Hess Midstream posts bigger Q3 profit, cuts FY capex forecast
Hess Midstream reported a Q3 net income of $175.5 million, up from $164.7 million last year, but its adjusted EBITDA fell short of analyst expectations. The company completed $70 million in Class A share repurchases and $30 million in Class B unit repurchases. For Q4, it expects net income between $170 - $180 million and adjusted EBITDA of $315 - $325 million. Additionally, Hess Midstream has reduced its 2025 capex guidance to $270 million due to project suspensions. The average analyst rating remains "hold" with a 12-month price target of $38.00.
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Overview
- Hess Midstream Q3 net income rises to $175.5 mln, up from $164.7 mln last year
- Adjusted EBITDA for Q3 misses analyst expectations
- Company completed $70 mln Class A share repurchase, $30 mln Class B unit repurchase
Outlook
- Hess Midstream expects Q4 net income of $170 - $180 mln
- Company anticipates Q4 Adjusted EBITDA of $315 - $325 mln
- Company reduces 2025 capex guidance to $270 mln due to project suspension
Result Drivers
- THROUGHPUT INCREASE - Higher production led to a 10% increase in gas processing, 7% in oil terminaling, and 7% in water gathering volumes compared to the prior year
- NEW COMPRESSOR STATION - Completion of a new compressor station added 35 MMcf/d capacity, supporting throughput growth
- SHARE REPURCHASES - $70 mln Class A share and $30 mln Class B unit repurchases supported increased cash distributions
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Net $175.50
Income mln
Q3 Miss $320.70 $321.90
Adjusted mln mln (5
EBITDA Analysts
)
Q3 $186.80
Adjusted mln
Free
Cash
Flow
Q3 Capex $79.80
mln
Analyst Coverage
- The current average analyst rating on the shares is “hold” and the breakdown of recommendations is 1 “strong buy” or “buy”, 6 “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the oil & gas transportation services peer group is “buy.”
- Wall Street’s median 12-month price target for Hess Midstream LP is $38.00, about 10.7% above its October 31 closing price of $33.95
- The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
