Hess Midstream (HESM) Q1 2026 earnings summary

Executive summary

• Achieved strong operational performance in Q1 2026, meeting guidance despite severe winter weather impacts and lower throughput volumes.

• Revenues for Q1 2026 were $390.1 million, up from $382.0 million in Q1 2025, driven by higher tariff rates, third-party services, and pass-through revenues.

• Net income for Q1 2026 was $157.7 million, with $87.6 million attributable to Class A shareholders ($0.68 per share, basic and diluted).

• Adjusted EBITDA for Q1 2026 was $299.8 million, up from $292.3 million in Q1 2025.

• Completed $60 million in share and unit repurchases and increased distributions by 2% sequentially, or 8% annualized for Class A shares.

Financial highlights

• Q1 2026 net income was $157.7 million, down from $168 million in Q4 2025.

• Adjusted EBITDA was $299.8 million, compared to $309 million in the previous quarter.

• Gross adjusted EBITDA margin was 83% in Q1 2026, above the 75% target.

• Adjusted free cash flow reached $237 million, up 14% sequentially.

• Capital expenditures for Q1 2026 were $10.4 million, reflecting completion of gas compression expansion.

Outlook and guidance

• Expect Q2 2026 net income of $150–$160 million and adjusted EBITDA of $295–$305 million, reflecting planned maintenance at Tioga Gas Plant.

• Full-year 2026 net income guidance is $650–$700 million; adjusted EBITDA $1.225–$1.275 billion, flat at midpoint versus 2025.

• Capital expenditures for 2026 reduced to ~$100–$105 million, down a third from prior guidance.

• Adjusted free cash flow guidance for 2026 raised to $910–$960 million, a 20% year-over-year increase at midpoint.

• No material income taxes expected until after 2028, supporting higher free cash flow.