Hess Midstream (HESM) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $174 million, with $96.4 million attributable to LP/Class A shares, or $0.75 per share, up from $0.74 per share in Q2 2025.

• Revenues for Q2 2026 were $399.0 million, down from $414.2 million year-over-year, mainly due to lower throughput volumes.

• Adjusted EBITDA for Q2 2026 was $314 million, a slight decrease year-over-year, but margin improved to 85%.

• Cash distribution increased to $0.7888 per Class A share for Q2 2026, up $0.0096 from Q1 2026.

• Strong operational execution included completion of planned maintenance under budget and commissioning of a new compressor station.

Financial highlights

• Net cash provided by operating activities for H1 2026 was $531.9 million, up from $479.3 million in 2025.

• Adjusted free cash flow for Q2 2026 was $232 million, down 2% sequentially due to higher capital expenditures.

• Capital expenditures for Q2 2026 were $30.6 million, down 56% from $70.0 million in Q2 2025.

• Total debt at June 30, 2026 was $3,680.0 million, with $256.0 million drawn on revolving credit.

• Distributions per Class A share increased sequentially each quarter, reaching $0.7888 for Q2 2026.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: net income $650–700 million, Adjusted EBITDA $1.225–$1.275 billion, capital expenditures $105 million, Adjusted Free Cash Flow $910–960 million.

• Q3 2026 net income expected at $165–$175 million; adjusted EBITDA projected flat at $310–$320 million.

• Throughput guidance for 2026: gas gathering 450–460 MMcf/d, crude oil gathering 115–125 MBbl/d, gas processing 435–445 MMcf/d, crude terminals 125–135 MBbl/d, water gathering 125–135 MBbl/d.

• Second half 2026 volumes expected to be higher than first half, with at least 5% growth.

• Expectation to generate ~$1 billion of Adjusted Free Cash Flow after distributions through 2028.