Third Quarter 2023 Highlights:
- Completed accretive $100 million repurchase of Class B units
of Hess Midstream Operations LP in September 2023, which was the
third repurchase transaction during 2023.
- Increased quarterly cash distribution to $0.6175 per Class A
share for the third quarter of 2023, an approximate 2.7% increase
compared with the second quarter of 2023, consisting of a 1.5%
increase in the distribution level per Class A share in addition to
the quarterly 1.2% increase per Class A share consistent with the
target of at least 5% growth in annual distributions per Class A
share through 2025.
- Net income was $164.8 million. Net cash provided by
operating activities was $215.5 million.
- Net income attributable to Hess Midstream LP was $35.3
million, or $0.57 basic earnings per Class A share, after deduction
for noncontrolling interests.
- Adjusted EBITDA1 was $271.0 million, Distributable Cash
Flow1 was $224.1 million and Adjusted Free Cash Flow1 was $162.7
million.
- Throughput volumes increased 9% for gas gathering and gas
processing, 17% for terminaling and 19% for water gathering
compared with the prior-year quarter, primarily due to increased
Hess drilling activity, higher gas capture and higher third-party
volumes.
Guidance:
- Following strong year-to-date operational performance, Hess
Midstream LP is raising its full year 2023 guidance for gas
gathering and gas processing throughput volumes compared with the
midpoint of the prior guidance range.
- Hess Midstream LP is raising its full year 2023 guidance for
net income and Adjusted EBITDA, compared with the midpoint of the
prior guidance range, to approximately $615 million and $1,030
million, respectively.
- Hess Midstream LP continues to target at least 5% annual
distribution growth per Class A share through 2025, covered by
already-established minimum volume commitments (“MVCs”), and
continues to prioritize financial strength with a long-term
leverage target of 3x Adjusted EBITDA.
- Hess Midstream LP continues to expect organic throughput
volume growth across all systems for 2024 and 2025 relative to 2023
volume guidance, as implied in already-established MVCs through
2025.
- Hess Midstream LP expects to continue to have more than $1
billion of financial flexibility through 2025 that can be used to
support our return of capital framework.
Due to Hess Corporation’s pending merger with Chevron
Corporation, Hess Midstream LP will not host a conference call to
review its third quarter 2023 results, originally scheduled for
Wednesday, October 25, 2023 at noon Eastern Time, but plans for a
conference call in early 2024 to discuss fourth quarter 2023
results, 2024 guidance and 2026 minimum volume commitments.
(1) Adjusted EBITDA, Distributable Cash Flow and Adjusted Free
Cash Flow are non‑GAAP measures. Definitions and reconciliations of
these non‑GAAP measures to GAAP reporting measures appear in the
following pages of this release.
Hess Midstream LP (NYSE: HESM) (“Hess Midstream”) today reported
third quarter 2023 net income of $164.8 million compared with net
income of $159.4 million for the third quarter of 2022. After
deduction for noncontrolling interests, net income attributable to
Hess Midstream was $35.3 million, or $0.57 basic earnings per Class
A share compared with $0.53 basic earnings per Class A share in the
third quarter of 2022. Hess Midstream generated Adjusted EBITDA of
$271.0 million. Distributable Cash Flow (“DCF”) for the third
quarter of 2023 was $224.1 million and Adjusted Free Cash Flow was
$162.7 million.
“We delivered another strong quarter driven by increased uptime,
continued gas capture, and additional third-party volumes and, as a
result, we are raising our operational and financial guidance for
the second time this year,” said John Gatling, President and Chief
Operating Officer of Hess Midstream. “Third quarter terminaling
volumes increased almost 20% compared to the prior quarter, while
third quarter gas processing volumes of 386 MMcf per day was our
highest quarterly gas processing average to date. Construction has
been completed at one of our two new compressor stations and
continues to progress on schedule for the other, with both expected
online by the end of the year, as planned, which will enable even
further gas capture. We anticipate fourth quarter 2023 gas, oil and
water volumes to be relatively stable compared to third quarter
2023, reflecting mainly winter weather contingencies.”
“We continue to target at least 5% annual distribution growth
through 2025 and maintain more than $1 billion of financial
flexibility for further return of capital to our shareholders,”
said Jonathan Stein, Chief Financial Officer of Hess Midstream.
“Looking forward to January 2024, we will release our 2026 MVCs,
which will provide another year of visibility as once MVCs are set
they can increase but cannot be reduced.”
Hess Midstream’s results contained in this release are
consolidated to include the noncontrolling interests in Hess
Midstream Operations LP owned by affiliates of Hess Corporation
(“Hess”) and Global Infrastructure Partners (“GIP” and together
with Hess, the “Sponsors”). We refer to certain results as
“attributable to Hess Midstream LP,” which exclude the
noncontrolling interests in Hess Midstream Operations LP owned by
the Sponsors.
Announced Chevron Acquisition
Earlier this week, Hess announced that it entered into a
definitive agreement to be acquired by Chevron Corporation
(“Chevron”). Hess Midstream expects upon consummation of the
proposed transaction, Chevron will acquire Hess’ 37.8% ownership in
Hess Midstream, including its right to appoint four directors to
the Board of Hess Midstream. Hess Midstream’s contract structure
remains in place. As part of the annual nomination process set
forth in Hess Midstream’s long-term commercial contracts, Hess
Midstream plans to set its MVCs and rates, which are expected to be
set based on Hess’ current 4-rig program in the Bakken, and will
release both in January 2024, consistent with prior practice.
Financial Results
Revenues and other income in the third quarter of 2023 were
$363.1 million compared with $334.8 million in the prior-year
quarter. Third quarter 2023 revenues included $25.1 million of
pass-through electricity, produced water trucking and disposal
costs and certain other fees and $2.8 million of shortfall fees
related to MVCs compared with $22.1 million and $27.0 million,
respectively, in the prior-year quarter. Third quarter 2023
revenues and other income were up $28.3 million compared to the
prior-year quarter, primarily due to higher physical volumes and
tariff rates, partially offset by lower shortfall fees due to the
transition from higher MVC levels in 2022 to actual physical
volumes in 2023 that are at or above MVCs. Total operating costs
and expenses in the third quarter of 2023 were $143.1 million, up
from $130.8 million in the prior-year quarter. The increase was
primarily attributable to higher maintenance expenses, pass-through
expenses and higher depreciation expense for additional assets
placed in service, partially offset by higher remediation costs
associated with a produced water release in the prior-year quarter.
Interest expense in the third quarter of 2023 was $45.8 million, up
from $39.9 million in the prior-year quarter primarily attributable
to higher interest rates on our credit facilities and higher
borrowings on our revolving credit facility.
Net income for the third quarter of 2023 was $164.8 million, or
$0.57 basic earnings per Class A share, after deduction for
noncontrolling interests, compared with $0.53 basic earnings per
Class A share in the prior-year quarter. Substantially all of
income tax expense was attributed to earnings of Class A shares
reflective of our organizational structure. Net cash provided by
operating activities for the third quarter of 2023 was $215.5
million.
Adjusted EBITDA for the third quarter of 2023 was $271.0
million. Relative to distributions, DCF for the third quarter of
2023 of $224.1 million resulted in an approximate 1.6x distribution
coverage ratio. Adjusted Free Cash Flow for the third quarter of
2023 was $162.7 million. At September 30, 2023, Hess Midstream had
a drawn balance of $276.0 million on its revolving credit
facility.
Operational Highlights
Throughput volumes increased 9% for gas gathering and gas
processing in the third quarter of 2023 compared with the third
quarter of 2022, primarily due to higher production, including
third-party volumes, and higher gas capture. Throughput volumes
increased 4% for crude oil gathering and 17% for terminaling in the
third quarter of 2023 compared with the third quarter of 2022,
primarily due to higher production and higher third-party volumes.
Water gathering volumes increased 19% reflecting continued steady
organic growth of our water handling business.
Capital Expenditures
Capital expenditures for the third quarter of 2023 totaled $64.5
million, including $61.4 million of expansion capital expenditures
and $3.1 million of maintenance capital expenditures, and were
primarily attributable to continued expansion of our gas
compression capacity. Capital expenditures in the prior-year
quarter were $60.6 million, including $59.2 million of expansion
capital expenditures and $1.4 million of maintenance capital
expenditures, and were also primarily attributable to expansion of
our gas compression capacity.
Quarterly Cash Distributions
On October 23, 2023, our general partner’s board of directors
declared a quarterly cash distribution of $0.6175 per Class A share
for the third quarter of 2023. The distribution represents an
approximate 2.7% increase in the quarterly distribution per Class A
share for the third quarter of 2023 as compared with the second
quarter of 2023. The increase consists of an approximate 1.5%
increase in Hess Midstream's distribution level per Class A share
in addition to the quarterly 1.2% increase per Class A share
consistent with its target of at least 5% growth in annual
distributions per Class A share through 2025. The distribution is
expected to be paid on November 14, 2023, to shareholders of record
as of the close of business on November 2, 2023.
Fourth Quarter 2023 Guidance
For the fourth quarter of 2023, Hess Midstream expects net
income to be approximately $160 million and Adjusted EBITDA to be
approximately $270 million, reflecting contingencies for
anticipated winter weather conditions. Fourth quarter 2023
maintenance capital expenditures and net interest, excluding
amortization of deferred financing costs, are expected to be
approximately $50 million, resulting in expected DCF of
approximately $220 million, delivering distribution coverage of
approximately 1.5x.
Updated Full Year 2023 Guidance
Following strong year-to-date operational performance Hess
Midstream is raising its full year 2023 guidance for gas gathering,
gas processing and crude terminals throughput volumes compared with
the midpoint of the prior guidance range. Hess Midstream is also
raising its full year 2023 financial guidance compared with the
midpoint of the prior guidance range, as follows:
Year Ending
December 31, 2023
(Unaudited)
Financials (in millions)
Net income
$
~615
Adjusted EBITDA
$
~1,030
Distributable cash flow
$
~845
Expansion capital expenditures
$
~210
Maintenance capital expenditures
$
~15
Adjusted free cash flow
$
~635
Year Ending
December 31, 2023
(Unaudited)
Throughput volumes
Gas gathering - MMcf of natural gas per
day
~380
Crude oil gathering - MBbl of crude oil
per day
~100
Gas processing - MMcf of natural gas per
day
~365
Crude terminals - MBbl of crude oil per
day
~115
Water gathering - MBbl of water per
day
~90
Hess Midstream continues to target at least 5% annual
distribution growth per Class A share through 2025 from this new
higher distribution level with expected annual distribution
coverage of at least 1.4x and continues to prioritize financial
strength with a long-term leverage target of 3x Adjusted EBITDA.
For 2024 and 2025, Hess Midstream continues to expect organic
throughput volume growth across all systems relative to 2023 volume
guidance.
Hess Midstream reiterates its guidance of at least 10% per year
expected growth in net income and Adjusted EBITDA in each of 2024
and 2025, and approximately 10% annualized growth in throughput
volumes across gas, oil and water systems from 2023 levels as
implied in our already-established MVCs for 2025.
About Hess Midstream
Hess Midstream LP is a fee‑based, growth-oriented midstream
company that owns, operates, develops and acquires a diverse set of
midstream assets to provide services to Hess and third‑party
customers. Hess Midstream owns oil, gas and produced water handling
assets that are primarily located in the Bakken and Three Forks
Shale plays in the Williston Basin area of North Dakota. More
information is available at www.hessmidstream.com.
Reconciliation of U.S. GAAP to Non‑GAAP Measures
In addition to our financial information presented in accordance
with U.S. generally accepted accounting principles (“GAAP”),
management utilizes certain additional non‑GAAP measures to
facilitate comparisons of past performance and future periods.
“Adjusted EBITDA” presented in this release is defined as reported
net income (loss) before net interest expense, income tax expense,
depreciation and amortization and our proportional share of
depreciation of our equity affiliates, as further adjusted to
eliminate the impact of certain items that we do not consider
indicative of our ongoing operating performance, such as
transaction costs, other income and other non‑cash and
non‑recurring items, if applicable. “Distributable Cash Flow” or
“DCF” is defined as Adjusted EBITDA less net interest, excluding
amortization of deferred financing costs, cash paid for federal and
state income taxes and maintenance capital expenditures. DCF does
not reflect changes in working capital balances. We define
“Adjusted Free Cash Flow” as DCF less expansion capital
expenditures and ongoing contributions to equity investments. We
define "Gross Adjusted EBITDA Margin" as the ratio of Adjusted
EBITDA to total revenues, less pass-through revenues. We believe
that investors’ understanding of our performance is enhanced by
disclosing these measures as they may assist in assessing our
operating performance as compared to other publicly traded
companies in the midstream energy industry, without regard to
historical cost basis or, in the case of Adjusted EBITDA, financing
methods, and assessing the ability of our assets to generate
sufficient cash flow to make distributions to our shareholders.
These measures are not, and should not be viewed as, a substitute
for GAAP net income or cash flow from operating activities and
should not be considered in isolation. Reconciliations of Adjusted
EBITDA, DCF, Adjusted Free Cash Flow and Gross Adjusted EBITDA
Margin to reported net income (GAAP), net cash provided by
operating activities (GAAP) and gross margin (GAAP), are provided
below. Hess Midstream is unable to project net cash provided by
operating activities with a reasonable degree of accuracy because
this metric includes the impact of changes in operating assets and
liabilities related to the timing of cash receipts and
disbursements that may not relate to the period in which the
operating activities occur. Therefore, Hess Midstream is unable to
provide projected net cash provided by operating activities, or the
related reconciliation of projected Adjusted Free Cash Flow to
projected net cash provided by operating activities without
unreasonable effort.
Third Quarter
(unaudited)
2023
2022
(in millions, except ratio and per-share
data)
Reconciliation of Adjusted EBITDA and
Distributable Cash Flow to net income:
Net income
$
164.8
$
159.4
Plus:
Depreciation expense
47.7
45.5
Proportional share of equity affiliates'
depreciation
1.3
1.3
Interest expense, net
45.8
39.9
Income tax expense (benefit)
11.4
7.5
Adjusted EBITDA
271.0
253.6
Less:
Interest, net(1)
43.8
37.4
Maintenance capital expenditures
3.1
1.4
Distributable cash flow
$
224.1
$
214.8
Reconciliation of Adjusted EBITDA,
Distributable Cash Flow and Adjusted Free Cash Flow to net cash
provided by operating activities:
Net cash provided by operating
activities
$
215.5
$
234.7
Changes in assets and liabilities
12.2
(20.9
)
Amortization of deferred financing
costs
(2.1
)
(2.4
)
Proportional share of equity affiliates'
depreciation
1.3
1.3
Interest expense, net
45.8
39.9
Earnings from equity investments
2.0
2.8
Distribution from equity investments
(3.4
)
(1.4
)
Other
(0.3
)
(0.4
)
Adjusted EBITDA
$
271.0
$
253.6
Less:
Interest, net(1)
43.8
37.4
Maintenance capital expenditures
3.1
1.4
Distributable cash flow
$
224.1
$
214.8
Less:
Expansion capital expenditures
61.4
59.2
Adjusted free cash flow
$
162.7
$
155.6
Distributed cash flow
141.8
135.0
Distribution coverage ratio
1.6
x
1.6
x
Distribution per Class A share
$
0.6175
$
0.5627
(1) Excludes amortization of deferred
financing costs.
Third Quarter
(Unaudited)
2023
2022
(in millions, except ratios)
Reconciliation of gross Adjusted EBITDA
margin to gross margin:
Income from operations
$
220.0
$
204.0
Total revenues
$
363.1
$
334.8
Gross margin
61
%
61
%
Income from operations
$
220.0
$
204.0
Plus:
Depreciation expense
47.7
45.5
Proportional share of equity affiliates'
depreciation
1.3
1.3
Income from equity investments
2.0
2.8
Adjusted EBITDA
$
271.0
$
253.6
Total revenues
$
363.1
$
334.8
Less: pass-through revenues
25.1
22.1
Revenues excluding pass-through
$
338.0
$
312.7
Gross Adjusted EBITDA margin
80
%
81
%
Guidance
Fourth Quarter Ending
Year Ending
December 31, 2023
December 31, 2023
(Unaudited)
(Unaudited)
(in millions)
Reconciliation of Adjusted EBITDA,
Distributable Cash Flow and Adjusted Free Cash Flow to net
income:
Net income
$
160
$
615
Plus:
Depreciation expense*
50
195
Interest expense, net
47
180
Income tax expense
13
40
Adjusted EBITDA
$
270
$
1,030
Less:
Interest, net, and maintenance capital
expenditures
50
185
Distributable cash flow
$
220
$
845
Less:
Expansion capital expenditures
210
Adjusted free cash flow
$
635
*Includes proportional share of equity
affiliates' depreciation
Cautionary Note Regarding Forward-looking
Information
This press release contains “forward-looking statements” within
the meaning of U.S. federal securities laws. Words such as
“anticipate,” “estimate,” “expect,” “forecast,” “guidance,”
“could,” “may,” “should,” “would,” “believe,” “intend,” “project,”
“plan,” “predict,” “will,” “target” and similar expressions
identify forward-looking statements, which are not historical in
nature. Our forward-looking statements may include, without
limitation: our future financial and operational results; our
business strategy; our industry; our expected revenues; our future
profitability; our maintenance or expansion projects; our projected
budget and capital expenditures and the impact of such expenditures
on our performance; future economic and market conditions in the
oil and gas industry; expected timing and completion of Hess’
proposed merger with Chevron; and our ability to execute future
accretive opportunities, including incremental return of capital to
shareholders.
Forward-looking statements are based on our current
understanding, assessments, estimates and projections of relevant
factors and reasonable assumptions about the future.
Forward-looking statements are subject to certain known and unknown
risks and uncertainties that could cause actual results to differ
materially from our historical experience and our current
projections or expectations of future results expressed or implied
by these forward-looking statements. The following important
factors could cause actual results to differ materially from those
in our forward-looking statements: the ability of Hess and other
parties to satisfy their obligations to us, including Hess’ ability
to meet its drilling and development plans on a timely basis or at
all, its ability to deliver its nominated volumes to us, and the
operation of joint ventures that we may not control; our ability to
generate sufficient cash flow to pay current and expected levels of
distributions; reductions in the volumes of crude oil, natural gas,
natural gas liquids (“NGLs”) and produced water we gather, process,
terminal or store; the actual volumes we gather, process, terminal
or store for Hess in excess of our MVCs and relative to Hess'
nominations; fluctuations in the prices and demand for crude oil,
natural gas and NGLs; changes in global economic conditions and the
effects of a global economic downturn or inflation on our business
and the business of our suppliers, customers, business partners and
lenders; the direct and indirect effects of an epidemic or outbreak
of an infectious disease, such as COVID-19 and its variants, on our
business and those of our business partners, suppliers and
customers, including Hess; our ability to comply with government
regulations or make capital expenditures required to maintain
compliance, including our ability to obtain or maintain permits
necessary for capital projects in a timely manner, if at all, or
the revocation or modification of existing permits; our ability to
successfully identify, evaluate and timely execute our capital
projects, investment opportunities and growth strategies, whether
through organic growth or acquisitions; costs or liabilities
associated with federal, state and local laws, regulations and
governmental actions applicable to our business, including
legislation and regulatory initiatives relating to environmental
protection and health and safety, such as spills, releases,
pipeline integrity and measures to limit greenhouse gas emissions
and climate change; our ability to comply with the terms of our
credit facility, indebtedness and other financing arrangements,
which, if accelerated, we may not be able to repay; reduced demand
for our midstream services, including the impact of weather or the
availability of the competing third-party midstream gathering,
processing and transportation operations; potential disruption or
interruption of our business due to catastrophic events, such as
accidents, severe weather events, labor disputes, information
technology failures, constraints or disruptions and cyber-attacks;
any limitations on our ability to access debt or capital markets on
terms that we deem acceptable, including as a result of weakness in
the oil and gas industry or negative outcomes within commodity and
financial markets; liability resulting from litigation; risks and
uncertainties associated with Hess’ proposed merger with Chevron;
and other factors described in Item 1A—Risk Factors in our Annual
Report on Form 10-K and any additional risks described in our other
filings with the Securities and Exchange Commission.
As and when made, we believe that our forward-looking statements
are reasonable. However, given these risks and uncertainties,
caution should be taken not to place undue reliance on any such
forward-looking statements since such statements speak only as of
the date when made and there can be no assurance that such
forward-looking statements will occur and actual results may differ
materially from those contained in any forward-looking statement we
make. Except as required by law, we undertake no obligation to
publicly update or revise any forward-looking statements, whether
because of new information, future events or otherwise.
HESS MIDSTREAM LP
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
Third
Third
Second
Quarter
Quarter
Quarter
2023
2022
2023
Statement of operations
Revenues
Affiliate services
$
361.3
$
334.2
$
321.9
Other income
1.8
0.6
2.1
Total revenues
363.1
334.8
324.0
Costs and expenses
Operating and maintenance expenses
(exclusive of depreciation shown separately below)
89.4
79.6
73.1
Depreciation expense
47.7
45.5
47.0
General and administrative expenses
6.0
5.7
5.8
Total operating costs and expenses
143.1
130.8
125.9
Income from operations
220.0
204.0
198.1
Income from equity investments
2.0
2.8
1.7
Interest expense, net
45.8
39.9
43.8
Income before income tax expense
(benefit)
176.2
166.9
156.0
Income tax expense (benefit)
11.4
7.5
8.1
Net income
$
164.8
$
159.4
$
147.9
Less: Net income attributable to
noncontrolling interest
129.5
136.2
122.8
Net income attributable to Hess Midstream
LP
$
35.3
$
23.2
$
25.1
Net income attributable to Hess Midstream
LP per Class A share:
Basic
$
0.57
$
0.53
$
0.50
Diluted
$
0.57
$
0.53
$
0.50
Weighted average Class A shares
outstanding
Basic
62.5
44.0
50.1
Diluted
62.5
44.1
50.2
HESS MIDSTREAM LP
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
Nine Months Ended September
30,
2023
2022
Statement of operations
Revenues
Affiliate services
$
986.6
$
959.3
Other income
5.5
1.3
Total revenues
992.1
960.6
Costs and expenses
Operating and maintenance expenses
(exclusive of depreciation shown separately below)
225.0
213.9
Depreciation expense
142.1
134.9
General and administrative expenses
18.2
17.0
Total operating costs and expenses
385.3
365.8
Income from operations
606.8
594.8
Income from equity investments
5.3
4.2
Interest expense, net
131.2
108.6
Income before income tax expense
(benefit)
480.9
490.4
Income tax expense (benefit)
26.0
19.6
Net income
$
454.9
$
470.8
Less: Net income attributable to
noncontrolling interest
373.8
408.7
Net income attributable to Hess Midstream
LP
$
81.1
$
62.1
Net income attributable to Hess Midstream
LP per Class A share:
Basic:
$
1.56
$
1.54
Diluted:
$
1.54
$
1.52
Weighted average Class A shares
outstanding
Basic
52.2
40.5
Diluted
52.2
40.5
HESS MIDSTREAM LP
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
Third Quarter 2023
Gathering
Processing and Storage
Terminaling and Export
Interest and Other
Total
Statement of operations
Revenues
Affiliate services
$
197.3
$
132.2
$
31.8
$
-
$
361.3
Other income
0.2
1.0
0.6
-
1.8
Total revenues
197.5
133.2
32.4
-
363.1
Costs and expenses
Operating and maintenance expenses
(exclusive of depreciation shown separately below)
52.5
26.7
10.2
-
89.4
Depreciation expense
28.9
14.5
4.3
-
47.7
General and administrative expenses
2.5
1.2
0.3
2.0
6.0
Total operating costs and expenses
83.9
42.4
14.8
2.0
143.1
Income (loss) from operations
113.6
90.8
17.6
(2.0
)
220.0
Income from equity investments
-
2.0
-
-
2.0
Interest expense, net
-
-
-
45.8
45.8
Income before income tax expense
(benefit)
113.6
92.8
17.6
(47.8
)
176.2
Income tax expense (benefit)
-
-
-
11.4
11.4
Net income (loss)
113.6
92.8
17.6
(59.2
)
164.8
Less: Net income (loss) attributable to
noncontrolling interest
83.6
68.3
12.8
(35.2
)
129.5
Net income (loss) attributable to Hess
Midstream LP
$
30.0
$
24.5
$
4.8
$
(24.0
)
$
35.3
Third Quarter 2022
Gathering
Processing and Storage
Terminaling and Export
Interest and Other
Total
Statement of operations
Revenues
Affiliate services
$
182.0
$
121.7
$
30.5
$
-
$
334.2
Other income
-
-
0.6
-
0.6
Total revenues
182.0
121.7
31.1
-
334.8
Costs and expenses
Operating and maintenance expenses
(exclusive of depreciation shown separately below)
48.9
25.1
5.6
-
79.6
Depreciation expense
26.9
14.5
4.1
-
45.5
General and administrative expenses
2.8
1.0
0.2
1.7
5.7
Total operating costs and expenses
78.6
40.6
9.9
1.7
130.8
Income (loss) from operations
103.4
81.1
21.2
(1.7
)
204.0
Income from equity investments
-
2.8
-
-
2.8
Interest expense, net
-
-
-
39.9
39.9
Income before income tax expense
(benefit)
103.4
83.9
21.2
(41.6
)
166.9
Income tax expense (benefit)
-
-
-
7.5
7.5
Net income (loss)
103.4
83.9
21.2
(49.1
)
159.4
Less: Net income (loss) attributable to
noncontrolling interest
84.5
68.7
17.2
(34.2
)
136.2
Net income (loss) attributable to Hess
Midstream LP
$
18.9
$
15.2
$
4.0
$
(14.9
)
$
23.2
HESS MIDSTREAM LP
SUPPLEMENTAL FINANCIAL DATA
(UNAUDITED)
(IN MILLIONS)
Second Quarter 2023
Gathering
Processing and Storage
Terminaling and Export
Interest and Other
Total
Statement of operations
Revenues
Affiliate services
$
174.1
$
121.6
$
26.2
$
-
$
321.9
Other income
0.4
1.2
0.5
-
2.1
Total revenues
174.5
122.8
26.7
-
324.0
Costs and expenses
Operating and maintenance expenses
(exclusive of depreciation shown separately below)
43.8
23.8
5.5
-
73.1
Depreciation expense
28.2
14.5
4.3
-
47.0
General and administrative expenses
2.5
1.1
0.2
2.0
5.8
Total operating costs and expenses
74.5
39.4
10.0
2.0
125.9
Income (loss) from operations
100.0
83.4
16.7
(2.0
)
198.1
Income from equity investments
-
1.7
-
-
1.7
Interest expense, net
-
-
-
43.8
43.8
Income before income tax expense
(benefit)
100.0
85.1
16.7
(45.8
)
156.0
Income tax expense (benefit)
-
-
-
8.1
8.1
Net income (loss)
100.0
85.1
16.7
(53.9
)
147.9
Less: Net income (loss) attributable to
noncontrolling interest
78.7
66.8
13.3
(36.0
)
122.8
Net income (loss) attributable to Hess
Midstream LP
$
21.3
$
18.3
$
3.4
$
(17.9
)
$
25.1
HESS MIDSTREAM LP
SUPPLEMENTAL OPERATING DATA
(UNAUDITED)
(IN THOUSANDS)
Third
Third
Second
Quarter
Quarter
Quarter
2023
2022
2023
Throughput volumes
Gas gathering - Mcf of natural gas per
day
404
370
369
Crude oil gathering - bopd
106
102
94
Gas processing - Mcf of natural gas per
day
386
354
358
Crude terminals - bopd
129
110
108
NGL loading - blpd
13
11
12
Water gathering - blpd
99
83
87
Nine Months Ended
September 30,
2023
2022
Throughput volumes
Gas gathering - Mcf of natural gas per
day
373
335
Crude oil gathering - bopd
98
96
Gas processing - Mcf of natural gas per
day
361
321
Crude terminals - bopd
114
104
NGL loading - blpd
11
11
Water gathering - blpd
89
73
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231025953243/en/
For Hess Midstream LP
Investors: Jennifer Gordon (212) 536-8244
Media: Lorrie Hecker (212) 536-8250
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