Hess Midstream LP(HESM) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for the nine months ended September 30, 2024, was $161.9 million, compared to$ 142.2 million for the same period in 2023, indicating a year-over-year increase of 13.0%[9] - Net income for 2024 was $486.9 million, an increase of 7.4% from$ 454.9 million in 2023[10] - Net income attributable to Hess Midstream LP for the three months ended September 30, 2024, was $58.6 million, compared to$ 35.3 million for the same period in 2023, indicating a significant increase of 66.5%[36] - Net income attributable to Hess Midstream LP for the nine months ended September 30, 2024, was $152.7 million, compared to$ 127.3 million in the prior year, representing a 19.4% increase[70] - Basic earnings per share (EPS) for the third quarter of 2024 was $0.63, up from$ 0.57 in the same quarter of 2023, representing a growth of 10.5%[7] - Basic earnings per share for the nine months ended September 30, 2024, was $1.82, compared to$ 1.56 for the same period in 2023[7] Revenue Growth - Total revenues for 2024 reached $1,099.6 million, compared to$ 992.1 million in 2023, marking an increase of 10.8%[21] - Total revenues for the nine months ended September 30, 2024, were $1,099.6 million, an increase from$ 1,079.3 million in the same period of 2023[70] - Total revenues from contracts with customers increased to $1,096.9 million for the nine months ended September 30, 2024, compared to$ 990.3 million for the same period in 2023, reflecting a growth of approximately 10.7%[21] - Total affiliate services revenue for 2024 was $1,079.3 million, an increase of 9.4% from$ 986.6 million in 2023[21] Asset and Liability Changes - Total assets increased to $4,146.9 million as of September 30, 2024, up from$ 3,789.5 million at December 31, 2023, representing a growth of 9.5%[5] - Total current assets increased to $154.2 million, up from$ 136.8 million, reflecting a growth of 12.1%[5] - Total liabilities increased to $3,705.1 million as of September 30, 2024, compared to$ 3,426.3 million at December 31, 2023, reflecting an increase of 8.1%[5] - Long-term debt increased to $3,469.8 million from$ 3,198.9 million, an increase of 8.5%[5] - The partnership's total debt as of September 30, 2024, was $3,489.8 million, with a fair value of approximately$ 3,497.3 million[35] Cash Flow and Investments - Net cash provided by operating activities increased to $681.8 million in 2024, up from$ 618.8 million in 2023, reflecting a growth of 10.3%[10] - Net cash provided by operating activities increased by $63.0 million for the nine months ended September 30, 2024, driven by a$ 107.5 million increase in revenues and other income[84] - Net cash used in investing activities rose by $51.0 million for the nine months ended September 30, 2024, primarily due to higher payments for property, plant, and equipment related to compression capacity and pipeline infrastructure expansion[84] - The company reported a net cash used in investing activities of$ 211.0 million in 2024, compared to $160.0 million in 2023, representing an increase of approximately 31.9%[10] Expenses and Costs - Operating and maintenance expenses for the three months ended September 30, 2024, were$ 24.9 million, compared to $22.7 million for the same period in 2023, representing an increase of 9.7%[25] - Operating and maintenance expenses increased by$ 13.7 million, primarily due to higher pass-through costs and maintenance activities[73] - Interest expense, net, increased by $6.0 million in the third quarter of 2024 compared to the same period in 2023, primarily due to the issuance of$ 600.0 million in fixed-rate senior unsecured notes[68] - Interest expense increased by $18.8 million in the first nine months of 2024, largely due to the issuance of$ 600.0 million in fixed-rate senior unsecured notes[76] Shareholder Distributions - The company distributed $0.6677 per share in the latest quarter, compared to$ 0.5851 per share in the same quarter of the previous year, indicating a 14.1% increase in distributions[9] - Total distributions to shareholders in the first quarter of 2024 amounted to $163.9 million, compared to$ 85.2 million in the same period of 2023, showing an increase of about 92.3%[10] - The partnership's quarterly distribution level per Class A Share increased in each of the first three quarters of 2024, significantly above the target of at least 5% growth in annual distributions per Class A Share through 2026[53] Equity and Ownership Changes - Public ownership increased from approximately 29.8% at December 31, 2023, to approximately 47.3% at September 30, 2024, on a consolidated basis[53] - The company completed an equity offering on May 19, 2023, raising approximately $333.4 million from the sale of 12,765,000 Class A Shares[14] - The company repurchased Class B units totaling$ 100.0 million in the first quarter of 2024, consistent with the repurchase amount in the same quarter of 2023[9] Tax and Deferred Tax Assets - Deferred tax assets rose significantly to $605.2 million from$ 324.4 million, an increase of 86.3%[5] - The company recognized an additional deferred tax asset of $329.8 million in 2024, up from$ 177.7 million in 2023[17] - Income tax expense increased by $7.5 million in the third quarter of 2024, driven by increased ownership of the Partnership following equity offerings and unit repurchase transactions[68]