Hess Midstream (HESM) Q1 2026 Earnings Transcript

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Date

Monday, May 4, 2026 astatine 10 a.m. ET

Call participants

• Chief Executive Officer — Jonathan Stein

• Chief Financial Officer — Michael J. Chadwick

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Full Conference Call Transcript

Jonathan Stein: Thanks, Jennifer. Welcome, everyone, to our archetypal 4th 2026 net call. Today, I volition sermon our archetypal 4th show and outlook for the remainder of the year. And past I volition manus the telephone implicit to Mike to reappraisal our financials. In the archetypal quarter, we continued to execute our operational priorities and present our fiscal strategy. We delivered coagulated operational show and achieved our guidance, which included the interaction of terrible wintertime upwind successful January and February. In March, we completed an accretive $60 cardinal stock and portion repurchase from the nationalist and our sponsor. Lastly, we accrued our organisation 2%, oregon astir 8% connected an annualized ground for Class A shares.

This summation included our targeted 5% yearly summation for Class A shares and a organisation level summation pursuing our repurchase that maintains our full distributed currency connected a little stock and portion count. Turning to our results, during the quarter, throughput volumes averaged 430 cardinal cubic feet per time for state processing, 119,000 barrels of lipid per time for crude terminaling, and 115,000 barrels of h2o per time for h2o gathering. In enactment with our guidance, throughput volumes were down compared to the 4th quarter, chiefly owed to terrible wintertime upwind successful January and February, partially offset by betterment successful March arsenic good arsenic seizure of further third-party state volume.

Consistent with our yearly guidance, we proceed to expect volumes to turn the remainder of the year, excluding the interaction of planned attraction astatine the Tioga Gas Plant successful the 2nd 4th that is expected to trim volumes by 5 cardinal to 10 cardinal cubic feet per time for the quarter. Turning to Hess Midstream LP’s superior program, successful the archetypal quarter, we safely brought online the 2nd of 2 caller compressor stations aft completing it successful 2025. In the archetypal quarter, superior expenditures were $10 million, seasonally little than 2025 arsenic terrible wintertime upwind restricted enactment levels.

We expect our superior walk to beryllium seasonally higher successful the 2nd and 3rd quarters arsenic we proceed to execute our program, including completion of greenfield high-pressure gathering pipeline infrastructure that we started successful 2025. However, with the 2nd compressor presumption online, and reflecting Chevron’s determination to longer laterals, which reduces good link CapEx for Hess Midstream LP, we person present reduced our 2026 estimated superior expenditures by a 3rd to astir $100 million. As a effect of this reduction, and unneurotic with the deferral of currency taxes, we are expanding our 2026 adjusted escaped currency travel guidance to $910 cardinal to $960 million, reflecting a 20% summation twelvemonth implicit twelvemonth astatine the midpoint.