Hess Midstream LP reported significant financial performance for the third quarter and the first nine months of 2024, reflecting growth in revenues and net income compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues reached $378.5 million, an increase from $363.1 million in Q3 2023. This growth was primarily driven by higher gas gathering volumes and increased water gathering and disposal revenue. Net income for the same period was $164.7 million, slightly down from $164.8 million in the prior year, while net income attributable to Hess Midstream LP rose to $58.6 million from $35.3 million.
For the nine months ended September 30, 2024, total revenues amounted to $1,099.6 million, up from $992.1 million in 2023. Net income attributable to Hess Midstream LP for this period was $152.7 million, compared to $81.1 million in the previous year. The increase in revenues was attributed to higher gas gathering volumes exceeding Minimum Volume Commitments (MVCs) and increased service revenues, although this was partially offset by lower crude oil tariff rates.
The company’s total assets increased to $4,146.9 million as of September 30, 2024, from $3,789.5 million at the end of 2023. Long-term debt also rose to $3,469.8 million, up from $3,198.9 million, reflecting the issuance of $600.0 million in senior unsecured notes in May 2024. The partnership maintained compliance with all debt covenants, with a total debt to EBITDA ratio not exceeding 5.00 to 1.00.
Hess Midstream LP has renewed its long-term commercial agreements with Hess for various services, effective January 1, 2024, for an additional 10-year term. These agreements include minimum volume commitments, providing cash flow stability and minimizing exposure to commodity price fluctuations. The company is also pursuing strategic relationships with third-party producers to maximize utilization rates.
In terms of capital expenditures, Hess Midstream LP is focused on expanding its compression capacity and gas capture capabilities, with new compressor stations and pipeline infrastructure expected to be completed by 2025. The partnership declared a quarterly cash distribution of $0.6846 per Class A Share, reflecting a growth in distributions compared to previous quarters.
Overall, Hess Midstream LP's financial results indicate a robust operational performance, supported by strategic agreements and capital investments aimed at enhancing service capabilities in the Bakken region.
About Hess Midstream LP
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