Hess Midstream LP(US:HESM)2025-11-03 13:00Financial Performance - Third quarter 2025 net income was $175.5 million, an increase from $164.7 million in the same quarter of 2024, with net income attributable to Hess Midstream LP at $97.7 million, or $0.75 per Class A share, compared to $0.63 per share in Q3 2024[3][9] - Revenues for Q3 2025 were $420.9 million, up from $378.5 million in Q3 2024, primarily due to higher physical volumes and tariff rates[8] - Net income for Q3 2025 was $175.5 million, an increase from $164.7 million in Q3 2024, representing a growth of 4.8%[23] - Total revenues for Q3 2025 reached $420.9 million, up from $378.5 million in Q3 2024, indicating a year-over-year increase of 11.1%[24] - Adjusted EBITDA for Q3 2025 was $320.7 million, compared to $286.9 million in Q3 2024, reflecting a growth of 11.8%[24] - Net income attributable to Hess Midstream LP for the nine months ended September 30, 2025, was $259.6 million, compared to $152.7 million in 2024, reflecting a significant increase of 69.9%[34] - Basic earnings per Class A share rose to $2.15 for the nine months ended September 30, 2025, compared to $1.82 in 2024, marking a growth of 18.2%[34] Cash Flow and Distributions - Adjusted Free Cash Flow was $186.8 million[5][10] - The company completed a $70 million repurchase of Class A shares and a $30 million repurchase of Class B units, leading to an increase in quarterly cash distribution to $0.7548 per Class A share, up $0.0178 from Q2 2025[5][14] - Adjusted free cash flow guidance for Q4 2025 is projected to be between $190 million and $200 million[25] Operational Metrics - Throughput volumes increased by 10% for gas processing, 7% for oil terminaling, and 7% for water gathering compared to the prior-year quarter[5][11] - Gas gathering throughput volumes for the third quarter of 2025 averaged 480 Mcf per day, up from 442 Mcf per day in the third quarter of 2024, representing an increase of 8.6%[40] - Crude oil gathering throughput volumes for the nine months ended September 30, 2025, increased to 122 bopd, compared to 112 bopd in 2024, reflecting a growth of 8.9%[40] Capital Expenditures - Capital expenditures for Q3 2025 totaled $79.8 million, down from $96.3 million in the prior-year quarter, primarily for gas compression and pipeline infrastructure expansion[13] - The company is reducing its full-year 2025 capital expenditure guidance to approximately $270 million due to the suspension of the Capa gas plant project[16] Debt and Ratings - Hess Midstream's senior unsecured debt was upgraded to an investment grade rating of BBB- by S&P on July 24, 2025[10] Future Projections - For Q4 2025, Hess Midstream expects net income of $170 - $180 million and Adjusted EBITDA of $315 - $325 million, implying a full-year expected net income of $685 - $695 million[15] - The company expects net income for the full year 2025 to be in the range of $685 million to $695 million[25] Other Financial Metrics - Gross margin improved to 62% in Q3 2025, compared to 61% in Q3 2024[24] - The gross adjusted EBITDA margin for Q3 2025 was 82%, up from 81% in Q3 2024[24] - Interest expense for Q3 2025 was $57.1 million, compared to $51.8 million in Q3 2024[32] - Operating and maintenance expenses for the nine months ended September 30, 2025, totaled $277.8 million, compared to $254.6 million in 2024, an increase of 9.1%[34] - Interest expense for the nine months ended September 30, 2025, was $168.9 million, up from $150.0 million in 2024, indicating an increase of 12.6%[34] Shareholder Information - Following the merger with Chevron, Chevron now indirectly owns approximately 37.9% of Hess Midstream[6] - The weighted average Class A shares outstanding increased to 120.9 million for the nine months ended September 30, 2025, compared to 84.0 million in 2024, reflecting a growth of 43.6%[34]