Hess Midstream (HESM) Q4 2025 Earnings Transcript

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Feb. 2, 2026 astatine 10 a.m. ET

• Chief Executive Officer — Jonathan Stein

• Chief Financial Officer — Michael Chadwick

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Jonathan Stein: Thanks, Jennifer. Welcome everyone to our 4th fourth 2025 net call. Today, I volition reappraisal our 2025 performance, our 2026 and semipermanent guidance issued successful December, and past I'll manus the telephone implicit to Mike to reappraisal our fiscal show for the 4th fourth and guidance. In 2025, we continued our grounds of beardown show execution, completing our multiyear projects connected clip and connected budget, and strategically increasing our state gathering and compression system. With the strategy present substantially built, our projected superior spending volition beryllium importantly lower. In 2026, we expect to walk astir $150 million, a 40% simplification successful superior spending comparative to 2025.

We expect our superior walk to alteration adjacent further successful 2027 and 2028 to little than $75 cardinal per year. This little superior highlights our quality to leverage our humanities investments to thrust important escaped currency travel procreation that supports our unsocial operation of shareholder instrumentality and equilibrium expanse spot done a operation of targeted 5% organisation per Class A stock maturation done 2028, imaginable incremental stock repurchases, and indebtedness repayment. Now turning to Hess Midstream results. Fourth 4th volumes were mostly level twelvemonth implicit year, but down comparative to the 3rd 4th owed to terrible upwind done the period of December. Gas processing volumes averaged 444 cardinal cubic feet per day.

Crude terminaling volumes averaged 122,000 barrels of lipid per day, and h2o gathering volumes averaged 124,000 barrels of h2o per day. For afloat twelvemonth 2025, Hess Midstream's state processing volumes averaged 445 cardinal cubic feet per day. Crude terminaling volumes averaged 129,000 barrels of lipid per day, and h2o gathering volumes averaged 131,000 barrels of h2o per day, resulting successful afloat twelvemonth adjusted EBITDA of $1.238 billion. Looking forward, for 2026, we expect little volumes crossed our systems arsenic terrible wintertime upwind has continued done January and into February, unneurotic with mean contingencies for the remainder of the wintertime period.

On a full-year basis, we are reiterating the measurement guidance that we gave successful December for the afloat twelvemonth of 2026 and expect maturation successful volumes crossed our systems done the remainder of the twelvemonth accordant with humanities seasonal measurement expectations. With revenues that are astir 95% protected by MVCs connected a full-year basis, we expect nett income and adjusted EBITDA to beryllium higher done the remainder of 2026 comparative to our archetypal 4th guidance.