Hess Midstream (HESM) Investor presentation summary

Strategic platform and business model

• Operates a high-quality, integrated midstream portfolio serving Chevron and third parties, with significant scale and long-term commercial contracts extending through 2033.

• 100% fee-based contracts and minimum volume commitments (MVCs) provide cash flow stability and minimize commodity price exposure.

• Approximately 90% of 2026 revenues are protected by MVCs, supporting downside risk protection.

• Focus on financial strength with leverage targeted below 3.0x and at least 5% annual distribution per share (DPS) growth through 2028.

• Sustainability initiatives highlighted, including a report released in July 2025.

Financial performance and guidance

• 2026 guidance projects Adjusted EBITDA of $1,225–$1,275 million and capital expenditures of ~$150 million.

• Adjusted Free Cash Flow for 2026 is expected to be $850–$900 million, with ~$210 million after targeted distributions.

• Gross Adjusted EBITDA margin targeted at ~75% for 2026, with leverage expected to decrease below 3x.

• Annualized growth expected: ~1.5% in gas volumes, ~5% in Adjusted EBITDA, and ~10% in Adjusted Free Cash Flow from 2026–2028.

• At least $1 billion of Adjusted Free Cash Flow after distributions anticipated through 2028 for incremental shareholder returns and debt repayment.

Capital allocation and shareholder returns

• Committed to at least 5% annual DPS growth through 2028, fully funded from Adjusted Free Cash Flow.

• Since 2021, DPS increased by ~65% and $2.25 billion in share repurchases completed.

• Ongoing capital allocation prioritizes incremental shareholder returns and debt repayment, with leverage trending down to below 2.5x by 2028.

• Significant total return of capital, with approximately $1 billion of Adjusted Free Cash Flow after distributions expected through 2028.