Hess Midstream Impresses with Stable Growth and Optimistic Outlook

Hess Midstream delivered stable operational and financial performance in the third quarter of 2024. Throughput volumes remained consistent, averaging 419 million cubic feet per day for gas processing, 122,000 barrels of oil per day for terminals, and 128,000 barrels of water per day for water gathering. Despite scheduled maintenance work at the Little Missouri 4 gas plant, facility availability remained high, and gas recovery was impressive. Hess Corporation exceeded expectations with an average net oil production of 206,000 barrels per day in the Bakken and plans to further develop this region with a drilling program consisting of four rigs. The outlook for the fourth quarter is a production volume of 200,000 to 205,000 barrels per day, considering lower volumes from equity method contracts and the impact of wildfires in North Dakota. The management of Hess Midstream reaffirms the 2024 targets with expectations for gas processing volumes between 405 million and 415 million cubic feet per day and oil terminal volumes between 120,000 and 130,000 barrels per day. A throughput increase of about 10% compared to 2023 is projected for the coming years, despite the challenges from October's wildfires. Capital expenditures for the entire year 2024 are estimated at approximately 270 million dollars to realize new compressor stations and planned gas processing facilities, which are expected to start operations in 2027. Financially, Hess Midstream remains very robust. Since 2021, 1.85 billion dollars have been returned to shareholders through share repurchases. With a 50% increase in dividends since 2021 and one of the best return metrics in the industry, the outlook remains optimistic. The net debt stands at 3.2 times EBITDA, one of the best ratios among competitors. For the next year, Hess Midstream expects increased financial flexibility of over 1.25 billion dollars by 2026. This will enable further buybacks and capital returns while maintaining a stable dividend policy.