Hess Midstream LP(US:HESM)2024-08-08 20:16Financial Performance - Net income for the six months ended June 30, 2024, was $160.3 million, compared to $147.9 million for the same period in 2023, representing an increase of 8.1%[10] - Consolidated net income for Q2 2024 was $160.3 million, an increase from $147.9 million in Q2 2023[51] - Net income attributable to Hess Midstream LP was $49.5 million, resulting in a basic earnings per Class A share of $0.59, compared to $0.50 in Q2 2023[51] - Net income attributable to Hess Midstream LP for the three months ended June 30, 2024, was $41.3 million, compared to $49.5 million in the same period of 2023, reflecting a decrease of 16.4%[63] Revenue Growth - Total revenues for the first six months of 2024 reached $721.1 million, up from $629.0 million in the same period of 2023, representing a 14.6% increase[21] - Total revenues for the three months ended June 30, 2024, were $174.5 million, up from $122.8 million in the same period last year[43] - Total revenues for the three months ended June 30, 2024, were $365.5 million, an increase from $358.5 million in the same period of 2023[63] - Total affiliate services revenue increased to $707.9 million in the first six months of 2024, compared to $625.3 million in 2023, reflecting a growth of 13.2%[21] - Total affiliate services revenue for the first half of 2024 was $707.9 million, compared to $625.3 million for the same period in 2023, indicating a growth of about 13.2%[21] - Total revenues from contracts with customers increased to $364.6 million in Q2 2024, up from $323.5 million in Q2 2023, representing a year-over-year growth of approximately 12.0%[21] Assets and Liabilities - Total assets increased to $4,050.1 million as of June 30, 2024, up from $3,789.5 million at December 31, 2023, representing a growth of 6.9%[4] - Total liabilities increased to $3,647.5 million from $3,426.3 million, reflecting a rise of 6.4%[5] - The carrying value of total debt as of June 30, 2024, was $3,460.3 million, with a fair value of approximately $3,397.8 million[31] - Deferred tax assets increased to $501.6 million as of June 30, 2024, from $324.4 million at December 31, 2023, indicating a growth of 54.6%[4] Shareholder Activities - Class A shares outstanding increased to 91,421,383 as of June 30, 2024, compared to 68,367,647 shares at December 31, 2023, marking a growth of 33.7%[5] - The company declared a distribution of $0.6516 per Class A share for the first quarter of 2024, an increase from $0.6343 in the fourth quarter of 2023[33] - The company increased its quarterly distribution level per Class A share significantly above the target of at least 5% growth in annual distributions through 2026[50] - The company paid higher distributions to shareholders and noncontrolling interests amounting to $14.3 million in the first six months of 2024[87] Expenses and Costs - Operating and maintenance expenses for the first six months of 2024 totaled $46.6 million, compared to $45.1 million in the same period of 2023, indicating a slight increase of 3.3%[26] - Total operating costs and expenses for the three months ended June 30, 2024, were $143.2 million, compared to $135.0 million in the same period of 2023[63] - Operating and maintenance expenses rose by $7.0 million in Q2 2024, primarily due to higher pass-through costs and maintenance activities[65] - Interest expense increased by $5.9 million in Q2 2024, largely due to the issuance of $600.0 million in fixed-rate senior unsecured notes[69] Cash Flow and Investments - Net cash provided by operating activities reached $271.6 million for the quarter[51] - Net cash provided by operating activities increased by $53.6 million for the six months ended June 30, 2024, compared to the same period in 2023[86] - Net cash used in investing activities increased by $11.4 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to higher payments for property, plant, and equipment related to compression capacity expansion[87] - Net cash used in financing activities decreased by $52.1 million for the six months ended June 30, 2024, compared to the same period in 2023[87] Agreements and Contracts - The company has long-term commercial agreements with Hess, with minimum volume commitments set at 80% of Hess' nominations over a three-year rolling basis[18] - The company entered into a gas processing agreement with Little Missouri 4, with processing fees incurred amounting to $15.4 million for the first six months of 2024, compared to $10.8 million in 2023[27] - The company exercised renewal options to extend commercial agreements with Hess for an additional 10-year term effective January 1, 2024[18] Accounting and Reporting Changes - The company adopted new accounting standards effective April 1, 2024, which may impact future segment disclosures and income tax reporting[13] - The company adopted ASU 2023-07 on April 1, 2024, which requires additional disclosures for reportable segment expenses[13]