Hess Midstream LP Announces Updated Guidance

Hess Midstream LP (NYSE: HESM) (“Hess Midstream”) today provided updated financial and operational guidance for the remainder of 2025 based on updated expectations and for 2026 and 2027 based on an expected decrease in Bakken rig activity by Chevron from four to three drilling rigs commencing in the fourth quarter of 2025.

Highlights

• Hess Midstream continues to expect long-term growth in gas throughput volumes through at least 2027 in the Bakken while oil throughput volumes are now expected to plateau in 2026 as a result of lower planned rig activity.
• Hess Midstream expects throughput volumes to generally stay above already-established minimum volume commitments.
• Hess Midstream now expects relatively flat Adjusted EBITDA in 2026 as compared to 2025, with growth in 2027 from continued growth in gas throughput volumes and the inflation escalation provisions under Hess Midstream’s existing commercial agreements.
• Hess Midstream continues to prioritize financial strength and reiterates its long-term leverage target of 3x Adjusted EBITDA.
• Hess Midstream now expects significantly lower capital spending in 2026 and 2027 based on suspension of early engineering activities on the Capa gas plant and removal of the project from its forward plan.
• With expected continued Adjusted EBITDA growth in 2027 and lower capital expenditures in 2026 and 2027, Hess Midstream expects continued Adjusted Free Cash Flow growth through 2027 supporting its return of capital framework that continues to include targeted annual distribution per Class A share growth of at least 5% through 2027 and financial flexibility for incremental return of capital including potential share repurchases.
• Hess Midstream is also updating its full year 2025 gas throughput guidance based on adverse weather conditions and maintenance in the third quarter and lower expected third-party volumes in the fourth quarter. In 2025, full year gas gathering volumes are now anticipated to average between 455 to 465 million cubic feet (“MMcf”) of natural gas per day and gas processing volumes are now expected to average between 440 to 450 MMcf of natural gas per day. Third quarter 2025 net income and Adjusted EBITDA is expected at the lower end of the previously announced guidance range and full year 2025 net income and Adjusted EBITDA is expected to be within the lower half of the previously announced guidance range.

“Hess Midstream’s strategy continues to focus on delivering differentiated cash flow stability and balance sheet strength that supports consistent and ongoing return of capital to shareholders,” said Jonathan Stein, Chief Executive Officer of Hess Midstream.

Hess Midstream expects to issue updated operational and financial guidance, including 2028 minimum volume commitments, based on an updated development plan from Chevron and following Hess Midstream’s 2026 budget approval in December.

About Hess Midstream

Hess Midstream LP is a fee-based, growth-oriented midstream company that owns, operates, develops and acquires a diverse set of midstream assets to provide services to Chevron, its subsidiaries and third-party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.

As used in this news release, the term “Chevron” may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or to all of them taken as a whole. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.

Cautionary Note Regarding Forward-Looking Information

This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results, including our ability to increase our distributions or achieve our targeted distribution growth rate; our business strategy and profitability; the level of Chevron’s drilling activity and production in the Bakken; our construction plans for the Capa Gas Plant; our future capital expenditures; and our ability to execute future accretive opportunities, including incremental return of capital to shareholders and potential incremental repurchases.

Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: the ability of Chevron and other parties to satisfy their obligations to us, including Chevron’s ability to meet its drilling and development plans on a timely basis or at all, its ability to deliver its nominated volumes to us, and the operation of joint ventures that we may not control; our ability to generate sufficient cash flow to pay current and expected levels of distributions; reductions in the volumes of crude oil, natural gas, natural gas liquids (“NGLs”) and produced water we gather, process, terminal or store; the actual volumes we gather, process, terminal or store for Chevron in excess of our minimum volume commitments and relative to Chevron’s nominations; fluctuations in the prices and demand for crude oil, natural gas and NGLs; changes in global economic conditions and the effects of a global economic downturn or inflation on our business and the business of our suppliers, customers, business partners and lenders; our ability to comply with government regulations or make capital expenditures required to maintain compliance, including our ability to obtain or maintain permits necessary for capital projects in a timely manner, if at all, or the revocation or modification of existing permits; our ability to successfully identify, evaluate and timely execute our capital projects, investment opportunities and growth strategies, whether through organic growth or acquisitions; costs or liabilities associated with federal, state and local laws, regulations and governmental actions applicable to our business, including legislation and regulatory initiatives relating to environmental protection and health and safety, such as spills, releases, pipeline integrity and measures to limit greenhouse gas emissions and climate change; our ability to comply with the terms of our credit facility, indebtedness and other financing arrangements, which, if accelerated, we may not be able to repay; reduced demand for our midstream services, including the impact of weather or the availability of the competing third-party midstream gathering, processing and transportation operations; potential disruption or interruption of our business due to catastrophic events, such as accidents, severe weather events, labor disputes, information technology failures, constraints or disruptions and cyber-attacks; any limitations on our ability to access debt or capital markets on terms that we deem acceptable, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation; risks and uncertainties associated with Hess Corporation’s completed merger and integration with Chevron; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission.

As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Non‑GAAP Measures

In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), management utilizes certain additional non‑GAAP measures to facilitate comparisons of past performance and future periods. We define “Adjusted EBITDA” as reported net income (loss) before net interest expense, income tax expense (benefit), and depreciation and amortization, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non‑cash and non‑recurring items, if applicable. We define “Adjusted Free Cash Flow” as Adjusted EBITDA less net interest, excluding amortization of deferred financing costs, cash paid for federal and state income taxes, capital expenditures and ongoing contributions to equity investments. We believe that investors’ understanding of our performance is enhanced by disclosing these measures as they may assist in assessing our operating performance as compared to other publicly traded companies in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods, and assessing the ability of our assets to generate sufficient cash flow to make distributions to our shareholders. These measures are not, and should not be viewed as, a substitute for GAAP net income or cash flow from operating activities and should not be considered in isolation.

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