HESS MIDSTREAM LP REPORTS ESTIMATED RESULTS FOR THE THIRD QUARTER OF 2026
Hess Midstream LP (HESM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 HESS MIDSTREAM LP HESS MIDSTREAM LP REPORTS ESTIMATED RESULTS FOR THE THIRD QUARTER OF 2026 Third Quarter 2026 Highlights: • Net income was $179.1 million. Net cash provided by operating activities was $267.9 million. • Net income attributable to Hess Midstream LP wa
How this was made
The 30-second read
Why it matters
Reaffirmed guidance suggests management confidence but offers no new growth narrative, likely keeping the stock range‑bound.
Market read
Primary company news with modest market impact; investors will watch the upcoming acquisition for future catalysts.
What to watch
The announced DJ Basin acquisition could drive longer‑term upside despite short‑term neutrality.
Hess Midstream LP reports estimated third quarter 2026 net income of $179.1 million, Adjusted EBITDA of $319.9 million and Adjusted Free Cash Flow of $247.9 million.
Net income, operating cash flow and Adjusted Free Cash Flow increased from the prior-year quarter, while total revenues and several throughput volumes declined. The company reiterated full-year 2026 guidance and increased its quarterly distribution.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third quarter 2026 total revenuesGAAP | $410.1M | – | $10.8 million down |
| Third quarter 2026 affiliate services revenuesGAAP | $392.1M | – | – |
| Third quarter 2026 third-party services revenuesGAAP | $16.6M | – | – |
| Third quarter 2026 other incomeGAAP | $1.4M | – | – |
| Third quarter 2026 operating and maintenance expensesGAAP | $86.6M | – | – |
| Third quarter 2026 depreciation expenseGAAP | $55.1M | – | – |
| Third quarter 2026 general and administrative expensesGAAP | $6M | – | – |
| Third quarter 2026 total operating costs and expensesGAAP | $147.7M | – | – |
| Third quarter 2026 income from operationsGAAP | $262.4M | – | – |
| Third quarter 2026 income from equity investmentsGAAP | $2.4M | – | – |
| Third quarter 2026 interest expense, netGAAP | $53.6M | – | – |
| Third quarter 2026 income before income tax expenseGAAP | $211.2M | – | – |
| Third quarter 2026 income tax expenseGAAP | $32.1M | – | – |
| Third quarter 2026 net incomeGAAP | $179.1M | – | – |
| Third quarter 2026 net income attributable to Hess Midstream LPGAAP | $99.4M | – | – |
| Third quarter 2026 basic earnings per Class A shareGAAP | $0.77 | – | – |
| Third quarter 2026 diluted earnings per Class A shareGAAP | $0.77 | – | – |
| Third quarter 2026 gross marginGAAP | 64% | – | – |
| Third quarter 2026 Adjusted EBITDAnon-GAAP | $319.9M | – | – |
| Third quarter 2026 Adjusted Free Cash Flownon-GAAP | $247.9M | – | – |
| Third quarter 2026 Gross Adjusted EBITDA Marginnon-GAAP | 84% | – | – |
| Third quarter 2026 net cash provided by operating activitiesGAAP | $267.9M | – | – |
| Third quarter 2026 capital expendituresGAAP | $21.5M | – | 73% decrease |
| Nine months ended September 30, 2026 total revenuesGAAP | $1.20B | – | – |
| Nine months ended September 30, 2026 income from operationsGAAP | $753.7M | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $510.5M | – | – |
| Nine months ended September 30, 2026 net income attributable to Hess Midstream LPGAAP | $283.4M | – | – |
| Nine months ended September 30, 2026 basic earnings per Class A shareGAAP | $2.20 | – | – |
| Nine months ended September 30, 2026 diluted earnings per Class A shareGAAP | $2.20 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| GatheringThird quarter 2026 revenue included $211.1 million of affiliate services and $6.7 million of third-party services. | $217.8M | – | – |
| Processing and StorageThird quarter 2026 revenue included $143.3 million of affiliate services and $9.8 million of third-party services. | $153.1M | – | – |
| Terminaling and ExportThird quarter 2026 revenue included $37.7 million of affiliate services, $0.1 million of third-party services and $1.4 million of other income. | $39.2M | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Year Ending December 31, 2026 outlook
- NoteNet income: $650 - 675 million
- NoteAdjusted EBITDA: $1,225 - 1,250 million
- NoteCapital expenditures: $105 million
- NoteAdjusted free cash flow: $910 - 935 million
- NoteGas gathering: 435 - 445 MMcf of natural gas per day
- NoteCrude oil gathering: 110 - 120 MBbl of crude oil per day
- NoteGas processing: 425 - 435 MMcf of natural gas per day
- NoteCrude terminals: 120 - 130 MBbl of crude oil per day
- NoteWater gathering: 120 - 130 MBbl of water per day
- NoteDepreciation expense: $230 million
- NoteInterest expense, net: $220 million
- NoteIncome tax expense: $125 million
- NoteInterest, net: $210 million
- NoteDistributions: $655 million
- NoteAdjusted free cash flow after distributions: $265 million
- NoteTarget annual distribution per Class A share growth of 5% per share on an annualized basis in the fourth quarter of 2026.
Capital returns
- On October 26, 2026, the Board of Directors declared a quarterly cash distribution of $0.7985 per Class A share for the third quarter of 2026.
- The distribution increased by $0.0097 per Class A share compared with the second quarter of 2026.
- The distribution is expected to be paid on November 13, 2026, to shareholders of record as of the close of business on November 5, 2026.
- The company expects to maintain its quarterly distributions in 2027 consistent with the expected fourth quarter 2026 distribution amount and intends to maintain at least that distribution level going forward fully funded by Adjusted Free Cash Flow.
What drove it
- Third quarter 2026 revenues and other income were down $10.8 million compared with the prior-year quarter, primarily due to lower throughput volumes, partially offset by higher tariff rates.
- Total operating costs and expenses were down from $162.0 million in the prior-year quarter, primarily due to lower charges under omnibus and employee secondment agreements and lower maintenance expenses.
- Interest expense, net of interest income, declined from $57.1 million in the prior-year quarter, primarily due to reduced borrowings under the revolving credit facility.
- Capital expenditures decreased mainly because Hess Midstream completed its expansion of gas compression capacity in January 2026.
- Direct third-party volumes were relatively flat compared with the third quarter of 2025.
Concerns
- Throughput volumes decreased 10% for oil terminaling, 8% for gas processing and 4% for water gathering compared with the third quarter of 2025, primarily due to lower production.
- The proposed transaction announced on October 6, 2026 may not close on the anticipated timeline or at all.
- The company identified risks related to integrating DJ Basin assets, Chevron-provided employee and transition services, transaction expenses and diversion of management time.
- Hess Midstream identified risks from reductions in crude oil, natural gas, NGL and produced-water volumes, Chevron drilling and development plans, demand conditions and access to debt or capital markets.
What to watch
- Full-year 2026 performance against reiterated guidance for net income of $650 - 675 million, Adjusted EBITDA of $1,225 - 1,250 million and Adjusted free cash flow of $910 - 935 million.
- Fourth-quarter throughput against guidance of 435 - 445 MMcf per day for gas gathering, 110 - 120 MBbl per day for crude oil gathering, 425 - 435 MMcf per day for gas processing, 120 - 130 MBbl per day for crude terminals and 120 - 130 MBbl per day for water gathering.
- The expected closing by the end of the year of the October 6, 2026 transaction and the addition of DJ Basin assets.
- The planned fourth-quarter 2026 distribution growth of 5% per share on an annualized basis and the stated plan to maintain distributions in 2027.
Balance sheet and cash flow
- Net cash provided by operating activities was $267.9 million in the third quarter of 2026, compared with $258.9 million in the third quarter of 2025.
- Capital expenditures totaled $21.5 million in the third quarter of 2026, compared with $79.8 million in the prior-year quarter.
- At September 30, 2026, Hess Midstream had a drawn balance of $180.0 million on its revolving credit facility.
- Adjusted Free Cash Flow was $247.9 million in the third quarter of 2026, compared with $186.8 million in the third quarter of 2025.
Analysis
Third-quarter revenue declined to $410.1 million from $420.9 million in the prior-year quarter. The company attributed the $10.8 million decline to lower throughput volumes, partly offset by higher tariff rates. Affiliate services revenue declined to $392.1 million from $405.6 million, while third-party services revenue increased to $16.6 million from $14.0 million. Oil terminaling, gas processing and water gathering throughput declined 10%, 8% and 4%, respectively, versus the third quarter of 2025, while direct third-party volumes were relatively flat.
Costs declined more sharply than revenue. Total operating costs and expenses were $147.7 million versus $162.0 million in the prior-year quarter, driven by lower omnibus and employee secondment agreement charges and lower maintenance expenses. Income from operations increased to $262.4 million from $258.9 million, and gross margin rose to 64% from 62%. Gross Adjusted EBITDA Margin increased to 84% from 82%, although Adjusted EBITDA was $319.9 million compared with $320.7 million in the third quarter of 2025.
GAAP net income was $179.1 million, compared with $175.5 million in the prior-year quarter. Net income attributable to Hess Midstream LP was $99.4 million, or $0.77 basic and diluted earnings per Class A share, compared with $97.7 million and $0.75 per share in the prior-year quarter. Net cash provided by operating activities increased to $267.9 million from $258.9 million, while Adjusted Free Cash Flow increased to $247.9 million from $186.8 million. Capital expenditures fell to $21.5 million from $79.8 million, mainly following the January 2026 completion of the gas compression capacity expansion.
Capital allocation remained centered on distributions. The company declared a $0.7985 per Class A share quarterly distribution, up $0.0097 per Class A share from the second quarter of 2026, and stated that the increase is in line with targeted annual distribution growth of at least 5% on an annualized basis. Hess Midstream had a $180.0 million drawn balance on its revolving credit facility at September 30, 2026. The company reiterated updated 2026 guidance, including net income of $650 - 675 million, Adjusted EBITDA of $1,225 - 1,250 million, capital expenditures of $105 million and Adjusted free cash flow of $910 - 935 million.
The major strategic item is the transaction announced on October 6, 2026, which management expects to close by year-end. Management stated that the DJ Basin assets are expected to approximately triple crude gathering throughput, significantly grow gas gathering throughput and add ownership in a long-haul crude oil pipeline. The filing also identifies closing, integration, transition-services, customer-volume and financing risks associated with the transaction and the broader business.
Management, verbatim
The third quarter of 2026 reflects our continued focus on managing costs while executing growth.
Jonathan Stein, Chief Executive Officer of Hess Midstream
We have a solid operational foundation and a sustained track record for generating free cash flow after distributions, which we expect to provide a consistent base for future distributions, capital allocation and shareholder returns.
Jonathan Stein, Chief Executive Officer of Hess Midstream
We expect the transaction announced on October 6, 2026, to close by the end of the year and are excited to transform into a multi-basin, independent midstream company.
Jonathan Stein, Chief Executive Officer of Hess Midstream
Not in the filing
stated, not guessed- Cash and cash equivalents balance
- Total debt balance
- Debt maturity schedule
- Share repurchases
- Prior outlook for comparison
- Third quarter 2026 Adjusted EBITDA prior-quarter value
- Third quarter 2026 Adjusted Free Cash Flow prior-quarter value
- Third quarter 2026 net cash provided by operating activities prior-quarter value
- Third quarter 2026 gross margin prior-quarter value
- Third quarter 2026 segment revenue percentage changes
- Third quarter 2026 gas gathering throughput year-over-year percentage change
- Third quarter 2026 crude oil gathering throughput year-over-year percentage change
- Third quarter 2026 crude terminals throughput year-over-year percentage change
- Third quarter 2026 NGL loading throughput year-over-year percentage change
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing provides the first public disclosure of Hess Midstream's Q3 2026 performance and its updated full‑year guidance.
Ticker impact
Hess Midstream reported Q3 2026 results and reaffirmed full-year guidance in an 8‑K filing.
likely neutral to slight pressure as the market digests reaffirmed guidance.
The numbers are in line with expectations and guidance was reaffirmed, offering no new catalyst for a directional move.
Market effects
Midstream energy sector sees no major shift; results reinforce existing outlook.
U.S. energy infrastructure investors may hold positions unchanged.
Limited; primarily impacts U.S. listed midstream stocks.
Counterpoint
If investors expected a guidance cut, the reaffirmation could be seen as a positive surprise.
Key entities
- companyHess Midstream LP
Midstream energy services provider reporting Q3 results.
