Hess Midstream LP(US:HESM)2021-11-03 16:00Financial Performance - Total revenues for the three months ended September 30, 2021, were $303.9 million, an increase of 14.5% compared to $264.8 million for the same period in 2020[13]. - Net income for the three months ended September 30, 2021, was $131.1 million, up 13.5% from $115.8 million in the same period of 2020[17]. - Net income attributable to Hess Midstream LP for the three months ended September 30, 2021, was $9.9 million, representing a 76.8% increase from $5.6 million in the prior year[13]. - Basic earnings per Class A share for the three months ended September 30, 2021, were $0.39, compared to $0.31 for the same period in 2020, reflecting a 25.8% increase[13]. - Net income for the nine months ended September 30, 2021, was $452.7 million, an increase of 28.4% compared to $352.6 million in 2020[21]. - Total revenues for the nine months ended September 30, 2021, reached $887.5 million, compared to $825.1 million for the same period in 2020, reflecting a 7.6% growth[43]. - Revenues and other income for the nine months ended September 30, 2021, totaled $887.5 million, compared to $825.4 million in 2020, a 7.5% increase[77]. - Distributable cash flow for the three months ended September 30, 2021, was $171.5 million, a 9.6% increase from $156.2 million in the same period of 2020[148]. Assets and Liabilities - Total current assets increased to $151.5 million as of September 30, 2021, from $101.4 million as of December 31, 2020, marking a 49.4% growth[11]. - Long-term debt rose to $2,595.1 million as of September 30, 2021, compared to $1,900.1 million as of December 31, 2020, indicating a 36.7% increase[11]. - Total liabilities increased to $2,786.7 million as of September 30, 2021, from $2,048.5 million as of December 31, 2020, a rise of 36.0%[11]. - Total assets as of September 30, 2021, were $3,455.8 million, an increase from $3,374.5 million as of December 31, 2020[78]. - As of September 30, 2021, total debt was $2,612.6 million with a fair value of approximately $2,707.5 million[62]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased to $572.0 million from $467.2 million, reflecting a growth of 22.4% year-over-year[21]. - Cash flows from investing activities showed a net outflow of $120.0 million, a decrease from $245.9 million in the previous year, indicating reduced capital expenditures[21]. - Capital expenditures for the nine months ended September 30, 2021, were $128.6 million, compared to $202.2 million in 2020, a decrease of 36.3%[77]. - Expansion capital expenditures for the nine months ended September 30, 2021, were $119.0 million, down 39.1% from $195.7 million in the same period of 2020[168]. Revenue Sources - Approximately 100% of the company's revenues for the nine months ended September 30, 2021, were attributable to fee-based commercial agreements with Hess[41]. - The company has long-term fee-based agreements with Hess, with minimum volume commitments set at 80% of Hess' nominations[37]. - Total revenues from contracts with customers for Q3 2021 were $303.9 million, a 14.0% increase from $264.7 million in Q3 2020[43]. - Oil and gas gathering services revenue increased to $135.3 million in Q3 2021 from $118.7 million in Q3 2020, representing a 14.0% growth[43]. - Processing and storage services revenue rose to $111.1 million in Q3 2021, up from $90.1 million in Q3 2020, marking a 23.3% increase[43]. Expenses - Operating and maintenance expenses for the three months ended September 30, 2021, were $98.1 million, up from $83.9 million in the same period of 2020, a 16.5% increase[13]. - Total costs and expenses in Q3 2021 were $144.7 million, up from $127.6 million in Q3 2020, driven by higher operating and maintenance expenses[97]. - Interest expense increased by $4.8 million in Q3 2021, primarily due to the issuance of $750.0 million in fixed-rate senior notes[127]. - General and administrative expenses rose by $1.1 million in Q3 2021, mainly due to higher professional fees[127]. Debt and Financing - The partnership issued $750.0 million in fixed-rate senior notes at 4.250% due 2030 on August 5, 2021[52]. - The company completed a Class B unit repurchase transaction for $750.0 million, funded through the issuance of senior unsecured notes[33]. - The company maintained a total debt to EBITDA ratio of not greater than 5.00 to 1.00 as of September 30, 2021, in compliance with debt covenants[61]. - The company declared a distribution of $0.5104 per Class A share for Q3 2021, an increase from $0.4417 in Q3 2020[63]. Market and Operational Risks - The company highlighted risks related to the COVID-19 pandemic affecting operations and cash flow generation[33]. - The company emphasized the importance of compliance with government regulations and the potential impact of environmental legislation on operations[33]. - The company is exposed to market risks related to changes in interest rates, which may impact financial performance[175]. - Legal proceedings and risk factors that could materially affect the business are detailed in the Annual Report on Form 10-K[181].