Hess Midstream LP(HESM)2024-10-30 19:20Financial Data and Key Metrics Changes - For Q3 2024, net income was 160 million in Q2 2024 [20] - Adjusted EBITDA for Q3 2024 was 276 million in Q2 2024, primarily due to higher throughput volumes [20][22] - The gross adjusted EBITDA margin for Q3 was maintained at approximately 80%, above the 75% target [22] Business Line Data and Key Metrics Changes - Gas processing throughput averaged 419 million cubic feet per day, crude terminaling averaged 122,000 barrels per day, and water gathering averaged 128,000 barrels per day in Q3 2024 [7] - Gathering revenues increased by approximately 1 million, while terminaling revenues decreased by approximately 270 million, supporting Hess and third-party development in the Bakken [13] - The company plans to grow throughput by approximately 10% across its oil and gas systems in 2024 compared to 2023 [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the impact of October wildfires would primarily affect volume rather than costs, with a recovery expected [36] - The company expects approximately 10% annualized growth in oil and gas volumes through 2026, supporting greater than 10% growth in adjusted EBITDA [24] - Management remains optimistic about capturing additional third-party volumes while supporting Hess' production growth [32] Other Important Information - The company has returned 1.25 billion of financial flexibility through 2026 for incremental shareholder returns [17] Q&A Session Summary Question: What is the sponsorship appetite given recent ownership changes? - Management indicated that secondary offerings are demand-driven and there is no preset pace for changes in ownership levels [27][30] Question: How does the company view long-term growth in Bakken? - The company maintains a long-term outlook of approximately 10% for third-party volumes and is positioned to capture additional opportunities [31][56] Question: What impact will wildfires have on costs and volumes? - The primary impact will be on volumes due to power outages, with a recovery expected [36] Question: Can you elaborate on the guidance for 2024? - Despite the wildfires, the company anticipates a 5% increase in EBITDA for Q4 compared to Q3, with various factors influencing the range [39] Question: What is the outlook for M&A activity? - The company continues to look for strategic bolt-on opportunities that strengthen its position in the basin while prioritizing its return of capital program [58][61]