Hess Midstream LP Reports Strong Q4 2024 Results

By Bobby Samwell • Wednesday, January 29 10:28 • Permanent Link

Hess Midstream LP has reported estimated results for the fourth quarter of 2024, showcasing several key developments. The company completed an accretive $100 million repurchase of Class B units of Hess Midstream Operations LP in January 2025. This move supported an increase in the quarterly cash distribution to $0.7012 per Class A share for the fourth quarter of 2024, up $0.0166 per Class A share compared to the third quarter of 2024.

In the fourth quarter of 2024, the company reported net income of $172.1 million, an increase from $152.8 million in the fourth quarter of 2023. Net income attributable to Hess Midstream LP was $70.4 million, or $0.68 basic earnings per Class A share, compared to $0.55 in the fourth quarter of 2023. Adjusted EBITDA was $298.2 million and adjusted free cash flow was $164.3 million.

The company also noted a 15% increase in gas gathering and gas processing throughput volumes compared to the prior-year quarter, as well as an increase in crude oil gathering and terminaling throughput volumes.

Regarding financial results, revenues and other income in the fourth quarter of 2024 were $395.9 million compared to $356.5 million in the prior-year quarter, primarily due to higher physical volumes. Total operating costs and expenses in the fourth quarter of 2024 were $152.9 million, up from $146.4 million in the prior-year quarter.

For the full year 2024, net income was $659.0 million, and adjusted EBITDA was $1,136.1 million. At December 31, 2024, cash and cash equivalents were $4.3 million and debt was approximately $3.5 billion, representing leverage of approximately 3.1x adjusted EBITDA.

Operational highlights include an increase in throughput volumes for gas processing, gas gathering, crude oil gathering, terminaling, and water gathering in the fourth quarter of 2024 compared to the fourth quarter of 2023.

The company also disclosed that capital expenditures for the fourth quarter of 2024 totaled $84.3 million, up from $71.8 million in the prior-year quarter, primarily due to the continued expansion of gas compression and related pipeline infrastructure.

Hess Midstream LP plans to issue 2025 guidance in a separate release on January 29, 2025. As a result of these announcements, the company's shares have moved 0.4% on the market, and are now trading at a price of $41.05. If you want to know more, read the company's complete 8-K report here.

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