Hess Midstream LP Q3 FY2025 earnings call

• Continued to execute operational priorities and deliver financial strategy prioritizing return of capital to shareholders. - Gas throughputs increased from the second quarter despite localized flooding in August, with third-party volumes up due to Northern Border pipeline maintenance. - Executed a $100 million share and unit repurchase in the third quarter and increased distribution by 2.4% (approx. 10% annualized for Class A share). - Safely completed and brought online the first of 2 new compressor stations in the third quarter, with second expected in fourth quarter. - Suspended activities on the Capa gas plant and moved project from forward plans, reducing full-year 2025 capital expenditures to approx. $270 million.

In the third quarter, Hess Midstream's throughput volumes averaged 462 million cubic feet per day of gas processing, 130,000 barrels of oil per day for crude terminaling, and 137,000 barrels of water per day for water gathering. Gas represents 75% of the company's revenues.

• Fourth quarter net income expected to be $170 million to $180 million, adjusted EBITDA $315 million to $325 million. - Full-year 2025 net income narrowed to $685 million to $695 million, adjusted EBITDA to $1.245 billion to $1.255 billion. - 2025 capital expenditures expected to be approx. $270 million, adjusted free cash flow $760 million to $770 million. - Distributions per Class A share targeted to grow at least 5% annually, with excess adjusted free cash flow of approx. $140 million after fully funding distributions. - Guidance for 2026 and 2028 MVCs to be released after budget process concludes in December.

Q: Dive in on Bakken trends, GORs, and impact on business?

A: Historically, GORs relevant; with Chevron running 3 rigs, expect oil to plateau and gas to increase over time as gas is 75% of revenues.

Q: Thoughts on 2026 beyond MVCs?

A: Will finish development planning with Chevron, approve budget in December, then provide 2026 guidance and 2028 MVC.

Q: Thoughts on share price volatility and buyback cadence?

A: Leverage at 3x, lower CapEx will assist free cash flow, providing financial flexibility for share repurchases.

Q: CapEx outlook?

A: Significantly lower CapEx expected, previously $250 million to $300 million, now lower, with some small growth projects, next year will see benefit of lower capital.

Q: Relationship with Chevron as sponsor?

A: Integration going well, board meetings held, distributions increased, focus on safety, efficiency, capital discipline.

Q: 2028 MVCs process?

A: Process defined in commercial agreements, Chevron delivers development plan, system plan developed, MVC set at 80% of third year of development plan.

Q: Implication of Chevron's 3-rig program?

A: Oil plates, gas continues to grow, aligns with Chevron's goal of 200,000 barrels of oil equivalent per day for foreseeable future.