Hess Midstream LP Reports Estimated Results for the Third Quarter of 2025
Hess Midstream LP, a fee-based, growth-oriented midstream company, has released its estimated financial results for the third quarter of 2025. The company, which operates a diverse set of midstream assets primarily in the Bakken and Three Forks Shale plays in North Dakota, has shown significant financial and operational performance improvements compared to the previous year.
Financial Highlights
For the third quarter of 2025, Hess Midstream reported a net income of $175.5 million, an increase from $164.7 million in the same period of 2024. The net income attributable to Hess Midstream LP was $97.7 million, or $0.75 per Class A share, up from $0.63 per share in the third quarter of 2024. The company generated Adjusted EBITDA of $320.7 million and Adjusted Free Cash Flow of $186.8 million. Revenues for the quarter were $420.9 million, compared to $378.5 million in the prior-year quarter.
Business and Operational Highlights
Operationally, Hess Midstream saw a 10% increase in gas processing throughput volumes, a 7% increase in oil terminaling, and a 7% increase in water gathering compared to the third quarter of 2024. This growth is attributed to higher production and increased third-party gas volumes. The company also completed the construction of a new compressor station, adding approximately 35 MMcf/d of installed capacity, with potential for future expansion.
Strategic Initiatives and Corporate Developments
During the third quarter, Hess Midstream completed a $70.0 million repurchase of Class A shares and a $30.0 million repurchase of Class B units. Additionally, the company increased its quarterly cash distribution to $0.7548 per Class A share, supported by excess Adjusted Free Cash Flow after distributions. The company also announced a reduction in its full-year 2025 capital expenditure guidance to approximately $270 million, following the suspension of the Capa gas plant project.
Management's Perspective
Jonathan Stein, Chief Executive Officer of Hess Midstream, commented, "We delivered solid operational performance in the third quarter, growing gas throughput across our systems on a year-over-year and sequential basis. We remain focused on continuing to deliver safe and reliable execution, reducing costs, and returning capital to our shareholders."
Future Outlook
Looking ahead, Hess Midstream expects net income of $170 - $180 million and Adjusted EBITDA of $315 - $325 million for the fourth quarter of 2025. The company reaffirms its full-year 2025 throughput guidance and projects full-year net income of $685 - $695 million and Adjusted EBITDA of $1,245 - $1,255 million.
Original SEC Filing: Hess Midstream LP [ HESM ] - 8-K - Nov. 03, 2025