Hess Midstream Forecasts $650M–$700M Net Income, $1.25B Adjusted EBITDA, $850M–$900M Adjusted Free Cash Flow For 2026

Hess Midstream LP (NYSE:HESM) ("Hess Midstream") today provided financial and operational guidance and expectations.

"We continue to successfully execute our strategy of delivering safe and reliable execution," said Jonathan Stein, Chief Executive Officer of Hess Midstream. "With growing net income and Adjusted EBITDA together with planned significant reductions in future capital expenditures, we expect to have clear visibility to a sustained increase in cash flow and continued returns to shareholders."

Full Year 2026 Guidance

Hess Midstream expects full year 2026 net income of between $650 million and $700 million and Adjusted EBITDA of between $1,225 million and $1,275 million. Gross Adjusted EBITDA Margin1 is targeted to be approximately 75% in 2026.

In 2026, Hess Midstream expects to generate Adjusted Free Cash Flow of between $850 million and $900 million and approximately $210 million at the midpoint of guidance after funding distributions that are targeted to grow at least 5% per annum on a distribution per Class A share basis.

In 2026, full year gas gathering volumes are anticipated to average between 450 to 460 million cubic feet ("MMcf") of natural gas per day and gas processing volumes are expected to average 435 to 445 MMcf of natural gas per day, reflecting Chevron's three-rig program in the Bakken.

Crude oil gathering volumes are anticipated to average 115 to 125 thousand barrels ("MBbl") per day of crude oil in 2026, and crude oil terminaling volumes are expected to average 125 to 135 MBbl of crude oil per day.

Water gathering volumes are expected to average 125 to 135 MBbl of water per day for full year 2026.

Full Year 2026 Capital Guidance

Hess Midstream expects 2026 capital expenditures of approximately $150 million. Approximately $125 million of the 2026 capital budget is allocated to ongoing capital expenditures for gathering system well connects to service Chevron and third-party customers and maintenance, while approximately $25 million is allocated to complete compression and gathering pipeline buildout.

Full year 2026 guidance is summarized below:

	Year Ending
	December 31, 2026
	(Unaudited)
Financials (in millions)
Net income	$	650 – 700
Adjusted EBITDA	$	1,225 – 1,275
Capital expenditures	$	150
Adjusted free cash flow	$	850 – 900

	Year Ending
	December 31, 2026
	(Unaudited)
Throughput volumes
Gas gathering - MMcf of natural gas per day	450 – 460
Crude oil gathering - MBbl of crude oil per day	115 – 125
Gas processing - MMcf of natural gas per day	435 – 445
Crude terminals - MBbl of crude oil per day	125 – 135
Water gathering - MBbl of water per day	125 – 135

Minimum Volume Commitments

As part of the annual nomination process set forth in our long-term commercial contracts with Chevron, MVCs were reviewed and updated based on Chevron's volume nominations, which are based on Chevron's expectations of its own volumes and third-party throughput volumes contracted through Chevron. MVCs are set annually at 80% of Chevron's nomination for the three years following each nomination. Once set, MVCs for each year can only be increased and not reduced.

	Chevron Minimum Volume Commitments
	2026		2027		2028
Gas Gathering Agreement- MMcf of natural gas per day	419		422		346
Crude Oil Gathering Agreement- MBbl of crude oil per day	111		113		89
Gas Processing and Fractionation Agreement- MMcf of natural gas per day	396		404		336
Terminaling and Export Services Agreement - MBbl of crude oil per day	118		124		99
Water Services Agreement - MBbl of water per day	105		100		94

Long-Term Volume and Financial Metrics

Supported by a combination of growth in physical volumes across gas systems, higher average tariff rates and lower capital spending from 2026 through 2028, Hess Midstream expects net income and Adjusted EBITDA annualized growth of approximately 5% through 2028 from 2026 levels. Gas processing and gathering is expected to represent approximately 75% of total affiliate revenues in 2026 and 2027, excluding pass-through revenues. Gross Adjusted EBITDA Margin is targeted to be approximately 75% from 2026 through 2028. Hess Midstream expects to start paying income taxes in 2026.

Hess Midstream expects capital expenditures of less than $75 million a year in each of 2027 and 2028, significantly lower compared with 2026 levels. This includes ongoing capital expenditures focused on the interconnection of Chevron and third-party gas, oil, water volumes and maintenance.

Hess Midstream expects Adjusted Free Cash Flow annualized growth of approximately 10% through 2028 from 2026 levels, which is expected to be more than sufficient to fully fund targeted distribution growth.

Hess Midstream expects approximately 1.5% annualized growth in gas throughput volumes and relatively flat oil throughput volumes from 2026 through 2028, consistent with Chevron's plans to maintain production at approximately 200,000 barrels of oil equivalent per day and Hess Midstream maintaining third party volumes at 10% of total throughput on average across oil and gas volumes.

Capital Allocation

Hess Midstream is targeting annual distribution per Class A share growth of at least 5% through 2028, expected to be fully funded from Adjusted Free Cash Flow and expects to generate approximately $1 billion of Adjusted Free Cash Flow after Distributions through 2028 that is expected to be available for incremental shareholder returns and debt repayment. Hess Midstream continues to prioritize financial strength and expects its long-term leverage to decrease below 3x Adjusted EBITDA.

Governance Changes

With Hess Corporation's ("Hess") integration with Chevron largely complete and his appointment as an executive officer of Chevron, Andrew Walz resigned from the board of directors of Hess Midstream GP LLC, the general partner of Hess Midstream's general partner (the "Hess Midstream Board"), effective December 4, 2025. Kristi McCarthy, an existing member of the Hess Midstream Board, has been appointed the new Chair. In addition, Barbara Harrison, vice president, Crude Supply and Trading at Chevron, has been appointed to the Hess Midstream Board.