview%20and%20First%20Quarter%20Results) Recent equity transactions increased public ownership to 53.8%, while strong Q1 2025 results were driven by higher throughput volumes and led to an increased distribution - As a result of equity offering and unit repurchase transactions, public ownership increased from approximately **47.3%** at December 31, 2024, to approximately **53.8%** at March 31, 2025[93](index=93&type=chunk) - Throughput volumes increased YoY in Q1 2025: gas processing up **8%**, oil terminaling up **7%**, and water gathering up **9%**, primarily due to higher Hess and third-party production[100](index=100&type=chunk) Q1 2025 Financial Highlights | Metric | Value | | :--- | :--- | | Consolidated net income | $161.4 million | | Net income attributable to Hess Midstream LP | $71.6 million | | Basic EPS | $0.65 per Class A Share | | Net cash provided by operating activities | $202.4 million | | Adjusted EBITDA | $292.3 million | | Declared Cash Distribution | $0.7098 per Class A Share | [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Total revenues grew by $26.4 million year-over-year, driven by higher volumes across all segments, though offset by increased interest and income tax expenses - Gathering segment revenue increased by **$15.5 million**, driven by higher gas, water, and crude oil physical volumes[122](index=122&type=chunk) - Processing and Storage segment revenue increased by **$8.7 million**, primarily due to higher gas processing physical volumes[125](index=125&type=chunk) - Interest expense increased by **$7.9 million**, mainly due to new senior notes issued in May 2024 and February 2025, and a **$2.0 million loss** on early debt redemption[128](index=128&type=chunk) Q1 2025 vs Q1 2024 Throughput Volumes | Service | Unit | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | | Gas gathering | MMcf/d | 431 | 404 | +6.7% | | Crude oil gathering | MBbl/d | 117 | 106 | +10.4% | | Gas processing | MMcf/d | 424 | 393 | +7.9% | | Crude oil terminaling | MBbl/d | 125 | 117 | +6.8% | | Water gathering | MBbl/d | 126 | 116 | +8.6% | [Capital Resources and Liquidity](index=29&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains strong liquidity through operating cash flow and credit facilities, recently refinancing $800 million in debt while funding capital expansion - Ongoing sources of liquidity include cash on hand, cash from operations, borrowings under the revolving credit facility, and issuances of additional debt and equity securities[142](index=142&type=chunk)[146](index=146&type=chunk) - In February 2025, the Partnership issued **$800.0 million of 5.875% senior notes** due 2028 and used the proceeds to redeem its outstanding **$800.0 million 5.625% notes** due 2026[144](index=144&type=chunk) - 2025 capital expenditures are focused on constructing two new compressor stations and associated pipeline infrastructure, expected to be in service in 2025[157](index=157&type=chunk) Capital Expenditures (in millions) | Period | Total Capital Expenditures | | :--- | :--- | | Q1 2025 | $50.1 | | Q1 2024 | $35.2 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate exposure from variable-rate debt, with minimal direct commodity price risk due to its fee-based model - The company has minimal direct exposure to commodity prices as it generates substantially all revenues from fee-based agreements with minimum volume commitments[164](index=164&type=chunk) - The primary market risk exposure is to changes in interest rates on its variable-rate debt; as of March 31, 2025, the company had no derivative instruments to hedge this exposure[165](index=165&type=chunk) - At March 31, 2025, total debt had a carrying value of **$3,571.8 million** and a fair value of **$3,565.5 million**; a 15% change in interest rates would alter the fair value of fixed-rate debt by approximately **$91-95 million**[166](index=166&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[169](index=169&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting[170](index=170&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings but does not expect any material adverse financial impact from known matters - The company is subject to various judicial and administrative proceedings in the ordinary course of business but did not have material accrued liabilities for legal contingencies as of March 31, 2025[74](index=74&type=chunk)[75](index=75&type=chunk) - The company is remediating a produced water release from a pipeline in North Dakota; as of March 31, 2025, total reserves for all estimated remediation liabilities were **$3.2 million**[72](index=72&type=chunk)[73](index=73&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - The risk factors that could materially affect the business, as disclosed in the 2024 Annual Report on Form 10-K, have not materially changed[174](index=174&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the first quarter of 2025 - No directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2025[175](index=175&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including debt indentures, repurchase agreements, and required certifications

Hess Midstream LP (NYSE:HESM) Q1 2025 Earnings Conference Call April 30, 2025 12:00 PM ET Company Participants Jennifer Gordon - VP, IR John Gatling - President and COO Jonathan Stein - CFO Conference Call Participants Elias Jossen - JPMorgan Naomi Marfatia - UBS Praneeth Satish - Wells Fargo Doug Irwin - Citi John Mackay - Goldman Sachs Operator Good day, ladies and gentlemen, and welcome to the First Quarter 2025 Hess Midstream Conference Call. My name is Kevin and I'll be your operator for today. At this ...

Hess Midstream (HESM) Q1 2025 Earnings Call April 30, 2025 12:00 PM ET Company Participants Jennifer Gordon - Director of Investor RelationsJohn Gatling - President & COOJonathan Stein - CFO, CRO, SVP - Strategy & PlanningEli Jossen - Equity Research Vice PresidentNaomi Marfatia - Associate Director - Equity ResearchDoug Irwin - Vice PresidentJohn Mackay - VP - Equity Research Conference Call Participants Praneeth Satish - Analyst Operator Good day, ladies and gentlemen, and welcome to the First Quarter twe ...

Financial Data and Key Metrics Changes - For Q1 2025, net income was $161 million, down from $172 million in Q4 2024 [11] - Adjusted EBITDA for Q1 2025 was $292 million, compared to $298 million in Q4 2024, primarily due to lower volumes and revenues [11] - Total revenues, excluding pass-through revenues, decreased by approximately $13 million, driven by lower throughput volumes [11] - Adjusted free cash flow for Q1 2025 was approximately $191 million [12] Business Line Data and Key Metrics Changes - Gas processing throughput averaged 424 million cubic feet per day, crude terminaling averaged 125,000 barrels per day, and water gathering averaged 126,000 barrels per day [5] - Processing revenues decreased by approximately $7 million, and gathering revenues decreased by approximately $6 million due to lower throughput volumes [11] Market Data and Key Metrics Changes - Hess reported first quarter net production for the Bakken averaged 195,000 barrels of oil equivalent per day, with expectations for Q2 production to be in the range of 210,000 to 215,000 barrels, reflecting a 9% increase at the midpoint compared to Q1 [5] Company Strategy and Development Direction - The company remains focused on disciplined, low-risk investments to meet basin demand while maintaining reliable operations and strong financial performance [7] - Capital expenditures for 2025 are expected to total approximately $300 million, unchanged from previous guidance [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong recovery in volumes following challenging weather conditions in January and February [42] - The company anticipates adjusted EBITDA in the second half of 2025 to be approximately 11% higher than in the first half [13] Other Important Information - The company has returned $1.95 billion to shareholders since the beginning of 2021 through share repurchases and has increased distributions per Class A share by approximately 57% since 2021 [9] - The company expects to generate over $1.25 billion of financial flexibility through 2027 for incremental shareholder returns [10] Q&A Session Summary Question: Bakken outlook in light of ongoing macroeconomic volatility - Management noted that activity levels remain stable, with no changes in Hess's plans to run four rigs for the rest of the year, supported by established MVCs through 2027 [19][20] Question: Volumes in excess of MVCs and performance against MVCs - Management indicated that MVCs are set at approximately 80% of nomination, with third parties expected to represent about 10% of total volume [24] Question: Risk of rig reduction in the current macro environment - Management reaffirmed that they are looking past short-term volatility and expect consistent activity levels in the Bakken [30][31] Question: Buybacks and secondaries - Management clarified that there is no specific plan for secondaries and expects to continue multiple repurchases per year, with flexibility for $1.25 billion through 2027 [36][37] Question: Gas processing volumes recovery - Management reported a strong recovery in volumes and expressed optimism about meeting guidance for the year [42][43] Question: Impact of oil prices on rig count - Management stated that they are prepared for price volatility and expect to maintain the four-rig program, with improved well economics reducing breakeven costs [45][48] Question: Gas growth in the basin and egress - Management anticipates gas volumes to continue increasing over time, supported by existing export agreements [55][66]

Financial Performance - First quarter 2025 net income was $161.4 million, a slight decrease from $161.9 million in the first quarter of 2024, with net income attributable to Hess Midstream LP at $71.6 million or $0.65 per Class A share, up from $0.60 per Class A share in the prior year[1][6]. - Adjusted EBITDA for the first quarter of 2025 was $292.3 million, compared to $274.5 million in the first quarter of 2024, reflecting a year-over-year increase[7][17]. - Revenues for the first quarter of 2025 were $382.0 million, an increase of $26.4 million from $355.6 million in the prior-year quarter, primarily due to higher physical volumes[5][19]. - Total revenues for Q1 2025 were $382.0 million, an increase of 7.5% from $355.6 million in Q4 2024[27]. - Net income attributable to Hess Midstream LP for Q1 2025 was $71.6 million, compared to $44.6 million in Q1 2024, representing a 60.2% increase[27]. - Income from operations for Q1 2025 was $237.4 million, up from $222.0 million in Q4 2024, reflecting a growth of 6.9%[27]. - Affiliate services revenue in Q1 2025 was $374.3 million, compared to $349.4 million in Q4 2024, marking a 7.0% increase[27]. Operational Metrics - Throughput volumes increased by 8% for gas processing, 7% for oil terminaling, and 9% for water gathering compared to the first quarter of 2024, driven by higher production levels[4][9]. - Gas gathering throughput volumes increased to 431 Mcf of natural gas per day in Q1 2025, up from 404 Mcf per day in Q1 2024[33]. - Crude oil gathering volumes rose to 117 bopd in Q1 2025, compared to 106 bopd in Q1 2024[33]. - The company reported an increase in gas processing volumes to 424 Mcf of natural gas per day in Q1 2025, compared to 393 Mcf per day in Q1 2024[33]. - Crude terminals throughput was 125 bopd in Q1 2025, slightly up from 117 bopd in Q1 2024[33]. Expenses and Cash Flow - Capital expenditures for the first quarter of 2025 totaled $50.1 million, up from $35.2 million in the prior-year quarter, mainly due to the expansion of gas compression and pipeline infrastructure[10][17]. - Interest expense for the first quarter of 2025 was $56.4 million, an increase from $48.5 million in the prior-year quarter, primarily due to new debt issuances[5][17]. - Adjusted Free Cash Flow for the first quarter of 2025 was $190.7 million, slightly down from $192.9 million in the first quarter of 2024[7][17]. - Operating and maintenance expenses for Q1 2025 were $85.6 million, up from $78.1 million in Q4 2024, indicating a rise of 9.6%[27]. - Interest expense for Q1 2025 was $56.4 million, compared to $48.5 million in Q4 2024, an increase of 16.3%[27]. - Operating and maintenance expenses totaled $92.7 million in Q4 2024, with depreciation expenses at $51.3 million[31]. - The company experienced a net interest expense of $52.2 million in Q4 2024, impacting overall profitability[31]. Guidance and Future Outlook - Hess Midstream reaffirmed its full year 2025 guidance, projecting net income between $715 million and $765 million, Adjusted EBITDA between $1,235 million and $1,285 million, and capital expenditures of $300 million[12][20]. - The company anticipates continued growth in revenues and profitability, driven by strategic investments and market expansion[23]. - Hess Midstream LP is actively pursuing opportunities for organic growth and potential acquisitions to enhance its service offerings[23]. - The company is closely monitoring the impact of global economic conditions and regulatory changes on its operations and financial performance[23]. Debt and Financing - The company had a drawn balance of $128.0 million on its revolving credit facility as of March 31, 2025, following the issuance of $800.0 million in senior unsecured notes[8][12].

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