Hess Midstream LP provides long-term financial guidance

The company said, “Supported by a combination of growth in physical volumes across gas systems, higher average tariff rates and lower capital spending from 2026 through 2028, Hess Midstream expects net income and Adjusted EBITDA annualized growth of approximately 5% through 2028 from 2026 levels. Gas processing and gathering is expected to represent approximately 75% of total affiliate revenues in 2026 and 2027, excluding pass-through revenues. Gross Adjusted EBITDA Margin is targeted to be approximately 75% from 2026 through 2028. Hess Midstream expects to start paying income taxes in 2026. Hess Midstream expects capital expenditures of less than $75 million a year in each of 2027 and 2028, significantly lower compared with 2026 levels. This includes ongoing capital expenditures focused on the interconnection of Chevron and third-party gas, oil, water volumes and maintenance. Hess Midstream expects Adjusted Free Cash Flow annualized growth of approximately 10% through 2028 from 2026 levels, which is expected to be more than sufficient to fully fund targeted distribution growth. Hess Midstream expects approximately 1.5% annualized growth in gas throughput volumes and relatively flat oil throughput volumes from 2026 through 2028, consistent with Chevron’s plans to maintain production at approximately 200,000 barrels of oil equivalent per day and Hess Midstream maintaining third party volumes at 10% of total throughput on average across oil and gas volumes. Hess Midstream is targeting annual distribution per Class A share growth of at least 5% through 2028, expected to be fully funded from Adjusted Free Cash Flow and expects to generate approximately $1 billion of Adjusted Free Cash Flow after Distributions through 2028 that is expected to be available for incremental shareholder returns and debt repayment. Hess Midstream continues to prioritize financial strength and expects its long-term leverage to decrease below 3x Adjusted EBITDA.”