Hess Midstream (HESM) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $161.4 million, with Adjusted EBITDA of $292.3 million and operating cash flow of $202.4 million, reflecting strong operational performance despite severe winter weather impacting volumes early in the quarter, followed by a robust recovery in March.

• Revenues and other income rose to $382.0 million from $355.6 million in Q1 2024, driven by increased throughput across gas processing, oil terminaling, and water gathering, as well as higher tariff rates and services to third parties.

• Bakken net production averaged 195,000 boe/d in Q1; guidance for Q2 is 210,000-215,000 boe/d, up ~9% at midpoint.

• Quarterly cash distribution increased to $0.7098 per Class A share, up $0.0086 from Q4 2024, with continued commitment to returning capital to shareholders.

• Public ownership increased to 53.8% following equity offering and unit repurchase transactions; $100 million Class B unit repurchase completed in January 2025.

Financial highlights

• Q1 2025 net income: $161.4 million; net income attributable to Hess Midstream LP: $71.6 million, or $0.65 per Class A share; Adjusted EBITDA: $292.3 million; revenues: $382.0 million.

• Adjusted free cash flow for Q1 2025 was approximately $191 million.

• Net cash provided by operating activities: $202.4 million, up from $185.3 million in Q1 2024.

• Capital expenditures for Q1 2025 totaled $50.1 million, primarily for compression and pipeline expansion.

• Gross adjusted EBITDA margin was 82% in Q1 2025, above the 75% target.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: net income $715–$765 million, Adjusted EBITDA $1,235–$1,285 million, capital expenditures $300 million, and Adjusted Free Cash Flow $735–$785 million.

• Q2 2025 net income expected at $170-$180 million; adjusted EBITDA at $300-$310 million, reflecting higher volumes and revenues.

• Distributions per Class A share targeted to grow at least 5% annually through 2027, supported by MVCs.

• Management expects all volumes to remain above minimum volume commitments (MVCs) through 2027, supporting stable cash flows.

• Expects organic throughput volume growth across all systems for 2026 and 2027 relative to 2025.