Hess Midstream Q3 revenue declines on lower throughput volumes
HESM•Hess Midstream’s Q3 revenue fell 3% year over year, mainly due to lower throughput volumes, while adjusted EBITDA of $319.9 million beat analyst expectations. The company raised its quarterly cash distribution and expects 2026 net income of $650 million to $675 million.
1. Q3 results
Hess Midstream reported Q3 net income of $179.1 million, adjusted EBITDA of $319.9 million and adjusted free cash flow of $247.9 million. Adjusted EBITDA beat the $313.0 million analyst consensus. Revenue declined 3% year over year, mainly because of lower throughput volumes, partly offset by higher tariff rates.
2. Outlook and distribution
The company raised its quarterly cash distribution in line with its targeted annual growth. For 2026, Hess Midstream expects net income of $650 million to $675 million and adjusted EBITDA of $1.225 billion to $1.25 billion. It targets 5% annual distribution per share growth in Q4 2026 and stable distributions in 2027.
3. Costs and investment
Operating costs fell due to reduced charges under agreements and lower maintenance expenses. Capital spending declined 73% year over year, mainly because the gas compression expansion was completed.
