Hess Midstream LP Reports Strong Q1 2024 Results

By Bobby Samwell • Thursday, April 25 10:19 • Permanent Link

Hess Midstream LP has reported its estimated results for the first quarter of 2024, and the numbers are looking strong. The company's throughput volumes increased across the board, with a 16% increase for gas processing, 13% for oil terminaling, and a substantial 47% for water gathering compared to the prior-year quarter. Net income for the first quarter of 2024 was $161.9 million, a notable increase from the $142.2 million reported for the first quarter of 2023.

Adjusted EBITDA was reported at $275.8 million, and adjusted free cash flow reached $194.2 million. The company also completed an accretive $100 million repurchase of class B units of Hess Midstream Operations LP in March 2024.

In terms of cash distribution, the company increased its quarterly cash distribution to $0.6516 per class A share for the first quarter of 2024, representing an approximate 2.7% increase compared to the fourth quarter of 2023.

Looking at the operational highlights, throughput volumes saw significant increases across gas gathering, gas processing, crude oil gathering, terminaling, and water gathering. Capital expenditures for the first quarter of 2024 totaled $35.2 million, primarily attributable to the expansion of gas compression capacity.

The company's financials also showed strong performance, with revenues and other income in the first quarter of 2024 reaching $355.6 million, compared to $305.0 million in the prior-year quarter. However, total operating costs and expenses also increased to $133.6 million from $116.3 million, primarily due to higher maintenance expenses and depreciation expense for additional assets placed in service.

Hess Midstream's guidance for the full year 2024 includes targets for net income, adjusted EBITDA, capital expenditures, and adjusted free cash flow. The company continues to prioritize financial strength with a long-term leverage target of 3x adjusted EBITDA.

As a result of these announcements, the company's shares have moved -1.8% on the market, and are now trading at a price of $34.98. For more information, read the company's full 8-K submission here.

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