Hess Midstream LP reported a consolidated net income of $175.5 million for the third quarter of 2025, reflecting an increase from $164.7 million in the same period last year. The net income attributable to Hess Midstream LP was $97.7 million, or $0.75 per Class A share, compared to $58.6 million, or $0.63 per share, in the prior year. Total revenues for the quarter reached $420.9 million, up from $378.5 million in the third quarter of 2024, primarily driven by higher physical volumes and increased tariff rates.
For the nine months ended September 30, 2025, total revenues amounted to $1.217 billion, a significant increase from $1.099 billion in the same period of 2024. The growth in revenue was attributed to a rise in affiliate services, which generated $1.185 billion, compared to $1.079 billion in the previous year. Operating costs also increased, with total operating expenses rising to $460.6 million from $423.6 million, largely due to higher employee costs and depreciation expenses.
Strategically, Hess Midstream has undergone significant changes, including the completion of a merger with Chevron on July 18, 2025, which positioned Chevron as the direct parent of Hess. This merger is expected to enhance operational synergies and strengthen Hess Midstream's market position. Additionally, the company has been actively repurchasing its Class A shares, with $70 million repurchased in the third quarter alone, funded through its revolving credit facility.
Operationally, Hess Midstream reported a 10% increase in gas processing throughput, a 7% increase in oil terminaling, and a 7% increase in water gathering volumes compared to the third quarter of 2024. The company continues to focus on expanding its infrastructure, including the construction of new compressor stations to support increased production in the Bakken region. As of September 30, 2025, the company had total assets of $4.438 billion, up from $4.151 billion at the end of 2024.
Looking ahead, Hess Midstream anticipates continued growth driven by its fee-based commercial agreements with Chevron and third-party producers. The company expects to maintain its cash flow stability through minimum volume commitments and inflation-adjusted fee structures. However, it remains cautious about potential market volatility and its impact on production rates and investment decisions in the oil and gas sector. The company declared a quarterly cash distribution of $0.7548 per Class A share, reflecting a commitment to returning capital to shareholders while navigating the evolving market landscape.
About Hess Midstream LP
Hess Midstream LP owns and operates fee-based midstream assets primarily in North Dakota's Bakken shale, providing gathering, processing, storage, terminaling, and water disposal services to Hess and third parties. Its core business involves transporting and processing natural gas, crude oil, and NGLs, with long-term fee agreements ensuring stable cash flows. The company leverages its strategic infrastructure and diversified services to support oil and gas production in a regulated environment.
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