Hess Midstream Reports $157.7 Million Net Income in Q1 2026, Revenue Increases to $390.1 Million

Hess Midstream LP reported a consolidated net income of $157.7 million for the first quarter of 2026, a slight decrease from $161.4 million in the same period last year. The net income attributable to Hess Midstream LP was $87.6 million, or $0.68 per Class A share, compared to $71.6 million, or $0.65 per Class A share, in the prior year. Total revenues for the quarter reached $390.1 million, up from $382.0 million in the first quarter of 2025, primarily driven by higher tariff rates and increased third-party services, despite a decline in throughput volumes.

The company's operating costs and expenses increased to $152.0 million from $144.6 million year-over-year, largely due to higher depreciation expenses, which rose to $58.5 million from $51.5 million. Interest expense remained relatively stable at $55.4 million, compared to $56.4 million in the previous year. The increase in income tax expense to $28.2 million from $23.0 million was attributed to changes in ownership following equity transactions. Adjusted EBITDA for the quarter was reported at $299.8 million, an increase from $292.3 million in the prior year.

In terms of operational developments, Hess Midstream placed a new compressor station into service, enhancing its capacity by approximately 50 million cubic feet per day (MMcf/d), with potential for future expansion. The company also executed a unit repurchase agreement, purchasing 455,811 Class B units for approximately $18.0 million, and repurchased $42.0 million of Class A shares through an accelerated share repurchase transaction. These transactions were funded through borrowings under the existing revolving credit facility.

Hess Midstream's customer base remains heavily reliant on Chevron, which accounted for approximately 96% of accounts receivable from contracts with customers as of March 31, 2026. The company reported a decrease in throughput volumes, with oil terminaling down 5% and water gathering down 9% compared to the previous year, primarily due to lower production levels. However, gas processing volumes increased by 1%, attributed to higher third-party volumes.

Looking ahead, Hess Midstream anticipates continued revenue generation through its fee-based commercial agreements with Chevron, which provide cash flow stability and minimize exposure to commodity price fluctuations. The company expects to maintain its growth trajectory by optimizing existing assets and pursuing strategic relationships with third-party producers in the Bakken region. However, management acknowledges that fluctuations in commodity prices and production levels could impact future results.