Recent Updates — HESM

Hess Midstream LP reported third quarter 2026 estimated results, posting net income attributable to the company of $99.4 million, or $0.77 basic earnings per Class A share, compared with $0.75 in the prior-year period. The midstream operator generated Adjusted EBITDA of $319.9 million and Adjusted Free Cash Flow of $247.9 million. On October 26, the board declared a quarterly cash distribution of $0.7985 per Class A share for Q3, an increase of $0.0097 from the second quarter, payable on November 13 to shareholders of record as of November 5. The company reiterated its full-year 2026 guidance and expects a pending transaction to close by year-end. Hess Midstream LP owns, operates, develops and acquires midstream assets including oil, gas and produced water handling facilities.

Hess Midstream LP entered into a definitive agreement with Chevron to acquire crude oil and natural gas gathering and storage assets in the Denver Julesburg Basin for $200 million in cash plus working capital adjustments. Concurrently, Chevron will contribute 100% of its consolidated ownership interests in Hess Midstream and its general partner to the company, resulting in the cancellation of those shares and a reduction in outstanding Class A shares by nearly 40%. The transaction establishes Hess Midstream as an independent multi-basin midstream operator, with expected closing by year-end 2026. Chevron will also amend existing Bakken commercial agreements to reduce tariffs and extend terms through 2045. Following the transaction, all Chevron-affiliated directors are expected to resign, and shareholders will gain the right to elect board members starting in 2028. Hess Midstream LP operates fee-based midstream assets for crude oil, natural gas, and water gathering, processing, and storage primarily in the Bakken and DJ Basins.

Hess Midstream LP reported second quarter 2026 net income attributable to the partnership of $96.4 million, or $0.75 per Class A share, compared with $0.74 in the prior-year period. The company declared a quarterly cash distribution of $0.7888 per share for Q2 2026, an increase of $0.0096 from the first quarter. This distribution is payable on August 14, 2026, to shareholders of record as of August 6, 2026. Hess Midstream reaffirmed its full-year 2026 guidance, projecting net income between $650 million and $700 million and adjusted free cash flow between $910 million and $960 million. The company operates in the midstream energy industry, owning and operating assets for crude oil, natural gas, and produced water handling.