HOUSTON--(BUSINESS WIRE)--Hess Midstream LP (NYSE: HESM) (“Hess Midstream”), today announced that the Board of Directors of its general partner declared a quarterly cash distribution of $0.6343 per Class A share for the quarter ended December 31, 2023. The distribution represents an approximate 2.7% increase in the quarterly distribution per Class A share for the fourth quarter of 2023 as compared to the third quarter of 2023. This increase consists of an approximate 1.5% increase in Hess Midstream’s distri ...

HOUSTON--(BUSINESS WIRE)--Hess Midstream LP (NYSE: HESM) (“Hess Midstream”) announced today that it will hold a conference call on Wednesday, January 31, 2024, at 12:00 p.m. Eastern Time to discuss its fourth quarter 2023 earnings release. To phone into the conference call, participants should register in advance using this link to receive a unique PIN and dial-in number. This conference call and subsequent replay will also be accessible by webcast (audio only) on Hess Midstream’s website at www.hessmidstr ...

Financial Performance - Total revenues for Q3 2023 reached $363.1 million, a 8.4% increase from $334.8 million in Q3 2022[13] - Net income attributable to Hess Midstream LP was $35.3 million in Q3 2023, up 51.0% from $23.2 million in Q3 2022[13] - Basic net income per Class A share for Q3 2023 was $0.57, compared to $0.53 in Q3 2022[13] - Net income for the nine months ended September 30, 2023, was $454.9 million, a decrease of 3.9% compared to $470.8 million in the same period of 2022[19] - Revenues and other income for the nine months ended September 30, 2023, were $992.1 million, a 3.5% increase from $960.6 million in the same period of 2022[80] - Consolidated net income for the third quarter of 2023 was $164.8 million, compared to $159.4 million in the third quarter of 2022, marking a 3.4% increase[101] Expenses and Liabilities - Operating and maintenance expenses for Q3 2023 were $89.4 million, an increase of 12.3% compared to $79.6 million in Q3 2022[13] - Total current liabilities increased to $173.8 million as of September 30, 2023, compared to $159.5 million at the end of 2022[11] - Interest expense increased by $5.9 million, primarily due to higher interest rates and increased borrowings[132] - Operating and maintenance expenses rose by $7.0 million in the first nine months of 2023, primarily due to higher pass-through costs and employee costs[140] Assets and Capital Expenditures - Total assets as of September 30, 2023, amounted to $3,775.5 million, up from $3,588.2 million as of December 31, 2022[11] - Additions to property, plant, and equipment were $160.0 million, a decrease from $176.6 million in the prior year[19] - Total capital expenditures for the nine months ended September 30, 2023, were $173.9 million, with expansion capital expenditures of $164.1 million and maintenance capital expenditures of $9.8 million[174] Debt and Financing - Long-term debt increased to $3,138.3 million as of September 30, 2023, compared to $2,883.1 million at the end of 2022[11] - The Partnership had $1.4 billion in senior secured credit facilities, including a $1.0 billion revolving credit facility and a $400.0 million Term Loan A facility, maturing in July 2027[61] - As of September 30, 2023, total debt had a carrying value of $3,148.3 million and a fair value of approximately $2,954.5 million[64] Revenue Sources - Oil and gas gathering services generated $170.5 million in revenue for the three months ended September 30, 2023, up from $160.5 million in 2022, reflecting a year-over-year growth of 6.2%[46] - Processing and storage services revenue increased to $132.2 million in Q3 2023 from $121.7 million in Q3 2022, representing a growth of 8.5%[46] - The company has long-term, fee-based commercial agreements with Hess, providing cash flow stability and growth through minimum volume commitments[108] Strategic Initiatives - The company is pursuing strategic relationships with third-party producers and midstream companies in the Bakken to maximize utilization rates[44] - The fee recalculation model for commercial agreements will transition to an inflation-based fee structure, with annual adjustments capped at 3%[43] Shareholder Distributions - Distributions to shareholders totaled $85.2 million, an increase from $66.2 million in the same period of 2022[19] - The partnership agreement mandates distribution of all available cash to shareholders within 45 days after each quarter, with a declared distribution of $0.6175 per Class A share for the third quarter of 2023[65] Merger and Acquisition - The Chevron Merger Agreement was entered into on October 22, 2023, with the transaction expected to close in the first half of 2024, subject to approvals[84] - Chevron's potential acquisition of Hess is subject to various risks, including unforeseen liabilities and the need for approvals from customers, shareholders, and regulators[184] - The merger agreement restricts Hess from entering into certain transactions, which may limit its operational flexibility until the merger is completed[191] Operational Performance - Throughput volumes for gas gathering and processing increased by 9% in the third quarter of 2023 compared to the same quarter in 2022, driven by higher production and third-party volumes[102] - Gas gathering throughput volumes remained stable at 404 MMcf/d for the three months ended September 30, 2023[122] - The company plans to continue focusing on operational efficiency and cost management to enhance profitability in the upcoming quarters[126]

HESS MIDSTREAM LP HESS MIDSTREAM LP REPORTS ESTIMATED RESULTS FOR THE SECOND QUARTER OF 2023 • Completed accretive $100 million repurchase of Class B units of Hess Midstream Operations LP in June 2023, which is the second repurchase transaction during 2023. • Net income was $147.9 million. Net cash provided by operating activities was $204.6 million. News Release Second Quarter 2023 Highlights: • Increased quarterly cash distribution to $0.6011 per Class A share for the second quarter of 2023, an approximat ...

[PART I—FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Hess Midstream LP's unaudited consolidated financial statements, detailing financial position and performance [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows total assets increased to $3,659.7 million and total liabilities to $3,224.9 million by June 30, 2023 | (in millions) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $114.1 | $132.3 | | **Property, plant and equipment, net** | $3,188.3 | $3,172.8 | | **Deferred tax asset** | $254.0 | $177.2 | | **Total assets** | **$3,659.7** | **$3,588.2** | | **Total current liabilities** | $148.8 | $159.5 | | **Long-term debt** | $3,061.2 | $2,883.1 | | **Total liabilities** | **$3,224.9** | **$3,059.2** | | **Total partners' capital** | $434.8 | $529.0 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues increased to $324.0 million for Q2 2023, but net income decreased to $147.9 million due to higher expenses | (in millions, except per share) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $324.0 | $313.4 | $629.0 | $625.8 | | **Income from operations** | $198.1 | $195.3 | $386.8 | $390.8 | | **Interest expense, net** | $43.8 | $37.4 | $85.4 | $68.7 | | **Net income** | $147.9 | $151.8 | $290.1 | $311.4 | | **Net income attributable to Hess Midstream LP** | $25.1 | $22.0 | $45.8 | $38.9 | | **Basic EPS (Class A)** | $0.50 | $0.51 | $0.97 | $1.01 | [Consolidated Statements of Changes in Partners' Capital](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Partners%27%20Capital) Total partners' capital decreased to $434.8 million by June 30, 2023, influenced by net income, distributions, and unit repurchases - Key drivers for the change in partners' capital in the first six months of 2023 include net income, distributions, Class B unit repurchases, and recognition of a deferred tax asset[17](index=17&type=chunk) | Activity (Six Months Ended June 30, 2023) | Amount (in millions) | | :--- | :--- | | Balance at Dec 31, 2022 | $529.0 | | Net income | $142.2 (Q1) + $147.9 (Q2) | | Distributions | $(136.7) (Q1) + $(138.3) (Q2) | | Class B unit repurchase | $(100.0) (Q1) + $(100.0) (Q2) | | Recognition of deferred tax asset | $4.3 (Q1) + $87.2 (Q2) | | Balance at June 30, 2023 | $434.8 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was $403.3 million for the six months ended June 30, 2023, funding capital expenditures and distributions | (in millions) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $403.3 | $403.8 | | **Net cash used in investing activities** | $(107.3) | $(110.7) | | **Net cash used in financing activities** | $(296.1) | $(292.9) | | **Increase (decrease) in cash** | $(0.1) | $0.2 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, equity transactions, related-party dealings, debt structure, segment performance, and subsequent events - On May 19, 2023, the Sponsors sold **12,765,000 Class A Shares** in a public offering for net proceeds of approximately **$333.4 million**, with the company receiving no proceeds[27](index=27&type=chunk) - The Partnership repurchased **3,619,254 Class B Units** for **$100.0 million** in March 2023 and **3,350,084 Class B Units** for another **$100.0 million** in June 2023, funded by its revolving credit facility[31](index=31&type=chunk)[32](index=32&type=chunk) - Approximately **100% of revenues** for the three and six months ended June 30, 2023 and 2022 were attributable to fee-based commercial agreements with Hess Corporation[42](index=42&type=chunk) - On July 24, 2023, the board declared a quarterly cash distribution of **$0.6011 per Class A Share** for Q2 2023, a **2.7% increase** from Q1 2023[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, liquidity, and capital expenditures, highlighting revenue growth and increased throughput volumes [Overview and Second Quarter Results](index=17&type=section&id=Overview%20and%20Second%20Quarter%20Results) Q2 2023 revenues increased to $324.0 million, with higher throughput volumes, while net income slightly decreased and Adjusted EBITDA grew - In Q2 2023, the company repurchased **$100 million of Class B Units** and Sponsors sold **12,765,000 Class A shares** in a public offering[87](index=87&type=chunk)[88](index=88&type=chunk) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | **Revenues and other income** | $324.0M | $313.4M | | **Consolidated net income** | $147.9M | $151.8M | | **Adjusted EBITDA** | $248.1M | $242.6M | | **Net income per Class A Share (basic)** | $0.50 | $0.51 | - Throughput volumes in Q2 2023 increased YoY by **23% for gas processing**, **19% for gas gathering**, and **34% for water gathering**, primarily due to higher production and recovery from severe weather in Q2 2022[94](index=94&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) This section provides detailed segment-level financial comparisons, showing revenue changes driven by tariff rates and MVCs, and increased interest expense - **Q2 2023 vs Q2 2022:** - **Gathering:** Revenue increased by **$8.3 million**, driven by higher tariff rates, partially offset by lower MVC-related revenue[118](index=118&type=chunk) - **Processing & Storage:** Revenue increased by **$6.3 million** due to higher volumes and tariff rates[121](index=121&type=chunk) - **Terminaling & Export:** Revenue decreased by **$4.0 million** as higher physical volumes remained below the higher MVC levels of Q2 2022[123](index=123&type=chunk) - **YTD 2023 vs YTD 2022:** - **Gathering:** Revenue increased by **$9.4 million**, driven by higher tariffs, but partially offset by lower MVC-related revenue despite higher physical volumes[131](index=131&type=chunk) - **Terminaling & Export:** Revenue decreased by **$13.1 million**, primarily due to lower MVC levels and reduced rail transportation pass-through revenues[136](index=136&type=chunk) - **Interest Expense:** Increased by **$16.7 million** due to higher interest rates and new senior notes issued in April 2022[138](index=138&type=chunk) [Capital Resources and Liquidity](index=28&type=section&id=Capital%20Resources%20and%20Liquidity) The company funds operations and distributions through cash from operations, credit facilities, and debt, with $3.06 billion in long-term debt - Primary sources of liquidity are cash from operations, borrowings under the revolving credit facility, and issuances of debt and equity securities[149](index=149&type=chunk)[156](index=156&type=chunk) | Debt Instrument | Principal Amount (as of June 30, 2023) | | :--- | :--- | | 5.625% Senior Notes due 2026 | $800.0 million | | 5.125% Senior Notes due 2028 | $550.0 million | | 4.250% Senior Notes due 2030 | $750.0 million | | 5.500% Senior Notes due 2030 | $400.0 million | | Credit Facilities (Revolver & Term Loan A) | $598.0 million outstanding | - 2023 capital expenditures are primarily for expanding compression capacity and gas capture capabilities, with two new compressor stations expected to be in service later in 2023[166](index=166&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces minimal commodity price risk due to fee-based agreements but is exposed to interest rate risk on its debt - The company has minimal direct exposure to commodity prices due to its fee-based commercial agreements with Hess, which include minimum volume commitments[172](index=172&type=chunk) - The main market risk is exposure to changes in interest rates on its debt, and the company did not have any interest rate derivatives in place as of June 30, 2023[173](index=173&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective, 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 June 30, 2023[175](index=175&type=chunk) - No material changes were made to internal control over financial reporting during the quarter ended June 30, 2023[176](index=176&type=chunk) [PART II—OTHER INFORMATION](index=33&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10 for information on legal proceedings, including a non-material produced water release notice - Information on legal proceedings is incorporated by reference from Note 10, Commitments and Contingencies[178](index=178&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the 2022 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the 2022 Annual Report on Form 10-K[179](index=179&type=chunk) [Other Information](index=33&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 Q2 2023 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2023[180](index=180&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including a Unit Repurchase Agreement and required certifications - The exhibits filed include the Unit Repurchase Agreement from June 26, 2023, and required certifications by the CEO and CFO[182](index=182&type=chunk)

Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarter ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39163 Hess Midstream LP (Exact name of Registrant as specified in its charter) DELAWARE 84-3211812 (State or other jurisdiction of incorporation or ...

Hess Midstream LP (NYSE:HESM) Q1 2023 Earnings Conference Call April 26, 2023 12:00 PM ET Company Participants Jennifer Gordon - Director, IR John Gatling - President & COO Jonathan Stein - CFO Conference Call Participants Douglas Irwin - Citigroup Operator Good day, ladies and gentlemen, and welcome to the First Quarter 2023 Hess Midstream Conference Call. My name is Gigi, and I will be your operator for today. [Operator Instructions]. I would now like to turn the conference over to Jennifer Gordon, Vice P ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39163 no Hess Midstream LP (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Houston, TX (Address of principal executive of ices) (Registrant's telephone number, i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-39163 Hess Midstream LP (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) DELAWARE 84-3211812 (Zip Code) 1501 McKinney Street 77010 Houston, TX For the quarter ended September 30, 2022 or ☐ TRANSITION REPO ...

Financial Data and Key Metrics Changes - For Q3 2022, net income was $159 million, an increase from $152 million in Q2 2022. Adjusted EBITDA rose to $254 million from $243 million in the previous quarter, driven by higher MVC and throughput volumes [20][21][24] - The gross adjusted EBITDA margin for Q3 was maintained at approximately 80%, indicating strong operating leverage [22] - Distributable cash flow for Q3 was approximately $215 million, covering distributions by 1.6 times [22] Business Line Data and Key Metrics Changes - Hess Midstream's Q3 throughput volumes averaged 110,000 barrels of oil per day for crude terminaling and 83,000 barrels of water per day for water gathering, reflecting a 20% recovery from Q2 [11] - Gas processing volumes exceeded MVC levels, averaging 354 million cubic feet per day, contributing to the increase in adjusted EBITDA [11][20] Market Data and Key Metrics Changes - Hess reported Q3 Bakken net production of 166,000 barrels of oil equivalent per day, exceeding guidance of 155,000 to 160,000 barrels [9] - The company anticipates fourth quarter Bakken net production to be in the range of 165,000 to 170,000 barrels of oil equivalent per day [9] Company Strategy and Development Direction - The company is focused on executing its strategy to support Hess Corporation's growth in the Bakken, with a planned production ramp to approximately 200,000 barrels of oil equivalent per day by 2024 [10][40] - The strategy includes a commitment to achieving zero routine flaring by the end of 2025, which is expected to drive long-term volume growth [10][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the visibility of revenue and adjusted EBITDA growth, supported by organic growth above MVCs in 2023 and 2024 [28][30] - The company expects to maintain stable capital expenditures in 2023, with a focus on compression and gathering to support Hess's production growth [34][40] Other Important Information - Full year 2022 capital expenditures are projected to total approximately $235 million, with a focus on flare reduction and gas gathering infrastructure expansion [16] - The company announced a 5% increase in its third quarter distribution, representing a 10% increase compared to Q3 2021 [24] Q&A Session Summary Question: Future CapEx outlook - Management indicated that future CapEx for 2023 is expected to be stable, at or below 2022 levels, with a focus on compression and gathering [34][40] Question: Zero routine flaring commitment - Management sees the commitment to zero routine flaring as a positive catalyst for midstream operations, with Hess currently achieving over 95% gas capture [42] Question: Impact of interest rates on financing costs - Management noted that only 15% of their debt is floating, providing significant flexibility in financing costs and no immediate pressures from interest rate changes [44][46] Question: Volume growth and MVC levels - Management confirmed expectations for growth in 2023 and 2024, with all systems anticipated to be above MVC levels [52][54]