Hess Midstream LP Q3 FY2024 earnings call

• John Gatling discussed third quarter performance, noting throughput volumes were stable with planned maintenance at Little Missouri four gas plant completed. Also highlighted Hess upstream production above guidance and reaffirmed 2024 throughput guidance.
• Jonathan Stein reviewed financial results, noting net income and adjusted EBITDA increases, and discussed the 2024 capital program progress, including construction on multiyear projects and the greenfield gas processing plant plan.
• Focus on executing operational priorities, safely delivering growth strategy, and driving sustainable cash flow generation.

In the third quarter, Hess Midstream's gas processing had an average throughput of 419 million cubic foot per day. For full year 2024, gas processing volumes are forecasted to average between 405 million and 415 million cubic foot per day. Crude terminaling had an average of 122,000 barrels of oil per day in Q3, with full year 2024 guidance of 120,000 to 130,000 barrels of oil per day. Water gathering had an average of 128,000 barrels of water per day in Q3, and full year 2024 guidance is 115,000 to 125,000 barrels of water per day.

• Reaffirmed 2024 throughput guidance: gas processing 405-415 million cubic foot per day, crude terminaling 120,000-130,000 barrels of oil per day, water gathering 115,000-125,000 barrels of water per day.
• Fourth quarter guidance: net income $170M-$185M, adjusted EBITDA $295M-$310M, ~5% increase in adjusted EBITDA at midpoint compared to Q3 2024.
• Long-term outlook: ~10% annualized growth in oil and gas volumes, adjusted EBITDA growth >10% per year through 2026, $1.25B financial flexibility through 2026.

• Risks include those in Hess Midstream's SEC filings, such as impacts from wildfires, maintenance activities, and market uncertainties.

Q: On sponsorship appetite and third-party volume mix.

A: Jonathan Stein discussed sponsorship demand being investor-driven and John Gatling talked about continuing to see opportunities for third-party volumes with focus on supporting Hess' production growth.

Q: Impact of wildfires on volumes and guidance.

A: John Gatling said impact is primarily on volume side with some cost, and Jonathan Stein discussed 5% growth in Q4 EBITDA despite wildfires and other factors like maintenance program.

Q: Growth in 2025 and CapEx.

A: John Gatling discussed drilling activity supporting volume growth and Jonathan Stein talked about CapEx being a timing issue for multiyear projects.

Q: Bakken trends and 2027 MVCs.

A: John Gatling discussed basin trends with gas growth expected and Jonathan Stein noted MVCs will be provided in January.

Q: M&A and financial flexibility.

A: John Gatling talked about M&A opportunities for strategic bolt-ons and Jonathan Stein discussed financial flexibility from excess free cash flow and leverage.