Hess Midstream (HESM) Investor Presentation summary

Strategic platform and business model

• Integrated midstream infrastructure provides oil, gas, and water services to both Hess and third parties, supporting long-term growth with limited capex.

• Long-term commercial contracts extend through 2033, with 100% fee-based structure minimizing commodity price exposure.

• Minimum Volume Commitments (MVCs) set on a three-year rolling basis, currently through 2026, protect ~85% of 2024 revenues.

• Combination of fixed fee and cost-of-service revenue supports cash flow stability and growth visibility.

• ESG stewardship recognized, with sustainability reports released for 2020–2022.

Financial performance and guidance

• 2024 Adjusted EBITDA guidance is $1,125–$1,175 million, with capex of $250–$275 million.

• Adjusted Free Cash Flow for 2024 is projected at $675–$725 million, with >10% expected growth in 2025 and 2026.

• Gross Adjusted EBITDA Margin targeted at ~75% for 2024.

• Leverage expected to decline to below 2.5x EBITDA by end of 2025.

• At least 5% annual distribution per share (DPS) growth targeted through 2026.

Return of capital and shareholder focus

• Distributions fully funded from Adjusted Free Cash Flow, with ongoing targeted DPS increases of at least 5% annually through 2026.

• Over $1.25 billion of financial flexibility expected through 2026 for potential incremental share repurchases.

• Since 2021, DPS increased by ~48% and $1.75 billion in sponsor Class B unit repurchases completed.

• Additional distribution increases above the 5% target are possible, funded by excess free cash flow and leverage capacity.