Hess Midstream LP — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income was $179.1 million for the third quarter of 2026, compared to $175.5 million in the prior-year quarter.
• Net income attributable to Hess Midstream LP was $99.4 million, or $0.77 basic earnings per Class A share, compared to $0.75 in the third quarter of 2025.
• Revenues and other income were $410.1 million, down from $420.9 million in the prior-year quarter, primarily due to lower throughput volumes partially offset by higher tariff rates.
• Total operating costs and expenses were $147.7 million, down from $162.0 million in the prior-year quarter, driven by lower charges under omnibus and employee secondment agreements and lower maintenance expenses.
• Interest expense, net of interest income, was $53.6 million, down from $57.1 million in the prior-year quarter, primarily due to reduced borrowings under the revolving credit facility.
• Adjusted EBITDA was $319.9 million, compared to $320.7 million in the prior-year quarter.
• Net cash provided by operating activities was $267.9 million.
• Adjusted Free Cash Flow was $247.9 million, compared to $186.8 million in the prior-year quarter.
• At September 30, 2026, the drawn balance on the revolving credit facility was $180.0 million.
• Gross Adjusted EBITDA Margin was 84% for the third quarter of 2026, compared to 82% in the prior-year quarter.

Guidance and Future Outlook:

• Hess Midstream is reiterating its updated full-year 2026 guidance:
  • Net income: $650 million to $675 million.
  • Adjusted EBITDA: $1,225 million to $1,250 million.
  • Capital expenditures: $105 million.
  • Adjusted Free Cash Flow: $910 million to $935 million.
• Full-year 2026 throughput volume guidance:
  • Gas gathering: 435–445 MMcf per day.
  • Crude oil gathering: 110–120 MBbl per day.
  • Gas processing: 425–435 MMcf per day.
  • Crude terminals: 120–130 MBbl per day.
  • Water gathering: 120–130 MBbl per day.
• The company expects to continue targeting annual distribution per Class A share growth of at least 5% on an annualized basis in the fourth quarter of 2026.
• Hess Midstream intends to maintain quarterly distributions in 2027 consistent with the expected fourth quarter 2026 distribution amount, fully funded by Adjusted Free Cash Flow.

Business Segments and Product Lines:

• Throughput volumes decreased in the third quarter of 2026 compared to the third quarter of 2025:
  • Oil Terminaling: down 10%.
  • Gas Processing: down 8%.
  • Water Gathering: down 4%.
• Direct third-party volumes were relatively flat compared to the prior-year quarter.
• Capital expenditures totaled $21.5 million for the third quarter of 2026, a 73% decrease from $79.8 million in the prior-year quarter, mainly due to the completion of the gas compression capacity expansion in January 2026.
• The company announced a transaction on October 6, 2026, expected to close by the end of the year, which will add DJ Basin assets.
• The transaction is expected to approximately triple crude gathering throughput and significantly grow gas gathering throughput, while adding ownership in a long-haul crude oil pipeline.

Market and Competitive Landscape:

• Hess Midstream operates as a fee-based, growth-oriented midstream company serving Chevron, its subsidiaries, and third-party customers.
• Assets are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota.
• The company aims to transform into a multi-basin, independent midstream company following the anticipated closing of the DJ Basin transaction.

Risks and Challenges:

• Forward-looking statements are subject to risks including the proposed transaction not closing on the anticipated timeline or at all.
• Risks include the ability to efficiently integrate DJ Basin assets and uncertainties associated with Chevron continuing to provide employees and services under amended agreements.
• Potential risks include diversion of management time, unforeseen transaction expenses, and tax implications of the proposed transaction.
• Business risks include reductions in crude oil, natural gas, NGLs, and produced water volumes; fluctuations in commodity prices and demand; and the ability to meet credit facility obligations.
• Additional risks involve regulatory compliance, environmental legislation, labor disputes, cyber-attacks, and the ability to access debt or capital markets.

Management Commentary and Tone:

• Jonathan Stein, Chief Executive Officer, stated the third quarter reflected a continued focus on managing costs while executing growth.
• Management highlighted a solid operational foundation and a sustained track record for generating free cash flow after distributions.
• The CEO expressed excitement about the transformation into a multi-basin company and the diversification provided by the DJ Basin assets.
• The tone indicates confidence in the company's ability to provide a consistent base for future distributions, capital allocation, and shareholder returns.

Other Key Points:

• The Board of Directors declared a quarterly cash distribution of $0.7985 per Class A share for the third quarter of 2026, an increase of $0.0097 per share compared to the second quarter of 2026.
• The distribution is expected to be paid on November 13, 2026, to shareholders of record as of November 5, 2026.
• The company's sponsor structure changed over time: Hess Corporation and Global Infrastructure Partners prior to May 30, 2025; Hess from May 30, 2025, to July 17, 2025; and Chevron from July 18, 2025.
• Non-GAAP measures including Adjusted EBITDA, Adjusted Free Cash Flow, and Gross Adjusted EBITDA Margin are utilized to facilitate comparisons and assess operating performance.