Hess Midstream P Stock Price, News & Analysis

Hess Midstream LP (NYSE: HESM) announced a secondary public offering of 10,000,000 Class A shares by an affiliate of Global Infrastructure Partners, a part of BlackRock (the Selling Shareholder). The Selling Shareholder is granting underwriters a 30-day option to purchase up to 1,500,000 additional Class A shares.

Goldman Sachs & Co. is serving as the bookrunning manager for the offering. HESM will not receive any proceeds from the sale of Class A shares in this offering. The shares will be offered through a shelf registration statement previously filed with the SEC.

Hess Midstream Operations, a consolidated subsidiary of Hess Midstream LP (NYSE: HESM), has priced a $800 million private offering of 5.875% senior unsecured notes due 2028. The notes are being priced at par and will be sold exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.

The company plans to use the net proceeds, combined with borrowings from its revolving credit facility, to redeem its outstanding 5.625% senior notes due 2026. The redemption notice was delivered on February 3, 2025, and the new offering is expected to close on February 12, 2025, subject to customary closing conditions.

Hess Midstream Operations LP, a consolidated subsidiary of Hess Midstream LP (NYSE: HESM), announced plans to offer $800 million in senior unsecured notes due 2028 through a private offering. The company intends to use the net proceeds, combined with borrowings from its revolving credit facility, to redeem its outstanding 5.625% senior notes due 2026.

The Notes will be offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S. The securities will not be registered under the Securities Act or state securities laws, limiting their sale and transfer in the United States without registration or applicable exemption.

Hess Midstream LP (HESM) has announced its 2025 guidance and extended its Return of Capital program through 2027. The company expects 10% throughput volume growth across oil and gas systems in 2025 compared to 2024, with projected net income of $715-765 million and Adjusted EBITDA of $1,235-$1,285 million for 2025.

The company anticipates capital expenditures of $300 million in 2025 and expects to generate approximately $135 million in Adjusted Free Cash Flow after distributions. Looking ahead, HESM projects at least 10% growth in net income and Adjusted EBITDA in 2026, followed by 5% growth in 2027.

The Return of Capital framework includes targeting annual distribution per Class A share growth of at least 5% through 2027 and provides over $1.25 billion of financial flexibility through 2027 for incremental shareholder returns. The company plans to construct a new gas processing plant with 125 MMcf per day capacity, expected to be online in 2027.

Hess Midstream (NYSE: HESM) reported strong Q4 2024 results with net income of $172.1 million, up from $152.8 million in Q4 2023. The company achieved net income attributable to HESM of $70.4 million, or $0.68 basic earnings per Class A share.

Key financial metrics include Adjusted EBITDA of $298.2 million and Adjusted Free Cash Flow of $164.3 million. Revenues increased to $395.9 million from $356.5 million year-over-year. The company completed a $100 million repurchase of Class B units and increased its quarterly cash distribution to $0.7012 per Class A share.

Operational highlights show significant growth with throughput volumes increasing 15% for gas gathering and processing, 11% for crude oil gathering, and 6% for terminaling compared to Q4 2023. The company ended the quarter with approximately $3.5 billion in debt and a leverage ratio of 3.1x Adjusted EBITDA.

Hess Midstream (NYSE: HESM) has announced a quarterly cash distribution of $0.7012 per Class A share for Q4 2024, representing an increase of $0.0166 per share compared to Q3 2024. This increase is supported by excess adjusted free cash flow following the company's $100 million unit repurchase in January 2025.

The distribution growth exceeds Hess Midstream's targeted 5% annual distribution growth through 2026. The company has achieved approximately 55% increase in distribution per Class A share since Q1 2021 and over 10% since Q4 2023. Management expects over $1.25 billion of financial flexibility through 2026 to support their return of capital framework. The quarterly distribution will be paid on February 14, 2025, to shareholders of record as of February 6, 2025.

Hess Midstream (NYSE: HESM) has announced its upcoming fourth quarter 2024 earnings conference call, scheduled for Wednesday, January 29, 2025, at 12:00 p.m. Eastern Time. Participants interested in joining the call must pre-register through a provided link to receive their unique PIN and dial-in number. The company will also make the conference call and its replay available via webcast on their official website at www.hessmidstream.com.

Hess Midstream (NYSE: HESM) has announced a $100 million Class B unit repurchase agreement from its sponsors Hess and Global Infrastructure Partners (BlackRock). The repurchase involves 2,572,677 Class B units at $38.87 per unit, representing approximately 1.2% of the consolidated company.

Following the transaction, expected to close on January 15, 2025, ownership will be distributed as: 47.9% public, 14.3% Global Infrastructure Partners, and 37.8% Hess The company will fund the repurchase through its existing revolving credit facility.

This transaction marks a continuation of HESM's financial strategy, bringing total shareholder returns through sponsor unit repurchases to $1.95 billion since early 2021. The company expects to maintain over $1.25 billion in financial flexibility through 2026 for potential additional repurchases, while supporting its annual distribution growth target of at least 5% through 2026.

Hess Midstream LP (NYSE: HESM) has announced upcoming investor conference participations. Jonathan Stein, Chief Financial Officer, and Jennifer Gordon, Vice President of Investor Relations, will engage with investors at two major conferences:

1. The Goldman Sachs Energy, Clean Tech & Utilities Conference on January 7, 2025
2. The UBS Global Energy & Utilities Conference on January 14, 2025

The company has made a presentation available to investors in the "Investors" section of their website at www.hessmidstream.com.