Hess Midstream LP(HESM) - 2020 Q2 - Quarterly Report

Financial Performance - Total revenues for the three months ended June 30, 2020, increased to $269.8 million, up 42% from $190.3 million in the same period of 2019[13] - Net income for the three months ended June 30, 2020, was $107.8 million, compared to $74.4 million for the same period in 2019, representing a 45% increase[16] - Net income for the six months ended June 30, 2020, was $236.8 million, compared to $155.2 million for the same period in 2019, representing a 52.5% increase[28] - Adjusted EBITDA for the three months ended June 30, 2020, was $172.8 million, compared to $126.6 million for the same period in 2019, reflecting a 37% increase[86] - Adjusted EBITDA for the six months ended June 30, 2020, was $368.1 million, up from $256.0 million in the prior year, reflecting a 43.8% increase[88] Expenses and Liabilities - Operating and maintenance expenses for the three months ended June 30, 2020, were $95.0 million, an increase of 64% from $57.9 million in the prior year[13] - Total current liabilities decreased to $157.8 million as of June 30, 2020, from $176.1 million at the end of 2019, a reduction of 10%[10] - Long-term debt increased to $1,822.7 million as of June 30, 2020, compared to $1,753.5 million at the end of 2019, reflecting a 4% rise[10] - Interest expense increased by $16.3 million in the first six months of 2020, primarily due to the issuance of $550 million in fixed-rate senior notes[147] Cash Flow and Investments - Cash flows from operating activities for the six months ended June 30, 2020, were $317.6 million, up from $251.0 million in 2019, indicating a 26.4% increase[28] - The company reported a net cash used in investing activities of $147.0 million for the six months ended June 30, 2020, compared to $301.3 million in 2019[28] - Cash flows provided by operating activities increased by $66.6 million in the first half of 2020 compared to the same period in 2019, driven by a $180.7 million increase in revenues[168] - Cash flows used in investing activities decreased by $154.3 million in the first half of 2020, primarily due to lower acquisition costs compared to the previous year[169] Shareholder Distributions - The company declared distributions of $0.4310 per share for the three months ended June 30, 2020, compared to $0.4258 per share in the previous quarter[20] - Distributions to shareholders/unitholders decreased to $15.5 million in 2020 from $41.2 million in 2019, a reduction of 62.4%[28] - The company declared a quarterly cash distribution of $0.4363 per Class A share, to be paid on August 14, 2020[160] Operational Highlights - The company operates primarily in the Bakken and Three Forks shale plays in North Dakota, focusing on gathering, processing and storage, and terminaling and export segments[31] - Gas gathering throughput volumes for the three months ended June 30, 2020, were 307 MMcf/d, up from 258 MMcf/d in the same period of 2019, representing an increase of approximately 19%[124][126] - Crude oil gathering throughput volumes for the three months ended June 30, 2020, were 141 MBbl/d, unchanged from the same period in 2019[124][126] - The company is pursuing strategic relationships with third-party producers and midstream companies to maximize utilization rates in the Bakken region[111] COVID-19 Impact - The COVID-19 pandemic has significantly impacted demand for oil and natural gas, leading to price volatility and potential long-term effects on operating results[188] - The company has implemented various health and safety measures in response to COVID-19, which may affect operational efficiency and workforce availability[187] - Forward-looking statements regarding future financial and operational results are subject to risks and uncertainties, including those related to the COVID-19 pandemic and market conditions[175] Acquisitions and Capital Expenditures - The company completed the acquisition of Hess Infrastructure Partners LP on December 16, 2019, which was accounted for as a business combination[32] - The company made no acquisitions from third parties in 2020, compared to $89.2 million in 2019[28] - Capital expenditures for the three months ended June 30, 2020, were $78.8 million, compared to $69.2 million in 2019, an increase of 14%[86] - Total capital expenditures for the first half of 2020 amounted to $135.8 million, compared to $96.6 million in the first half of 2019[172]