Hess Midstream LP reported a significant increase in financial performance for the year ended December 31, 2024, with total revenues reaching $1.495 billion, up from $1.349 billion in 2023, marking a 10.9% increase. The company’s net income attributable to Hess Midstream LP was $223.1 million, or $2.51 per Class A share, compared to $118.6 million, or $2.11 per Class A share, in the previous year. This growth was primarily driven by increased throughput volumes across its gathering, processing, and terminaling segments, reflecting heightened drilling activity by Hess Corporation in the Bakken region.
The company experienced notable operational improvements, with throughput volumes for gas processing increasing by 14%, crude oil gathering by 14%, and water gathering by 32% compared to 2023. These increases were attributed to Hess's enhanced drilling activities and improved gas capture capabilities. Additionally, Hess Midstream's revenues from third-party services rose to $24.1 million, up from $8 million in 2023, indicating a successful expansion of its customer base beyond Hess.
Strategically, Hess Midstream has been actively involved in capital projects to expand its infrastructure, including the addition of new compressor stations and pipeline expansions. In 2024, the company added approximately 50 MMcf/d of net compression capacity and is expected to bring two new compressor stations online in 2025, which will further enhance its gas capture capabilities. The company also executed several equity transactions, including the repurchase of Class B Units from its sponsors, totaling approximately $300 million, which reflects its ongoing strategy to optimize its capital structure.
Looking ahead, Hess Midstream's outlook remains positive, supported by long-term fee-based agreements with Hess that provide cash flow stability and downside protection. The company anticipates continued growth in throughput volumes as Hess expands its production in the Bakken. However, it also acknowledges potential risks, including fluctuations in commodity prices and regulatory changes that could impact its operations. The company’s management is focused on leveraging its existing infrastructure to attract additional third-party business while maintaining a disciplined financial strategy to support future growth.
About Hess Midstream LP
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