Hess Midstream Reports $179.7 Million Net Income in Q2 2025, Driven by Increased Revenues and Operational Growth

Hess Midstream LP reported a consolidated net income of $179.7 million for the second quarter of 2025, an increase from $160.3 million in the same period last year. The net income attributable to Hess Midstream LP was $90.3 million, or $0.74 per Class A share, compared to $49.5 million, or $0.59 per Class A share, in the prior-year quarter. Total revenues for the quarter reached $414.2 million, up from $365.5 million in the second quarter of 2024, primarily driven by higher physical volumes and increased tariff rates. For the first half of 2025, total revenues were $796.2 million, compared to $721.1 million for the same period in 2024.

The company experienced significant operational growth, with throughput volumes increasing by 7% for gas processing, 9% for oil terminaling, and 11% for water gathering compared to the second quarter of 2024. This growth was attributed to higher production levels. Operating costs also rose, with total operating expenses increasing to $154.0 million from $143.2 million year-over-year, largely due to higher pass-through costs for electricity and produced water trucking, as well as increased employee costs and depreciation expenses.

Strategically, Hess Midstream underwent notable changes, including the completion of a merger between Hess and Chevron on July 18, 2025, which resulted in Chevron becoming the direct parent of Hess. This merger is expected to enhance operational synergies and strengthen Hess Midstream's market position. Additionally, the company received an investment grade rating from S&P Global Ratings on July 24, 2025, which is anticipated to provide more favorable borrowing terms and reduce certain restrictive covenants.

In terms of financial management, Hess Midstream's total assets increased to $4.423 billion as of June 30, 2025, up from $4.151 billion at the end of 2024. The company’s long-term debt also rose to $3.687 billion, reflecting ongoing investments in infrastructure and operational capacity. The partnership declared a cash distribution of $0.7370 per Class A share for the second quarter, marking an increase from the previous quarter's distribution. Looking ahead, Hess Midstream anticipates continued growth driven by its fee-based commercial agreements and strategic initiatives aimed at maximizing throughput and operational efficiency.