Hess Midstream LP

For Q2 2026, Hess Midstream reported net income of $174 million versus approximately $158 million in Q1, adjusted EBITDA of $314 million versus $300 million in Q1, and gross adjusted EBITDA margin of approximately 85%, above its 75% target. Total revenues excluding pass-through revenues increased by approximately $10 million, with gathering revenue up about $7 million and processing revenue up about $3 million; total costs and expenses excluding D&A, pass-through costs, and LM4 earnings fell by about $4 million. Capital expenditures were approximately $31 million, net interest excluding amortization of deferred finance costs was about $51 million, and adjusted free cash flow was approximately $232 million, down about 2% from Q1. For Q3 2026, the company expects net income of $165 million to $175 million and adjusted EBITDA of $310 million to $320 million. For full-year 2026, guidance remains net income of $650 million to $700 million, adjusted EBITDA of $1.225 billion to $1.275 billion, and adjusted free cash flow of $910 million to $960 million; excess adjusted free cash flow is expected to be approximately $280 million after funding targeted 5% annual distribution growth.

Jonathan Stein said the company stayed focused on operational execution, completing planned maintenance at TGP on time and under budget and continuing to find efficiency gains across the asset base. He emphasized that Hess Midstream is leveraging its historical infrastructure investment to generate significant adjusted free cash flow, grow distributions, repurchase shares, and reduce leverage. His tone was constructive and confident, pointing to expected second-half volume growth and saying the quarter reflected continued discipline and execution.

Michael Chadwick highlighted Q2 net income of $174 million, adjusted EBITDA of $314 million, and gross adjusted EBITDA margin of about 85%, with the margin aided by lower operating expenses and G&A savings from lower allocations. He said adjusted free cash flow was about $232 million, capital expenditures were about $31 million, and the revolver balance ended at $256 million, down about $87 million from Q1. He reiterated 2026 guidance for net income of $650 million to $700 million, adjusted EBITDA of $1.225 billion to $1.275 billion, and adjusted free cash flow of $910 million to $960 million, plus about $280 million of excess adjusted free cash flow after the 5% distribution growth.

Analysts focused on what would push EBITDA toward the high or low end of guidance, and Chadwick said the key variables are weather and execution of the maintenance plan, with Q3 OpEx expected to rise because some maintenance shifted from Q2. Questions also centered on second-half volume growth, and Stein said the pickup is driven mainly by normal Chevron drilling phasing, laterals productivity, and some third-party gas volume upside. On margin, Chadwick said the 85% margin was helped by small credits and OpEx phasing, but the company is keeping its 75% long-term target unchanged.