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

Financial Performance - Net income for Q3 2024 was $164.7 million, with net income attributable to Hess Midstream LP at $58.6 million, or $0.63 per Class A share, compared to $0.57 per Class A share in Q3 2023[1][7] - Adjusted EBITDA for Q3 2024 was $286.9 million, representing an increase from $269.7 million in Q3 2023[1][22] - Total revenues for the third quarter of 2024 reached $378.5 million, an increase from $363.1 million in the same quarter of 2023[28] - Net income attributable to Hess Midstream LP for the third quarter of 2024 was $58.6 million, compared to $35.3 million in the third quarter of 2023, reflecting a growth of 66%[28] - The company reported total revenues of $1,099.6 million for the nine months ended September 30, 2024, up from $992.1 million in the same period of 2023, indicating a year-over-year increase of approximately 11%[31] - The basic net income per Class A share for the third quarter of 2024 was $0.63, compared to $0.57 in the same quarter of 2023, reflecting an increase of approximately 10.5%[28] - The company reported a net income of $164.7 million for Q3 2024, compared to $164.8 million in Q3 2023, indicating a marginal decrease[33] Cash Distribution and Guidance - Quarterly cash distribution was increased to $0.6846 per Class A share, reflecting a $0.0169 increase from Q2 2024, supported by excess Adjusted Free Cash Flow[3][14] - Hess Midstream expects Q4 2024 net income of $170 - $185 million and Adjusted EBITDA of $295 - $310 million, indicating a projected 5% increase in Adjusted EBITDA compared to Q3 2024[4][15] - The company anticipates adjusted free cash flow for the fourth quarter to be between $180 million and $195 million, with an annual guidance of $670 million to $685 million[24] - Net income for the fourth quarter is projected to be between $170 million and $185 million, with an annual guidance of $655 million to $670 million[24] - Adjusted EBITDA for the fourth quarter is expected to range from $295 million to $310 million, with an annual guidance of $1,135 million to $1,150 million[24] Operational Metrics - Throughput volumes increased by 9% for gas gathering and processing compared to Q3 2023, driven by higher production and gas capture[4][12] - Gas gathering throughput averaged 442 Mcf per day in Q3 2024, an increase from 404 Mcf per day in Q3 2023, marking a 9% growth[37] - Gas processing throughput averaged 419 Mcf per day in Q3 2024, up from 386 Mcf per day in Q3 2023, indicating an 8% increase[37] - Crude oil gathering throughput remained stable at 116 bopd in both Q3 2024 and Q3 2023[37] - Water gathering throughput improved to 128 blpd in Q3 2024, compared to 99 blpd in Q3 2023, reflecting a 29% increase[37] - NGL loading increased to 15 blpd in Q3 2024, up from 13 blpd in Q3 2023, representing a 15% increase[37] Expenses and Capital Expenditures - Capital expenditures for Q3 2024 totaled $96.3 million, up from $64.5 million in the prior-year quarter, primarily for gas compression and pipeline infrastructure expansion[13][22] - Operating and maintenance expenses for the nine months ended September 30, 2024, were $254.6 million, compared to $225.0 million in the same period of 2023, representing an increase of about 13%[31] - Operating and maintenance expenses for Q3 2024 totaled $89.0 million, compared to $89.4 million in Q3 2023, showing a slight decrease[33] - Interest expense for Q3 2024 was $51.8 million, an increase from $45.8 million in Q3 2023, mainly due to new debt issuance[10][22] - Interest expense for the third quarter of 2024 was $51.8 million, up from $45.8 million in the same quarter of 2023[28] - Interest expense for Q3 2024 was $51.8 million, consistent with $45.8 million in Q3 2023, reflecting stable financing costs[33] Future Outlook and Strategy - The company reaffirms its full-year 2024 throughput guidance, anticipating approximately 10% annualized growth in gas throughput volumes from 2024 through 2026[5][17] - Hess Midstream targets at least 5% annual distribution growth per Class A share through 2026, with a long-term leverage target of 3x Adjusted EBITDA[6][17] - The company anticipates generating over $1.25 billion of financial flexibility through 2026 for potential shareholder returns, including unit repurchases[6][17] - The company is currently evaluating future growth strategies, including potential mergers and acquisitions, as indicated in their forward-looking statements[26]