Hess Midstream Partners Lp ( (HESM) ) has released its Q2 earnings. Here is a breakdown of the information Hess Midstream Partners Lp presented to its investors.
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Hess Midstream LP is a fee-based, growth-oriented midstream company that operates in the energy sector, focusing on oil, gas, and produced water handling assets primarily located in the Bakken and Three Forks Shale plays in North Dakota. In its second quarter of 2025 earnings report, Hess Midstream announced a net income of $179.7 million, an increase from the previous year’s $160.3 million. The company also reported an adjusted EBITDA of $316.0 million and adjusted free cash flow of $193.8 million. Notably, the company completed a $190.0 million repurchase of Class B units and a $10.0 million repurchase of Class A shares, contributing to an increased quarterly cash distribution of $0.7370 per Class A share.
Key financial highlights include a 7% increase in gas processing throughput volumes, a 9% increase in oil terminaling, and an 11% increase in water gathering compared to the prior-year quarter. The company’s revenues rose to $414.2 million, driven by higher physical volumes and tariff rates, while operating costs increased due to higher pass-through electricity and produced water trucking costs. Additionally, Hess Midstream’s senior unsecured debt received an upgrade to an investment grade rating of BBB- by S&P.
Looking ahead, Hess Midstream reaffirmed its full-year 2025 throughput and adjusted EBITDA guidance, updating its net income guidance to $685 – $735 million. The company continues to target at least 5% annual distribution growth per Class A share through 2027 and anticipates organic throughput volume growth across all systems for 2026 and 2027.
Overall, Hess Midstream’s strategic focus on operational efficiency and shareholder returns positions it well for continued growth, with expectations of increasing financial flexibility and shareholder returns through 2027.