Hess Midstream LP(US:HESM)2025-01-29 13:00Financial Performance - Fourth quarter 2024 net income was $172.1 million, an increase from $152.8 million in the fourth quarter of 2023, with net income attributable to Hess Midstream LP at $70.4 million, or $0.68 basic earnings per Class A share, compared to $0.55 in the prior year [3][8]. - Adjusted EBITDA for the fourth quarter of 2024 was $298.2 million, up from $262.9 million in the prior-year quarter, while Adjusted Free Cash Flow was $164.3 million, compared to $145.4 million in the fourth quarter of 2023 [9][19]. - Revenues for the fourth quarter of 2024 were $395.9 million, up from $356.5 million in the prior-year quarter, primarily due to higher physical volumes [7]. - Full year 2024 net income was $659.0 million, with full year Adjusted EBITDA at $1,136.1 million [9]. - Net income for the year ended December 31, 2024, was $659.0 million, a 8.5% increase from $607.7 million in 2023 [21]. - Adjusted EBITDA for the year ended December 31, 2024, was $1,136.1 million, compared to $1,017.1 million in 2023, marking a 11.7% increase [21]. - Total revenues for the year ended December 31, 2024, were $1,495.5 million, up from $1,348.6 million in 2023, representing a 10.9% growth [23]. Operational Metrics - Throughput volumes increased approximately 15% for gas gathering and gas processing, 11% for crude oil gathering, and 6% for terminaling compared to the fourth quarter of 2023, driven by higher production and gas capture [6][11]. - Gas gathering throughput volumes increased to 463 Mcf per day in Q4 2024, up 14.9% from 403 Mcf per day in Q4 2023 [38]. - Crude oil gathering volumes rose to 120 bopd in Q4 2024, a 11.1% increase from 108 bopd in Q4 2023 [38]. Capital Expenditures - Capital expenditures for the fourth quarter of 2024 totaled $84.3 million, an increase from $71.8 million in the prior-year quarter, mainly for the expansion of gas compression and related pipeline infrastructure [12]. - Capital expenditures for the year ended December 31, 2024, were $288.5 million, an increase from $245.7 million in 2023 [21]. Cash Flow and Debt - Net cash provided by operating activities for the fourth quarter of 2024 was $258.5 million, compared to $247.6 million in the prior-year quarter [19]. - The company reported net cash provided by operating activities of $940.3 million for the year ended December 31, 2024, compared to $866.4 million in 2023 [21]. - At December 31, 2024, cash and cash equivalents were $4.3 million, and total debt was approximately $3.5 billion, resulting in a leverage ratio of approximately 3.1x Adjusted EBITDA [9]. Shareholder Returns - The company completed a $100 million repurchase of Class B units in January 2025, which supported an increase in quarterly cash distribution to $0.7012 per Class A share for the fourth quarter of 2024 [6][13]. - Basic net income per Class A share for the year ended December 31, 2024, was $2.51, up from $2.11 in 2023 [32]. Expenses - Operating and maintenance expenses for Q4 2024 totaled $92.7 million, up from $88.0 million in Q4 2023, reflecting a 4.3% increase [34]. - Interest expense for Q4 2024 was $52.2 million, compared to $47.8 million in Q4 2023, indicating an increase of 9.2% [34]. - General and administrative expenses for Q4 2024 were $8.9 million, slightly up from $8.0 million in Q4 2023 [34]. Future Outlook - The company anticipates continued growth in throughput volumes and revenue for the upcoming quarters, driven by market expansion and operational efficiencies [34]. - The company plans to issue 2025 guidance in a separate release on January 29, 2025 [9].