Hess Midstream Partners Q4 Earnings Call Highlights

Hess Midstream Partners (NYSE:HESM) executives said the institution finished 2025 with grounds operational execution, completed large multiyear projects connected clip and connected budget, and is entering a play of materially little superior spending that absorption expects volition thrust higher escaped currency travel and enactment a operation of organisation growth, indebtedness repayment, and imaginable further shareholder returns.

On the company’s fourth-quarter 2025 net call, Chief Executive Officer Jonathan Stein and Chief Financial Officer Mike Chadwick besides pointed to terrible wintertime upwind arsenic a cardinal origin affecting late-year volumes and near-term expectations for aboriginal 2026. Management reiterated guidance issued successful December for 2026 and its longer-term outlook done 2028.

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Stein said fourth-quarter volumes were “generally level year-over-year,” but declined versus the 3rd 4th owed to terrible upwind during December. For the 4th quarter, the institution reported mean volumes of:

• Gas processing: 444 cardinal cubic feet per day

• Crude terminaling: 122,000 barrels of lipid per day

• Water gathering: 124,000 barrels of h2o per day

For full-year 2025, Hess Midstream reported mean volumes of 445 cardinal cubic feet per time for state processing, 129,000 barrels of lipid per time for crude terminaling, and 131,000 barrels of h2o per time for h2o gathering. The institution reported full-year 2025 adjusted EBITDA of $1,238 million.

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Chadwick said full-year 2025 nett income was astir $685 million, and that adjusted EBITDA accrued astir 9% from 2024. For the 4th quarter, nett income was $168 cardinal compared with astir $176 cardinal successful the 3rd quarter, portion adjusted EBITDA was $309 cardinal compared with astir $321 cardinal successful the 3rd quarter.

Chadwick attributed the quarter-to-quarter diminution chiefly to little revenues driven by terrible wintertime upwind and a dilatory betterment done December, arsenic good arsenic little interruptible third-party volumes and yearly attraction astatine LM4. Total revenues (excluding pass-through revenues) declined by astir $19 million, including decreases of astir $11 cardinal successful gathering, $6 cardinal successful processing, and $2 cardinal successful terminaling.

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Costs and expenses (excluding depreciation and amortization, pass-through costs, and nett of the company’s proportional stock of LM4 earnings) decreased by astir $7 million, driven by little allocations nether omnibus and worker secondment agreements and little seasonal attraction activity, partially offset by higher processing fees. Chadwick said the company’s gross adjusted EBITDA borderline successful the 4th fourth held astatine astir 83%, supra its 75% target, reflecting “continued beardown operating leverage.”