Hess Midstream (HESM) Q3 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in Q3 2025, with net income rising to $175.5 million and revenues reaching $420.9 million, driven by higher volumes and tariffs despite localized flooding impacts.

• Adjusted EBITDA increased to $321 million, supported by higher third-party gas gathering and processing volumes and strategic Bakken assets.

• Completed merger with Chevron in July 2025, making Chevron the direct parent and primary sponsor with a 37.9% interest; public ownership increased to 62.1% by September 30, 2025.

• Executed $100 million in share and unit repurchases and increased quarterly distribution to $0.7548 per Class A share, up $0.0178 from Q2.

• Achieved investment grade rating (BBB-) from S&P in July 2025, enhancing financial flexibility and capital allocation options.

Financial highlights

• Q3 2025 net income was $175.5 million, up from $164.7 million in Q3 2024, and adjusted EBITDA rose to $321 million.

• Revenues for Q3 2025 were $420.9 million, an increase of $42.4 million year-over-year.

• Operating cash flow was $258.9 million, and adjusted free cash flow was about $187 million for the quarter.

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

• Q3 2025 capital expenditures were approximately $80 million, down from $96.3 million a year ago.

Outlook and guidance

• Q4 2025 net income expected between $170 million-$180 million; adjusted EBITDA between $315 million-$325 million.

• Full year 2025 net income guidance narrowed to $685 million-$695 million; adjusted EBITDA to $1.245 billion-$1.255 billion.

• 2025 capital expenditures now expected at ~$270 million after suspending the Capa gas plant project.

• Adjusted free cash flow for 2025 projected at $760 million-$770 million, with excess free cash flow of ~$140 million after funding targeted distributions.

• Majority of volumes expected to remain above minimum volume commitments (MVCs) through 2027.