Hess Midstream (HESM) Q3 2026 earnings summary

Executive summary

• Q3 2026 net income was $179.1m; Adjusted EBITDA was $319.9m and Adjusted Free Cash Flow was $247.9m.

• Lower throughput volumes reflected lower production; cost reductions and higher tariff rates partly offset revenue pressure.

• The planned DJ Basin acquisition is expected to diversify and expand the asset base, with closing expected by year-end 2026.

Financial highlights

• Revenue was $410.1m vs $420.9m YoY; operating income was $262.4m vs $258.9m.

• Net income was $179.1m vs $175.5m; net income attributable to Class A shares was $99.4m, or $0.77 basic EPS, vs $97.7m and $0.75.

• Operating costs and expenses fell to $147.7m from $162.0m; net interest expense fell to $53.6m from $57.1m.

• Net cash from operating activities was $267.9m vs $258.9m; Adjusted Free Cash Flow was $247.9m vs $186.8m.

Outlook and guidance

• FY 2026 guidance: net income $650–675m; Adjusted EBITDA $1,225–1,250m; capex $105m; Adjusted Free Cash Flow $910–935m.

• FY 2026 throughput guidance: gas gathering 435–445 MMcf/d; crude gathering 110–120 MBbl/d; gas processing 425–435 MMcf/d; crude terminals and water gathering each 120–130 MBbl/d.

• Target annual distribution growth of at least 5% per Class A share; 2027 quarterly distributions are expected to remain at the Q4 2026 level, funded by Adjusted Free Cash Flow.

• Adjusted Free Cash Flow after targeted distributions is estimated at ~$920m at the FY 2026 guidance midpoint.